IB Final review

Core strategic objectives of IHRM

1. Reducing the cost of value creation: sourcing and deploying human resources globally to optimize cost-efficiencies.

2. Adding perceived value: Elevating product quality, customer service, and local responsiveness to support premium pricing.

Staffing

selecting employees for a particular jobs based on their technical skills and behaviors

ethnocentric staffing

all key mgt positions in foreign subsidiaries are occupied by parent-country nationals (PCNs)

based on the belief that the parent country’s mgt practices, values, and tech are naturally superior

• international strategy

polycentric staffing

host country nationals (HCNs) manage local subsidiaries; parent country nationals remain at headquarters

“local ppl know their market best, so let them run local operations.'“

• mitigate cultural myopia

• major cost savings

• political legitimacy

• localization strategy

geocentric staffing

seeks the best qualified individuals for key jobs throughout the global org, completely regardless of nationality

“place the best and most qualified individuals in key roles, regardless of their nationality.”

• global and transnational strategies

Expatriates

citizens of one country who are working in another country for an extended period on time (typically for more than one year)

third-country nationals

expatriates who are from neither the home nor the host country

inpatriates

foreign subsidiary nationals transferred to work in the home country of the parent country.

brought to the corporate hq to absorb the parent company’s culture and build personal relationships

• firsthand insights into local conditions

• key liaisons

expatriate failure

the early return of an expatriate to their home country because of an inability to adapt

• represents a major failure of the firm’s selection policies

core causes of us expatriate failure

1. spouse inability to adjust

2. manager inability to adjust

3. dual-career conflict

   1. spouse career disrupted causing financial strain and marital tensions

core causes of japanese expatriate failure

1. The inability to cope with the larger amount of overseas responsibilities

mendenhall and oddou selection model

1. self orientation (mental space, preparedness, adaptability)

2. others orientation (relationship building, communication, ex: using host country’s lang.)

3. perceptual and toughness (empathy, nonjudgmental interpretation)

4. cultural toughness (physical and mental resilience to harsh climates)

three pillars expatriate training

1. cultural training

2. language training

3. practical training

repatriation

the preparation, reentry, and integration of expatriates back into their home country and organizationM

Monsanto’s repatriation program

1. Tripartite agreement:

2. active home sponsorship

3. post-return debriefing

tripartite agreement

expatriate, sending manager, and home sponsor sign an agreements defining how the assignment fits into the firm’s long term career goals.

active home sponsorship

home sponsors keep the expatriate connected with corporate changes and business developments

post-return debreifing

facilitators conduct family debriefings three months post-return to ease reverse culture shock

balance sheet approach

the most widely used expatriate compensation model (used by 80% of companies). It aims to equalize purchasing power across countries so managers can enjoy the same standard of living as they do at home.

core expatriate pay components

1. base salary

2. foreign service premium

3. allowances and benefits

relocation threat

the mne can counter union power by threatening to move production to lower wage nation

hollowing out

keeping high-value design and r&d jobs at home. while farming out only low skilled task abroad

importing practices

mne’s importing unfamiliar employee practices from their home country that reduce union power.

molex’s three winning hr policies

1. local hr managers

2. multi directional transfers

3. non discriminatory pay