International Business, 2nd Edition by Pearson

International HRM 221

CHAPTER SUMMARY

■ The firm’s IHRM policies should be congruent with the firm’s international strategy, its structure

and its control systems.

■ There are four approaches to stang, namely, an ethnocentric approach, a polycentric approach,

a geocentric approach and a regiocentric approach.

■ An ethnocentric approach emphasizes the importance of parent-country nationals (PCNs) in key

positions. It is congruent with an international strategy, but it may breed cultural myopia.

■ A polycentric approach uses host-country nationals (HCNs) to manage subsidiaries and PCNs

to manage corporate headquarters. This approach avoids cultural ...