introduction to ihrm
DESCRIPTION
To understand the basics of International Human Resource ManagementTRANSCRIPT
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Introduction to IHRM
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What is IHRM?
International HRM is the interplay among the three dimensions of: Human Resource Activities (Procure, Allocate, Utilize) Type of employees (Host-country nationals, parent-country
nationals, and third country nationals)
Countries of Origin (Host, Home, Other) - Morgan
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Journey of IHRM
Initially, IHRM was mainly concerned with expatriate management and its associated challenges for international managers and MNEs
Concept of IHRM has changed over the period
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Approaches of IHRM Cross-cultural Management: Examining human behavior within
organisations from an international, or more specifically, the intercultural perspective
Describe, compare, and analyze HRM systems in various countries
Seeks to focus on aspects of HRM in multinational firms: Includes issue of expatriate management as well as the challenges of global standardisation and local adaptation of HRM in the multinational enterprise
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Domestic & Intl activities of HRM function
The cultural Environment
The industry (or industries) within which the multinational is primarily involved
Complexity involved in operating in diff countries and employing different national categories of employees
Attitudes of senior management
Extent of reliance of the multinational on its home-country or domestic market
Variables that Moderate differences between Domestic and International HRM
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Index of Transnationality
Developed by United Nations Conference on Trade and Development (UNATAD)
Is a survey of FDI Is an average of ratios of foreign assets to total assets; foreign
sales to total sales; and foreign employment to total employment
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Critical to success of all organizations, in increasingly global marketplace is the ability to plan to, attract, develop, and retain capable and committed employees, whether this human talent is found at home or abroad
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Factors Influencing Global Workforce Management
External Factors 1. Economy 7. Intergovermental Organizations (UN, ILO, 2. Social Preferences (OECD, WTO, IMF) 3. Competition 8. Employee- Interest Org. (Labour Unions, 4. Demographics Employer & Prof. Associations, NGOs) 5. Innovation (Technology, Mgt. Practices) 6. Governments (Individual Govt, Multilateral Agreements, G-20, G-77)
Internal MNC Factors Company Culture Company Climate Company Strategy Organizational Structure
Global Workforce Management
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CULTURE
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What is Culture .The pattern of basic assumptions that a given group has invented, discovered, or developed in learning to cope with its external adaptation and internal integration, and that have worked well enough to be considered valid, and therefore, to be taught to new members as correct way to perceive, think, and feel the relation to those problems.
Source: Toyota Culture: The Heart and Soul of the Toyota Way
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What is Culture
The collective programming of the mind distinguishing the members of one group or category of people from others.
- Greek Hofstede
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Artifacts
And
Behavior
Norms and value
Underlying Assumptions
What we see: What a newcomer, visiotor or consultant would notice (e.g. dress, orga. Culture, charts, physical layout, degree of formality, logos, mission statements)
What they say: What we would be told is the reason why things are the way they are and should be. Company philosophy, norms and justifications
What they deeply believe and act on: Unconscious, taken-for-granted beliefs and about the organization and its work/purpose, about people, rewards and punishments Three Levels of Culture (Schein; 1984)
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Norms
- Accepted rules of behaviour. - Generally not written down, but everyone knows basic
rules of behaviour (e.g. how to dress, what is appropriate to say in meetings)
Values
- Principles we live by
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Underlying Assumptions
- What do we assume about the nature of organization and our role in it?
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Culture is like an
Iceberg
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Culture is Learned
Rather than inherited biologically Enculturation: The transmission of culture from
one generation to the next .
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Culture is Shared
By members of a society and produces behavior that is intelligible (able to be understood) to other members of that society
Society vs. Culture Society: An organized group or groups of interdependent people who
generally share a common territory, language, and culture and who act together for collective survival and well-being.
There can be no culture without a society, there are no known human societies that do not exhibit culture.
Cultural Anthropologists focus on the Cultural aspect of society. The study of society itself is Sociology (very closely related discipline to Cultural Anthro).
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Subcultures
Cultural variation between subgroups in societies that share an overarching culture.
Ex: Ethnic group (A type of subculture). People who collectively and publicly identify themselves as
a distinct group based on various cultural features such as shared ancestry and common origin, language customs and traditional beliefs.
