Chapter 03 IHRM
Chapter 03 IHRM
Chapter 03 IHRM
Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning Peter Dowling and Denice Welch
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Chapter objectives
The previous two chapters concentrated on the global environment and organizational contexts. We now focus on the managing people aspect. The aim is to establish the role of HRM in sustaining international business operations and growth. We cover the following: issues relating to the various approaches to staffing foreign operations the reasons for using international assignments: position filling, management development and organizational development (cont.)
Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning Peter Dowling and Denice Welch
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Approaches to staffing
Factors affecting approaches to staffing
General staffing policy on key positions at headquarters and subsidiaries
Ethnocentric Polycentric Geocentric Regiocentric
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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
Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning Peter Dowling and Denice Welch
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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
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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
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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
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Table 3-1: The advantages and disadvantages of using PCNs, TCNs and HCNs
Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning Peter Dowling and Denice Welch
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Management development
Training and development purposes, assisting in developing common corporate values
Organizational development
Need for control, transfer of knowledge, competence, procedures and practices
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Extended
Up to 1 year
Long term
Varies from 1 to 5 years The traditional expatriate assignment
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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
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Roles of an expatriate
Agent of direct control Agent of socialization Network builder Boundary spanner Language node Transfer of competence and knowledge
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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
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Chapter summary
This chapter has expanded on the role of IHRM in sustaining international business operations. We have: Looked at the various approaches to staffing international operations ethnocentric, polycentric, geocentric and regiocentric examining their advantages and disadvantages and factors that may determine the choice of these options. Considered the reasons for using international assignments: position filling, management development and organization development. (cont.)
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