International HRM and green HRM
IHRM manages people across countries, choosing among ethnocentric, polycentric, regiocentric and geocentric staffing. Green HRM uses HR practices to build environmental responsibility.
Perlmutter's EPRG staffing approaches
| Approach | Key posts filled by | Logic |
|---|---|---|
| Ethnocentric | Parent-country nationals (PCNs) | Home-country ways are best; headquarters controls |
| Polycentric | Host-country nationals (HCNs) in subsidiaries; PCNs at headquarters | Each country is different; locals know local markets |
| Regiocentric | People from within a region | Managers move within a region, such as Asia-Pacific |
| Geocentric | The best person, whatever the nationality | A global mindset and an integrated worldwide network |
IHRM essentials
- Morgan's model has three dimensions: HR activities (procure, allocate, utilise), types of country (host, home, other) and types of employee (HCNs, PCNs, TCNs).
- Dowling: IHRM differs from domestic HRM in having more activities (tax, relocation, visas), a broader perspective, more involvement in employees' lives, higher risk and more external influences.
- Expatriate cycle: selection, pre-departure training, assignment, compensation and repatriation.
- Expatriate failure (early return or poor performance) is often caused by the spouse's or family's inability to adjust, as Rosalie Tung found.
- Expatriate pay: the going-rate approach follows host-market pay; the balance-sheet approach keeps home-country purchasing power.
- Inpatriates are subsidiary managers brought to work at headquarters; returning expatriates may face reverse culture shock.
U-curve of cultural adjustment
Lysgaard proposed the U-curve (1955); the Gullahorns extended it to a W-curve that includes re-entry home.
Green HRM practices
| HR function | Green practice |
|---|---|
| Recruitment | Green employer branding; online applications and interviews; hiring for environmental awareness |
| Training | Environmental awareness, energy saving and waste-reduction training |
| Performance management | Green targets and indicators in appraisals |
| Rewards | Recognition and incentives for eco-initiatives and suggestions |
| Employee involvement | Green teams, suggestion schemes, carpooling, paperless offices |
Green HRM: framework and purpose
Wehrmeyer's 'Greening People' (1996) was an early book linking HRM with environmental management.
NET asks you to identify the EPRG approach from a staffing description, define PCNs, HCNs and TCNs, sequence the U-curve, and pick green HRM practices from a list.
Typical MCQ: “An Indian MNC appoints Indians to head all its overseas subsidiaries. Which approach is this?” Ethnocentric. Trap: polycentric would use host-country nationals to run the subsidiaries.
Typical MCQ: “Which expatriate pay approach keeps home-country purchasing power?” The balance-sheet approach. Trap: the going-rate approach follows host-market pay.
EPRG: ethno = home, poly = host, regio = region, geo = globe. Green HRM builds AMO: ability, motivation, opportunity.