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JNB513 International Human Resource Management

LECTURE 3- Staffing International Operations

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JNB513 International Human Resource Management

• This module begins with examination of various approaches that an
organisation may take to staffing of its international operations.

• These are ethnocentric, polycentric, geocentric and regiocentric.
Within these staffing approaches employees may be categorised as
HCNs, PCNs or TCNs

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JNB513 International Human Resource Management

Areas of focus

• Examine the approaches of staffing in International Ventures
• Examine what we mean by HCNs, PCNs or TCNs
• Learn the key concepts of ethnocentric, polycentric, geocentric and
regiocentric.
• Introduction to selection processes

Next week we focus on recruitment and selection

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4 . Example an Australian Manager working in the Australian subsidiary of a UK based company.JNB513 International Human Resource Management Host Country Nationals (HCNs) • An employee of the organisation who is located in the country that the subsidiary is located and its headquarters is in another country.

a Japanese manager working for a UK- based subsidiary of a Japanese company. but different from the country in which they are working: for example.JNB513 International Human Resource Management Parent Country Nationals (PCNs) • In an international firm. a PCN is a person whose nationality is the same as that of the firm. 5 .

JNB513 International Human Resource Management Third Country Nationals (TCNs) • In an international firm."[2 6 . a TCN is "an employee working temporarily in an assignment country. who is neither a national of the assignment country nor of the country in which the corporate headquarters is located.

In this case Transferred to a different country to work Inpatriate • An employee of a multinational company who is from a foreign country but transferred from a foreign subdivision to the corporation’s home country.JNB513 International Human Resource Management Expatriate • A person who lives outside their native country. 7 .

contractual.JNB513 International Human Resource Management Other Key Terms • ethnocentric. virtual. commuter. rotational. direct & indirect costs • selection criteria. self-initiated • Expatriate roles: language node. soft skills. geocentric. intercultural competence. extended. common corporate language • honeymoon = tourist phase • coffee-machine system • ethnorelativism 8 . polycentric. boundary spanner • best practice • tacitness • inpatriates. headhunting • expatriate failure. transferer of competence & knowledge. EFRs. agent of direct control. external recruits • internal recruitment. regiocentric • Kinds of assignments: short-term. long-term = traditional expatriate assignment. network builder. agent of socializing. cultural intelligence.

but limited to a given region 9 .JNB513 International Human Resource Management Attitude to staff international firms • Ethnocentric – PCNs are favored • Polycentric – HCNs manage subsidiaries • Geocentric – Ability is more important than nationality • Regiocentric – Similar to geocentric.

JNB513 International Human Resource Management Advantages and Disadvantages of PCN appointments 10 .

JNB513 International Human Resource Management Advantages and Disadvantages of TCN appointments 11 .

JNB513 International Human Resource Management Advantages and Disadvantages of HCN appointments 12 .

JNB513 International Human Resource Management Determinants of Staffing Choices 13 .

training.exploit global market opportunities 14 . common corp. competence.transfer of knowledge. practices .JNB513 International Human Resource Management Why send staff internationally? • Position filling lack of available skills  PCN works abroad • Management development . development. values • Organization development .

JNB513 International Human Resource Management Types of assignments • Short term up to 3 months • Extended up to 1year • Long term 1 to 5 years (traditional expatriate assignment) 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 6-12 months on specific projects • Virtual employee manages international responsibilities from base in home country 15 .

JNB513 International Human Resource Management LECTURE 3.Staffing International Operations 16 .

JNB513 International Human Resource Management Roles of Expatriates 17 .

JNB513 International Human Resource Management Determinants of staffing choices 18 .

g. where there is much tacitness) • Expatriate’s ability & motivation to act as an agent of knowledge transfer • Abilities. relationships of locals 19 . motivations. & parent country • Consideration for personal networks • Some knowledge transfer requires longer assignments (e.JNB513 International Human Resource Management Factors influencing effectiveness of international assignments Open environment » Support for cross-fertilization of ideas » Implementation of best practice • Knowledge/info travels freely between expatriate. host country..

JNB513 International Human Resource Management Roles of Non-Expatriates 20 .

JNB513 International Human Resource Management Issues with International business travelers • Home & family issues • Work arrangements • Travel logistics • Health concerns • Host culture issues 21 .

JNB513 International Human Resource Management Roles of Inpatriates 22 .

JNB513 International Human Resource Management Drivers to recruit and transfer inpat staff • Desire to create global core competency & cultural diversity of strategic perspectives • Desire to provide career opportunities in HCs • The emergence of developing markets which often are difficult locations for expatriates: » Quality of life adjustment » Cultural adjustment 23 .

JNB513 International Human Resource Management International v Domestic Recruitment • Smaller number of external recruits • Preference for internal recruitment » To reduce selection risk » To secure present & past human capital investments 24 .

JNB513 International Human Resource Management Expat Failure Rates 25 .

JNB513 International Human Resource Management Failures in expat selection 26 .

JNB513 International Human Resource Management Overview of important adjustment variables 27 .

JNB513 International Human Resource Management Tasks & exercises used in an assessment centre 28 .

JNB513 International Human Resource Management IHRM solutions for dual career couples • Inter-firm networking • Job-hunting assistance • Intra-firm employment • Language training. educational assistance • Employer-sponsored work permits • Career planning assistance 29 .

JNB513 International Human Resource Management Strategies for breaking the expatriate glass ceiling 30 .

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