[PPT]Slide 1 - NMHU International Business Consulting, … · Web viewHRM, IHRM PCN, HCN, TCN MNE...

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For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.

ISBN-10: 1408032090© Cengage Learning

INTRODUCTIONChapter 1

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Click on an item to go to its section.

Click on the book cover below to return to this table of contents.

STARTT

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Chapter 1

Vocabulary Objectives Scope of book Defining IHRM Domestic vs. international Variables that moderate the differences The cultural environment Industry type Extent of MNE reliance on HC market Senior mgmt. attitudes to international ops. Applying a strategic view of IHRM The changing context

INTRODUCTION

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HRM, IHRM PCN, HCN, TCN MNE expatriate = international assignee, inpatriate repatriation equity issues psychological contract culture shock convergence/divergence hypotheses Porter’s value chain model index of transnationality global mindset asymmetric events environmental dynamics organizational culture

Vocabulary

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1. Define IHRM and key terms

2. Introduce & review expatriate assignment mgmt.

3. Outline differences between domestic & IHRM

4. Detail a model that captures these differences

5. Discover complexity & increasing challenges to existing IHRM practices and models

Objectives

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Scope of book

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Inter-relationships between approaches to the fieldFigure 1.1

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Defining international HRM

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1. Human resource planning

2. Staffing: recruitment, selection, placement

3. Performance management

4. Training & development

5. Compensation & benefits

6. Industrial relations

HRM activities

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Morgan’s “3-D” definition of IHRM1. The HR activities of

procurement, allocation & utilization2. The countries where IHRM occurs:

» Host-country where subsidiary may be located» Parent-country where firm is headquartered» Other-countries that may be

source of labor, finance & other inputs

3. The employees of an international firm:» HCNs (host country nationals)» PCNs (parent .. .. )» TCNs (host .. .. )

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International assignments create expatriatesFigure 1.2

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Stahl-Björkman-Morris def. of IHRMThe field of IHRM covers All issues related to firm outcomes A wide range of HR issues facing MNEs in

different parts of their organizations

This definition includes comparative analyses of HRM in different countries.

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Domestic vs. international

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IHRM has …

1. more HR activities

2. a need for a broader perspective

3. more involvement in employees’ personal lives

4. changes of emphasis asthe mix of expatriates & locals varies

5. more risk exposure

6. broader external influences

IHRM is more complex than domestic HRM

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■ International taxation

■ International relocation & orientation

■ Administrative services for expatriates

■ Host-government relations

■ Language translation services

IHRM has international HR activities

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■ Arranging for pre-departure training

■ Providing immigration & travel details

■ Providing housing, shopping, medical care, recreation & schooling information

■ Finalizing compensation details such as: Delivery of salary overseas Determination of overseas allowances Taxation treatment

International relocation involves:

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Variables that moderate the differences

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1. The cultural environment

2. The industry(ies) with which the MNE is primarily involved

3. The extent to which the MNE relies onits HC domestic market

4. The attitudes of senior management

Four more moderatorsin addition to IHRM complexity

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A model of all 5 variables that moderate the differences between domestic and international HRM

Figure 1.3

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The cultural environment

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■ Culture shock■ Emic ≠ etic■ Convergence hypothesis research

tends to focus on macro level■ Divergence hypothesis research

tends to focus on micro level■ The international HR manager must be

aware of cultural differences

Culture matters

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Industry type

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An MNE performs somewhere in this range:Multidomestic Industries Global Industries

Examplesretailing, distribution, insurance

International strategyCollapses to aseries of domestic strategies.

airlines, semiconductors, copiers

Must integrate activities on aworldwide basis.

The MNE industry type continuum

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1. Parent org. recognizes that its HRM reflectssome assumptions & values of own home culture.

2. Parent org. recognizes that its own peculiar ways areneither universally better nor worse than others –just different & likely to exhibit strengths & weaknesses, particularly abroad.

3. Parent org. recognizes that its foreign subsidiaries may prefer other ways to manage people – ways that are neither intrinsically better nor worse, but possibly more effective locally.

4. Headquarters is willing to acknowledge cultural differences & take steps to make them discussable & therefore usable.

5. All parties build belief that cross-cultural learning invitesmore creative & effective ways of managing people.

Laurent’s steps for true IHRM:

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Extent of MNE reliance on HC market

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ISBN-10: 1408032090© Cengage Learning C

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The world’s top 10 non-financial TNC, ranked by TNI, 2008aTable 1.1

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Senior management attitudes

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Some of the changes required to truly internationalize HR

have more to do with a global mindsetthan with behaviors.

What does senior mgmt. think?

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Applying a strategic view of IHRM

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Figure 1.4A framework of strategic HRM in MNEs

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■ Unmatched in our capabilities & plans■ Highly leveraged against our particular assets■ Designed to

1. Secure leverage against our assets2.

what in other contexts are our strengths

3. Be difficult to respond to in adiscriminate & proportionate manner

Asymmetric events tend to be

Work around,Offset, &

negate

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The changing context of IHRM

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An MNE case study resultMNEs fail primarily because of

a lack of understanding of

in managing human resourcesin foreign environments.

thedifferences

[PPT]Slide 1 - NMHU International Business Consulting, … · Web viewHRM, IHRM PCN, HCN, TCN MNE...

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