Académique Documents
Professionnel Documents
Culture Documents
to International
Human
Resource
Management
Why International Human Resource
Management?
1–2
Why International Human Resource
Management? (cont’d)
1–3
Globalization, Uncertainty, Complexity and
IHRM
Globalization
and
New Technologies
More Complexity
More Dynamism
Less Richness
1–4
Globalization and importance of IHRM
Capabilities
People Processes
Persons in Roles
1–5
Three Approaches to IHRM
• Cross-cultural management
Examine human behavior within organizations
from an international perspective
• Comparative HRM and Industrial Relations
Seeks to describe, compare and analyze HRM
systems and IR in different countries
• HRM in multinational firms
Explore how HRM is practiced in multinationals
1–6
Interrelationships between
Approaches of IHRM
1–7
Diversity as an
Organizational
and HR
Challenge in
MNE
Source: Marilyn Loden and Judy B. Rosener, Workforce America: Managing Employee Diversity as a Vital Resource, p. 20.
1–8
A Definition of Human Resource
Management
• Human Resource Management (HRM)
involves all management decisions and
practices that directly affect the people who
work for the organization.
• “Human Resources” the people who work
for the organization.
organization
1–9
A Definition of Human Resource
Management (cont’d)
“Human” represents the dimension of HRM which
relates to the soft aspects such as commitment of
employees through participation and the most
important assets being the employees.
“Resource” represents the hard aspects such as the
strategy link of HRM and the importance of efficient
utilization of employees.
“Management” represents the role of HRM as part of
management that implies that it’s not only an
administrative function that carries out the
formulated policies but also a managerial function
that contributes to strategy formulation.
1–10
The General Field of HR
1–12
Human Resource Management
Functions (cont’d)
1–13
Human Resource Management
Functions (cont’d)
1–15
Strategic Decisions and Their Implications for
Human Resource Management (cont’d)
1–16
What does IHRM add into the Traditional
Framework of HRM?
• Types of employees
– Within and cross-cultural workforce diversity
– Coordination
– Communication
• Human resource activities
– Procurement
– Allocation
– Utilization of human resources
• Nation/country categories where firms expand
and operate
– Host country
– Parent country
– Third country
1–17
A Model of IHRM
1–18
Some Terms Defined
1–19
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
Global flow of HR: more complexity in activities
and more involvement in employees' lives
1–20
International Assignments Create
Expatriates:
1–21
The Expatriate Problem
• High Expatriate Failure Rates
• Average cost per failure to the parent firm can
be as high as three times the expatriate’s
annual domestic salary plus the cost of
relocation
• Between 16% & 40% of all American
employees sent abroad to developed nations,
and almost 70% sent to less developed
nations return home early
1–22
Reasons for Expatriate Failure
1–26
Forces for Change
• Global competition:
• Growth in mergers, acquisitions and alliances:
• Organization restructuring:
• Advances in technology and telecommunication:
1–27
Impacts on Multinational Management
1–28
Managerial Responses
1–29
Factors that Influence the Global Work Environment
1–30
Approaches To International Human
Resource Management
1–31
Convergence or Divergence?
1–32
Choosing an Approach to IHRM
1–33
Thank You
1–34