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
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
Figure 3-1: Geocentric staffing requirements
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
Table 3-1: The advantages and disadvantages of using PCNs, TCNs and HCNs
Figure 3-2: Determinants of IHRM approaches and activities
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
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
Figure 3-3: Factors influencing virtual assignments
Roles of an expatriate
 Agent of direct control
 Agent of socialization
 Network builder
 Boundary spanner
 Language node
 Transfer of competence and knowledge
Figure 3-4: The roles of an expatriate
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
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
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
Table 3-2: Various roles of corporate HR