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IHRM: Sustaining International Business Operations: Chapter No. 3
IHRM: Sustaining International Business Operations: Chapter No. 3
IHRM: Sustaining International Business Operations: Chapter No. 3
business operations
Chapter no. 3
Approaches to staffing
Factors affecting approaches to staffing
General staffing policy on key positions at
headquarters and subsidiaries
Ethnocentric
Polycentric
Geocentric
Regiocentric
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
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
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
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
Management development
Training and development purposes, assisting in
developing common corporate values
Organizational development
Need for control, transfer of knowledge, competence,
procedures and practices
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
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
Roles of an expatriate
Adv.
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
Disadv.
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