Group- G

HRM460 [Section-2]
Members’ Name ID
Tushar Rahman 1730026
Syeda Mubashera Esha 1810307
Noorus Sabah 1731142
Company Overview
Hiring PCN, HCN, TCN
When a country recruit employee from
its own country.

When a country run their business in another

country and recruit employees from that country.
PepsiCo mostly hire HCN’s because, HCN are
familiar with the environment, they know local
business subtleties.

They are the citizens of one country

employed by company from another
country who worked in a third country
Compensation system across
nations
 Compensation might vary across nations cause:
 
 Organizational Culture.
 Labor market characteristics.
 Host country govt roles.
 Industry type.
 Competitors Strategies.
 Two main approach in international compensation:
 Balance sheet approach
Going rate approach (PepsiCo Follows)
A check list of necessary HR related
activities regarding new operations

Establish Organizational Design

Establish Recruiting Procedures for

the New Operational County

Outline Regulations for Compliance,

Safety, and Health

Determine Compensation and Benefits

Maintain Employee Relationships

Develop Training Programs and

Performance Management Methods
Inter country culture
differences affect
International HR
practices
Cultural Country Cultural Differences HR Activities Differences

Power Distance i. South Africa i. High Power Distance. i. Hierarchies’ procedure is

Index ii. New ii. Low Power Distance. more complex. And Large
Zealand gap in compensation system.
ii. Hierarchies’ procedure is
more complex.
iii. Minimum gap in
compensation system.

Individualism vs i. Australia i. High Individualism and low i. Give high value to

collectivism ii. China collectivism. employee’s time and need for
ii. Low Individualism and high their privacy and freedom.
collectivism. ii. Emphasis on building skills,
knowledges and Maintain
harmony among group
members overrides group.

Masculinity vs i. Switzerland i. High Masculinity, Low i. Strong egos-feelings, money

Femininity ii. India Femininity. and achievement is main
ii. Low Masculinity, high target.
femininity. ii. Relationship Oriented.
Cultural Country Cultural Differences HR Activities
Differences

Uncertainty Avoidance i. Mexico i. Low Uncertainty i. Openness to change

Index ii. Russia Avoidance Index or innovation,
ii. High Uncertainty generally inclusive.
Avoidance Index ii. Conservative, rigid
and structured.

Long-term vs Short- i. Switzerland i. Long- Term i. Switzerland HR

term orientation ii. United States Orientation follows short-term
ii. Short-Term gains and quick
Orientation results.
ii. US HR follows
short-term gains
and quick results.
Success factors of PepsiCo

Benefits for their employees:

 Flexible working hour
 Voice open fearlessly
 Individual law department for
employees
 Beyond zero policy
 Raise the Bar on Talent and diversity

Winner for “ PepsiCo’s Global

leadership Assessment and
Development” in 2018
 Polycentric approach

Staffing System
Minimize culture narrow-
of PepsiCo mindedness

Less costly
International Human Resource
Development Approach
Here, we are giving two International Human
Resource Development Approaches of Japan.

• OJT approach
you are welcome to ask any question…