ULUSLARARASI İŞLETME

Greater risk exposure: Exposure to political risk and terrorism are major concerns for IHRM professionals and may require higher compensation and security arrangements for employees and their families.

The mix of foreigners versus locals: Foreign subsidiaries are frequently staffed from the home country, the host country, and/or third countries. The mix of staff depends on several factors, including the international experience of the firm, the cost of living in a foreign location, and the availability of qualified local staff.

An MNE is said to be following an ethnocentric approach when strategic decisions are made at the headquarters; and critical positions in both the domestic and foreign operations of an MNE are filled by personnel from the parent country (PCNs) with no or minimal autonomy delegated to the foreign subsidiaries.

When an MNE treats each subsidiary as a distinct national entity, it is said to be adopting a polycentric approach. Acknowledging that the business environment and business practices in another country are different from those at the home country, the host country operation will be allowed more decision-making autonomy and will be staffed primarily by HCNs.

The regiocentric approach is a mix between the polycentric and the geocentric approaches.

Table 5.1 shows that the primary orientation of ethnocentric approach is home replication.

Tale 5.1 shows that the primary orientation of polycentric approach is multidomestic.

Table 5.1 demonstrates that regioncentric approach involves regional orientation to staffing.

Table 5.1 shows that the primary strategic orientation observed in the geocentric approach is transnational.

Figure 5.3 demonstrates the hirerarchical order of international involvement with field experience exerting the hihest international involvement.

According to Figure 5.3, the lowest level of international involvement is observed in environmental briefings.

Field Experience: Field experience means visiting the culture, walking the streets of its cities and villages, and becoming absorbed by it for a short time. This can also be thought of as practical training, which is aimed at helping the expatriate and his/her family ease themselves into daily life in the host country

Environmental Briefings and Cultural Orientations: Environmental (area) briefings constitute the most basic level of training—often the starting point for studying other cultures. Briefings include information on local housing, health care, transportation, schools, and climate.

A largely overlooked but critically important issue in the training and development of expatriate managers is to help them make the transition back to their home country. This training and development are called repatriation. Many employees experience what is called the reverse culture shock upon returning home.

International human resources management (IHRM) refers to the planning, recruiting and selecting, training and developing, evaluating, and retaining employees for the international operations of international companies. In this chapter, international companies will be referred to as multinational enterprises. A multinational enterprise (MNE), also called a multinational corporation (MNC), is “a company that produces goods or delivers services in more than one country.” A multinational enterprise has its management headquarters in one (or rarely more than one) country, namely the home country (parent country), while also operating in other countries, namely the host countries.

Awareness of cultural differences is essential for international human resources managers. IHRM is usually more complicated than domestic human resources management. In order to understand the complexity of IHRM, we need to understand its three dimensions. As demonstrated in Figure 5.1, the dimensions of IHRM are activity dimension, regional dimension, and employee-group dimension. IHRM consists of different activities (i.e., recruitment and selection, training and development, performance appraisal and compensation, labor relations, leadership) which form the first dimension. The second dimension is related to the regional aspect which includes whether HRM is carried out in the homecountry, host-country, or other countries; and the third dimension is concerned with different employee groups, i.e., whether they are homecountry nationals, host-country nationals, or from other countries (third-country nationals).

IHRM is usually more complicated than domestic human resources management. In order to understand the complexity of IHRM, we need to understand its three dimensions. the dimensions of IHRM are activity dimension, regional dimension, and employee-group dimension. IHRM consists of different activities (i.e., recruitment and selection, training and development, performance appraisal and compensation, labor relations, leadership) which form the first dimension. The second dimension is related to the regional aspect which includes whether HRM is carried out in the home-country, host-country, or other countries; and the third dimension is concerned with different employee groups, i.e., whether they are home-country nationals, host-country nationals, or from other countries (third-country nationals)

Based on these dimensions, Dowling, Festing, and Engle (2013) discussed six factors that drive the complexity of IHRM; these factors are illustrated in Figure below.

According to “Expat Explorer,” the Global Report of the HSBC Company, Turkey ranks 7th among the top destinations for expatriates, the first five of which are Switzerland, Singapore, Canada, Spain, and New Zealand.

An MNE is said to be following an ethnocentric approach when strategic decisions are made at the headquarters; and critical positions in both the domestic and foreign operations of an MNE are filled by personnel from the parent country (PCNs) with no or minimal autonomy delegated to the foreign subsidiaries.