Which types of employees are included in the definition of IHRM by P. Morgan?

(A) Host-Country Nationals
(B) Parent-Country Nationals
(C) Third-Country Nationals
(D) Domestic-Country Nationals

Choose the correct answer from the options given below:

Correct option is B

P. Morgan’s definition of International Human Resource Management (IHRM) includes three types of employees:

1. Host-Country Nationals (HCNs) – Employees hired locally within the host country where the subsidiary operates.

2. Parent-Country Nationals (PCNs) – Employees from the home country (where the headquarters is located) who are sent to work in a foreign subsidiary.

3. Third-Country Nationals (TCNs) – Employees who are from neither the home nor host country but are hired to work in a foreign subsidiary.

P. Morgan's model of IHRM excludes "Domestic Country Nationals" because IHRM focuses on cross-border employment relationships, whereas Domestic Country Nationals refer to employees who work within their home country without international assignments.

Information Booster:

1. P. Morgan’s IHRM Model focuses on managing human resources across multiple countries while considering cultural, economic, and legal differences.

2. IHRM is essential for multinational corporations (MNCs) to manage talent across borders effectively.

3. Key functions of IHRM:

   1. Global workforce planning

   2. Expatriate management (including recruitment, training, and compensation)

   3. International labor laws and policies

   4. Cultural adaptation and diversity management

Additional Knowledge:

Domestic-Country Nationals (DCNs) – Incorrect

• Definition: These are employees who work in their home country and do not take on international assignments.

• IHRM focuses on managing employees in an international context, meaning workers who cross national borders. Domestic-Country Nationals do not fall under IHRM because they remain in their home country without foreign assignments.

• Example: A U.S.-based company employing U.S. citizens to work in the U.S. does not involve IHRM. However, if they send employees to another country, it falls under IHRM.