Managing Global Human Resource

Managing Global Human Resources

Types of International Business Operations
Ø Ø Ø Ø

International corporation Multinational corporation Global corporation Transnational corporation

International Corporation
Domestic firm that uses its existing capabilities to move into overseas markets. e.g. Honda, P&G adapt their products but do not make changes in their normal operations

Multinational Corporation
Firm with independent business units (subsidiaries) operating in multiple countries. Ø The subsidiaries often function as autonomous units. Ø Provide goods and services to the surrounding geographical region. Ø e.g. Philips, Xerox
Ø

Global Corporation
Firm that has integrated worldwide operations through a centralized home office Ø Treat the entire world as a single market and try to maximise efficiency on a global scale Ø e.g. Matsushita
Ø

Transnational Corporation
Provides autonomy to independent country ops and tries to integrate through a networked structure Ø Attempts to balance local responsiveness and global scale. Ø e.g. Ford, Unilever
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Global HR Issues
Recruitment and Selection Ø Socialization and Training Ø Performance Management Ø Compensation Ø Repatriation
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Staffing Global Assignments
Types of Global Employees

HostHost-Country National (HCN)

ParentParentCountry National (PCN)

ThirdThird-Country National (TCN)

Advantages of Different Sources for Overseas Managers
HOST COUNTRY • Less Cost • Preference of host-country government • Knowledge of environment • Language facility PARENT COUNTRY • Talent available within company • Greater control • Company experience • Experience provided to corporate executives THIRD COUNTRY • Broad experience • International outlook • Multilingualism

Staffing Approaches
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Ethnocentric : All key positions are filled by PCNs Ø Polycentric : HCNs are recruited to manage subsidiaries in their own countries and PCNs occupy positions at corporate HQs. Ø Global OR... [continues]

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