The strategic role of human resource management in international business

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GLOBAL BUSINESS IN THE
ASIAN CENTURY
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6/27/2019
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GLOBAL BUSINESS IN THE ASIAN CENTURY 1
Contents
1. The strategic role of human resource management in international business.............................2
2. The pros and cons of different approaches to staffing policy in international trade...................3
3. Reasons for managers to fail to thrive in foreign postings..........................................................5
4. Ways for management development and trading programs can increase the value of human
capital in the international business firm.........................................................................................6
5. Reasons for performance appraisal systems might vary across nations......................................7
6. Reason for compensation systems to vary across nations...........................................................8
7. The ways that organized labour can influence strategic choices in international business firms9
References......................................................................................................................................10

GLOBAL BUSINESS IN THE ASIAN CENTURY 2
1. The strategic role of human resource management in
international business
 Providing cross-cultural training
The key need for the human resource in international business is to provide the training to
the leaders as well as the employees to adjust into a new culture or with different cultures
in a team and organisation (Akkermans, Brebbibkmeijer, & Blonk, 2015).
 Fostering global collaboration
While conducting business in the international market, it is relevant to collaborate with
various global stakeholders, which are done by Human resource. This may include
maintaining relation with franchisee, licensor and similar parties.
 Building teams
This is the role within the organization; this would include deciding on teams and
integrating various culture and skills to together to form a strong team and placing the
right person at the right position.
 International human resource policy
The policies of the international brand of the company could be challenging as this could
include the policies as per the host nation legal environment like labour laws.
 Compensation and benefit plans
Another key role of Human resource in international business is to develop benefit plans
to be offered to the employees and the compensation plans in order to keep the
employees motivated in a foreign nation as the employee turnover rate could increase due
to problems faced in cross cultural environment (Bailey, 2018).

GLOBAL BUSINESS IN THE ASIAN CENTURY 3
For example, Apple Inc. has been using cross-cultural teams in order to perform and develop
international products. According to the statistics, 53% of the employees are underrepresented
groups from various cultures and nation, for which human resource management has considered
various strategies to manage international management.
2. The pros and cons of different approaches to staffing
policy in international trade
There are four major approaches to international staffing policy
1. The Ethnocentric Staffing
An ethnocentric approach is staffing the major position by PCN’s that is parent country
nationals. One of the examples would be the German enterprise employee send to China
to work for the Chinese’s subsidiary. One of the examples for this approach is Japanese
firms like Sony and Panasonic (Bird & Mendenhall, 2016).
Pros:
One of the pros is Organizational coordination and control is facilitated and maintained;
it helps to ensure that the subsidiary branch of the company in the host country would
work as per the company objectives; and better managers that would provide them an
international experience and growth opportunities.
Cons:
Key disadvantages of approach include limiting HCN’s promotional opportunities; the
expatriate manager could face challenges in new culture and environment, and the annual
income package of the expatriate is very high that the local manager.
2. The Polycentric Staffing