1. International Human Resource Management
IHRM Chapter 4
International Human Resource Management
Staffing international operations for sustained global growth
Managing people in a multinational context

2. 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
IHRM Chapter 4

3. Terms Expatriate roles: agent of direct control agent of socialization
language node
network builder
boundary spanner
Assignments:
short-term
extended
traditional
commuter
rotational
contractual
virtual
ROI approach
Approaches to staffing:
ethnocentric
polycentric
geocentric
regiocentric
inpatriates
expatriates
flexpatriates
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4. The advantages and disadvantages of using PCNs
Table 4-1a
The advantages and disadvantages of using PCNs
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5. The advantages and disadvantages of using TCNs
Table 4-1b
The advantages and disadvantages of using TCNs
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6. The advantages and disadvantages of using HCNs
Table 4-1c
The advantages and disadvantages of using HCNs
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7. Determinants of staffing choices
Figure 4-1
Determinants of staffing choices
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8. Reasons for International Assignments
Position filling
Management development
Organization development
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9. 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
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10. traditional and short-term assignments
Differences between
traditional and short-term assignments
Table 4-2
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11. The roles of an expatriate
Figure 4-2
The roles of an expatriate
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12. ROI indicators for calculating international assignments
Figure 4-3
ROI indicators for calculating international assignments
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13. 4-steps to calculate expatriate ROI
Identify financial and non-financial costs and benefits.
Link the costs and benefits to the purpose of the long-term assignment.
Identify the appropriate antecedents from a system’s perspective.
Conduct the calculation at an appropriate time within the context of the assignment’s purpose.
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14. Various roles of corporate HR
Table 4-3
Various roles of corporate HR
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15. Discussion Questions
Outline the main characteristics of the four approaches to international staffing.
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.
What are the reasons for using international assignments?
What is the role of inpatriates? Do inpatriates guarantee a geocentric staffing policy?
Why is it important to measure return on investment of international assignments? Which indicators can be used?
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?
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