1. IHRM: Sustaining international business operations

2. Approaches to staffing
Factors affecting approaches to staffing
General staffing policy on key positions at headquarters and subsidiaries
Ethnocentric
Polycentric
Geocentric
Regiocentric
Constraints placed by host government
Staff availability

3. Ethnocentric Strategic decisions are made at headquarters
Limited subsidiary autonomy
Key positions in domestic and foreign operations are held by headquarters’ personnel; PCNs manage subsidiaries

4. Polycentric
Each subsidiary is a distinct national entity with some decision-making autonomy
HCNs manage subsidiaries who are seldom promoted to HQ positions
PCNs rarely transferred to subsidiary positions

5. Geocentric A global approach - worldwide integration
View that each part of the organization makes a unique contribution
Nationality ignored in favour of ability:
Best person for the job
Colour of passport does not matter when it comes to rewards, promotion and development

6. Figure 3-1: Geocentric staffing requirements

7. Regiocentric Reflects a regional strategy and structure
Regional autonomy in decision making
Staff move within the designated region, rather than globally
Staff transfers between regions are rare

8. Table 3-1: The advantages and disadvantages of using PCNs, TCNs and HCNs

9. Figure 3-2: Determinants of IHRM approaches and activities

10. Reasons for international assignments
Position filling
Eg. Skills gap, launch of new endeavour, technology transfer
Management development
Training and development purposes, assisting in developing common corporate values
Organizational development
Need for control, transfer of knowledge, competence, procedures and practices

11. Types of international assignments
Short term
Up to 3 months
Extended
Up to 1 year
Long term
Varies from 1 to 5 years
The traditional expatriate assignment

12. Non-standard assignments
Commuter assignments
Rotational assignments
Contractual assignments
Virtual assignments
Some of these arrangements assist in overcoming the high cost of international assignments but are not always effective substitutes for the traditional expatriate assignment

13. Figure 3-3: Factors influencing virtual assignments

14. Roles of an expatriate Agent of direct control Agent of socialization
Network builder
Boundary spanner
Language node
Transfer of competence and knowledge

15. Figure 3-4: The roles of an expatriate

16. The role of non-expatriates
People who travel internationally yet are not considered expatriates as they do not relocate to another country
Road warriors, globetrotters, frequent fliers
Much of international business involves visits to foreign locations, eg.
Sales staff attending trade fairs
Periodic visits to foreign operations

17. A glamorous life?
International business travelers cite the positives as:
Excitement and thrills of conducting business deals in foreign locations
Life style (top hotels, duty-free shopping, business class travel)
General exotic nature

18. But a high level of stress!
Home and family issues – frequent absences
Work arrangements – domestic side of position still has to be attended to
Travel logistics – waiting in airports, etc.
Health concerns – poor diet, lack of sleep, etc.
Host culture issues – limited cultural training

19. Table 3-2: Various roles of corporate HR

20. The role of the corporate HR function
Can we manage our people like a global product? The feasibility of:
The concept of a global internal labour market
Standardization of work practices and HR activities
What HR matters require central control and what can be decentralized?