Chartered HRM Case Study 01: Business Acumen Analysis at PPGlobal

This case study, prepared for the Chartered Institute of Personnel Management (CIPM) Sri Lanka, analyzes business acumen within the context of international human resource management (IHRM) at PPGlobal, a Sri Lankan-based company. The study delves into IHRM concepts, including staffing policies (ethnocentric, polycentric, regiocentric, and geocentric), expatriation, compensation, and repatriation. It also examines the diffusion of HRM practices across international operations and the importance of global talent management, covering aspects like strategic alignment, internal consistency, cultural integration, management involvement, and balancing global/local needs. The assignment provides a detailed analysis of these topics, offering insights into the challenges and strategies for effective HRM in a globalized business environment. The case study is a comprehensive exploration of key HRM concepts, providing practical examples and analysis relevant to international business operations.

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CHARTERED INSTITUTE OF PERSONNEL MANAGEMENT SRI
LANKA (Inc.)
Chartered Qualification in Human Resource
Management
Level CIRM – 3
Assignment No. Case Study – 01
Topic of The Assignment Business Acumen
Index Number CQ/ONL/63/05
Contact Number 0763589970
E-mail [e-mail]
NIC No. 977582300V
Date of Submission 12th December 2021
For Office Use Only:
1. Final Marks : …………………………..
2. Remarks : …………………………..
(To be filled by the Examiner)
LATE SUBMISSION
NO OF DAYS
Case Study

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Acknowledgment
I wish to express our deepest gratitude to our lecturer Mr. Prashantha Hettiarachichi. He
was very supportive and shared his expertise. His encouragement, motivation, and
guidance help me to do this case study during the tine. Therefore, I am deeply thankful for
all the immense support he has given to this case study. Furthermore, I would like to thank
full to CIPM, parents for their immense support throughout this period and their
encouragement, attention, and support.

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Table of Contents
Acknowledgment ............................................................................................................................ 2
Task 01 ............................................................................................................................................ 4
Task 02 ............................................................................................................................................ 6
Task 03 ............................................................................................................................................ 8
Task 4 ............................................................................................................................................ 10
References ...................................................................................................................................... 12

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Task 01
1. International Human Resource Management define, it is a process of employing,
developing, and rewarding people in international or global organizations. It
involves in the worldwide of managing people.
The 1986 Morgon model as explained in IHRM on three components:
i. Resourcing, developing, and engaging all are the three broad human
resource activities: The Srilankan management is handling the
management staff recruitments, and the floor level employment is handled
by the host country. Accordingly, the host country requested skill-
developed programs. We can see t there is a skill gap between the
employees. Therefore, we should allocate the regional head or country
head to our subsidiaries and must implement the skill. When you give the
training direct ability to increase motivation also increases but that can be
indirect. As a result, the performance of the employee will increase.
ii. Country or global activities are involved in the respective destination
a. The host country refers to where a subsidiary is located: Our
company has made a business growth in Market expansion and
Supply expansion in a few countries. Some of them are native
Indians of America, Mayans, Aztecs, Sumerians, Egyptians, Indian
Mogul, Roman, Scandinavian Maoris, and the supply end
expansion is based in mostly Asia. If we recruited our subsidiaries
country people call it as the host country.
b. The parent country refers to where the firm is headquartered:
PPGlobal is a Srilankan-based organization to buy and sell clay
products headquartered in Dambulla. Srilanka is a Parent country.
iii. In here two types of employees are in our firm:
a. Host Country Nationals(HCN)
b. Parent Country Nationals (PCN)
c. Third Country Nationals (TCN)
When it comes to the host country nationals, the employees who are in attached
international business from the host country refer as host country nationals. Here,

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PPGlobal is headquartered in Srilanka, and its operations are having countries in
native Indians of America, Mayans, Aztecs, Sumerians, Egyptian, Indian Mogul,
Roman, Scandinavian Maoris, and the supply end expansion is based in mostly Asia
is called as host country nationals. Accordingly, third-country nationals define as
third-country nationals are neither from the host country nor parent country
nationality attached to an international business called third-country nationals.
Advantages of using host country nationals, parent country nationals, and third-country
nationals.
Parent country nationals
• Knowledge of firms culture and product
• Loyalty is important
• We can be easier to access
• Facilitate to control the firm
Host country nationals
• Familiar with the local environment
• Goodwill
• Less expensive
• Know local business subtleties
Third-country nationals
• Knowledge in the areas in specific cultures and languages
• Cost is less
• It is more adaptable than the PCN
Morgon 1986 defines IHRM as three components of human resource activities, types of
employees, and countries of operation.

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Task 02
There are four specific dimensions of the diffusion of practices
1. According to the PPGlobal company some employment practices are more rapid
than others, and what ways of practices are amended to fit a new environment?
In our company host country decisions are made in Srilanka. These situations are
created by the delay in the decisions. So, we can select a country head or regional
head for every subsidiary. It would be one of the best methods to make the right
decision on time.
2. What roles of transferring and receiving units play in transfer and diffusion?
When a parent provides resources and assigns decision-making authority, or when
it authoritatively decides which units can transfer specific practices, this is referred
to as a direct role. HRM practice transfer and diffusion is a multi-stage process that
includes three distinct stages: the creation of new practices, practice transfer and
diffusion between other units, and practice implementation. There is a training gap.
Because development-centric training and development are not conducted. So, we
must develop the training and plan. So, we can give pre-departure training, post
departure training, cross-cultural training, training of trainers, and one job training
(F. T. Chiang, K. Lemańsk, & A. Birtch, 2016)
3. Some MNC’s are more likely to transfer practices across their operation than others.
What are the characteristics of MNC’s engaging in the transfer of practices? There
are some Characteristics in MNC’s engaging to transfer. The following
characteristics must follow when they engage to transfer. Such as Very high assets
and turnover, Network of branches, Control, continued growth, Sophisticated
technology, Right skills, Forceful marketing and advertising, and good quality
products. Therefore, there are some advantages to Multinational cooperation.
MNC’s can reach the target more easily, MNC’s pay better than the local
companies, and this organization is coming up with innovation.
4. What mechanisms facilitate are transfer?

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Performance objectives, management, and measurement have become one of the
issues to change it correctly in this organization. Various factors relating to
diffusion activities are used in performance evaluation schemes to evaluate the
performance of the employee. Such as practice or extent sharing. Accordingly,
recruitment and selection do manage by the Srilankan management of staff
recruitments. Due to the time concern, we can use ethnocentric staff policy and get
real information and the processes are chances to spending less time. During the
transfer stage, global standards policies may allow the sharing of practical
experience, and best practice monitoring systems may assist in identifying new
practices in subsidiaries with the potential for diffusion. Our company can
overcome any resistance to the adoption and execution of methods being
transmitted by stimulating social connections. (F. T. Chiang, K. Lemańsk, & A.
Birtch, 2016)

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Task 03
In IHRM there are some types of staffing policies as follows.
• Ethnocentric staffing: According to the PPGlobal company, only the floor level
staff recruiting is made by the host country, and the Srilankan management is done
by management staff recruitments. The ethnocentric approach defines,
Headquarters is planning to promote a headquarters employee to send an employee
to subsidiariHerehere, should use the ethnocentric staffing policy to assign our
Srilankan top employees to our subsidiaries to management staffs recruitment.
Through that only we can get a real-time record.
• Polycentric staffing: Polycentric approach refers, headquarters employees, being
assigned to top roles in central offices or headquarters, while overseas local people
are assigned to other positions. In our case, we could tell our overseas employee to
transfer the best person to that position and come back to Srilanka. This is a good
opportunity for our Srilankan employees to improve their careers through
promotion.
• Regiocentric staffing: It defines, to fill our open roles, we must use a regiocentric
strategy to recruitment, which means we hire or transfer people from the same
region (such a group of countries). If we face this type of situation we can use our
host country’s nationals to transfer to another country. The main advantages of this
approach are less cost.
• Geocentric staffing: We should expand the supply end expansion is based in
mostly in area of Asia, and except for a unit each in the USA and Canada. With the
geocentric approach, we can reach all the countries in the world. End of the day
entire world is one. The main advantage is high flexibility and increased
organization culture knowledge in different countries and subsidiaries.
The following are three categories of human resource management issues in
international business:

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• Expatriation: Our company must decide when and where to expatriate their
employees. In international operations, expatriate personnel is typically appointed
to crucial positions.
i. Home and family issues: Because you will spend the majority of the time
inside the flights in different countries. It will affect home and family
issues.
ii. Work arrangements: They have to do a desk job on top of what they are
traveling.
iii. Health concerns: Most of the time an expatriate eats in the airline.
iv. Host Culture issues: In an expatriate assignment you work as business
travelers you have to have a dynamic.
• Compensation: Compensation is another problem that we must address. Issues
such as the cost of housing, education of children, and home leave are to be stated
in policies.
i. Cost of living allowances: The cost of living allowance is varying from
country to country.
ii. Housing Allowances: In housing allowance, if that employee comes for a
high position so this housing allowance is also in line with the position.
iii. Home leave allowances: Company-sponsored air tickets to come back to his
home country
iv. Relocation allowance: In changing location that might be become cost and
the spousing allowance
• Repatriation is another issue that we must face. When a worker needs to return to
his or her native country, usually to continue working for the company, repatriation
occurs. When an expatriate worker retires, he or she is repatriated. These difficulties
have a considerable impact on expatriate and local workers' perceptions and
performance and the effectiveness of HRM in staffing.

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Task 4
Finding the proper candidate to fill vacancies is important to a company's success. Human
resource planning is used by talent management to assist a company in achieving its
objectives. A corporation must do more than just recruit and train to fill positions to
effectively manage global personnel. When it comes to global talent management, six
criteria have been identified as giving a company a competitive advantage.
1. Align with Strategy: The first concept of global talent management is to ensure
that the talent department is aware of and committed to the company's strategic
goals. If we are hiring, the talent department should be aware of recruiting, hiring,
and training. When it comes to recruitment, they must know, which recruitment
approaches we are hiring such as polycentric, geocentric, regiocentric, or
ethnocentric. Accordingly, we can give employees the training. Such as pre-
departure training, post departure training, cross-functional training, and on-the-job
training.
2. Internal consistency: We should maintain internal consistency. There are
diversified employees are working in our PPGlobal company. At the same time,
talent development hires the same position with different rates of pay. This is
mainly focused on retaining the employees.
3. Integrating culture: Integrating culture into the talent management process is the
third principle. When we are hiring and retaining employees it's important to keep
the company's culture in mind. Because in our company their different subsidiaries
are located around the world.
4. Management involvement: In our company, the management process is handled
by managers at all levels, not by HR. Senior leaders must play an active role in the
personnel management process, prioritizing recruitment, succession planning,
leadership development, and critical staff retention.
5. Balance of global and global needs: Talent management is difficult for firms that
operate in numerous nations, cultures, and institutional settings. Companies must
figure out how to respond to local demands while keeping a consistent HR strategy
and management approach in place.

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6. Employer branding through differentiation: For businesses that operate in a
variety of countries, cultures, and institutional systems, talent management can be
challenging. We must determine how to respond to local needs while maintaining
a consistent HR strategy and management approach.
7. Balance global and local needs
Talent management is difficult for firms that operate in numerous nations, cultures,
and institutional settings. We should figure out how to respond to local demands
while keeping a consistent HR strategy and management approach in place.
(K.Stahl, et al., 2011)

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References
F. T. Chiang, F., K. Lemańsk, M., & A. Birtch, T. (2016). The transfer and diffusion of
HRM practices within MNCs: lessons learned and future research direction. The
International Journal of Human Resource Management, 234-258.
K.Stahl, G., Bjorkman, I., Farndale, E., S.Morris, S., Paauwi, J., Stiles, P., & Trevor, J.
(2011). Keys of talent management MIT. Academia, 15.
SUZANNE WHITEHEAD. (2017, March 24). Retrieved from
http://panmore.com/staffing-policy-hrm-issues-in-international-business