Chapter 10

IHRM TRENDS &

FUTURE CHALLENGES

Chapter 10
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
1 of 16
 START

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IHRM TRENDS &

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FUTURE CHALLENGES
 Vocabulary
 Objectives
 Introduction
 International business ethics & HRM
 Criminalization of bribery
 NGOs


Chapter 10
Safety, security, & counterterrorism
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
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Vocabulary
 ethics
 external factors, organizational factors
 ethical relativism, absolutism & universalism
 bribery
 ‘gifts’, ‘facilitating’, & ‘grease’ payments
 FCPA
 TI = Transparency International, Corruption Perceptions Index
 NGOs: The Red Cross, The Red Crescent, World Vision, Oxfam,
The Fred Hollows Foundation, Médecins Sans Frontieres,
 disaster protocols, risk management, ‘critical incidents’
 workplace violence, industrial theft
 in-house security, in-facility security
 industrial espionage, cyber-terrorism

Chapter 10
 terrorist threats: micro & macro levels

For use with International Human Resource Management 6e ISBN-10: 1408032090

By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
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Objectives
We comment on observed trends & future directions:
 International business ethics & HRM
 Mode of operation &IHRM
 Ownership issues relating to IHRM requirements
of organizations other than the large multinational,
such as non-government organizations (NGOs)
 Safety, security, & terrorism issues

Chapter 10
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
4 of 16
Introduction

Chapter 10
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
5 of 16
These are not emphasized in
the general IHRM literature:
 International business ethics
 Mode of operation
 NGOs
 Emerging role of IHRM in contributing to
safety & security and dealing with terrorism

Chapter 10
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
6 of 16
Figure 10.1
A model of strategic HRM in multinational enterprises

Chapter 10
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
7 of 16
International
business ethics & HRM

Chapter 10
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
8 of 16
Ethics & IHRM
 Ethical relativism
no universal or international rights or wrongs
 Ethical absolutism
one should do what one would do at home
 Ethical universalism
there are principles of right & wrong which
transcend cultural boundaries

Chapter 10
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
9 of 16
Criminalization of bribery

Chapter 10
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
10 of 16
Bribery & corruption in
international business
 Bribery & corruption
is paying agents to do things inconsistent with the purpose
of their position or office so as to obtain an unfair advantage

 Bribery ≠ “facilitating” or “grease” payments

 US Foreign Corrupt Practices Act (FCPA)

 OECD Convention on Combating Bribery of Foreign Public

Officials in International Business Transactions

Chapter 10
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
11 of 16
NGOs

Chapter 10
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
12 of 16
Non-govt. organizations (NGOs)
 Globalization has increased the scale &
importance of NGOs
 The above trend will likely continue well into
the 21st century

Prominent examples of NGOs:

■ Red Cross ■ Fred Hollows Foundation
■ Red Crescent ■ World Vision
■ Oxfam
■ Médecins Sans Frontieres

Chapter 10
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
13 of 16
Table 10.1
Transparency international corruption perceptions index 2010
This index
measures the
perceived levels
of public sector
corruption in 178
countries around
the world.

It scores
countries on this
scale:

10 = very clean
0 = highly
corrupt

Chapter 10
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
14 of 16
Safety, security,
& counterterrorism

Chapter 10
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
15 of 16
5 MNE corporate risk areas
1. In-facility emergency & disaster preparedness

2. In-facility security

3. Industrial espionage

4. Cyber-terrorism

5. Out-of-facility fire & travel risks

Chapter 10
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
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