o a Third Edition Anne-Wil Harzing and Ashly H. Pinnington

Transcription

1 a o a a a G Third Edition Anne-Wil Harzing and Ashly H. Pinnington

2 List of Contributors xxi Guided Tour xxvii Companion Website - xxix Introduction 1 [PairS D Strategic, Comparative and Organisational Perspectives on IHRM 11 1 Strategic Management and IHRM 13 Introduction: value creation through strategic management 14 Major stakeholders 15 Strategic management 17 Three perspectives on strategy implementation: Strategic management, international strategy and national competitiveness 21 Strategic management 21 International strategy 22 National competitiveness 24 Strategy viewed from two,perspectives based on people: Project management and organisational behaviour (OB) 25 Project management -' 25 Organisational behaviour (OB) 26 The rise of international HRM and strategic HRM 27 IHRM challenges 30 Cross-cultural communication and diversity 30 Global knowledge management 32 Local and global sustainability 33 Summary and conclusions 35 Discussion questions 36 Case study: Emirates Airline - airline keeps cash reserves strong 38 Further reading 41 Internet resources 42 Self-assessment questions 43 References 44

3 VDDD International Human Resource Management 2 Comparative Human Resource Management 47 Introduction 49 Globalisation and HRM 51 The importance of context 52 Best practice vs. best fit 53 Culture vs. institutions 55 Cultural explanations 55 Institutional explanations 57 Combining Phe two 58 Static vs. dynamic 58 Differences in HRM practice 61 HRM department and role of line managers 62 Flexible working practices 63 Communications 64 Conclusions: future issues in comparative HRM 65 Theoretical issues 65 Empirical issues 66 Practical issues 66 Concluding remark 67 Discussion questions 67 Case study: Flextronics University - qualifying line managers for leadership and HR tasks 68 Further reading 70 Basics of comparative management 70 Comparative HRM 70 Internet resources 72 Self-assessment questions 72 References 73 3 Culture in International Human Resource Management 79 Introduction 80 Different scientific views 80 Different views bring different kinds of knowledge 81 Structure of the chapter 82 Studies on culture in management 82 The distinction between culture and Kultur 83 Etic and emic 84 Positivist views 85 Psychological anthropology 85 Functionalist anthropology (and sociology) 86 'Culture and values' 86

4 Contents ox Interpretive views 88 Cultural anthropology 89 Interpretive sociology 89 'Culture and meanings' 89 Critical views 92 Critical anthropology 92 Post-colonial perspectives 93 'Culture and power' 93 Applying the three -views to the case study 95 A positivist analysis 95 An interpretive analysis 97 A critical analysis 98 Discussion 100 Conclusion 100 Discussion questions 102 Case study: 'Not the way we do business around here' 103 Further readings 110 Internet resources 112 Self-assessment questions 112 References 113 Human Resource Management in Cross-Border Mergers and Acquisitions 119 Introduction 120 Cultural differences and cross-border M&A performance 122 Research on culture in international M&A 123 Beyond cultural difference 124 What does integration mean? 125 Preservation acquisitions 126 Absorption acquisitions 127 Reverse mergers 128 Best of both 129 Transformation 129 Managing cross-border integration: the HRM implications 130 Assessing culture in the due diligence phase Undertaking a human capital audit and selecting the management team 132 Effective communication 133 Retaining talent 134 Creating the new culture 136 Managing the transition 137

5 International Human Resource Management Integration manager and transition teams Moving with speed Conclusions and implications for M&A practice Discussion questions Case study: Cemex Further reading Internet resources Self-assessment questions References - Approaches to IHRM Introduction Review of IHRM approaches Matching model Characteristics Contributions Limitations Harvard model Characteristics Contributions Limitations Contextual model Characteristics Contributions Limitations 5-P model Characteristics Contributions Limitations European model Characteristics Contributions Limitations Implications of HRM models The concept of HRM Are IHRM models applicable to other contexts? Universalist view Contingency vs. divergence Crossvergence and hybridisation What factors affect HRM approaches internationally? Institutional theory

6 Contents Cultural approach 170 What are the implications of change for IHRM approaches? 171 Conclusion 172 Discussion questions 173 Case study: HSBC in East Africa (before the 2008 credit crunch) 174 Further reading 177 Internet resources 178 Self-assessment questions 179 References 179 Pact 2 International Assignments and Employment Practices International Assignments 185 Introduction 186 Staffing policies 187 PCNs, HCNs or TCNs: (Dis) advantages and statistics 188 Factors influencing the choice between HCNs and PCNs 191 Motives for international transfers 194 Why do companies assign employees abroad? Edstrom and Galbraith's typology 194 Coordination through international assignees: Of bears, bumble-bees and spiders 197 International assignees as knowledge agents 198 Alternative forms of international assignments 199 Inpatriate assignments / 200 Short-term assignments 201 Self-initiated assignments 202 Virtual assignments 202 The international assignment process 203 Selection and preparation 203 Selection criteria: Prescriptions for good practice 203 Expatriate selection in practice 205 Preparation 206 Expatriate adjustment during the assignment 207 Repatriation 209 Dimensions of international assignment success 211 Expatriate failure: is it just a myth? 211 Multidimensional nature of assignment success 212 Summary and conclusions 213

