Chapter 01 IHRM PDF
Chapter 01 IHRM PDF
Chapter 01 IHRM PDF
INTRODUCTION
Chapter 1
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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INTRODUCTION
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Vocabulary
Objectives
Scope of book
Defining IHRM
Domestic vs. international
Variables that moderate the differences
The cultural environment
Industry type
Extent of MNE reliance on HC market
Senior mgmt. attitudes to international ops.
Applying a strategic view of IHRM
Chapter 1
The changing context
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
HRM, IHRM
PCN, HCN, TCN
MNE
expatriate = international assignee, inpatriate
repatriation
equity issues
psychological contract
culture shock
convergence/divergence hypotheses
Porter’s value chain model
index of transnationality
global mindset
asymmetric events
environmental dynamics
Chapter 1
organizational culture
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
1. Define IHRM and key terms
2. Introduce & review expatriate assignment mgmt.
3. Outline differences between domestic & IHRM
4. Detail a model that captures these differences
5. Discover complexity & increasing challenges to
existing IHRM practices and models
Chapter 1
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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Scope of book
Chapter 1
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 32
Figure 1.1
Inter-relationships between approaches to the field
Chapter 1
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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Defining international HRM
Chapter 1
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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HRM activities
1. Human resource planning
2. Staffing: recruitment, selection, placement
3. Performance management
4. Training & development
5. Compensation & benefits
6. Industrial relations
Chapter 1
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 32
Morgan’s “3-D” definition of IHRM
1. The HR activities of
procurement, allocation & utilization
2. The countries where IHRM occurs:
» Host-country where subsidiary may be located
» Parent-country where firm is headquartered
» Other-countries that may be
source of labor, finance & other inputs
3. The employees of an international firm:
» HCNs (host country nationals)
» PCNs (parent .. .. )
» TCNs (host .. .. )
Chapter 1
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 32
Figure 1.2
International assignments create expatriates
Chapter 1
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 32
Stahl-Björkman-Morris def. of IHRM
The field of IHRM covers
All issues related to firm outcomes
A wide range of HR issues facing MNEs in
different parts of their organizations
Chapter 1
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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Domestic vs. international
Chapter 1
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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IHRM is more complex than
domestic HRM
IHRM has …
1. more HR activities
2. a need for a broader perspective
3. more involvement in employees’ personal lives
4. changes of emphasis as
the mix of expatriates & locals varies
5. more risk exposure
6. broader external influences
Chapter 1
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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IHRM has international HR activities
■ International taxation
■ International relocation & orientation
■ Administrative services for expatriates
■ Host-government relations
■ Language translation services
Chapter 1
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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International relocation involves:
■ Arranging for pre-departure training
■ Providing immigration & travel details
■ Providing housing, shopping, medical care,
recreation & schooling information
■ Finalizing compensation details such as:
Delivery of salary overseas
Determination of overseas allowances
Taxation treatment
Chapter 1
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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Variables that moderate the differences
Chapter 1
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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Four more moderators
in addition to IHRM complexity
1. The cultural environment
2. The industry(ies) with which the MNE is
primarily involved
3. The extent to which the MNE relies on
its HC domestic market
4. The attitudes of senior management
Chapter 1
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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Figure 1.3
A model of all 5 variables that moderate the differences
between domestic and international HRM
Chapter 1
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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The cultural environment
Chapter 1
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
19 of 32
Culture matters
■ Culture shock
■ Emic ≠ etic
■ Convergence hypothesis research
tends to focus on macro level
■ Divergence hypothesis research
tends to focus on micro level
■ The international HR manager must be
aware of cultural differences
Chapter 1
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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Industry type
Chapter 1
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
21 of 32
The MNE industry type continuum
An MNE performs somewhere in this range:
Multidomestic Industries Global Industries
Examples
retailing, distribution, insurance airlines, semiconductors, copiers
International strategy
Collapses to a Must integrate activities on a
series of domestic strategies. worldwide basis.
Chapter 1
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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Laurent’s steps for true IHRM:
1. Parent org. recognizes that its HRM reflects
some assumptions & values of own home culture.
2. Parent org. recognizes that its own peculiar ways are
neither universally better nor worse than others –
just different & likely to exhibit strengths & weaknesses,
particularly abroad.
3. Parent org. recognizes that its foreign subsidiaries may prefer
other ways to manage people – ways that are neither
intrinsically better nor worse, but possibly more effective locally.
4. Headquarters is willing to acknowledge cultural differences &
take steps to make them discussable & therefore usable.
5. All parties build belief that cross-cultural learning invites
more creative & effective ways of managing people.
Chapter 1
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
23 of 32
Extent of MNE reliance on HC market
Chapter 1
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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Table 1.1
The world’s top 10 non-financial TNC, ranked by TNI, 2008a
1
Chapter 2
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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Senior management attitudes
Chapter 1
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
26 of 32
What does senior mgmt. think?
Chapter 1
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
27 of 32
Applying a strategic view of IHRM
Chapter 1
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
28 of 32
Figure 1.4
A framework of strategic HRM in MNEs
Chapter 1
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
29 of 32
Asymmetric events tend to be
■ Unmatched in our capabilities & plans
■ Highly leveraged against our particular assets
■ Designed to
1. Secure leverage against our assets
2. Work around,
Offset, &
negate what in other contexts are our strengths
3. Be difficult to respond to in a
discriminate & proportionate manner
Chapter 1
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
30 of 32
The changing context of IHRM
Chapter 1
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. © Cengage Learning
31 of 32
An MNE case study result
MNEs fail primarily because of
a lack of understanding of
the
differences
Chapter 1
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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