International human resource management - Chapter 3 ppt

Chapter 3IHRM: Sustaining international business operations... The aim is to establish the role of HRM in sustaining international business operations and growth.. Chapter objectives c

Chapter 3

IHRM: Sustaining international

business operations

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:

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 (international

business travelers) in supporting international business

activities

• the role of the corporate HR function.

Approaches to staffing

• Factors affecting approaches to staffing

– General staffing policy on key positions at

headquarters and subsidiaries

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

• 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

Figure 3-1: Geocentric staffing requirements

• 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

Table 3-1: The advantages and disadvantages of using

Figure 3-2: Determinants of IHRM approaches and activities

Reasons for international

– Training and development purposes, assisting in

developing common corporate values

• Organizational development

– Need for control, transfer of knowledge, competence,

procedures and practices

– Varies from 1 to 5 years

– The traditional expatriate assignment

Figure 3-3: Factors influencing virtual assignments

Figure 3-4: The roles of an expatriate

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

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

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

Table 3-2: Various roles of corporate HR

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?

Chapter summary

• 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.)

This chapter has expanded on the role of IHRM in sustaining

international business operations We have:

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 an important aspect of international business from the organization’s perspective

(cont.)

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 other stress 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.