Unit 1: International HRM concepts and staffing

International HRM (IHRM) is the HR activities of an organisation operating across national borders, managing three types of employees: parent-country nationals (PCNs), host-country nationals (HCNs) and third-country nationals (TCNs) (Morgan's model: HR activities × country types × employee types).

Factors increasing IHRM complexity (Dowling)

• More HR activities (international taxation, relocation, administrative services).
• Need for a broader perspective.
• More involvement in employees' personal lives.
• Changes in emphasis as the workforce mix varies.
• Higher risk exposure (expatriate failure, terrorism, kidnapping).
• Broader external influences (government, economy, culture).

Reasons for international assignments (Edström and Galbraith)

• Position filling: skills not available locally.
• Management development: give managers international experience.
• Organisation development: control and coordination; transfer knowledge and culture.

Types of international assignments

• Short-term (up to 3 months), extended (up to 1 year), long-term (1–5 years, traditional expatriate).
• Non-standard: commuter, rotational (oil rigs), contractual, virtual (managing from home country), frequent flyer.

• Expatriate (expat): an employee working and temporarily living in a foreign country — PCN or TCN sent abroad. Inpatriate: an HCN or TCN transferred to the parent country HQ.

Roles of expatriates

• Agent of direct control — ensures compliance with HQ.
• Agent of socialisation — transfers corporate values.
• Network builder — links subsidiaries and HQ.
• Boundary spanner — gathers local information.
• Language node and transferrer of competence and knowledge.

Expatriate failure

Premature return or poor performance on assignment.

Non-expatriates

• Employees who travel frequently for international business without relocating (international business travellers, "flexpatriates").
• Virtual teams members working across countries without moving.
• Challenges: travel stress, family strain, managing across time zones, cultural misunderstandings on short visits.
• Repatriation: reverse culture shock; lack of suitable job on return; loss of status — firms should plan re-entry before departure.

• Selection criteria: technical ability, cross-cultural suitability (adaptability, cultural empathy, language), family requirements, willingness to move, country and cultural requirements, MNC requirements.

• Expatriate failure: early return or poor performance — causes include spouse and family adjustment problems, culture shock, poor selection, lack of support; costs are high.
• Alternatives: short-term assignments, commuter and rotational assignments, international business travel, virtual assignments.

• Problem: the partner of an expatriate may lose a job, income and identity — a major reason for refusal or failure of assignments.
• Solutions: job search assistance, work permits, inter-company networking, sponsoring education, shorter or commuter assignments, financial compensation for lost income.

• Barriers: stereotypes about host-country acceptance, fewer nominations by home-country managers, family responsibilities, safety concerns, lack of mentors.
• Evidence: women expatriates generally perform as well as men; host nationals often treat them first as foreigners (Adler).
• Supportive practices: transparent selection, mentoring, flexible assignment forms, family support, diversity targets.