IHRM Exam

IHRM Exam

1. 4 Approaches/Staffing

   • Geocentric - Developing one set of global practices and policies applied at all locations
     • No discrimination of PCNs, HCNs and TCNs,who, depending on capability and performance, are giventhe opportunity to work in key positions anywhere (parentorganization, subsidiaries) in the organization
   • Regiocentric approach - Developing standardized practices and policies by geographic region
     • Step in the direction of geocentricism. Managers transferred freely within a particular geographic region.considerable level of autonomy.
   • Polycentric approach - Allowing each location to develop own practices and policies
     • certain level of decision-making autonomy-Managed by local nationals (i.e.HCNs).
   • Ethnocentric approach - Exporting organization’s home country practices and policies to foreign locations
     • High level of control exerted by the parent organization. Key positions in the subsidiaries are managed by expatriates from the parent country (i.e. PCNs)
       • Highest level of failrate
   • Staffing MGRs
     • International assignments fail for various reasons including personality, the person’s intentions, and non-work factors. Family pressures are frequent. Three things help the adjustment: language fluency, having preschool age children rather than school-age or no children, and a strong bond between spouse and ex-pat partner.

2. Cultural Differences

   • Hofstede argues that an individual's culture may have several levels: (1) national; (2) regional, ethnic, religious, linguistic; (3) gender; (4) generation; (5) social class; (6) organizational.
   • Political
   • Cultural
   • Economical
   • Legal
   • Labour Relations
   • Recruitment & Selection differs in different cultures. Can be a source of problem
   • (HBR,2013) L'Oréal Masters Multiculturalism. Bridging the cultural gap
   • PECLLR

3. Convergence

   • IHRM convergence where HR systems and practices are broadly similar to those of the parent company and other companies in parent company region. Globalisation encourages convergence of HR for international firms.
     • MNEs Setting up in Ireland because of similar Practices and culture.

4. Divergence

   • Legislation, custom and practice play an important part in the style of HRM in different countries leading to Divergence from convergent HR practices.
     • MNEs setting up business in a divergence country with different culture
   • Considering Hofstede’s, et al’s work. Considering differences such as Power distance, uncertainty avoidance, individualism & masculinity. Cultural differences influence the way people behave in organisations.

5. (Shuler et al 1994) and focuses on the complexities of managing people across borders and within competitive constraints.

6. cross-national transfer of knowledge (from one MNE unit location in one country to another MNE unit location in another country), management and technology; global control of the multi-national enterprise (MNE)

7. global “competitive advantage” (Porter, 1990)

8. IHRM versus localized HRM, Adler (1991)

   • argues a standardized approach to IHRM may put the firm at a disadvantage because cultural differences are ignored rather than built upon.

9. (Johnson et al 2006) Expatriate failure rate 40-55%

   • There is a great need to prepare expats and increase the Intercultural Competence