International HRM Messiah College January 22, 2014

Transcription

1 International HRM Messiah College January 22, 2014

2 attribution Attribution in this presentation: all figures come from Peter J. Dowling, a.o., International Human Resource Management, South-Western Cencage Learning, 2008, ISBN , unless mentioned otherwise.

3 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

4 A definition of IHRM We define the field of IHRM broadly to cover all issues related to the management of people in an international context. Hence our definition of IHRM covers a wide range of human resource issues facing MNC s in different parts of their organizations. Additionally, we include comparative analyses of HRM in different countries. Stahl and Bjorkman, page 5, Chapter 1.

5 expatriate management

6 Terms HRM IHRM NAFTA UNCTAD HCN PCN TCN MNE culture shock emi-etic distinction expatriate inpatriate

7 Inter-relationships between approaches to a field

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

9 Human resource planning

10 Recruitment & Selection

11 Performance management

12 Renumeration

13 Training & Development

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15 Differences between domestic HRM and IHRM The complexity of IHRM can be attributed to six factors: 1. More HR activities 2. The need for a broader perspective 3. Move 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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17 from SWOT to Strategy Implementation of Strategy corporate governance organizational structure coordination and control leadership entrepreneurship innovation change and sustainability

18 approach and focus Suitability, does the strategy address the key issues? Acceptability, will the strategy achieve an acceptable return, reasonable level of risks? Feasibility, can the strategy be pursued within the resources, capabilities and competences of the organization?

19 opportunities international strategy

20 Internationalization causes differences in costs/risks Exporting high cost and low risk Licensing low costs and high risk Strategic alliances shared costs and shared risks, but having problems of integration and therefore control Acquisitions rapid, high cost and high risk The establishment of a new subsidiary also high cost and high risk, greater opportunity for management control and above average returns

21 determinants of national advantage

22 Determinants of national advantage Factor conditions labor, land, natural resources, financial capital, infrastructure Demand conditions demand for basic and advanced goods and services in the home market Related and supported industries important networks of suppliers, buyers, services Firm s strategy, structure and rivalry some places in different countries are the location of choice for particular industries, products, services

23 viability of the firm

24 framework for thinking flexibly about culture Unitary and unique organizational culture Organizations as meetings points of fields of culture Local subcultures Ambiguous cultural configurations Integration consistency and consensus Differentiation variation and sub-culture conflict Fragmentation ambiguity, inconsistency and fluctuation

25 knowledge strategies

26 four knowledge management strategies Leveraging communicate and transfer existing knowledge within the organization Expanding create and build on existing knowledge Appropriate strategy take new knowledge from external individuals and organizations and transfer this into your organization Probing strategy create new, propriatory knowledge from your internal organizational resources

27 A model of the variables that moderate differences between domestic and international HRM

28 Variables that moderate differences between domestic and international HRM 1. The complexity involved in operating in different countries and employing different national categories of employees 2. The cultural environment 3. The industry (or industries) with which the MNE is primarily involved 4. The extent of reliance of the MNE on its home-country domestic market 5. The attitudes of senior management

29 Strategic HRM in multinational enterprises

30 truly international HRM require following steps 1. Recognize that one s own HRM reflects home culture assumptions and values. 2. Recognize that one s 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 organization s 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.

31 Discussion Questions 1. What are the main similarities and differences between domestic and international HRM? 2. Define these terms: IHRM, PCN, HCN, and TCN. 3. Discuss two HR activities in which a MNE must engage that would not be required in a domestic environment. 4. Why is a greater degree of involvement in employees personal lives inevitable in many IHRM activities? 5. Discuss at least two of the variables that moderate differences between domestic and international HR practices

32 The end