Chapter 3
IHRM: Sustaining international
business operations
Use with International Human Resource Management ISBN 1-84480013-X
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Chapter objectives
The previous two chapters concentrated on the global
environment 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 and
growth. We cover the following:
• issues relating to the various approaches to staffing foreign
operations
• the reasons for using international assignments: position filling,
management development and organizational development
(cont.)
Use with International Human Resource Management ISBN 1-84480013-X
Published by Thomson Learning © Peter Dowling and Denice Welch
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Chapter 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 travelers) in supporting international business
activities
• the role of the corporate HR function.
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Approaches 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 availability
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Published by Thomson Learning © Peter Dowling and Denice Welch
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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...