the enduring context of ihrm
TRANSCRIPT
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In this introductory chapter, we establish the scope of the textbook:
Define key terms in IHRM
Outline the differences between domestic HRM and IHRMIdentify the variables that moderate these differences
And discuss trends and challenges in the global work
environment and the enduring context in which IHRM functions
and activities are conducted, including the way in which forces
for change affect the operations of the internationalizing firm andhave consequences for the management of people in the
multinational context.
Chapter Objectives
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Cross-cultural management
Examine human behavior within organizations from an
international perspective Comparative HRM and Industrial Relations
Seeks to describe, compare and analyze HRM systems and
IR in different countries
HRM in multinational firms
Explore how HRM is practiced in multinationals
Three Approaches to IHRM
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Interrelationships between Approaches to the Field
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Major Functions and Activities
Human resource planning
Staffing Recruitment
Selection
Placement
Performance management
Training and development Compensation (remuneration) and benefits
Industrial relations
The General Field of HR
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Types of employees
Within and cross-cultural workforce diversity Coordination
Communication
Human resource activities
Procurement
Allocation
Utilization of human resources
Nation/country categories where firms expand and operate
Host country
Parent country
Third country
What does IHRM add into the Traditional Framework
of HRM?
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A Model of IHRM
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An employee who is working and temporarily residing in a
foreign country
Some firms prefer to use the term international assignees Expatriates are PCNs from the parent country operations,
TCNs transferred to either HQ or another subsidiary, and
HCNs transferred into the parent country
Global flow of HR
What is an expatriate?
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International Assignments Create Expatriates:
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More HR activities
The need for a broader perspective
More involvement in employees personal lives Changes in emphasis as the workforce mix of expatriates and
locals varies
Risk exposure
Broader external influences
Differences between Domestic HRM and IHRM
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Variables that Moderate Differences between
Domestic HR and IHRM
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1. Rio Tinto (UK/Australia)
2. Thomson Corporation (Canada)
3. ABB (Switzerland)4. Nestl (Switzerland)
5. British American Tobacco (UK)
6. Electrolux (Sweden)
7. Interbrew (Belgium)
8. Anglo American (UK)
9. AstraZeneca (UK)
10. Philips Electronics (The Netherlands)Source: UNCTAD Index of
Transnationality
The Top Ten Multinationals
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Global competition
Growth in mergers, acquisitions and alliances
Organization restructuring Advances in technology and telecommunication
Forces for Change
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Need for flexibility
Local responsiveness
Knowledge sharing Transfer of competence
Impacts on Multinational Management
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Developing a global mindset
More weighting on informal control mechanisms
Fostering horizontal communication Using cross-border and virtual teams
Using international assignments
Managerial Responses
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Factors that Influence the Global Work Environment
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We have established the scope of the textbook:
Defined IHRM and the term expatriate.
Discussed major differences between domestic HRM and IHRM looking at six factors:
More HR activities
Need for a broader perspective
More involvement in employees personal lives
Changes in emphasis as the workforce mix of expatriatesand locals varies,
Risk exposure and
More external influences
Chapter Summary (cont.)
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Examined the enduring context of IHRM. The focus is on the
current global work environment, looking at forces for change,
requirement for MNE and managerial responses that haveimplications for the way in which people are being managed in
multinationals at the turn of the 21st century.
This treatment has enabled us to provide an overview of thefield of IHRM and to establish how the general environment
affects IHRM. The next chapter examines the organizational context where
we explore how IHRM activities are determined by, andinfluence various internal changes as the firminternationalizes.
Chapter Summary (cont.)