 There are several reasons why human resources management is different in the global environment than in domestic markets:  Differences in labour market worldwide ( i.e. labour costs, workers)  Differences in labour mobility ( i.e. moving from country to country – culture, language, legal etc.)  Different managerial practices

 Host-country nationals, or locals, are natives of the country in which they work. ( i.e. you working at Best Buy)  Locals are usually culturally sensitive and easy to find, but they may not have the knowledge and skills needed by the foreign company.

 In other cases, the companies must choose expatriates - people who live and work outside their native countries. ( i.e. A Canadian running a hockey rink in Thailand)

 Expatriates from the country in which their company is headquartered are called parent-country nationals, or home-country nationals. ( i.e. A Canadian from RIM working in their factory in China)  Parent-country nationals often have the needed knowledge and skills and the right company orientation, but they often lack the appropriate local language and cultural skills.  Companies usually find parent-country nationals more expensive to hire then other types of workers.  Also, local laws could restrict employment of these parent- country nationals.

 Expatriates from countries other than the home country of their company or the host country are called third-country nationals.  Third-country nationals could be more adaptable to local conditions than parent-country nationals.  They may speak the local language and be able to make needed changes in culturally sensitive ways.  In some cases, they could be more acceptable to locals than parent-country nationals.  However, they may lack the desired company orientation. Regulations may make it difficult to hire them unless locals are unqualified.

1) Ethnocentric  uses natives of the parent country of a business to fill key positions at home and abroad.  Ex. US parent company managed by Americans and Mexican subsidiary also managed by Americans.

ProsCons Useful when new tech. Is being introduced Deprives locals the opportunity for managerial jobs Useful when prior experience is important Lower morale and productivity of local workers Can train and develop local employees Parent Country natives may not be culturally sensitive enough

2) Polycentric  uses natives of the host country to manage operations within their country and parent- country natives to manage at head-quarters.  Ex. Australian Parent Company has Australian managers, and Indian Subsidiary has Indian managers

ProsCons Locals manage their locationCulture gap between head office and subsidiary CheaperLimited opportunities for advancement Culturally sensitive managersCorporate headquarters has little or no international experience

3) Regiocentric  uses managers from various countries within geographic regions of a business - in terms of the host country.  Ex. US parent company has American managers, Italian subsidiary has a variety of managers from geographic regions like France and Germany

ProsCons Regional expertise is valuedRegional managers may not understand headquarters directives Host Country managers can easily step in Local managers without international experience

4) Geocentric Approach  the best available managers without regard for their countries of origin.  Ex. UK parent company has a variety of managers and US subsidiary has a variety of managers

ProsCons Develop international managers and reduces national bias Getting approval for non-natives to work in a country can be very difficult/ impossible Expensive – requires a lot of training, development, and relocation costs