1 Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch 3/1 Chapter 3 IHRM: Sustaining international business operations 2 Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch 3/2 Chapter objectives • issues relating to the various approaches to staffing foreign operations • the reasons for using international assignments: position filling, 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 and growth. We cover the following: 3 Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch 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 (international business travelers) in supporting international business activities • the role of the corporate HR function. 4 Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch 3/4 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 5 Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch 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 Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch 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 Use with International Human Resource Management ISBN 1-84480013-X Published 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 Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch 3/8 Figure 3-1: Geocentric staffing requirements 9 Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch 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 Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch 3/10 Table 3-1: The advantages and disadvantages of using PCNs, TCNs and HCNs [...]... culture issues – limited cultural training Use with International Human Resource Management ISBN 1-8 44800 1 3- X Published by Thomson Learning © Peter Dowling and Denice Welch 20 3/ 20 Table 3- 2 : Various roles of corporate HR Use with International Human Resource Management ISBN 1-8 44800 1 3- X Published by Thomson Learning © Peter Dowling and Denice Welch 21 3/ 21 The role of the corporate HR function • Can... practices Use with International Human Resource Management ISBN 1-8 44800 1 3- X Published by Thomson Learning © Peter Dowling and Denice Welch 12 3/ 12 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 Use with International Human Resource Management ISBN 1-8 44800 1 3- X Published by Thomson... International Human Resource Management ISBN 1-8 44800 1 3- X Published by Thomson Learning © Peter Dowling and Denice Welch 16 3/ 16 Figure 3- 4 : The roles of an expatriate Use with International Human Resource Management ISBN 1-8 44800 1 3- X Published by Thomson Learning © Peter Dowling and Denice Welch 17 3/ 17 The role of non-expatriates • People who travel internationally yet are not considered expatriates... 14 3/ 14 Figure 3- 3 : Factors influencing virtual assignments Use with International Human Resource Management ISBN 1-8 44800 1 3- X Published by Thomson Learning © Peter Dowling and Denice Welch 15 3/ 15 Roles of an expatriate • • • • • • Agent of direct control Agent of socialization Network builder Boundary spanner Language node Transfer of competence and knowledge Use with International Human Resource Management. .. reasons for using international assignments: position filling, management development and organization development (cont.) Use with International Human Resource Management ISBN 1-8 44800 1 3- X Published by Thomson Learning © Peter Dowling and Denice Welch 23 3/ 23 Chapter summary (cont.) • Discussed the various types of international assignments: short, extended and long-term (traditional); and non-standard forms... illustrates why international assignments continue to be an important aspect of international business from the organization’s perspective (cont.) Use with International Human Resource Management ISBN 1-8 44800 1 3- X Published by Thomson Learning © Peter Dowling and Denice Welch 24 3/ 24 Chapter summary (cont.) • Recognized that non-expatriates are also critical to international business operations International. .. central control and what can be decentralized? Use with International Human Resource Management ISBN 1-8 44800 1 3- X Published by Thomson Learning © Peter Dowling and Denice Welch 22 3/ 22 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,... and Denice Welch 13 3/ 13 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 Use with International Human Resource Management ISBN 1-8 44800 1 3- X Published by Thomson...Figure 3- 2 : Determinants of IHRM approaches and activities Use with International Human Resource Management ISBN 1-8 44800 1 3- X Published by Thomson Learning © Peter Dowling and Denice Welch 11 3/ 11 Reasons for international assignments • Position filling – Eg Skills gap, launch of new endeavour, technology transfer • Management development – Training and development... 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 Use with International Human Resource Management ISBN 1-8 44800 1 3- X Published by Thomson Learning © Peter Dowling and Denice Welch 25 3/ 25 . International Human Resource Management ISBN 1-8 44800 1 3- X Published by Thomson Learning © Peter Dowling and Denice Welch 3/ 17 Figure 3- 4 : The roles of an expatriate 18 Use with International Human Resource. with International Human Resource Management ISBN 1-8 44800 1 3- X Published by Thomson Learning © Peter Dowling and Denice Welch 3/ 8 Figure 3- 1 : Geocentric staffing requirements 9 Use with International. procedures and practices 13 Use with International Human Resource Management ISBN 1-8 44800 1 3- X Published by Thomson Learning © Peter Dowling and Denice Welch 3/ 13 Types of international assignments • Short