785724
IHRM Exam
- 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
- 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.
- 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).
- 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
- Highest level of failrate
- 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)
- 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.
- 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.
- Geocentric - Developing one set of global practices and policies applied at all locations
- 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
- 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.
- 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.
- MNEs Setting up in Ireland
because of similar Practices
and culture.
- 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.
- 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
- 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.
- Legislation, custom and practice play
an important part in the style of HRM in
different countries leading to
Divergence from convergent HR
practices.
- (Shuler et al 1994) and
focuses on the
complexities of
managing people across
borders and within
competitive constraints.
- 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)
- global
“competitive
advantage”
(Porter, 1990)
- 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.
- argues a standardized
approach to IHRM may put
the firm at a disadvantage
because cultural differences
are ignored rather than built
upon.
- (Johnson et al 2006) Expatriate failure rate 40-55%
- There is a great need to prepare expats and increase the Intercultural Competence
- There is a great need to prepare expats and increase the Intercultural Competence
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