International human resource management - Chapter 1 docx

Chapter 1Introduction: The enduring context of IHRM... We: • define key terms in international human resource management IHRM • outline the differences between domestic and internation

Chapter 1

Introduction:

The enduring context of IHRM

Chapter objectives

In this introductory chapter, we establish the

scope of the textbook We:

• define key terms in international human

resource management (IHRM)

• outline the differences between domestic

and international human resource

management and the variables that

moderate these differences

Chapter objectives (cont.)

• discuss trends and challenges in the global

work environment and the enduring context

in which IHRM functions and activities are conducted – including the way in which

forces for change affect the operations of

the internationalizing firm and have

consequences for the management of people

in the multinational context.

Figure 1-1: Inter-relationships between approaches in the field

Figure 2-1: A model of IHRM

HR activities slide 1

• Human resource planning

• Staffing

–Recruitment

–Selection

–Placement

• Training and development

HR activities slide 2

• Compensation

(remuneration)

and benefits

• Industrial

internationalization

What is an expatriate?

• An employee who is working and

temporarily residing in a foreign country

• Some firms prefer to use the term

‘international assignees’

• Expatriates are PCNs from the parent

country operations, TCNs transferred to

either HQ or another subsidiary, and HCNs transferred into the parent country

Figure 1-3: International assignments create expatriates

Differences between domestic

and international HRM

• 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

Figure 1-4: Variables that moderate differences between domestic

The ‘top ten’ multinationals

1 Rio Tinto

(UK/Australia)

2 Thomson

Corporation

(Canada)

3 ABB (Switzerland)

4 Nestlé (Switzerland)

5 British American

Tobacco (UK)

6 Electrolux (Sweden)

7 Interbrew (Belgium)

8 Anglo American

(UK)

9 AstraZeneca (UK)

10 Philips Electronics

(The Netherlands)

Figure 1-5: Factors influencing the global work environment

Forces for change

• Global competition

• Growth in mergers, acquisitions and

alliances

• Organization restructuring

• Advances in technology and

telecommunication

Impacts on multinational

management

• Need for flexibility

• Local responsiveness

• Knowledge sharing

• Transfer of competence

Managerial responses

• Developing a global ‘mindset’

• More weighting on informal control

mechanisms

• Fostering horizontal communication

• Using cross-border and virtual teams

• Using international assignments

Chapter summary

This chapter has established the scope of this

book We have:

• Defined international HRM and the term ‘expatriate’.

• Discussed the differences between domestic and international HRM – looking at six factors: 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 and more external influences.

(cont.)

Chapter summary (cont.)

• Examined what we have called the enduring context of IHRM The focus is on the current global work environment, looking

at the forces for change that have prompted managerial

responses that have implications for the way in which people are being managed in multinationals at the turn of the 21st

century However, we have made a brief comparison with the situation that confronted a 14th-century merchant as a way of drawing out some of the constants in international business.

This treatment has enabled us to provide an overview of the field

of IHRM and establish how the general environment affects

IHRM The next chapter examines the organizational context

where we explore how IHRM activities are determined by, and