International human resources management (IHRM) is the process of selecting, training, developing, and compensating personnel in overseas positions. This paper will examine each of these activities in Japan. Before doing so, however, it is important to understand the general nature of this overall process, which begins with selecting and hiring.
             There are three basic sources of personnel talent that MNCs can tap for positions. One is home country nationals, who reside abroad but are citizens of the parent country of the multinational. These individuals are typically called expatriates. An example is a U.S. manager assigned to head an R&D department in Tokyo for IBM Japan. A second is host country nationals, who are local people hired by the MNEs. An example is a British manager working for Ford Motor in London. The last is a third country national; who are citizens of countries other than one in which the MNC is headquartered or the one in which they are assigned to work by the multinational. An example is a French manager working for Mercedes-Benz in the United States.
             Staffing patterns may vary depending on the length of time that the MNE has been operating. Many MNE will initially rely on home country managers to staff their overseas unites, gradually putting more host country nationals into management positions as the firm gains experience. Another approach is to use home country national in less developed countries and employ host country nationals in more developed regions. This pattern has been found fairly prevalent among U.S. and European MNEs. A third pattern is to put home country manager in charge of a new operation, but once the unit is up running, turn it over to a host country manager. As the firm begins initial manufacture in that country, the use of expatriate managers and third country nationals begins to increase. As the company moves through the ensuing stages of internationalization, the nationality mix of the ...