International Human Resource Management (IHRM) W10

Dilek Senturk
Flashcards by , created over 2 years ago


Dilek Senturk
Created by Dilek Senturk over 2 years ago
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Human Resource Management Definitions
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Question Answer
International human resource management (IHRM): The management of people in companies operating in more than one country. Core HRM activities have to be culturally sensitive and effective in a cross-cultural, multinational context.
Comparative HRM: Analyses the role of institutions, culture and other societal conditions in understanding differences and similarities in HRM across countries
IHRM: Distinct activities, functions and processes directed at attracting, developing and maintaining an MNC’s human resources. The aggregate of various HRM systems used to manage people both at home and overseas.
SHRM: Explicitly links HRM function with strategic management goals of organization.
SIHRM: Explicitly links IHRM with the strategy of the global company.
Local employee –someone who lives and works in their home country.
Expatriate employee –someone who lives and works in a foreign country.
Domestic HRM –HRM as practised within the geographical boundaries of one country. Its focus is the management of people in a single-country context.
International HRM –HRM as practised by multinational organisations. Its focus is the management of people in a multi- country context.
The internationalization of HRM practices • Consistency with business strategy • Recruit, retain, motivate and facilitate the transfer of talented employees internationally • Comply with host-country’s cultural values and employment standards
A Model of SIHRM 1. Exogenous factors: issues external to MNC 2. Endogenous factors: internal organizational issues 3. SIHRM: issues of coordination and control 4. Pressures and goals of the MNC: profitability + 5. Corporate SIHRM orientation: general philosophy or in designing total IHRM system
Typologies of global business strategy Demands for global cost reductions and integration. • Rationalizing product lines, standardizing parts design and integrating global manufacturing and control systems. Demands for differentiation and local responsiveness • Competitive advantage may be derived from producing products or services more sensitive to national cultures to satisfy consumer tastes in diverse locations. International HRM • The global view: –Policies must reflect an international, rather than a narrow, view. • HR technology implications: –Companies are leveraging technology to manage the complexities of global HRM and to deliver high-quality service.
Three approaches to how globalization impacts on domestic employment relations: 1. Economic: few domestic differences 2. Institutionalist: global trends mediated by national or local institutional regimes 3. Integrated:both the above but pressures are divergent
SIHRM orientations 1. Adaptive: HRM systems for subsidiaries reflect the local context 2. Exportive: replicate in overseas subsidiaries the home HRM practices 3. Integrative: transfers best HRM policies and practices around the company from any of the affiliates
Key cross-cultural issues • Communications • Ethics • Trust • Management style • Equal employment opportunity (EEO).
Communications • Cross-cultural communications –When a person from one culture communicates with a person from another culture. –Misunderstandings may occur because of differences in language, values, attitudes and beliefs. • High-context cultures (eg. China, Japan). • Low-context cultures (eg. Australia, U.S.)
Ethics • Ethics: –To do with morality and standards of behaviour. • Corruption: –Includes fraud, bribery, graft and the payment of secret commissions and kick-backs. • What to do? –Develop a clearly articulated set of core values. –Ask questions of yourself and others –Balance the need for policy with the need for flexibility or imagination.
Further considerations • Trust: –Employment and business relationships require mutual trust –Culture has an impact on trust. • Management style: –Culture affects management style. –Chinese entrepreneurs and employees provide a useful example (next slide). • Equal employment opportunity (EEO) –Such laws are a product of society’s social values.
Performance appraisal • What do we mean by performance? • What performance criteria will be used? • Will the same criteria be used for head office employees, expatriates and local employees? • Will performance be assessed on an individual or a group basis? • Are programs such as management by objective (MBO) culturally appropriate? • How will feedback be given, directly or indirectly?
Human Resource Management in China • The labour market • State-owned enterprises • HR challenges for foreign enterprises –Personal files –Performance appraisals –Recruitment and selection –Remuneration and benefits –Training and development.
HRM in Japan • Characteristics include: –Life-long employment –A seniority-based wage and promotion system –Enterprise unions –Pay for performance –Promotion based on ability. • Australia and U.S. – promotion based on ability. • Japan – seniority receives greater recognition.
• Local nationals: Citizens of the host country in which the business is located
• Third-country national: e.g. A Singaporean working for an Australian company in Hong Kong)
• Home-country national: e.g. An American working in Singapore for a company with its headquarters in the United States
• Host-country national: e.g. A Singaporean working in Singapore for a US multinational.
Engaging expatriates –A new venture is being established in a foreign location. –The company sees an international assignment as essential to the development of high flying executives. –Local personnel do not have the required managerial or technological expertise. –The parent company in the home country wants to exercise a high degree of centralised control.
Some factors in expatriate selection • Culture shock • Differences in work-related norms • Isolation • Homesickness • Differences in health care • Housing • Schooling • Cuisine • Language • Customs.
Interrelated organizational ‘drivers’ (Sparrow et al. 2004): 1. Core business 2. Cost efficiencies 3. Information exchange 4. Building a global presence 5. Global learning and localized
Repatriation • Support through formal and informal mentorship systems to help expatriates cope with social isolation abroad and assist in balancing expatriate work–life relationships. • Premature return: a failure of the expatriate and family to adapt to the new setting. • Re-entry shock: failure to repatriate managers successfully has caused many expatriates to resign. • Organisational learning – how was the new knowledge been incorporated into the home country/head office
• Successful transfer of HR practices depends upon: ‘Implementation’ workers in recipient organization change observable behaviours ‘Internalization’ people fully accept and approve the practices.