module 01 intro
TRANSCRIPT
International Human Resource ManagementManaging people in a multinational context
IHRM
IHRM
• 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
Module Objectives
• Multinational are economically dominant• 70,000 transnational companies dominate
world trade, accounting 2/3 of it• The top 100 corporation account for 14% of
worldwide trade, 12% of assets & 13% of employment
• The 10 biggest have annual sales larger than the Australian government’s tax revenue
Key Trends
IHRM
• Average cost of moving an Australian abroad is $40,000, most spent on removalist, storage, airfare & accommodation
• 60% of the relocated were middle managers• 57% of companies reported a rise in domestic &
international relocations• Most focus on Asia but biggest rise (20%) in 1997-
2000 to the USA
Recent Survey …
IHRM
• Increase travel• Global technology & telecommunications• Rapid development of new technology• Free trade• Education• Migration of large number of people
Factors Creating the Global Marketplace
IHRM
• Search for new markets• Convergence of global lifestyles & values,
accelerated by global languages• E-commerce• Lowering of the costs of doing business
globally
Factors Creating the Global Marketplace
IHRM
• Do we have a strategy for becoming an international firm?• What type of managers will we need and how do we find and
develop them?• How can I find out about the way HRM is conducted in other
countries?• What will be the impact of local culture & norms?• Do we send expatriates or use locals?• Do we manage international moves if we send people out?• How do we manage knowledge across geographical and
cultural distance?
HR needs to address the following in Internationalisation
IHRM
Terms
IHRM
MNEculture shockemi-etic distinction
HCNPCNTCN
expatriateinpatriate
HRMIHRM
IHRM
Inter-relationships between approaches to a field
Figure1-1
Defining HRM
IHRM
An organization’s HRM activities include:1. Human resource planning2. Staffing (recruitment, selection, placement)3. Performance management4. Training and development5. Compensation (remuneration) and benefits6. Industrial relations
IHRM
Inter-relationships between approaches to the field
Figure1-2
IHRM
International assignments create expatriates
Figure1-3
Differences between Domestic and International HRM
IHRM
•More HR Activities •The need for broader perspective•Move involvement in employees’ personal lives•Changes in emphasis as the workforce mix of
PCNs and HCNs varies•Broader external influences•Risk exposure
IHRM
Variables that moderate differences between domestic and international HRM
Figure1-4
Laurent’s steps to truly international HRM
IHRM
1. Recognize that one’s own HRM reflects home cultureassumptions 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.
IHRM
Strategic HRM in multinational enterprises
Figure1-5
Discussion Questions
IHRM
1. What are the main similarities and differences between 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 domestic environment.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.