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Global HRM and The Staffing Policy: Approaches To GHRM/IHRM

This document discusses global staffing policies and approaches for multinational corporations. It identifies four main approaches: ethnocentric, where a company exports its home country HR practices; polycentric, where subsidiaries adapt practices to local circumstances; regiocentric, where practices are coordinated regionally; and geocentric, where practices meet global network goals. It also defines three types of employees: parent country nationals (PCNs), host country nationals (HCNs), and third country nationals (TCNs). Finally, it lists reasons for growing interest in international human resource management, such as globalization, effective management, implementing strategies overseas, and network organizational structures.

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68 views2 pages

Global HRM and The Staffing Policy: Approaches To GHRM/IHRM

This document discusses global staffing policies and approaches for multinational corporations. It identifies four main approaches: ethnocentric, where a company exports its home country HR practices; polycentric, where subsidiaries adapt practices to local circumstances; regiocentric, where practices are coordinated regionally; and geocentric, where practices meet global network goals. It also defines three types of employees: parent country nationals (PCNs), host country nationals (HCNs), and third country nationals (TCNs). Finally, it lists reasons for growing interest in international human resource management, such as globalization, effective management, implementing strategies overseas, and network organizational structures.

Uploaded by

Disha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Global HRM and the Staffing Policy

Here also the role is no different i.e. hiring individuals with requisite skills to do a particular job.
The challenge here is developing tools to promote a corporate culture that is almost the same
everywhere except that the local sensitivities are taken care of.

Also, the deciding upon the top management or key positions gets very tricky. Whether to
choose a local from the host country for a key position or deploy one from the headquarters
assumes importance; and finally whether or not to have a uniform hiring policy globally remains
a big challenge.

Nevertheless an organization can choose to hire according to any of the staffing policies
mentioned below:

Approaches to GHRM/IHRM
Ethnocentric.
The MNC simply exports HR practices and policies
from home contrary to Subsidiaries in foreign
location.
Polycentric
HR policies are adapted to meet the circumstances in
each foreign country. The subsidiaries are basically
independent from headquarters.
Regiocentric
HR policies are coordination within the region to as
great extent as possible.
Geocentric.
HR policies are developed to meet the goals of global
network of home country locations and foreign

subsidiaries.

• PCN
Employees of an organization who are citizens of the country in which the headquarters
of the company is located

• HCN
Employees of an organization who are the citizens of the country in which the foreign
subsidiary is located

• TCN
Employees of an organization who are the citizens of the country other than the country
where the organization is headquarterd and the country that is hosting the subsidiary
Reasons for growing interest in
IHRM
 Globalization of business leading to mobilization of
resources.
• Effective management of human resources.
• To minimize the risk of underperformance or failure in
overseas assignments.
• Implementation of international strategies by competent
managerial personnel to man overseas assignments.
• Movement from traditional hierarchical organizational
structures towards the network organization.
• Plays significant role in implementing and control of
strategies in an international business.

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