7 International Human Resource Management Discussion questions 214 Case study: Richard Debenham in Vienna: Between Velvet Divorce and the Sydney Olympics 215 Further reading 219 Internet resources 220 Self-assessment questions 221 References Multinational Companies and the Host Country Environment 227 Introduction 228 Varieties of host country environments 230 Labour market regulations 231 Industrial relations systems 235 Production systems and work organisation 238 Education, training and careers 239 Social stratification and living standards 240 Welfare systems 241 Household, family and gender systems 242 Sustainability of divergent employment arrangements 244 Institutionalist and culturalist approaches 244 Towards convergence of country systems? 246 Understanding how MNCs act in diverse host country environments 248 MNCs as complex organisational actors 249 MNCs in diverse host country environments 250 Host country effects on HRM practices of MNC subsidiaries 250 Pay practices 251 Work organisation practices 253 Collective representation 254 Conclusion 255 Discussion questions 256 Case study: CMM Industries 257 Further reading 260 Internet resources 262 Self-assessment questions 263 References The Transfer of Employment Practices Across Borders in Multinational Companies 267 Introduction 268

8 Contents XDDD Why transfer practices? 269 The four influences framework 273 Country of origin effect 273 Dominance effects 275 International integration 277 Host country effects 279 Conclusion 281 Discussion questions 282 Case study: Swedco -* 283 Case study: General Motors in Spain 285 Further reading 287 Internet resources 288 Self-assessment questions 288 References 288 High Performance Work Systems - International Evidence of the Impact on Firms and Employees 291 Introduction 293 Evolution of High Performance Work Systems (HPWS) 294 Defining HPWS 295 Theoretical perspectives in HPWS research 298 The HPWS-performance link 305 HPWS and firm outcomes - international evidence 307 Are HPWS globally applicable? 312 HPWS debates internationally 316 Whose perspective? -, 316 HPWS and employee outcomes - international evidence 317 The critical role of the line manager 322 Summary and conclusions 325 Discussion questions 326 Case study: The high performance work system in an Irish manufacturing company: mechanisms between HR practices and organisational performance 328 Further reading 331 Internet resources 332 Self-assessment questions 333 References 333

9 International Human Resource Management 3 IHRM Practices Managing Knowledge in Multinational Firms 345 Introduction 346 Different types of knowledge 347 Factors influencing knowledge sharing 349 Sender unit ability and willingness 349 Receiver unit ability and willingness 351 The mechanisms to share knowledge 353 How to stimulate knowledge sharing 354 Improving information about superior performance and knowledge 354 Structural mechanisms 355 Selecting expatriates with knowledge sharing in mind 356 Social capital, social norms and global mindsets 357 Performance management and incentives 359 Gaining access to external knowledge 360 Scanning global learning opportunities 361 Partnering or merging 362 Playing the virtual market 363 Knowledge retention 364 From the management of knowledge to innovation 365 Summary and conclusions 366 Discussion questions 367 Case study: Spurring innovation through global knowledge management at Procter & Gamble 369 Further reading 371 Internet resources 372 Self-assessment questions 373 References The Development of Global Leaders and Expatriates 377 Introduction 378 Leading organisations in the global environment 379 Global leaders 380 Defining the term global leader 381 The tasks associated with global leadership 381 The competencies of global leaders 382 The development of global leaders 387 The limitations of global leadership development programmes 389

10 Contents HW Expatriate development Cross-cultural training and development for expatriates The effectiveness of cross-cultural training and development for expatriates Emerging themes in expatriate training and development Over-reliance on pre-departure training programmes Tailored expatriate training Use of short-ternvoverseas assignments Real-time training Assessment and development centres Self-training using electronic media International job rotation Personal security Summary and conclusions Discussion questions Case study: Closing the Gulf - preparing US executives for assignments in Mexico Further reading Internet resources Self-assessment questions References 12 Global and Local Resourcing Introduction Review of HR competencies approach External labour market changes and internal strategic choice Capitalist market economies: Japan and Taiwan Japan Taiwan Socialist market economies: China and Vietnam China Vietnam The pre-reform system The reform of the HR system Summary and conclusion Discussion questions Case study: ITOCHU - a Japanese firm in the era of retrenchment and reform Further reading Internet resources

