Page 231 - DMGT545_INTERNATIONAL_BUSINESS

International Business

notes 1. three types of activities: The three broad activities of IHRM, namely, procurement,
allocating, and utilizing, cover all the six activities of domestic human resources
management (HRM). The six functions of domestic HRM are: human resource planning,
employee hiring, training and development, remuneration, performance management, and
industrial relations. These six functions can be dovetailed with the three broad activities of
IHRM.

2. three types of countries: The three national or country categories involved in IHRM
activities are: the host-country where a subsidiary may be located, the home-country where
the company is headquartered and ‘other’ countries that may be the source of labour or
finance.
3. three types of employees: The three types of employees of an international business
include host-country nationals, parent-country nationals, and third-country nationals.
Thus, for example, IBM employs Australian citizens in its Australian operations, often sends
US citizens to Asia-Pacific countries on assignment, and may send some of its Singaporean
employees of an assignment to its Japanese operations.

Note IHRM is same as HRM but on international scale.

An alternative approach to the model of IHRM is shown in the Figure 12.2.

figure 12.2: a model of iHrm – an alternative approach

l z Host Country National (HCN): Belongs to the Country where the subsidiary is located
l z Parent Country National (PCN): Belongs to the Country where the firm has its
headquarters
l z Third Country Nationals (TCN): Belongs to any other country and is employed by the
firm.

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