Lecture 1

Introduction of the course instructor with the students. It was a great start and the first thing that we
learned was how to create a CV(Curriculum Vitae) and Reference. We were shown some layouts of
the following subject and were told to write our own CV and a reference writing as an assignment.

Lecture 2

International HRM

In our HRM 460 class we have learnt about International HRM.According to Morgan(1986) IHRM
has three dimensions:

1. The broad human resource activities are:

• Procurement(acquisition): recruiting, planning, staffing, job design, socialization and

so on.

• Allocation: right man at the right place.

• Utilization proper use of resourses.

2. The national or country categories involved in IHRM activities:

• The host country where a subsidiary may be located

• The home country where the firm is headquartered and

• Other countris that may be the source of labour, finance and other inputs.
 3. The three categories of employees of an international firms:

• Host-country nationals (HCNs)

• Parent-country nationals (PCNs)

• Third-country nationals (TCNs)

We also come to know the term Expatriate, means who is working and temporarily residing in a
foreign country.They can adopt unknown location, people for their job.

There are two important thing of IHRM:

 Diversity

 Culture

There are significant differences between IHRM and HRM, Specifically compared with domestic
HRM, IHRM

 Encompasses more functions like international taxation, administrative service for

expartriates and so on.

 Involves constantly changing perspectives like compensation, expartriate equity issues.

 Influenced by more external sources

 Involves a greater level of risk than typical domestic HRM

 More involvement in employees personal lives like health care, taxes,housing arrangements

and so on.

Lecture 3

Managing Across Culture:

In this lecture we are learnt about managing across culture.Managing across culture means to know
the unknown culture. This is the challenge for companies now a days.
National cultures can be described according to the analysis of Geert Hofstede. These ideas were first
based on a large research project into national culture differences across subcidiaries of a
multinational corporation (IBM) in 64 countries.

There are some cultural dimensions, They are:

• Power Distance

• Individualism

• Masculinity

• Uncertainty Avoidance

• Long-Term Orientation

Power Distance: The degree in which people in a country accept that power in institution and
organizations is distributed unequally. A high power distance rating means that large inequilities of
power and are tolerated in culture. (Malaysia rank -1). A low power distance power ranking indicates
the culture discourages difference between power and wealth. These societies stress equally. ( USA-
38)

Individualism: It is the degree to which people prefer to act as individuals rather than as members
of group and believe in individual rights above all else. According to Hofstede’s findings indicate
that most countries scoring high on individualism. In countries that prize individualism (such as
United States, Great Britain, Germany, Australia) and in countries there low individualism prevails
(such as Pakistan, Panama) and so on.

Masculinity means characteristics that considered typical of or appropriate to a man. It refers to the
degree of traditionally masculine values – assertiveness, materialism and lack of concern for others,
for relationships and for the quality of life. In high masculine societies like Japan, Austria and low
masculinity societies such as Switzerland and New Zealand and so on.

Uncertainty Avoidance means stabling the culture. It refers to the extent to which people in a
society feel threatened by ambiguous or unclear situations. Countries with a high level of
uncertainty avoidance (such as Japan, Portugal and Greece) and countries with lower levels of
uncertainty avoidance (such as Denmark, Great Britain) and so on.

Long-Term Orientation is the newest addition to Hofstede’s dimension. It focuses on the

degree of a society’s long term devotion to traditional values. That means holds the origin.

Lecture 4

Approaches to International Staffing:

In this lecture, we come to know the approaches for international staffing. International staffing
means when the organization sends its employees to some other country, consider the cultural
differences in global business in different countries.

There are four approaches to international staffing. They are:

• Ethnocentric approach

• Polycentric approach

• Geocentric approach

• Regiocentric approach

Ethnocentric Approach: In this approach, all important positions in MNCs are filled up by
Parent-country nationals (PCNs). Employees from the home country hold important jobs, and the
subsidiaries follow the home country management practice.
Polycentric Approach: The polycentric staffing requires Host- country nationals (HCNs)to be
hired to manage subsidiaries.Top management positions are filled by HCNs.Each subsidiary
manages on a local basis because local people know what is best for them.

Geocentric Approach: This staffing approach seeks the best people for key jobs throughout
the organization, regardless of nationality, selecting the best person for the job.The MNC is taking
a global approach to its operation, recognizing that each part (subsidiaries and headquarters) makes
a unique contribution with its unique competence.

Regiocentric Approach: This approach as functional rationalization on a more than one

country basis. Using this approach the international staff is transferred within the same region they
work.

Lecture 5

The Advantages and Disadvantages of using PCNs, HCNs and TCNs:

In today’s lecture we come to know that staffing policies of multinational companies also have
some advantages and disadvantages. The Advantages and Disadvantages of using PCNs, HCNs and
TCNs are given below:

Parent Country Nationals

Advantages

 Well versed in company’s needs and norms

 Familiar with the firm’s products and services as well as with the corporate culture
 Promising managers are given international experience

Disadvantages

 Potential unfamiliarity with the culture norms.

 Potential blocking of HCN’s career progression within the firm
 Considerable cost of relocating abroad
Host Country Nationals

Advantages

 Familiar with the host country culture and language

 Cost less than expatriates

 Competitive capabilities in international market

Disadvantages

 Limited familiarity with firm’s own operation

 PCN’s at headquarters may lack sufficient understanding of the subsidiary’s
 Large Expense involved

Third Country Nationals

Advantages
 Greater familiarity with host country culture than Parent Country Nationals

 Have intensive international experience

 Know the corporate culture from previous working experience with the corporate
branches in the third country

 Relocation costs lower that the PCNs

Disadvantages
 Some cross-cultural preparation may still be required

 Potentially suffering from a lack of knowledge of the corporate culture

 Use of TCNs is often part of a strategy that entails the use of employees fro many
nationalities increasing the overhead for expatriate relocation across the entire firm
considerably.

THE END