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International Business
notes Questions
1. What multinational strategy is Molex pursuing-localization, international, global
standardization or transnational?
2. How would you characterize the approach to staffing used at Molex? Is this
appropriate given its strategy?
3. Molex is very successful in its use of expatriate managers. Why do you think this is
the case? What can be learned from Molex’s approach?
4. How does the human resource function at Molex contribute to the attainment of its
multinational strategy?
Sources: J. Laabs, “Molex Makes Global HR Look Easy,” Workforce, March 1999, pp. 42-46; and M. Solomon, “Foreign
Relations,” Workforce, November 2000, pp. 50-56.
12.4 summary
l z International human resource management (IHRM) is much broader in nature and scope
in comparison to HRM.
l z International HRM, thus, involves ascertaining the corporate strategy of the company and
assessing the corresponding recruitment, staffing and organizational strategy.
l z There are various characteristics of international HRM
l z IHRM involves the interplay among the three dimensions, namely IHRM involves
the interplay among the three dimensions namely, human resource activities, types of
employees and countries of operations.
l z There are some important factors which make international HRM complex and
challenging.
l z Research confirms and anecdotes suggest a powerful relationship between HRM process,
management productivity and strategic performance. There are certain strategic decisions
and their implications for human resource management.
l z Staffing policy is concerned with the selection of employees for particular jobs.
l z Two of the three staffing policies we have discussed – the ethnocentric and the geocentric
– rely on extensive use of expatriate managers.
12.5 keywords
Bearer Bond: A bearer bond possession is evidence of ownership. The issue does not keep any
records indicating who the current owner of a bond is.
Ethnocentric staffing policy: It is one in which all key management positions are filled by parent-
country nationals.
Eurocurrency: Eurocurrency is the time deposit of money in an international bank located in a
country different from the country that issued the currency.
Geocentric Staffing Policy: It seeks the best people for key jobs throughout the organization,
regardless of nationality. This policy has a number of advantages.
Polycentric Staffing Policy: It recruits host-country nationals to manage subsidiaries while
parent-country nationals occupy key positions at corporate headquarters.
Registered Bond: With registered bonds, the owner’s name is on the bond and it is also recorded
by the issuer.
Staffing Policy: It is concerned with the selection of employees for particular jobs.
238 lovely Professional university
