Hrm Ikea China

4135 WordsNov 6, 200817 Pages
International Human Resource Management Policies Changes due to a new subsidiary in China of a MNE The Case IKEA 1 IHRM: A Key Factor For Success Of A MNE – An Introduction 1.1 The three components of IHRM – a description 1.2 Key elements concerning IHRM – the details 1.2.1 Recruitment 1.2.2 Training and Development 1.2.3 Performance measurement 1.2.4 Compensation 2 The expansion of a Swedish MNE to China – an example 2.1 Sweden and China – a comparison 2.2 The “IKEA way” – an international company from Sweden 2.3 Changes due to an expansion of IKEA to China – the example 2.3.1 Recruitment 2.3.2 Training and development 2.3.3Performance measurement 2.3.4Compensation 2.4 Employing Swedish expatriates in…show more content…
A solution sometimes used in these cases is the recruitment of a third-country national(TCN). He might be a balanced mixture of both advantages and disadvantages in example due to the possible fact that he is more socialised with the host country culture but understands the business needs of the parent country. The final decision influenced by the host country’s environmental conditions. If the conditions are stable and certain it is less risky to run a business based on rules. But if, due to changes and insecurity, action and decisions, representing complex core values is required, rules and regulations might not be enough to ensure that business is done in the way the headquarters would expect. It has to be mentioned that this is a strategic question which deals with the decision whether a company focuses on an ethnocentric, polycentric, regiocentric, or geocentric orientation. The ethnocentric practices lead to an adaptation of the parent company’s HRM system using PCNs whereas a polycentric strategy means to recruit HCNs. A regiocentric decision would lead to staffing from the natural or cultural region with consequently less corporate control. Recruiting the best people from all over the world is the method of the geocentric approach. Strategic HR decisions are linked with the IHRM issues leading to specific policies. 1.2.2 Training and Development The main question for staff training is the question

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