IB 3101 Lecture Notes - Lecture 14: Management Development, Ethnocentrism, Procter & Gamble
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Published on 17 May 2017
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Week 14 – Chapter 17 – Global Human Resource Management
Expatriates
• Foreign person working in a different country
Human Resource Management
Activities include:
• Determining human resource strategy
• Staffing
• Performance evaluation
• Management development
• Compensation
• Labor relations
Strategic Role of HRM
Use of expatriate managers:
• Foreign assignments
• Compensation
• Training (social / cultural + job)
• Re-orientation
Staffing Policy
• Concerned with the selection of employees for a particular job
• Selecting people who have the right skills for a particular job
• Also involves developing and promoting the corporate culture of the firm-
the organization’s norms and value systems
1. Ethnocentric approach
• Fill all managerial positions in all foreign subsidiaries by home country
nationals (transfer home employees)
• Ex. Boeing
• Advantages:
o Lack of qualified individuals
o Unified corporate culture
o Transfer core competencies
o Makes sense with an international strategy
• Disadvantages:
o Limits advancement opportunities for host country nationals
o Cultural myopia
▪ Unaware of cultural differences
o Can limit knowledge developed within the firm
2. Polycentric policy
• Hire local people as managers
• Advantages:
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