Ethnicity: The expression of the set of cultural ideas held by an ethnic group
Pluralistic Society: A society in which two or more ethnic groups or nationalities are politically organized into one territorial state but maintain their cultural differences
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Culture is Based on Symbols
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Models of Culture
Halls Model Hofstedes Cultural Dimensions Trompenaars Cultural Dimensions
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Halls Model of Culture
Context High Context Culture Low Context Culture Time Monochronic Time Polychronic Time Space High territoriality Low territoriality
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High Context and Low Context
In a high-context culture, there are many contextual elements that help people to understand the rules. As a result, much is taken for granted. This can be very confusing for person who does not understand the 'unwritten rules' of the culture.
In a low-context culture, very little is taken for granted. Whilst this means that more explanation is needed, it also means there is less chance of misunderstanding particularly when visitors are present.
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Factor High Context Low Context
Overtness of messages Many covert and implicit messages, with use of metaphor and reading between the lines.
Many overt and explicit messages that are simple and clear.
Locus of control and attribution for failure
Inner locus of control and personal acceptance for failure
Outer locus of control and blame of others for failure
Use of non-verbal communication
Much nonverbal communication More focus on verbal communication than body language
Expression of reaction Reserved, inward reactions Visible, external, outward
reaction
Cohesion and separation of groups
Strong diistinction between ingroup and outgroup. Strong sense of family.
Flexible and open grouping patterns, changing as needed
People bonds Strong people bonds with affiliation to family and community
Fragile bonds between people with little sense of loyalty.
Level of commitment to relationships
High commitment to long-term relationships. Relationship more important than task.
Low commitment to relationship. Task more important than relationships.
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Monochronic and Polychronic Time
Monochronic time
It means doing one thing at a time. It assumes careful planning and scheduling. Monochronic people tend also to be low context.
Polychronic time
In Polychronic cultures, human interaction is valued over time and material things, leading to a lesser concern for 'getting things done' -- they do get done, but more in their own time.
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Factor Monochronic action Polychronic action
Actions do one thing at a time do many things at once
Focus Concentrate on the job at
hand Are easily distracted
Attention to time Think about when things
must be achieved Think about what will be
achieved
Priority Put the job first Put relationships first
Respect for property Seldom borrow or lend
things Borrow and lend things
often and easily
Timeliness Emphasize promptness base promptness
relationship factors
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High Territoriality and Low Territoriality
High territoriality
Territoriality extends to anything that is 'mine' and ownership concerns extend to material things. People high territoriality tend also to be low context.
Low territoriality
People with lower territoriality have less ownership of space and boundaries. They tend to be high context.
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Hofstedes Model
Greek Hofstede found that there are six dimensions of culture that help explain how and why people from various cultures behave as they do.
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Dimensions of Culture
Power Distance Uncertainity Avoidance Individualism Vs Collectivism Masculinity Vs Femininity Long term orientation Indulgence Vs Restrain
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Power Distance: the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally
Uncertainty Avoidance: deals with a society's tolerance for uncertainty and ambiguity. It indicates to what extent a culture programs its members to feel either uncomfortable or comfortable in unstructured situations. Unstructured situations are novel, unknown, surprising, different from usual. Uncertainty avoiding cultures try to minimize the possibility of such situations by strict laws and rules, safety and security measures, and on the philosophical and religious level by a belief in absolute Truth
Individualism Vs Collectivism: degree to which individuals are integrated into groups
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Masculinity Vs Femininity: refers to the distribution of emotional roles between the genders which is another fundamental issue for any society to which a range of solutions are found. The IBM studies revealed that (a) women's values differ less among societies than men's values; (b) men's values from one country to another contain a dimension from very assertive and competitive and maximally different from women's values on the one side, to modest and caring and similar to women's values on the other.
Long Term Orientation: Long- term oriented societies foster pragmatic virtues oriented towards future rewards, in particular saving, persistence, and adapting to changing circumstances. Short-term oriented societies foster virtues related to the past and present such as national pride, respect for tradition, preservation of "face", and fulfilling social obligations.
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Indulgence Vs Restrain: Indulgence stands for a society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun. Restraint stands for a society that suppresses gratification of needs and regulates it by means of strict social norms.
