TOPIC 7: GLOBAL ENTREPRENEURSHIP

and INTRAPRENEURSHIP
INTERNATIONAL HUMAN RESOURCE
MANAGEMENT
Prepared by: Mrs. Catherine U. Malig, M B A
 Learning Objectives
At the end of the discussion, the students are expected to:

1. Explain what entrepreneurship is.

2. Differentiate entrepreneurship and intrapreneurship
3. Understand International Human
Resource Management
4. Identify the strategic development of IHRM
5. Enumerate the functions of International HR Manager
 Entrepreneurship
Entrepreneurship is defined as the recognition of
opportunities and the use or creation of resources
implement innovative ideas
to for new, thoughtfully planned
ventures.

Entrepreneur is a person who engages in entrepreneurship.

They are sometimes seen as people of very high aptitude
who pioneer change. They organizes, manages, and assumes
the risks of a business or enterprise.
 What Entrepreneurs do?
• Entrepreneurs operate in both for profit and nonprofit
organizations.
• Entrepreneurship takes place through some combination of
opportunity identification, the venture’s preparation and
plan, and the resources that convert the venture plan into
action. Action is a vital component
• Calculated Risk takers
 From Entrepreneurship to
born Global Firms
• Global start-ups, also called born-global firms, are increasingly
important phenomenon on the world of entrepreneurship. A
global start up is a business organization that, from inception,
seeks to derive significant competitive advantage from the use of
resources and the sale of outputs in multiple countries.
• Such their offerings complement the products or
capabilities of other global players, take advantage of IT
firms,
infrastructure, or otherwise tap into a demand for a product or
service that at its core is somewhat uniform across national
geographic markets.
 Phases of Global Start-up

1.Deciding if a firm should become global start-

up and

2.Deciding what the firm needs to do to make

that happen
 From Entrep to Intrap

Intrapreneurship is a form of entrepreneurship practiced

within existing organizations.

It is typically the intraorganizational revolutionary-

challenging the status quo and fighting to change
the system from within. The entrepreneur is the
challenger from outside the firm.
 From Entrep to Intrap

An organization can develop a culture of intrapreneurialism

such that it can operate nimbly in an entrepreneurial
fashion as the environment changes or that it can act as an
industry disruptor:

Two approaches are 1) coexistence approach, 2) the

structural-separation approach.
 Phases of Global Start-up

1.Deciding if a firm should become global start-

up and

2.Deciding what the firm needs to do to make

that happen
Entrepreneurs who failed before they succeed

Elon Musk:

Failure: Before becoming the successful entrepreneur known for companies like Tesla and SpaceX, Elon
Musk faced failure with his initial venture, Zip2. The company, which aimed to provide business
directories and maps for newspapers, struggled and faced financial challenges. Musk later sold Zip2
and went on to found other successful ventures.

Richard Branson:
Failure: Richard Branson, the founder of the Virgin Group, has had his share of failures. One notable
example is Virgin Cola, an attempt to compete with major beverage companies like Coca-Cola and
Pepsi. Despite heavy marketing efforts, Virgin Cola failed to gain significant market share and was
eventually discontinued.
 Top 12 Most Successful Entrepreneurs in the Philippines
1. Henry Sy 1. SM
2. Tony Tan Caktiong 2. Jollibee Food Corp
3. Socorro Ramos 3. National Book Store
4. John Gokongwei 4. Universal Robina
Corp/Robinsons/Cebu pacific
5. Edgar Sia
5. Mang Inasal 5B
6. Mariano Que
6. Mercury Drug
7. Cresida Tueres
7. Greenwich 80% JFC,20% Tueres
8. Cecilio Kwok Pedro
8. Lamoiyan Corp (Hapee
9. Alfred Yao toothpaste)
10. Gregorio Sanchez
9. Zest-O/Zest Air
10. Lacto PAFI
Top 12 Most Successful Entrepreneurs in the Philippines
1. Henry Sy
2. Tony Tan Caktiong
3. Socorro Ramos
4. John Gokongwei
5. Edgar Sia
6. Mariano Que
7. Cresida Tueres
8. Cecilio Kwok Pedro
9. Alfred Yao
10. Gregorio Sanchez
 What is IHRM?

