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Unit III · Strategic HRM and industrial relations
8 min readConcept sheetMCQ · staffing approaches, expatriates and green practices

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.

PerlmutterEPG orientations (1969); regiocentric added with Heenan (1979)
Employee typesPCNs (parent-country), HCNs (host-country), TCNs (third-country nationals)
U-curve (Lysgaard, 1955)Honeymoon → culture shock → adjustment → mastery
Green HRMRenwick, Redman and Maguire (2013): ability, motivation, opportunity

Perlmutter's EPRG staffing approaches

ApproachKey posts filled byLogic
EthnocentricParent-country nationals (PCNs)Home-country ways are best; headquarters controls
PolycentricHost-country nationals (HCNs) in subsidiaries; PCNs at headquartersEach country is different; locals know local markets
RegiocentricPeople from within a regionManagers move within a region, such as Asia-Pacific
GeocentricThe best person, whatever the nationalityA 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 functionGreen practice
RecruitmentGreen employer branding; online applications and interviews; hiring for environmental awareness
TrainingEnvironmental awareness, energy saving and waste-reduction training
Performance managementGreen targets and indicators in appraisals
RewardsRecognition and incentives for eco-initiatives and suggestions
Employee involvementGreen teams, suggestion schemes, carpooling, paperless offices

Green HRM: framework and purpose

AMO frameworkRenwick, Redman and Maguire (2013) group green HRM into building ability (green hiring and training), motivation (green appraisal and rewards) and opportunity (involvement and empowerment).
Why it mattersIt supports the triple bottom line of people, planet and profit (John Elkington, 1994), saves costs, improves the employer image and links with CSR under s.135 of the Companies Act 2013.

Wehrmeyer's 'Greening People' (1996) was an early book linking HRM with environmental management.

How NET asks this

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.

Exam angle

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.

Remember it

EPRG: ethno = home, poly = host, regio = region, geo = globe. Green HRM builds AMO: ability, motivation, opportunity.