International Human Resources Management

York University

Professor/Course Director

Ron Alexandrowich

ronalex@yorku.ca

Weighting of Course

• Group Project – 40%

• Participation – 10%

• Mid term = 25%

• Final = 25 %

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Chapter Learning Objectives

After reading this chapter, you should be able to:

• define key terms in international human resource management (IHRM) and consider several definitions of IHRM

• discuss the historically significant issue of expatriate assignment management and review the evolution of these assignments to reflect the increasing diversity with regard to what constitutes international work and the type and length of international assignments

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Chapter Learning Objectives

• outline the differences between domestic and international human resource management, and detail a model which summarizes the variables that moderate these differences

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Chapter Learning Objectives

• discuss the complexity of IHRM, the increasing potential for challenges to existing IHRM practices and current models, and an increasing awareness of the wide number of choices within IHRM practices due to increased transparency and faster and more detailed diffusion of these practices across organizational units and firms

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Multinational Enterprise (MNE)

• a firm which owns or controls business activities in more than one foreign country

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Defining HRM

An organization’s HRM activities include

• human resource planning• staffing (recruitment, selections, placement)• performance management• training and development• compensation (remuneration) and benefits• industrial relations

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A Model of HRM (Figure 1.2)

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Defining Expatriate

• an employee who is working and temporarily residing in a foreign country

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International Assignments Create Expatriates (Figure 1.3)

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Defining Inpatriate

• transfer of subsidiary staff into the parent country (headquarters) operations

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Differences Between Domestic HRM and IHRM

Differences Between Domestic and IHRM1. More HR activities - tax, relocation, education,

language, housing, medical care, schooling, permits

2. The need for a broader perspective – equity issues among all groups

3. More involvement in employee’s personal lives –healthcare/taxes/visa requirements/schooling

Differences Between Domestic and IHRM4. Changes in emphasis as the workforce mix of

expatriates and locals varies – workforce movement – TCN/PCN

5. Risk exposure – pre-mature return and under-performance – reputation damage – 3x costs, militant exposure, emergency evacuation

6. Broader external influences – Govt., economy, business practice, laws, compliance, codes of conduct 13

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Variables that Moderate Differences Between Domestic and IHRM (Figure 1.4 )

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The Cultural Environment

Defining culture

• a shaping process overtime that generates relative stability, reflecting a shared knowledge structure that accentuates variability in values, behavioural norms, and patterns of behaviour.

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The Cultural Environment

Defining culture shock

• many adjustments to new cultural environments in short periods of time, challenging peoples frames of reference in that their sense of self (nationality) comes into question.

17(c) 2009 by Nelson Education Limited.

The Cultural Environment

• cultural awareness

• cultural differences

• differences in work-related values

• http://www.geert-hofstede.com/ (ADMS 4480)

Industry Type

1. Domestic

2. Multidomestic – polycentric/adaptive

3. Multinational – product standardization ethnocentric/exportive

4. Global – culturally sensitive products/geocentric integrative approach

• Delivery of HR services and programs is linked to the above stages

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Industry Type

Laurent’s Steps to Truly International HRM

• recognize that one’s own HRM reflects home cultureassumptions and values

• 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

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Industry Type

• 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

• headquarters willingness to acknowledge cultural differences and steps to make them discussable and therefore usable