Download - International HRM Introduction
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International HRMMessiah College
January 22, 2014
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attribution
Attribution in this presentation: all figures come
from Peter J. Dowling, a.o., International HumanResource Management , South-Western Cencage
Learning, 2008, ISBN 978-1-84480-542-6, unless
mentioned otherwise.
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Objectives
• Define key IHRM terms
• Review expatriate management
evolution• Outline differences between domestic
and international HRM
• Discover the increasing complexity
and potential challenges of current
IHRM
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A definition of IHRM
“We define the field of IHRM broadly to cover all
issues related to the management of people in
an international context. Hence our definition
of IHRM covers a wide range of human resource
issues facing MNC’s in different parts of their
organizations. Additionally, we include
comparative analyses of HRM in differentcountries.”
Stahl and Bjorkman, page 5, Chapter 1.
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expatriate
management
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Terms
NAFTA
UNCTAD
MNE
culture shock
emi-etic distinction
HRM
IHRM
HCN
PCN
TCN
expatriate
inpatriate
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Inter-relationships between
approaches to a field
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Defining HRM
An organization’s HRM activities include:
1. Human resource planning
2. Staffing (recruitment, selection, out-placement)
3. Performance management
4. Training and development
5. Compensation (remuneration) and benefits
6. Industrial relations
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Human resource planning
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Recruitment & Selection
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Performance management
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Renumeration
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Training & Development
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Differences between domestic HRM
and IHRM
The complexity of IHRM can be attributed to six
factors:
1. More HR activities
2. The need for a broader perspective
3. Move involvement in employees’ personal lives
4. Changes in emphasis as the workforce mix ofexpatriates and locals varies
5. Risk exposure
6. Broader external influences
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from SWOT to Strategy
Implementation of Strategy
• corporate governance
• organizational structure
• coordination and control
• leadership
•
entrepreneurship• innovation
• change and sustainability
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approach and focus
• Suitability, does the strategy address the key
issues?
• Acceptability, will the strategy achieve an
acceptable return, reasonable level
of risks?
• Feasibility, can the strategy be pursued within
the resources, capabilities and
competences of the organization?
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opportunities international strategy
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Internationalization causes
differences in costs/risks
• Exporting high cost and low risk
• Licensing low costs and high risk
• Strategic alliances shared costs and sharedrisks, but having problems of integration andtherefore control
• Acquisitions rapid, high cost and high risk
• The establishment of a new subsidiary alsohigh cost and high risk, greater opportunity for
management control and above average
returns
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Determinants of national advantage
• Factor conditions labor, land, naturalresources, financial capital, infrastructure
• Demand conditions demand for basic and
advanced goods and services in the home market• Related and supported industries important
networks of suppliers, buyers, services
•Firm’s strategy, structure and rivalry someplaces in different countries are the location of
choice for particular industries, products,services
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viability of the firm
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framework for thinking flexibly about
culture
• Unitary and unique organizational culture
• Organizations as meetings points of ‘fields’ of
culture
• Local subcultures
• Ambiguous cultural configurations
•
Integration
consistency and consensus• Differentiation variation and sub-culture
conflict
• Fragmentation ambiguity, inconsistency and
fluctuation
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knowledge strategies
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four knowledge management
strategies
• Leveraging communicate and transfer existingknowledge within the organization
• Expanding create and build on existingknowledge
• Appropriate strategy take new knowledgefrom external individuals andorganizations and transfer this into
your organization• Probing strategy create new, propriatory
knowledge from your internalorganizational resources
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A model of the variables that moderate differences
between domestic and international HRM
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Variables that moderate differences
between domestic and international HRM
1. The complexity involved in operating in
different countries and employing different
national categories of employees
2. The cultural environment
3. The industry (or industries) with which the
MNE is primarily involved
4. The extent of reliance of the MNE on its
home-country domestic market
5. The attitudes of senior management
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Strategic HRM in multinational
enterprises
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truly international HRM require following steps
1. Recognize that one’s own HRM reflects home culture
assumptions and values.2. Recognize that one’s own peculiar ways are neither
universally better nor worse than others - just different and
likely to exhibit strengths and weaknesses, particularly
abroad.3. Recognize that organization’s foreign subsidiaries may prefer
other ways to manage people – ways that are neither
intrinsically better nor worse, but possibly more effective
locally.
4. Headquarters willingness to acknowledge cultural differences
and steps to make them discussable and therefore usable.
5. Build shared genuine belief that cross-cultural learning will
result in more creative and effective ways of managing
people.
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Discussion Questions
1. What are the main similarities and differencesbetween domestic and international HRM?
2. Define these terms: IHRM, PCN, HCN, and TCN.
3. Discuss two HR activities in which a MNE must
engage that would not be required in a domesticenvironment.
4. Why is a greater degree of involvement in
employees’ personal lives inevitable in many
IHRM activities?
5. Discuss at least two of the variables that
moderate differences between domestic and
international HR practices
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The end