IHRM : Sustaining international

business operations
Chapter no. 3

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

Ethnocentric
Strategic decisions are made at
headquarters
Limited subsidiary autonomy
Key positions in domestic and foreign
operations are held by headquarters
personnel; PCNs manage subsidiaries

Polycentric
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
positions

Geocentric
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
development

Figure 3-1: Geocentric staffing requirements

Regiocentric
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 rare

Table 3-1: The advantages and disadvantages of using

PCNs, TCNs and HCNs

Figure 3-2: Determinants of IHRM approaches and activities

Reasons 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 practices

Types 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 assignment

Non-standard assignments

Commuter assignments
Rotational assignments
Contractual assignments
Virtual assignments
Some of these arrangements assist in overcoming the
high cost of international assignments but are not
always effective substitutes for the traditional
expatriate assignment

Figure 3-3: Factors influencing virtual assignments

Roles of an expatriate

Agent of direct control

Agent of socialization
Network builder
Boundary spanner
Language node
Transfer of competence and knowledge

Figure 3-4: The roles of an expatriate

The 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 operations

Adv.
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 nature

Disadv.
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
training

Table 3-2: Various roles of corporate HR