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DEFINING IHRM
The IHRM may be defined as the interplay between the three important dimensions of human resource management- types of employees, human resource activities and the country of operation. IHRM is the process of procuring, allocating and effectively utilizing human resources in a multinational corporations
Type of Employees in Multi National Companies HCN, PCN, and TCN HCN (Host Country National) IBM employs Indian Citizens in Indian Operations PCN (Parent Country National) IBM sends US citizen to India on assignment TCN (Third Country National) IBM sends Singaporean employee on assignment to
IHRM STRATEGIES
Ethnocentric Approach Staffing the key positions with PCNs Generally common at the initial stage of internationalization Lack of qualified HCNs Limits the opportunities for HCNs and hence more turn over Compensation variation between PCN and HCN and hence low morale of HCNs Polycentric Approach HCNs are recruited to manage subsidiaries in their own countries and PCN in corporate HQs Avoids adjustment problems of expatriate Employment of HCN is less expensive Some of the disadvantages of Ethnocentric are overcome
Geocentric Approach Utilisation of best people for the key jobs throughout the organisation regardless of nationality Availability of competent persons throughout the organisation Organisations able to deliver high performance Regiocentric Approach Modification of Geocentric approach Staffing is on regional approach It helps the organisations to move from ethno/polycentric to geocentric Opportunities are limited to regional level only
Foreign Production
Sale Subsidiary
Exporting Licensing
Subcontracting