International human resource management - Chapter 3

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Nội dung Text: International human resource management - Chapter 3

Chapter 3 IHRM: Sustaining international business operations 1 3/ 1 Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch
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.) 2 3/ 2 Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch
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. 3 3/ 3 Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch
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 4 3/4 Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch
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 5 3/ 5 Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch
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 6 3/ 6 Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch
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 7 3/ 7 Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch
Figure 3-1: Geocentric staffing requirements 8 3/ 8 Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch
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 9 3/ 9 Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch
Table 3-1: The advantages and disadvantages of using PCNs, TCNs and HCNs 10 3/10 Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch
Figure 3-2: Determinants of IHRM approaches and activities 11 3/11 Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch
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 12 3/12 Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch
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 13 3/13 Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch
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 14 3/14 Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch
Figure 3-3: Factors influencing virtual assignments 15 3/15 Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch
Roles of an expatriate • Agent of direct control • Agent of socialization • Network builder • Boundary spanner • Language node • Transfer of competence and knowledge 16 3/16 Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch
Figure 3-4: The roles of an expatriate 17 3/17 Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch
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 18 3/18 Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch
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 19 3/19 Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch
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 20 3/20 Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch