Exploring HRM & IHRM: Staffing Strategies in Multinational Firms

This essay provides a comprehensive overview of human resource management (HRM) and international human resource management (IHRM) within multinational enterprises (MNEs). It differentiates between multinational and transnational enterprises, highlighting the centralized decision-making in MNEs versus the decentralized approach in transnational entities. The essay also contrasts HRM and IHRM, focusing on their respective scopes, policies, and cultural considerations. Furthermore, it explores four key staffing approaches: geocentric, ethnocentric, polycentric, and regiocentric, detailing their implications for talent acquisition and management in a global context. The document concludes with a list of references, citing books, journals, and online resources.

Human resources

Table of Content
Human resources.......................................................................................................................1
MAIN BODY..................................................................................................................................3
Multi national enterprise:.............................................................................................................3
Differentiation between HRM and IHRM:..................................................................................4
Four types of staffing approaches:...............................................................................................5
REFERENCES................................................................................................................................1

MAIN BODY
Multi national enterprise:
Multi National Enterprise also known as Multi National Company (MNC) is a company which
has central office in one country but manufacture and provide goods & services in it's home
country as well as other countries over the world such as Unilever , HSBC holding and BHP
group (Shevchenko, 2021). On other hand, Transnational Enterprise is a company that
provides manufacturation of international goods & services, overseas income &
management in more than one country over the world. They do not rely on central office to
make decisions for them. Such companies mainly set up their business in developing
countries as they believe that lands & labour are cheaper than developed country.
Differentiation between MNC and TNC enterprises:
MNCs - MNE & TNE are companies which has their business set up globally or more than 2
countries but still we cannot use them interchangeably because of few reasons :-
Multinational enterprise
 MNE have a home company which operates & manages the work of all overseas set ups.
 They do not have liberty to take the business decisions on their own. Central office makes
the final call for everyone.
 Host Company is linked to all the set ups & keep the record of it's investment, loss &
incomes.
 They have a similar work pattern to be carried out everywhere.
Transnational enterprise
 TNE doesn't have any head company and looks after the work of other firms which is
opened under their name.
 Every individual have right to make their own decisions in favour of their business.
 They do not keep any record of their firms as they are not linked with them( Dan-Jumbo
Comfort, and Etim, 2018). Even if someone is setting up their business under their
management then too it will called as a complete new organization.
Differentiation between HRM and IHRM:
Basis HRM IHRM

Meaning Human resource management
is the full form of HRM which
tend to follow basic
management of human at
organizational level.
International human resource
management is the full form
of IHRM which follow the
international standards of
management of human in the
multinational business
organization (Brewster, et.al.,
2016).
Platform Human resource management
is the done on the national
level of the organization and
tend to follow all the criteria
of basic human resource in an
organization. This human
resource tend to manage
people in a particular country.
International human resource
management follow all the
standards of universal human
management. Many
multinational organization
follow both, local level human
resource and international
level human resource.
Policies The policies of local or basic
human resource allow
business to make certain laws
and set various rules and
regulation which is applied to
every member of the business
organization.
International human resource
allow business to set policies
of the company which is not
same for everyone and have
dynamic nature in the
management of human
according to their position in
the business organization.
Culture The culture of human resource
is single and all the employee
and staff member belong to
one particular culture. This
type of culture help human
resource management team to
The culture of international
human resource is dynamic
and follow various different
culture. Multinational business
organization who have diverse
culture tend to face certain

manage people who belong to
only one particular culture.
challenges but when people
from diverse culture work
together then the business
organization tend to grow.
Four types of staffing approaches:
Geocentric approach: the geocentric approach help organization to recruit people from all
around the globe. Business organization try to select people from international market for their
upper level management purpose, this type of staffing practice help business to recruit qualified
people who have experience of different nations (Zheng and Smith, 2019). This is very beneficial
for the company.
Ethnocentric staffing approach: the ethnocentric staffing means recruiting people from home
country or the nation where the company belong to, this is common staffing practice which allow
company to hire people from parent country. When the company hire talent from the same nation
this help them to create a sense of togetherness and people become more comfortable with these
employees or the people of the country.
Polycentric staffing approach: the polycentric staffing approach means recruiting people from
local as well as other country but the upper level management remain in the hands of local
people of the business organization and company tend to welcome people from international
border.
Regiocentric staffing approach: regiocentric staffing approach means recruiting people from
both local as well as international market but this time the upper level management remain in the
hand of foreign people who tend to manage the overall business organization. This type of
staffing are not usually prefere by the company because this provide powers to foreign and the
local people will get effected.

REFERENCES
Books and journals
Shevchenko, A.O., 2021. Transnational corporations and their role in modern international
economic relations.
Dan-Jumbo Comfort, T. and Etim, A.E., 2018. The Promises and Perils of Multinational
Corporations: The Nigerian Experience. International Journal of Management Science
and Business Administration. 4(3).pp.73-78.
Brewster, et.al., 2016. International human resource management. Kogan Page Publishers.
Zheng, Y. and Smith, C., 2019. Tiered expatriation: A social relations approach to staffing
multinationals. Human Resource Management, 58(5), pp.489-502.
Online references
A, B., 2018. [Online]. Available through <>
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