MMPH 009 Solved Guess Paper 2026 with Answers | International Human Resource Management (MBA, MBAHM, PGDIHRM)

Domestic HRM versus International HRM and the Approaches to IHRM

Question: Define International Human Resource Management. Discuss the differences between Domestic HRM and International HRM. Also describe the various approaches to IHRM along with their advantages and disadvantages.

Meaning. IHRM performs HRM and its connected activities and arranges the related cultural and immigration facilities needed by current and future employees of a firm operating in both domestic and overseas countries.

Differences between Domestic HRM and International HRM. The book identifies six fundamental aspects that separate IHRM from Domestic HRM.

1. Wider nationalities. IHRM deals with people of many nationalities, cultures and languages, unlike DHRM where employees are primarily of one race.
2. Broader relations and complexities. IHRM seeks wider data on employees and their families and arranges work permits, visas and cultural sensitisation.
3. Influence of the international environment. The complex, dynamic international environment widens the scope of IHRM, while DHRM is shaped only by domestic conditions.
4. Enduring complexities of IHRM activities. IHRM handles expatriates governed by host country rules, which creates different pay and appraisal structures.
5. Variety of functions. IHRM performs extra functions such as immigration formalities, logistic arrangements, language workshops and transition facilities.
6. Different approaches to domestic functions. IHRM widens recruitment, training and retention, and adds tasks such as exchange rate neutralisation and tax adjustment.

Approaches to IHRM. Douglas Wind and Perlmutter (1969) advocated four approaches to international business.

1. Ethnocentric. Key positions are filled by parent country nationals. Advantage: effective head office control. Disadvantage: cultural clashes and a high failure rate.
2. Polycentric. A subsidiary is staffed largely by host country nationals. Advantage: lower cost and high local morale. Disadvantage: poor coordination with the parent.
3. Regio centric. Operations and policies follow the regional environment. Advantage: cultural fit and lower cost. Disadvantage: language barriers and goal confusion.
4. Geocentric. The whole world is treated as one country. Advantage: an internationally experienced talent pool. Disadvantage: high training and relocation cost.

Conclusion. IHRM extends HRM into a multicultural setting and differs from DHRM mainly in nationalities, scope and complexity. The choice among the ethnocentric, polycentric, regio centric and geocentric approaches depends on the firm's stage of internationalisation and its business needs.

Hofstede's Cultural Dimension Model and Trompenaars' Cultural Model

Question: Explain the different dimensions of Hofstede's Cultural Dimension Model. Also describe the various dimensions of Trompenaars' Cultural Model.

Hofstede's Cultural Dimension Model. Hofstede (1997) described national culture as the set of beliefs and values that distinguish people of one nationality from those of another. His 1980 study of IBM employees laid down six dimensions.

1. Power Distance Index. The disparity of power between the powerful and the powerless. A high index means hierarchy is accepted, a low index means power is shared.
2. Individualism versus Collectivism. How far individuals are integrated into groups. Individualist societies stress individual performance, collectivist societies stress group loyalty.
3. Masculinity versus Femininity. Distributive gender roles. Masculinity stresses achievement and material reward, femininity stresses cooperation, care and quality of life.
4. Uncertainty Avoidance Index. Social tolerance for uncertainty. A high index means strict laws and low risk taking, a low index means openness and high risk tolerance.
5. Long Term versus Short Term Orientation. The link between past and future. Long term cultures value thrift and perseverance, short term cultures value tradition and quick results.
6. Indulgence versus Restraint. How far society allows gratification of desires. Indulgent societies emphasise enjoyment and open speech, restrained societies impose strict social norms.

Trompenaars' Cultural Model. Fons Trompenaars and Charles Hampden Turner developed their model after researching the values and preferences of more than 46,000 managers across 40 countries, and presented seven cultural dimensions.

1. Universalism versus Particularism. Universalist cultures believe one rule applies to all situations. Particularist cultures interpret rules flexibly by relationship and circumstance.
2. Specific versus Diffuse. Specific cultures separate public and private life. Diffuse cultures blur the two and build long term relationships.
3. Achievement versus Ascription. Achievement cultures value personal competence and results. Ascription cultures value status from title, age, family or connections.
4. Individualism versus Communitarianism. Individualistic cultures emphasise the self and the immediate family. Communitarian cultures place group interest before individual interest.
5. Affective versus Neutral. Affective cultures express emotions openly. Neutral cultures control and restrain their emotions.
6. Sequential versus Synchronous Time. Sequential cultures prefer events in logical order with punctuality. Synchronous cultures multi task and see time as intertwined.
7. Internal versus External Direction. Internally directed people believe they control the environment. Externally directed people believe the environment controls them.

Conclusion. Hofstede's six dimensions and Trompenaars' seven dimensions give managers practical frameworks to analyse cultural differences and to manage diversity across business environments.

Expatriates, Their Qualities, Reasons for Failure and the Recruiter's Role

Question: Who is an expatriate? What are the qualities required to become a successful expatriate? Discuss the main reasons for expatriate failure and suggest what recruiters can do to minimise it.

