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International Business Strategy and Human Resource Management

What is the link between an international business's strategy and its human resource management policies, particularly with regard to the use of expatriate employees and their pay scale?

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The business strategy is deciding about positioning of the product/ service based on firms core competency and competitive environment. The other relevant factor in Manpower Planning is availability and competence.

If the positioning is on cost competitiveness than the firm will try to save costs on all fronts. In that case it may use expatriate employees only if they save cost and their pay scale will be based on strategy of saving cost and accordingly pay scale will be different than the local employees. Even in this case if the talented manpower is a vital input then the best talent will be hired whether available locally or from outside.

The availability of ...

Solution Summary

The solution discusses the link between an international business strategy and its human resource management policies.

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