Chapter 3Chapter objectivesChapter objectives (cont.)Approaches to staffingEthnocentricPolycentricGeocentricSlide 8RegiocentricSlide 10Slide 11Reasons for international assignmentsTypes of international assignmentsNon-standard assignmentsSlide 15Roles of an expatriateSlide 17The role of non-expatriatesA glamorous life?But a high level of stress!Slide 21The role of the corporate HR functionChapter summaryChapter summary (cont.)Slide 25Chapter 3IHRM: Sustaining International Business OperationsIBUS 618 Dr. YangChapter objectivesissues relating to the various approaches to staffing foreign operationsthe reasons for using international assignments: position filling, management development and organizational development(cont.)The previous two chapters concentrated on the globalenvironment and organizational contexts. We now focus on the ‘managing people’ aspect. The aim is to establish the role of HRM in sustaining international business operations andgrowth. We cover the following:IBUS 618 Dr. YangChapter objectives (cont.)the various types of international assignments: short-term, extended and longer-term; and non-standard arrangements: commuter, rotator, contractual and virtualthe role of expatriates and non-expatriates (international business travellers) in supporting international business activitiesthe role of the corporate HR function.IBUS 618 Dr. YangApproaches 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 availabilityIBUS 618 Dr. YangEthnocentric Strategic decisions are made at headquartersLimited subsidiary autonomyKey positions in domestic and foreign operations are held by headquarters’ personnel; PCNs manage subsidiariesIBUS 618 Dr. YangPolycentric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 positionsIBUS 618 Dr. YangGeocentric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 developmentIBUS 618 Dr. YangFigure 3-1: Geocentric staffing requirementsIBUS 618 Dr. YangRegiocentric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 rareIBUS 618 Dr. YangTable 3-1: The advantages and disadvantages of using PCNs, TCNs and HCNsIBUS 618 Dr. YangFigure 3-2: Determinants of IHRM approaches and activitiesIBUS 618 Dr. YangReasons 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 practicesIBUS 618 Dr. YangTypes 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 assignmentIBUS 618 Dr. YangNon-standard assignmentsCommuter assignmentsRotational assignmentsContractual assignmentsVirtual assignmentsSome of these arrangements assist in overcoming the high cost of international assignments but are not always effective substitutes for the traditional expatriate assignmentSome of these arrangements assist in overcoming the high cost of international assignments but are not always effective substitutes for the traditional expatriate assignmentIBUS 618 Dr. YangFigure 3-3: Factors influencing virtual assignmentsIBUS 618 Dr. YangRoles of an expatriateAgent of direct controlAgent of socializationNetwork builderBoundary spannerLanguage nodeTransfer of competence and knowledgeIBUS 618 Dr. YangFigure 3-4: The roles of an expatriateIBUS 618 Dr. YangThe 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 operationsIBUS 618 Dr. YangA 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 natureIBUS 618 Dr. YangBut 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 trainingIBUS 618 Dr. YangTable 3-2: Various roles of corporate HRIBUS 618 Dr. YangThe role of the corporate HR functionCan we manage our people like a global product? The feasibility of:The concept of a global internal labour marketStandardization of work practices and HR activitiesWhat HR matters require central control and what can be decentralized? IBUS 618 Dr. YangChapter summaryLooked at the various approaches to staffing international operations – ethnocentric, polycentric, geocentric and regiocentric – examining their advantages and disadvantages and factors that may determine the choice of these options.Considered the reasons for using international assignments: position filling, management development and organization development.(cont.)This chapter has expanded on the role of IHRM in sustaining international business operations. We have:IBUS 618 Dr. YangChapter summary (cont.)Discussed the various types of international assignments: short, extended and long-term (traditional); and non-standard forms such as commuter, rotational, contractual and virtual assignments.Examined the various roles of the expatriate: as an agent for direct control, as an agent for socialization, as network builders, as boundary spanners and as language nodes. These various roles of the expatriate help to explain why expatriates are utilized and