BDO EXAM M1 U5

Question 1

International Human Resource Management

Answer 1

HRM issue and problems arising from the internationalisation of business and the HRM strategies, policies and practices which firms pursue in response to the internationalisation process.

Question 2

Why do organisations do business abroad?

Answer 2

1. Labor force
2. Less government Regulations
3. Growth opportunities
4. To reduce costs

Question 3

Types of Organisational Firms

Answer 3

1. Intermediary- Firm does business through a third party using intermediary.
2. Licensing (Franchise) Firm leases right to intellectual property (Trade mark, patents or brand names)
3. Management Contracts- firm sells management expertise to firm in another part of the world.
4. Alliances-
   a. Joint Venture- Creation of new separate firm that is jointly owned.
   b. Strategic alliance- Firms agree to partner up but do not set up separate entity.
5. Sole ownership

Question 4

Impact of going abroad on HR professionals activities.

Answer 4

1. More functions- International tax, Relocation of staff, Admin for expatriates.
2. More heterogenous functions- more diverse and complex because they have to be administered for different groups of employees as well as cross-cultural issues.
3. More involvement is employees personal lives.
4. Changes in emphasis as workforce mix varies
5. More external influences -Legal, political and economic.

Question 5

Various Recruitment approaches

Answer 5

1. Ethnocentric
2. Polycentric
3. Regiocentric also known as Third party N
4. Geocentric