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International HRM: An Introduction

Approaches to International HRM

Cross Cultural Mgt. examining human behavior

within organizations from an international perspective

Comparative industrial relations and HRM

describing, comparing and analyzing HRM systems in various countries

HRM in multinational firms

Inter-relationship between approaches to International HRM

Cross-Cultural Mgt.

HRM in the multinational context

Comparative HR & IR systems

Common activities between Domestic HRM and IHRM


Human Resource Planning Staffing

Procurement Allocation Utilization

Performance Management

Training and Development Compensation and Benefits Industrial Relations

Three categories of employees of an international firm


HCNs E.g. The US multinational IBM employs Australian citizens in its Australian operations PCNs E.g. IBM sending US citizens to Asia-Pacific countries on assignment TCNs E.g.. IBM sending its Singaporean employees on an assignment to its Japanese operations

A Model of IHRM IHRM is the interplay among these three dimensions- human resource activities, types of employees and countries of operation
Human Resource Activities

Procure

Allocate

Utilize other

Home Host Country Nationals (HCNs) Host Parent Country Nationals (PCNs) Countries Third Country Nationals (TCNs)

Type of employees

Concept of an Expatriate
An expatriate is an employee who is working and temporarily residing in a foreign country.

PCNs are always expatriates, it is often overlooked that TCNs are expatriates, as are HCNs who are transferred into parent country operations outside their home country.

International Assignments create expatriates

Parent Country HQ/Operations HCNs HCNs

PCNs

PCNs

Subsidiary operations Country A

TCNs

Subsidiary operations Country B

Differences Between Domestic and IHRM


More HR Activities The need for a broader perspective More involvement in employees personal lives Changes in emphasis as the workforce mix of expatriates and locals varies Risk exposure Broader external influences

Variables moderating differences between domestic and IHRM


The Cultural Environment The industry within which the multinational is primarily involved

Domestic and international Activities of HRM function

Extent of reliance of The multinational on its Home country or Domestic market

Attitude of Senior Management

Complexity involved in operating in different countries and Employing different national categories of employees

Importance of Cultural awareness


Culturally insensitive attitudes and behaviors stemming from ignorance or from misguided beliefs not only are inappropriate but often cause international business failure Activities such as hiring, promoting, rewarding etc. will be determined by the practices of the host country and often are based on a value system peculiar to that countrys culture. Coping with cultural differences and recognizing how and when these differences are relevant, are a constant challenge for international firms

Factors influencing the global work environment


Global Competition
Growth in mergers, acquisitions and alliances Organization restructuring Advances in technology and telecommunications

Impact of forces of change on Multinational Management


Knowledge Sharing The managerial challenge is how to leverage knowledge and information that is imbedded in the various parts of the multinational so that the necessary know how can be transferred where needed. Transfer of Competence The managerial challenge is to identify what is a core competence, where it resides, how it can be protected, nurtured and exploited for competitive advantage