can be defined as the set of activities involved

in hiring, managing performance,
compensation, training and relations with
employees hired to manage internal operations
of a company, with a view to ensure the
success of their international business and
strategies.
 COUNTRY CATEGORIES
INVOLVED IN IHRM
a.The host country where the subsidiary could be
located or be operating.
b.The home country where the MNC/International
firm could be headquartered.
c.The “third-country” from where employees, capital
and other resources like technology or logistics
could be availed or procured by the organization.
 EMPLOYEE CATEGORIES
INVOLVED IN IHRM
a. Host Country Nationals (HCNs) representing the
employees hired from the host country.
b.Parent Country Nationals (PCNs) representing
the employees expatriated to the foreign subsidiary from
the home country of the MNC.
c.Third Country Nationals (TCNs) representing
the employees deployed from third/other countries other
than that of the home country of the MNC.
 EMPLOYEE CATEGORIES
INVOLVED IN IHRM
1.Expatriate — a parent country national sent on a
long- term assignment to the host country operations.
2.Inpatriate — a host country national or third
country national assigned to the home country of the
company where it is headquartered.
3.Repatriate — an expatriate coming back to the
home country at the end of a foreign assignment.
 STRATEGIC
DEVELOPMENT OF IHRM
1. Establishing or Reviewing Employment Policies : Check
their relevancy and applicability to
International operations.
2.Recruitment: Recruitment and selection policies must
be established taking local regulations and rules.
3.Selection Process: The steps involved in the
selection process must be examined to see their
relevancy and applicability to the subsidiaries.
 STRATEGIC
DEVELOPMENT OF IHRM
4.Performance Assessment: Performance
assessment is an essential part of the
Human resource Management in many of the
international companies.

5.Training and Development: Through Training

and Development, international companies
have contributed a great deal of education to the
employees of their subsidiaries.
 STRATEGIC
DEVELOPMENT OF IHRM

6. Employee Compensation: If two or more countries

are involved in determining salaries and benefits to
their employees in world-wide locations, the
complexity is further increased.
 PEST Analysis

To systematically help companies manage in the

global environment, political, economic,
sociocultural, and technological (PEST) analysis acts
as an audit of a company’s environmental
influences to help it determine its strategy and HR
response.
 A S AN 01
INTERNATIONAL Spot business or personnel
opportunities, and it gives you
HR MANAGER advanced warning of threats

PEST analysis can

help you to: 02
Spot trends in the business
environment so you can proactively
adapt to these changes,
 A S AN 03
INTERNATIONAL Avoid implementing HR practices in a
particular country where they may fail
HR MANAGER
PEST analysis can
help you to: 04
Break free of old habits and
assumptions about how people should
be managed to help bring about
innovative ideas for the entire company
 PEST ANALYSIS
Political factors are assessed
examining a country’s by labor
property rights, and patents.laws,

Example: Ohio-based welding company

Lincoln Electric started operations in
Brazil, they were not able to offer their
yearly bonus program based on
performance because any bonuses paid
for two consecutive years become a
legal entitlement
 PEST ANALYSIS
Economic factors consist of trends
around market and trade cycles, specific
industry changes, customer
preferences, and country economic
growth forecasts.

Example: When WTO was formalized as

a cooperative forum for country leaders
to come together and increase free
trade across the world
 PEST ANALYSIS
Sociocultural factors are external
factors including method and style of
communications, religions, values and
ideologies, education standards, and
social structure
Example: Because of low labor costs and
language similarities, many U.S.
companies have found India
attractive place to locate their facilities,
an
particularly call centers.
 IHRM
By recognizing and accommodating different
ideologies, religious beliefs, communication styles,
education systems, and social structures, managers
stand a better chance of understanding the culture
of a Host Country - A country in which an
international corporation operates
 IHRM
Netflix has had challenges in expanding
internationally. In 2015, Netflix had about
30
employees who were initially uncomfortable with
Netflix’s culture of bluntness, so at odds with their
home culture of communicating in subtler ways.
Netflix is currently working to reconcile company
and national culture, both with different
communication preferences.
 IHRM
There are three types of countries involved in
international H R M activities — home country, host
country, and third country.
• Home country is the country of origin of the firm.
• Host country is the country in which operations of
the firm are carried on. For a single firm, there
may be many host countries.
• Third country is a country from where resources
— human and other resources — are procured.
There may be many third countries.
 PEST ANALYSIS

Technological factors refer to the

maturity of manufacturing equipment,
information systems, technology
platforms, research funding, and
consumer access to technology.
 SIX FACTORS THAT
DIFFERENTIATE INTERNATIONAL
FROM DOMESTIC HRM
1. Wide range of HR activities.
2. Need for a broader perspective.
3. More Involvement in personal life of the employee.
4.Responsiveness to changes in staffing
requirements as international strategy changes.
5. Higher risk exposure.
6. More external influences.
 END OF
PRESENTATION
THANK YOU
mamcathz