Page 11 - DMGT548_GLOBAL_HRM

Global HRM

Notes 2. The three national or country categories involved in international HRM activities: The
host-country where a subsidiary may be located, the home (parent) country where the
firm is headquartered, and ‘other’ countries that may be the source of labour or finance.
3. The three types of employees of an international firm: Host-country Nationals (HCNs),
Parent-country Nationals (PCNs), and Third-country Nationals (TCNs).

Example: IBM employs Australian citizens (HCNs) in its Australian operations, often
sends U.S. citizens (PCNs) to Asia-Pacific countries on assignments, and may send some of its
Singapore employees on an assignment to its Japanese operations (as TCNs).

Figure 1.1: Model of International HRM

Source: Adapted from P. V. Morgan, 1986, International Human Resource Management
Morgan defines international HRM as the interplay among these three dimensions – human
resource activities, types of employees, and countries of operation. International HRM involves
the same activities as domestic HRM (example, procurement refers to HR planning and staffing);
however, domestic HRM is involved with employees within only a single national boundary.
The complexities of operating in different countries and employing different national categories
of workers are a key variable that differentiates domestic and international HRM, rather than
any major differences between HRM activities performed.

Notes The Multinational Model
The interesting aspect of working internationally is that we have to work with people
who have different cultural heritages. Cultural differences should be taken into account
when communicating and interacting across nations and across cultures within nations.
Although multinational companies are supranational in operations and strategy, people
within them do not necessarily share the same cultural values and views on people and
life. The multinational model is built on the premise that it is necessary to understand
cultural differences, rather than trying to smooth them over or override them. For example,
companies like IBM may have a strong corporate culture, but one of the aspects that the

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