Definition of Global Human Resource Management: The process of procuring, allocating and effectively utilizing human resources in international business
Why is it important?: To manage geographically dispersed worked force in order to leverage HR resources in obtaining local as well as a global competitive advantage
4 Approaches of International Human Resouce Management
- Ethnocentric Approach - Parent company's approach to management or work is to be practiced by all units of the organization in different countries. Cons: May lead to conflicts in certain circumstances and cause industrial unrest due to mismatch of expectations and believes is quite common
- Poly-Centric Approach - Management style in fitted to suit the local culture and aspirations of the people in that country. Organisations have local people are recruited at senior positions with few Parent country nationals. The guiding principles of culture like Values are driven from the corporate office in the Parent country. Pros: With very few expats, the cost of operation is limited thus being able to compete on cost basis with local companies. Cons: Could potentially be highly localised hence their connect with the corporate becomes loose over the years
- Regino-Centric Approach - Identifying similarities in a particular region thus the setup of regional offices to manage entire region consisting of all countries in the region. Pros: Strong in innovation and creativity due to diversity in the workforce
- Geo-Centric Approach - Using the best strength wherever it is available within the organization without any consideration of geographical region or country. Companies who uses this approach believe and follow ‘homegrown talent strategy. Pros: Has right proportion of flexibility as well as defining culture and boundaries which make them unique and highly effective