11 International Human Resource Management Self-assessment questions 437 References Global Performance Management 440 Introduction 441 Key components of PMS 442 Goal-setting 443 Feedback 443 Performance evaluation process guidelines 443 Training 447 Key factors affecting PMS 447 Technology 447 Purpose of appraisal 448 Performance standards 449 Supervisor-subordinate relationships 449 Reward systems 450 The impact of culture and PMS 451 PMS in four leading economies: USA, UK, China and India 452 PMS in the USA 452 PMS in the UK 453 PMS in China 453 PMS in India 454 PMS for expatriates 454 Summary and conclusions 456 Discussion questions 459 Case study: V-Pharmel performance management case 460 Further reading 463 Internet resources 464 Self-assessment questions 465 References Total Rewards in the International Context 468 Recap 469 Introduction: the current state of total rewards 470 Complexities faced by IHR managers 471 Increased use of outsourcing 471 Decentralisation of incentives 471 Balancing performance metrics 472 International total reward objectives for the MNC and the employee 472

12 Contents MNC objectives 472 Ensuring that total rewards policies are consistent with business strategies 472 Developing total rewards policies the maximise recruiting and retention efforts 473 Developing cost-effective global total rewards policies 473 Creating global total rewards policies that result in fair processes and outcomes 473 Employee goals -* 473 Creating HR policies that provide financial protection 473 Creating HR policies that offer opportunities for financial growth and career advancement 474 Creating HR policies that ease repatriation 474 Traditional versus newer forms of International Assignments (IAs) 475 Commuter IAs week IAs year IAs 476 Key components of global total rewards programmes 476 Base salary 476 Foreign service inducements: foreign service premiums, mobility premiums, hardship premiums and danger pay 477 Allowances 479 Cost-of-living allowance (COLA) 479 Goods and services allowance 479 Exchange rate protection programmes 481 Housing and utilities allowance 481 Home leave allowance 483 Rest, relaxation and rehabilitation leave and allowance 483 Education allowance for expatriate's children 483 Relocation allowance 484 Spouse/family allowance 485 Benefits 485 Protection programmes 485 Paid time-off 486 Pension contributions 487 Other benefits 487 Approaches to international compensation 488 The going-rate approach 488

13 International Human Resource Management Balance sheet approach 489 Home country-based balance sheet approach 489 Headquarters-based balance sheet approach 490 Modified home country-based balance sheet approach 490 Current best practices to international taxation 491 Tax equalisation 491 Tax protection 491 International cost-of-living data 492 Repatriation issues 494 International trends in global total rewards 494 Summary and conclusion 496 Discussion questions 496 Case study: In a world of pay 497 Further reading 499 internet resources 501 Self-assessment questions 501 References 502 Paul! 4 Developments in IHRM Policy and Practice Women Leading and Managing Worldwide 507 Introduction 508 Women managing across borders 509 The number of women expatriates is increasing 509 Why multinational and global companies sent so few women on expatriate assignments 510 Women don't want to go abroad? 511 Companies do not want to send women abroad? 511 Foreigners are so prejudiced that women would not succeed even if sent? 512 Dual-career marriages make expatriation impossible for most women? 513 Conclusion: The future: women leading and managing worldwide 514 Discussion questions 515 Case study: The Women's Global Leadership Forum 516 Further reading 531 Internet resources 532 Self-assessment questions 533 References 533

14 Contents 16 Global Work-life Management in Multinational Corporations Introduction Tensions in global work-life management A framework for global work-life management Global and local influences MNC influences IHRM system Individual and organisational outcomes Resolving tensions Directions for research Summary and conclusion Discussion questions Case study: Work-life in the global village Further reading Internet resources Self-assessment questions References Regulation and Change in Global Employment Relations 559 Introduction 560 The centrality of regulation and its political and economic context 561 Political projects and narratives of market de-regulation 564 The agents of de-regulation and flexibility: politics and institutions of change 565 The new politics of IHRM: projects and narratives of re-regulation ' 568 Standardisation and labour market knowledge 568 Labour standards and codes of practice 569 Ethics, values and context 571 Summary 572 Conclusion 572 Discussion questions 573 Case study: A motor company in England 574 Case study: A European company with subsidiary businesses in the UK and elsewhere 575 Further reading 576 Internet resources 579 Self-assessment questions 579 References 580

15 International Human Resource Management 18 Social Responsibility, Sustainability and Diversity of Human Resources 583 Introduction 584 Corporate ethical and social responsibility 585 Theoretical perspectives of CSR 585 CSR in practice 589 CSR and business benefits 589 Tensions in ethical HRM and business 592 International labour standards and decent work 594 Equal opportunities 596 Labour law and government policy intervention 596 Employer strategy and discrimination 598 Diversity management 600 Diversity management as a SHRM initiative 600 Diversity management and organisational performance 602 Diversity management in the global context 604 Sustainability through the integration of CSR and HR policy 606 CSR through employee involvement 606 Building blocks of socially responsible HR practices 609 Alignment of corporate CSR values and the delivery of the HR function 609 Summary and conclusions 611 Discussion questions 611 Case study: Managing diversity in a Chinese-owned multinational IT firm 612 Further reading 615 Internet resources. 618 Self-assessment questions 619 References 619 Index 625