With the evolution of transports since 30 years and the tendency to a “One world market”, foreign exchanges within multinational know a huge rise. In fact, companies need more and more international assignment because it is a key factor of international growth (management development and organization development). On the one hand, we will take a look on organizational challenges. On the other hand we will treat the human resources challenges.
• Corporate Challanges
Is necessary for IHRM to have a clear vision on company’s environment in order to design a good international staffing strategy. The choice of the right staffing approach in the international growth is influenced by external and internal determinants like context, the company itself, Local unit specificities and IHRM practices.
The four staffing approaches presented by Perlmutter are: Ethnocentric, Polycentric, Regiocentric and finally Geocentric. Each of this staffing choices present advantage and disadvantages. They are directly link to the choice of PCNs TCNs and HCNs. For example, ethnocentric decisions drive a PCNs management. This staffing choice take in account witch kind of international assignment will the most appropriate depending on the purpose of the transfer, the time of the assignment and the nature of the task.
In this case, the challenge for IHRM in international staffing is to apply the theory on real activities of the company with this own resources. Generally, HR department made a mix between this approaches in order to provide the better way of evolution.
As shown in the Return-on-investment calculating, International assignments represent a very important cost for company. Consequently, HR departments cannot shape their staffing strategy without thinking the costs effect.
• Human Challanges
The principal challange of IHRM in international staffing is to define who will be the better employee for a specific work. HR responsible has to keep in mind organizational objectives:...