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Small Power Distance Large Power Distance
Use of power should be legitimate and is subject to criteria of good and evil
Power is a basic fact of society antedating good or evil: its legitimacy is irrelevant
Parents treat children as equals Parents teach children obedience
Older people are neither respected nor feared
Older people are both respected and feared
Student-centered education Teacher-centered education
Hierarchy means inequality of roles, established for convenience
Hierarchy means existential inequality
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Small Power Distance Large Power Distance
Subordinates expect to be consulted Subordinates expect to be told what to do
Pluralist governments based on majority vote
Autocratic governments based on co-optation and changed by revolution
Corruption rare; scandals end political careers
Corruption frequent; scandals are covered up
Income distribution in society rather even Religions stressing equality of believers
Income distribution in society very uneven Religions with a hierarchy of priests
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Weak Uncertainty Avoidance Strong Uncertainty Avoidance
The uncertainty inherent in life is accepted and each day is taken as it comes
The uncertainty inherent in life is felt as a continuous threat that must be fought
Ease, lower stress, self-control, low anxiety
Higher stress, emotionality, anxiety, neuroticism
Higher scores on subjective health and well- being
Lower scores on subjective health and well-being
Tolerance of deviant persons and ideas: what is different is curious
Intolerance of deviant persons and ideas: what is different is dangerous
Comfortable with ambiguity and chaos Need for clarity and structure
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Weak Uncertainty Avoidance Strong Uncertainty Avoidance
Teachers may say I dont know Teachers supposed to have all the answers
Changing jobs no problem Staying in jobs even if disliked
Dislike of rules - written or unwritten
Emotional need for rules even if not obeyed
In politics, citizens feel and are seen as competent towards authorities
In politics, citizens feel and are seen as incompetent towards authorities
In religion, philosophy and science: relativism and empiricism
In religion, philosophy and science: belief in ultimate truths and grand theories
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Individualism Collectivism
Everyone is supposed to take care of him- or herself and his or her immediate family only
People are born into extended families or clans which protect them in exchange for loyalty
"I" consciousness Right of privacy "We" consciousness Stress on belonging
Speaking one's mind is healthy Harmony should always be maintained
Others classified as individuals Others classified as in-group or out-group
Personal opinion expected: one person one vote
Opinions and votes predetermined by in-group
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Individualism Collectivism
Transgression of norms leads to guilt feelings
Transgression of norms leads to shame feelings
Languages in which the word "I" is indispensable
Languages in which the word "I" is avoided
Purpose of education is learning how to learn
Purpose of education is learning how to do
Task prevails over relationship Relationship prevails over task
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Femininity Masculinity
Minimum emotional and social role differentiation between the genders
Maximum emotional and social role differentiation between the genders
Men and women should be modest and caring
Men should be and women may be assertive and ambitious
Balance between family and work Work prevails over family
Sympathy for the weak Admiration for the strong
Both fathers and mothers deal with facts and feelings
Fathers deal with facts, mothers with feelings
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Femininity Masculinity
Both boys and girls may cry but neither should fight
Girls cry, boys dont; boys should fight back, girls shouldnt fight
Mothers decide on number of children
Fathers decide on family size
Many women in elected political positions
Few women in elected political positions
Religion focuses on fellow human beings
Religion focuses on God or gods
Matter-of-fact attitudes about sexuality; sex is a way of relating
Moralistic attitudes about sexuality; sex is a way of performing
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Short-Term Orientation Long-Term Orientation
Most important events in life occurred in the past or take place now
Most important events in life will occur in the future
Personal steadiness and stability: a good person is always the same
A good person adapts to the circumstances
There are universal guidelines about what is good and evil
What is good and evil depends upon the circumstances
Traditions are sacrosanct Traditions are adaptable to changed circumstances
Family life guided by imperatives Family life guided by shared tasks
Supposed to be proud of ones country
Trying to learn from other countries
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Short-Term Orientation Long-Term Orientation
Service to others is an important goal Thrift and perseverance are important goals
Social spending and consumption Large savings quote, funds available for investment
Students attribute success and failure to luck
Students attribute success to effort and failure to lack of effort
Slow or no economic growth of poor countries
Fast economic growth of countries up till a level of prosperity
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Indulgence Restrained
Higher percentage of people declaring themselves very happy
Fewer very happy people
A perception of personal life control A perception of helplessness: what happens to me is not my own doing
Freedom of speech seen as important
Freedom of speech is not a primary concern
Higher importance of leisure Lower importance of leisure
More likely to remember positive emotions
Less likely to remember positive emotions
In countries with educated populations, higher birthrates
In countries with educated populations, lower birthrates
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Indulgence Restrained
More people actively involved in sports
Fewer people actively involved in sports
In countries with enough food, higher percentages of obese people
In countries with enough food, fewer obese people
In wealthy countries, lenient sexual norms
In wealthy countries, stricter sexual norms
Maintaining order in the nation is not given a high priority
Higher number of police officers per 100,000 population
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Power Distance Uncertainty Avoidance
Individualism vs collectivism
Masculinity vs famininity
The extent to which less powerful members of institutions and organizations accept that power is distributed unequally Countries in which people blindly obey the orders of their superiors have high power distance Low Power Distance: Decentralization, flat organization, smaller proportions of supervisory personnel, lower strata of people consists of highly qualified people.
