Week 3 - Strategies in IHR.pptx

Benefits know local constituencies local

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Benefits Know local constituencies Local communication Know local customs Local image can be useful Drawbacks Lack expertise Expensive training Communication w/HQ
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Benefits and Drawbacks: Using TCNs for International Assignments Benefits Expertise Internal promotion potential International image when useful Drawbacks Limited familiarity with HQ and local cultures Problems with training beyond strictly for skills (leadership/manageme nt - training to work with multiple cultures) Failure potential Foreign image when problematic
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Often Staffing Differs by Level in the Organization Lower level – HCNs Technical/experts – PCNs and TCNs Middle level – PCNs and HCNs Top level (local) – HCNs or PCNs depending on strategy
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International HRM Strategies Ethnocentric – staffing PCNs at all key managerial and professional levels; HCNs for lower skill jobs. Polycentric – at the start, subsidiaries are staffed with PCNs at key management and professional positions; HCNs gradually take over all key positions. Geocentric – PCNs, TCNs, and HCNs are hired from around the regions (regiocentric) or globe based solely on merit. Can vary by: Immediate needs – deadlines, market penetration, etc. Company experience and subsidiary experience Region
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Additional Considerations Difficulty Hiring HCNs Small educated workforce in some locations Local industry base differs from multi- national corporations industry PCN Requirements Local knowledge, cultural sensitivity, food tastes, clothes, appropriate level of expectations and standards. TCN Considerations Almost always hired for specific expertise
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