IHRM ppt

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Factors Affecting International Staffing. Approaches to International Staffing - Transfer of Staff for International Business Activities Reasons For International Assignments Types of International Assignments Short term Long term The traditional expatriate assignment Non-standard Assignments Commuter assignments Rotational assignments Contractual assignments Virtual assignments Roles of an Expatriate Roles of Non-expatriates Role of Corporate HR Function

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IHRM : International Business Operations muhammad m0inuddin PGP/SS/09-11/HR Roll No - 15

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“ Staffing is the process of acquiring , deploying and retaining a workforce of sufficient quantity and quality to create positive impacts on the organization's effectiveness ” 8/17/2010 mOin - PGP/SS/09-11/HR 2

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Factors Affecting Staffing General staffing policy on key positions at headquarters and subsidiaries Constraints placed by host government Staff availability 8/17/2010 mOin - PGP/SS/09-11/HR 3

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Approaches to Staffing Ethnocentric Polycentric Geocentric Regiocentric 8/17/2010 mOin - PGP/SS/09-11/HR 4

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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. 8/17/2010 mOin - PGP/SS/09-11/HR 5

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Advantages: To ensure new subsidiary complies with overall corporate objectives and policies Has the required level of competence Disadvantages: Limits the promotion opportunities of HCNs, leading to reduced productivity and increased turnover among the HCNs Longer time for PCNs to adapt to host countries, leading to errors and poor decisions being made High cost 8/17/2010 mOin - PGP/SS/09-11/HR 6

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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. 8/17/2010 mOin - PGP/SS/09-11/HR 7

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Advantages: Employment of HCNs eliminates language barriers, reduces the need for cultural awareness training programs Employment of HCNs allows a multinational company to take a lower profile in sensitive political situations Employment of HCNs is less expensive Employment of HCNs gives continuity to the management of foreign subsidiaries (lower turnover of key managers) Disadvantages: Difficult to bridge the gap between HCN subsidiary managers and PCN managers at headquarters ( language barriers, conflicting national loyalties, cultural differences) HCN managers have limited opportunities to gain experience outside their own country PCN managers have limited opportunities to gain international experience Resource allocation and strategic decision making will be constrained when headquarter is filled only by PCNs who have limited exposure to international assignment 8/17/2010 mOin - PGP/SS/09-11/HR 8

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Geocentric A global approach - worldwide integration; View that each part of the organization makes a unique contribution; Nationality is ignored in favor of ability: Best person for the job; Color of passport does not matter when it comes to rewards, promotion and development. 8/17/2010 mOin - PGP/SS/09-11/HR 9

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Advantages: Ability of the firm to develop an international executive team Overcomes the federation drawback of the polycentric approach Support cooperation and resource sharing across units Disadvantage: Host government may use immigration controls in order to increase HCNs employment Expensive to implement due to increased training and relocation costs Large numbers of PCNs, HCNs, and TCNs need to be sent across borders Reduced independence of subsidiary management 8/17/2010 mOin - PGP/SS/09-11/HR 10

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Regiocentric Reflects a regional strategy and structure; Regional autonomy in decision making; Staff move within the designated region, rather than globally; 8/17/2010 mOin - PGP/SS/09-11/HR 11

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Advantages: Allow interaction between executives transferred to regional headquarters from subsidiaries in the region and PCNs posted to the regional headquarters Provide some sensitivity to local conditions Help the firm to move from a purely ethnocentric or polycentric approach to a geocentric approach Disadvantages: Constrain the firm from taking a global stance Staff’s career advancement still limited to regional headquarters, and not the parent country headquarters 8/17/2010 mOin - PGP/SS/09-11/HR 12

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Transfer of Staff for International Business Activities Reasons for International Assignments Types of International Assignments Expatriate and Non-expatriates – their roles 8/17/2010 mOin - PGP/SS/09-11/HR 13

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Reasons For International Assignments Position filling Skills gap, launch of new endeavor, 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 8/17/2010 mOin - PGP/SS/09-11/HR 14

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Types of International Assignments Short term: up to 3 months Troubleshooting Project supervision A stopgap until a permanent arrangement is found Extended: up to 1 year May involve similar activities as short-term assignments Long term: varies from 1 to 5 years The traditional expatriate assignment 8/17/2010 mOin - PGP/SS/09-11/HR 15

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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. 8/17/2010 mOin - PGP/SS/09-11/HR 16

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Roles of an Expatriate Agent of direct control Agent of socialization Network builder Boundary spanner Language node Transfer of competence and knowledge 8/17/2010 mOin - PGP/SS/09-11/HR 17

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Roles 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, e.g. Sales staff attending trade fairs Periodic visits to foreign operations 8/17/2010 mOin - PGP/SS/09-11/HR 18

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Non-expatriates cite the positives as: A Glamorous life Excitement and thrills of conducting business deals in foreign locations Life style (top hotels, duty-free shopping, business class travel) General exotic nature But they experience 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. 8/17/2010 mOin - PGP/SS/09-11/HR 19

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8/17/2010 mOin - PGP/SS/09-11/HR 20 Role of Corporate HR Function

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thAnk yOu  8/17/2010 mOin - PGP/SS/09-11/HR 21

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