International Human Resource Management: Managing People in A Multinational Context

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International Human Resource Management

Managing people in a multinational context

Chapter Objectives
Define key IHRM terms Review expatriate management evolution Outline differences between domestic and international HRM Discover the increasing complexity and potential challenges of current IHRM

Terms
HRM IHRM
HCN PCN TCN

NAFTA UNCTAD

MNE culture shock emi-etic distinction

expatriate inpatriate

Figure 1-1

Inter-relationships between approaches to a field

Defining HRM
An organizations HRM activities include: 1. Human resource planning 2. Staffing (recruitment, selection, placement) 3. Performance management 4. Training and development 5. Compensation (remuneration) and benefits 6. Industrial relations

Figure 1-2

Inter-relationships between approaches to the field

Figure 1-3

International assignments create expatriates

Differences between domestic HRM and IHRM


IHRM complexity can be attributed to six factors: 1. More HR activities 2. The need for a broader perspective 3. More involvement in employees personal lives 4. Changes in emphasis as the workforce mix of expatriates and locals varies 5. Risk exposure 6. Broader external influences
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Figure 1-4

Variables that moderate differences between domestic and international HRM

Laurents steps to truly international HRM


1. Recognize that ones own HRM reflects home culture assumptions and values. 2. Recognize that ones own peculiar ways are neither universally better nor worse than others - just different and likely to exhibit strengths and weaknesses, particularly abroad. 3. Recognize that organizations foreign subsidiaries may prefer other ways to manage people ways that are neither intrinsically better nor worse, but possibly more effective locally. 4. Headquarters willingness to acknowledge cultural differences and steps to make them discussable and therefore usable. 5. Build shared genuine belief that cross-cultural learning will result in more creative and effective ways of managing people.

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Table 1-1

World top ten non-financial transnational corps., ranked by transnational index

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Table 1-2

World top ten non-financial transnational corps., ranked only by foreign assets

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Figure 1-5

Strategic HRM in multinational enterprises

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