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									International Human Resource Management
      Managing people in a multinational context
Chapter Objectives
We focus on the ‘managing the people’ aspect of IHRM:
• Issues relating to staffing foreign operations
• The reasons for using international assignments:
  filling positions and developing managers and organizations.
• Various types of international assignments:
  short term, extended and longer term;
• Various non-standard arrangements:
  commuter, rotator, contractual and virtual
• The role of expatriates and non-expatriates in supporting
  international business activities
• Return on investment of international assignments
• The role of the corporate HR function in MNEs

 v      IHRM Chapter 4                                           2
Terms
 Expatriate roles:            Assignments: short-term
 agent of direct control                   extended
                                           traditional
 agent of socialization
                                           commuter
 language node          ROI approach       rotational
 network builder                           contractual
 boundary spanner                          virtual

                         Approaches to staffing: ethnocentric
   inpatriates
                                                 polycentric
   expatriates
                                                 geocentric
 flexpatriates
                                                 regiocentric
  v     IHRM Chapter 4                                          3
Table
4-1a
        The advantages and disadvantages of using PCNs




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Table
4-1b
        The advantages and disadvantages of using TCNs




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Table
 4-1c
        The advantages and disadvantages of using HCNs




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Figure
  4-1
         Determinants of staffing choices




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Reasons for International Assignments
 1. Position filling
 2. Management development
 3. Organization development




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Types of international assignments
•  Short term     up to 3months
•  Extended       up to 1year
•  Long term (traditional expatriate assignment)
                  1 to 5 years
Some non-standard assignments:
• Commuter        go home every one to two weeks
• Rotational      commute for set period followed by
                  break in home country
• Contractual specific skills employees hired for
                  6 to 12 months on specific projects
• Virtual         employee manages international
                  responsibilities from home country base
    v   IHRM Chapter 4                                      9
Table   Differences between
 4-2    traditional and short-term assignments




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Figure
  4-2
         The roles of an expatriate




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Figure
  4-3
         ROI indicators for calculating international assignments




    v       IHRM Chapter 4                                     12
4-steps to calculate expatriate ROI
1. Identify financial and non-financial costs and
   benefits.
2. Link the costs and benefits to the purpose of
   the long-term assignment.
3. Identify the appropriate antecedents from a
   system’s perspective.
4. Conduct the calculation at an appropriate time
   within the context of the assignment’s purpose.


  v    IHRM Chapter 4                                13
Table   Various roles of corporate HR
 4-3




    v      IHRM Chapter 4               14
 Discussion Questions
1. Outline the main characteristics of the four approaches to international
   staffing.
2. Which factors determine the choice of a staffing approach? Would a MNE
   choose the same staffing approach worldwide? Place your arguments in the
   context of the model outlining determinants of staffing choices.
3. What are the reasons for using international assignments?
4. What is the role of inpatriates? Do inpatriates guarantee a geocentric staffing
   policy?
5. Why is it important to measure return on investment of international
   assignments? Which indicators can be used?
6. As a newly appointed Project Manager of a research team, you consider that
   you will be able to manage the project virtually from your office in London,
   even though the other six members are located in Munich. This will solve your
   personal dilemma as your family does not want to be relocated. The project has
   a six-month deadline. What factors should you need to consider in order to
   make this virtual assignment effective?
     v       IHRM Chapter 4                                                    15

								
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