Chapter 03 IHRM

8/4/2019 Chapter 03 IHRM

1/25

1

Use with International Human Resource Management ISBN 1-84480013-XPublished by Thomson Learning Peter Dowling and Denice Welch

3/1

Chapter 3IHRM: Sustaining international

business operations


2/25

2


3/2

Chapter objectives

issues relating to the various approaches to staffing foreign

operations

the reasons for using international assignments: positionfilling, management development and organizational

development

(cont.)

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 andgrowth. We cover the following:


3/25

3


3/3

Chapter objectives (cont.)

the various types of international assignments: short-term,

extended and longer-term; and non-standard arrangements:

commuter, rotator, contractual and virtual

the role of expatriates and non-expatriates (internationalbusiness travelers) in supporting international business

activities

the role of the corporate HR function.


4/25

4


3/4

Approaches to staffing

Factors affecting approaches to staffing

General staffing policy on key positions at

headquarters and subsidiaries Ethnocentric

Polycentric

Geocentric

RegiocentricConstraints placed by host government

Staff availability


5/25

5


3/5

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


6/25

6


3/6

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


7/25

7Use with International Human Resource Management ISBN 1-84480013-XPublished by Thomson Learning Peter Dowling and Denice Welch

3/7

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


8/25


3/8

Figure 3-1: Geocentric staffing requirements


9/25


3/9

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


10/25


3/10

Table 3-1: The advantages and disadvantages of using PCNs,

TCNs and HCNs


11/25


3/11

Figure 3-2: Determinants of IHRM approaches and activities


12/25


3/12

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


13/25


3/13

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


14/25


3/14

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 notalways effective substitutes for the traditional

expatriate assignment


15/25


3/15

Figure 3-3: Factors influencing virtual assignments


16/25


3/16

Roles of an expatriate

Agent of direct control

Agent of socialization

Network builder

Boundary spanner

Language node Transfer of competence and knowledge


17/25


3/17

Figure 3-4: The roles of an expatriate


18/25


3/18

The role of non-expatriates

People who travel internationally yet are notconsidered expatriates as they do not

relocate to another countryRoad warriors, globetrotters, frequent fliers

Much of international business involvesvisits to foreign locations, eg.

Sales staff attending trade fairs

Periodic visits to foreign operations


19/25


3/19

A glamorous life?

International business travelers cite the

positives as:

Excitement and thrills of conducting businessdeals in foreign locations

Life style (top hotels, duty-free shopping,

business class travel)General exotic nature


20/25


3/20

But a high level of stress!

Home and family issuesfrequent absences

Work arrangementsdomestic side of

position still has to be attended to Travel logisticswaiting in airports, etc.

Health concernspoor diet, lack of sleep,

etc. Host culture issueslimited cultural

training


21/25


3/21

Table 3-2: Various roles of corporate HR


22/25


3/22

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 controland what can be decentralized?


23/25


3/23

Chapter summary

Looked at the various approaches to staffing international

operationsethnocentric, polycentric, geocentric andregiocentricexamining 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 organizationdevelopment.

(cont.)

This chapter has expanded on the role of IHRM in sustaining

international business operations. We have:


24/25


3/24

Chapter summary (cont.) Discussed the various types of international assignments: short,

extended and long-term (traditional); and non-standard forms

such as commuter, rotational, contractual and virtual

assignments.

Examined the various roles of the expatriate: as an agent for

direct control, as an agent for socialization, as network builders,

as boundary spanners and as language nodes. These various roles

of the expatriate help to explain why expatriates are utilized and

illustrates why international assignments continue to be animportant aspect of international business from the

organizations perspective.

(cont.)


25/25


3/25

Chapter summary (cont.)

Recognized that non-expatriates are also critical to international

business operations. International business travelers present their

own challenges, such as the effect of frequent absences on family

and home life, the possible negative health effects and otherstress factors. The management of such individuals, however,

does not appear to fall within the domain of the HR department.

Looked at the role of the corporate HR function as the firm

grows internationally, building on sections from Chapters 1 and

2.

Chapter 03 IHRM

Documents

Transcript of Chapter 03 IHRM