Extent to which people feel threatened by ambiguous situations, and have created beliefs and institutions that try avoid these. High Uncertainity avoidance: great deal of structuring ,more written rules, less risk taking by managers, lower labor turnover, less ambitious employees
Individualism is the tendency of people to look after themselves and their immediate family only. Collectivism is the tendency of people to belong to groups or collectives and look after each other in exchange for loyalty High Individualism: greater support from Protestant work ethic, greater individual initiative, promotions based n market values
Masculinity is a situation in which the dominant values in society are success, money, and things Famininity is a situation in which the dominant values in society are caring for others and quality of life. High Mas.: earnings, recognition, advancement and challenge, independent decision maker,
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Comparison of Hofstede Model and Hall Model
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Trompenaars Cultural Dimensions
Postulated by Fons Trompenaars Research conducted over 10 yrs period and published in 1994 Administered research questionnare to over 15,000 managers from 28
countries
Derived five relationship orientations that address the ways people deal with each other
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Universalism vs Particularism
Individualism vs Communitarianism
Neutral Vs. Emotional
Specific vs Diffuse
Achievement vs Ascription
Universalism is the belief that ideas & practices can be applied everywhere without modification Particularism is the belief that circumstances dictate how ideas and practices should be applied. High Univ.: focus more on formal rules than on relationships, business contracts adhered to very closely, deal is a deal
Individualism refers to people regarding themselves as individuals Communitarianism refers to people regarding themselves as part of a group
In neutral culture emotions are held in check. People try not to show their feelings; they act stoically and maintain their compose In emotional culture emotions are openly expressed
In specific culture individuals have a large public space they readily let others enter and small private space they guard closely and share with only close friends and associates In diffuse culture public space and private space are similar in size and individuals guard their public space carefully, because entry into public space affords entry into private space as well
In achievement culture people are accorded status based on how well they perform their function In Ascription culture status is attributed based on who or what a person is
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Time (Way people deal with concept of time)
Sequential People tend to do only one activity at a time, keep appointments
strictly, and show a strong preference for following plans as they are laid out and not deviating from them.
Synchronous People tend to do more than one activity at a time, appointments are
approximate and may be changed at a moments notice, schedules are generally subordinated to relationships
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Broad Employee Mgt. issues Specific HRM Issues
Management Styles Participative Consultative Paternalistic Autocratic
Staffing Policies Recruitment and Selection process Remuneration Motivation Job Expection Training and Development Performance Appraisal Prommotion Retirement Redundancy and lay-off Industrial Relations Foreign Assignment
Authority Structure Decentralised Centralised
Organisational Structure Hierarchical Network
Leadership Style Task-Oriented Employee-Oriented
Employee Relationship with the Company Emotional Contractual
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Major Cultural Attitudes and values which influence soft aspects of organization
Attitude to power Attitude to other peoples opinion
Tolerance and ambiguity Attitude to sharing info. & knowledge
Attitude to risk and risk taking Recognition of the rights of others to be consulted with
Individualism, self-orientation Preference for certain leadership behavior
Collectivism, Group Orientation Preference for independence and autonomy
Acceptance of responsibility Self confidence, self-reliance
Interpersonal Trust Achievement orientation, ambition
Attitudes to conflict and harmony Attitude to the nature of human beings
Work ethic, honesty