INTERNATIONAL Sajeet Pradhan, PhD

HRM
 WHY COMPANIES GO
INTERNATIONAL?
✔Market ( Saturated domestic market, New Markets)
✔Growth
✔Closer to Supplier
✔Closer to Customers
✔New Technology
✔Cheap Labour
✔Tax benefits
Global Issues in International HRM
 INTERNATIONAL HIRING
CHALLENGES
Understanding the culture

Being aware of motivational aspects

Evaluating employee performance

Understanding technology awareness and usage

Recognizing preferred communication styles

Observing the preferred

management structure.

Observing the organizational culture

 INTERNATIONAL HRM
STRATEGIES
International Staffing
Considerations

Ethnocentric Polycentric Geocentric

staffing staffing staffing
model model model
INTERNATIONAL STAFFING
CONSIDERATIONS

Host Country National (HCN)

Parent Country National (PCN)

Third Country National (TCN)

ETHNOCENTRIC STAFFING MODEL

Assumes that home-based perspectives take

precedence over local perspectives and issues
positions to parent country nationals.

Primarily uses parent-country nationals to staff

higher level foreign positions.
POLYCENTRIC STAFFING MODEL

Makes dominant use of host-country nationals throughout the

organization.
GEOCENTRIC STAFFING MODEL

Puts parent-country nationals, host-country nationals, and

third-country nationals in the same category.

Attempts always to hire the best person available for a position.

UNDERSTANDING THE CULTURAL
ENVIRONMENT
Culture
The set of values, symbols, beliefs, and languages that guide
behavior of the people within that culture.
Importance of Cultural Awareness
International business managers:
Must be aware of cultural nuances.
Must be cognizant of the role of
cultural differences and similarities
in workers from different cultures.
HOFSTEDE’S DIMENSIONS OF CULTURE
Power
Distance

Individualism versus Masculinity versus

Collectivism Femininity

Uncertainty Time
Avoidance Orientation
Political and Legal Issues of International Business

Government
Trade incentives
stability

Political and
legal issues

Economic
Trade controls
communities
Management Challenges in International Business
INTERNATIONAL TRANSFERS AND
ASSIGNMENTS OF EXPATRIATES

Important Considerations
in the Use of Expatriates

Personnel Pre-Posting Compensation

Selection Training and Evaluation
LOCAL (HOST COUNTRY) ISSUES

Local Training and Development

Extent of local workforce training and development necessary for nationals
to perform effectively

Local Compensation Issues

Assessing individuals
Assessing groups
Necessity for hardship premium
for expatriates
TWO APPROACHES OF COMPENSATION
MANAGEMENT

There are two approaches of compensation management in

international human resource management field:

Going Rate Approach/Parent Country Approach

Balance Sheet Approach/Host Country Approach

 Repatriation of Expatriates

▪ The final step in HRM in global business:

✔ Bringing an expatriate home is not a simple matter.
✔ Extensive adjustment by expatriates is often required
upon their return at the end of lengthy assignments.
 INTERNATIONAL LABOR
RELATIONS

Labor Relations
✔ Is the process of dealing with employees who are organized into labor unions.

✔ Are heavily regulated and restricted by law.

✔ Are affected by management actions toward labor and labor actions toward
management.

✔ Are impacted by local cultural, social, political, and economic issues.

QUESTIONS
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