Meaning of an expatriate. An expatriate, in abbreviated form an expat, is a person temporarily or permanently residing in a country and culture other than that of the person's upbringing or legal residence.

MNCs use expatriates for three main reasons. Qualified host country nationals may not be available, in which case the expatriate is a position filler. Foreign assignments develop managers. Knowledge transfer through expatriates achieves organisational development.

Qualities required of a successful expatriate.

1. Cultural sensitivity and tolerance of differences.
2. Concern for business ethics and sound business acumen.
3. Communication skill and open mindedness.
4. Flexibility, adaptability and tolerance for ambiguity.
5. International exposure, curiosity and empathy.
6. Persistence, motivation, self reliance and the ability to handle stress.

Reasons for expatriate failure.

1. Failure to select the right person, considered the single most important reason.
2. Inability of the expatriate to adjust to a foreign culture and to withstand culture shock.
3. Dissatisfaction of the spouse and related family problems, increasingly recognised as a prominent reason.
4. Lack of emotional maturity, language ability or genuine interest in the assignment.

What recruiters can do.

1. Focus selection on a wide range of criteria rather than technical skill alone.
2. Assess the candidate's ability to adjust, emotional maturity and willingness to accept a possibly lower quality of life.
3. Interview the spouse before selecting the candidate.
4. Ensure the selected candidate can withstand the culture shock of the host country.

Conclusion. An expatriate works outside his home culture, and success depends far more on careful selection than on later HR processes. By judging cultural adjustment, family support and emotional maturity rather than technical skill alone, recruiters can minimise costly expatriate failure.

Tahvanainen's Model of Expatriate Performance Management

Question: Explain the model of expatriate performance management proposed by Tahvanainen. Why is it important to include hard, soft and contextual criteria when assessing managerial performance?

Tahvanainen's model. Tahvanainen (1998) built a model to explain how an expatriate's performance should be appraised in the context of the firm's specific strategies and set goals.

The organisational context in the model comprises the organisational structure, the performance appraisal system, top management's support, the nature of the job, the size of the subsidiary, and the styles and skills of the expatriate manager and other employees.

The process begins with corporate strategic planning and the resulting international assignment. On the basis of selection criteria, both job related and individual, the expatriate is selected, the performance target is set, and the required training is provided.

While on assignment, performance variables such as compensation, task responsibility, headquarters support, the host country environment, cultural adjustment, the manager's own style and the size of the subsidiary all influence performance.

Performance is then reviewed, feedback is given and the manager is rewarded, after which the cycle restarts with corporate planning. Alongside this formal process, an informal flow of feedback and coaching should run between appraisee and appraiser.

Importance of hard, soft and contextual criteria.

1. Hard criteria. Performance based or tangible outcome based, such as profits and market share. Easy to collect and assess, but they ignore the environmental difficulties expatriates face.
2. Soft criteria. Relationship or trait based interpersonal criteria, critical because expatriates work in cross cultural settings, though they are subjective and prone to rater error and bias.
3. Contextual criteria. Situation specific criteria dependent on the assignment, representing external conditions such as cultural, language and environmental differences that affect both hard and soft criteria.

Conclusion. Each type provides unique and important information, so an appraisal is far more accurate when all three are used together rather than any one alone. Firms therefore benefit by incorporating a mixture of hard, soft and contextual criteria.

High Performance Work Systems: Characteristics and Principles

Question: Define High Performance Work Systems (HPWS). Describe the characteristics and the principles of HPWS.

Meaning. An HPWS is an integrated set of human resource policies and practices that together produce superior employee performance. Best practice companies share common recruitment, selection, training and compensation practices that translate into higher employee and organisational effectiveness, building a culture based on commitment rather than control.

Characteristics of HPWS. The book identifies six key characteristics.

1. Ensuring employee security. Policies that safeguard employee security build trust and encourage extra role effort.
2. Selective hiring. Firms identify key talents and traits and hire for non transferable qualities such as character and service orientation.
3. Decentralised decision making. Decision making is delegated to well trained, self managed teams with autonomy and broad discretion.
4. High results based compensation. A compensation system rewards employees at all levels when the company succeeds, often through profit or gain sharing.
5. Training by commitment. Commitment based training teaches employees to solve problems, accept responsibility for quality and take initiative.
6. Reduced status barriers. Removing wage disparities and status symbols treats employees as valued partners and fosters trust and loyalty.

Principles of HPWS. Four primary principles act as building blocks for managers.

1. Shared information. Timely, meaningful information about the company's performance, plans and strategy builds employee commitment.
2. Knowledge development. The firm invests in continuously developing employees' technical, problem solving and interpersonal abilities.
3. Performance reward linkage. Linking rewards to performance aligns employee and organisational goals and ensures fairness.
4. Egalitarianism. Cooperative work management replaces conflict, abolishing status and power disparities and empowering employees.

Conclusion. An HPWS produces superior performance by combining six characteristics with the four principles of shared information, knowledge development, performance reward linkage and egalitarianism. Designing and implementing it is a collective effort of employers and employees.