INTERNATIONAL HUMAN RESOURCE MANAGEMENT

QUIDELINES.

RUBRIC 1
Introduction on the multinational company (MNC) selected .
the introduction of the company such as, vision, mission, number of employees and so forth.
COMPANY SIME DARBY
http://www.simedarby.com/
RUBRIC 2
explain about the approaches in managing and staffing subsidiaries. This can be refer in Chpter
1.1.7: approaches to international HRM. Those approaches are
a.

Ethnocentric
Few foreign subsidiaries do not have any autonomy; strategic decisions are made at
headquarters. Key positions at the domestic and foreign operations are held by management
personnel of headquarters. These subsidiaries are managed by expatriates from the home
country (parent country national).

b.

Polycentric
The MNC treats each subsidiary as a distinct national entity with some decision-making
autonomy. Subsidiaries are usually managed by local nationals (host country nationals) who
are seldom promoted to positions at headquarters. Parent country nationals are rarely
transferred to foreign subsidiary operations.

c.

Geocentric
The MNC takes a worldwide approach to its operations, recognising that each part
(subsidiaries and headquarters) makes a unique contribution with its unique competence. It

ignores of a geocentric Nationality in favour of ability. An example company is given

below.
d.

Regiocentric
It reflects the geographic strategy and structure of the multinational. It utilises a wider pool
of managers but in a limited way. Personnel may move outside their countries but only
within the particular geographic region. The regional managers may not be promoted to
headquarter positions but enjoys a degree of regional autonomy in decision-making.

The example of those approaches can be refer to chapter 1.1.7.

RUBRIC 3
explain in detail about the issues faced by MNCs when dealing with the approaches in managing
staffing. For this rubric you may refer to Chapter 1.2.1: Fcators contributing to complexity of
HRM. Those factors are :

a.

More Human Resource Activities

Expatriates are subject to international taxation and often have both domestic (i.e. parent
country) and host country tax liabilities. Therefore, tax equalisation policies must be
designed to ensure that there is no tax incentive or disincentive associated with any
particular international assignment. The administration of tax equalisation policies is
complicated on account of the wide variations in tax laws across host countries and by the
possible time lag between the completion of an expatriate assignment and the settlement of
domestic and international tax liabilities. In recognition of these difficulties, many
multinational firms retain the services of a major accounting firm for international taxation
advice.

b.

The Need for a Broader Perspective

HR managers working in an international environment face the problems of designing and
administering programmes for more than one national group of employees (e.g. parent

country national, host country national and third country national employees who may work
together in Zurich at the European regional headquarters of the US based multinational).
c.

More Involvement in Employees Personal Lives

A greater degree of involvement in the employees personal lives is necessary for the
selection, training and effective management of both parent country national and third
country national employees. The human resource department or professional needs to
ensure that the expatriate employee understands housing arrangements, health care and all
other aspects of the compensation package provided for the assignment (cost of living
allowances, premiums, taxes, etc.). Many multinationals have an international human
resource services section that coordinates administration of the above programmes and
provides services for parent country nationals and third country nationals such as handling
their banking, investments, homes while on assignment, coordinating homes visits and final
repatriation.

d.

Differences in Emphasis According to the Varied Needs of the Workforce which is a

Mix of Expatriates and Locals.
As the need for parent country nationals and third country nationals are declined, more
trained locals become available. Resources previously allocated to areas such as expatriate
taxation, relocation and orientation are transferred to activities such as local staff selection,
training and management development. The latter activity may require establishment of a
programme to bring high potential local staff to corporate headquarters for developmental
assignments.

e.

Risk Exposure
The human and financial consequences of failure in the international arena are more severe
than in domestic business. The risks involved in an international operation will be cleaner
from the example given below.

f.

Major External Influences

The major external factors that influence international HRM are the type of government, the
state of the economy and the generally accepted practices of doing business in each of the

various host countries in which the multinational operates. The example given below will
provide you a better idea about the role of government in shaping business practices.
For the explanation of the example, you may refer to chapter 1.2.1.

RUBRIC 4
It is about the discussion on the approaches used by your selected company (in rubric 1) in
managing subsidiaries.
For example, ethnocentric. How the comapny use ethnocentric in managing their subsidiaries.
for example, all decison about the company are made at headquarters. Key positions at the
domestic and foreign operations are held by management personnel of headquarters. These
subsidiaries are managed by expatriates from the home country (parent country national).
RUBRIC 5
discuss about the issues faced by MNCs when managing their subsidiaries based on points in
rubric 3. For example, you can foolw the moduel's example by relate it with the chosen company.

A broader, more international perspective on expatriate benefits would endorse the view that all
expatriate employees regardless of nationality should receive a foreign service or expatriate
premium when working in a foreign location. Yet some multinationals which routinely pay such
premiums to their parent country national employees on international assignment (even if the
assignments are to desirable locations) are reluctant to pay premiums to foreign nationals
assigned to the home country of firm. Firms following such a policy often use the term inpatriate
to describe foreign nationals assigned to the home country of the firm. Such a policy confirms
the common perception of many host country national and third country national employees that
parent country national employees are given preferential treatment.

RUBRIC 6
About the summary.
Need to simplify all the points in the assignment and put it in summary. It must be short, precise
and simple.

REFERENCE STYLE
APA.