International Human Resource

Management

Qn. 8.
Compare and contrast the mainstream and critical
approaches to HRM.
Give examples in an international context.

By: Xiaolian
Michelle
Joyz
Framework

 Introduction
 Define HRM & IHRM
 Define Mainstream approach of HRM
 Define Critical approach of HRM
 Body
 Compare & contrast both approaches to HRM
functions
 Examples in international context
 Conclusion
Human Resource Management

 HRM is the strategic and coherent approach to

the management of an organization’s most
valued assets
– the people working there who individually and
collectively contribute to the achievement of the
objectives of the business
 HRM is both an academic theory and a
business practice that addresses the theoretical
and practical techniques of managing a
workforce.
International
Human Resource Management

 IHRM is the management of people and

organization in an international context
 Adaptation of managers across countries
 Aims: competitive globally, efficient, locally
responsive, flexible & adaptable within
shortest time, capable of transferring
knowledge & learning across globally
Human Resource Management

 HRM functions consists of Staffing, Training

& Development, Performance Management,
Compensation Management and Employee
Relations
 How?
 Mainstream Approaches
 Hard HRM
 Soft HRM
 Critical Approach
Hard HRM

 Ability to promote shareholder value

for the firm by just looking at the
bottom line result
 The Liberal perspective: HR managers
should maximize shareholder value
only.
Hard HRM

 Is business afterall just only about

business?

 What about the human elements?

Soft HRM

 Ability to create shareholder’s value at

the same time take into consideration
of the interest of workers.
 The Social perspective: HRM
managers should seek to strike a
balance between capital and labour
Critical HRM

 Create an illusion to show that firm are

concern of workers’ well-being, in actual fact
they merely treat them as a means to create
profit.
 Believes that Soft HRM is human resource
management w/o a heart, they’re only
concern with bottom line results.
 The Marxist perspective: HR managers are
servants of capital used to create an illusion
that workers are ends, not means.
Corporate
Social Responsibility
 Liberal HRM: total waste of time, unless it
leads to profit

 Social HRM: all firms have an obligation to

adhere to a CSR-based code of conduct

 Marxist Critique: CSR is an illusion

 Comparison of
Both Approaches to HRM
Functions
Mainstream E.g. in International
HRM Functions Critical context
(Hard & Soft)
Hard: Create an illusion Generally Japanese
Staffing of that such decision employees in Japanese
was made to equip MNCs will not be allowed to
Staffing employees to
various dept w/o them with various choose their career path &
seeking their views. skills. posting.
Planning Employ child

Recruitment labour to cut cost.

Soft: Create an illusion
Selection
Seek to employees that - FairPlay 2008 on the
employees’
co. is concern with Beijing Olympics.
views and opinion
on job posting. their views towards - Child labour in Nike factory
Enable children in
personal career
advancement.
poorer countries to
Exploiting child
earn a living on their
own. labour to cut cost
and creating an
illusion that they are
trying to en-skill
them.
 Comparison of
both approaches to HRM
Mainstream E.g. in International
HRM Functions Critical context
(Hard & Soft)
Hard: Create an illusion MNCs usually see this as a
Making it that manager is must-have, sending
concern with expatriates for overseas
Training compulsory for
employees to go employees’ training, experience
personal gathering in order to be able
& training w/o taking
into considerations development, future to perform on their job well
Development of their constraint promotion. later.
(eg: Training
required for
Identify learning promotion)
needs
Soft:
Deliver training
Seek employees’
Evaluate outcomes views and opinion
(Eg: Courses, on courses they
would like to take,
Workshops)
equip themselves
with new skills.
 Comparison of
both approaches to HRM
Mainstream E.g. in International
HRM Functions Critical context
(Hard & Soft)
Hard: Create an illusion Assessment across borders
Top-down that appraisal is fair, are especially tough.
but how genuine is
Performance assessment,
autocratic way of the result, will
E.g. Regional managers
travel very frequently for
employees be
Management assessing staff.
putting on an act?
meetings etcs, but how have
they spend their stay in
(esp. 360º regional countries performing
Soft: appraisal) tasks in China is thus
Assessment of
360º appraisal, An illusion that questionable.
individual/ Team teamwork works
performance Peer-appraisal etc.
better but it is only DBS: Yearly appraisals – the
Yearly, bi-yearly easier for mgtm to 5 KPIs. (Dept target)
appraisals do evaluation.
Maybe viewed by
workers as
surveillance
 Comparison of
both approaches to HRM
Mainstream E.g. in International
HRM Functions Critical context
(Hard & Soft)
Hard: Create an illusion UK: Andersen Consulting
Compensation that company was paying extra bonus of ₤
Fixed

Management increment/bonus concern about your

well-being on new
10,000 upfront to attract best
graduates from top
Compensating yearly, fixed salary
+ allw packages for assignment universities. In trying to get
employees all expats going to overseas thru the best, to beat the
Usually based on same part of the customized salary competition by getting these
world, did not take package. (avoid people first.
performance, in
into consideration corruption)
terms of yearly Surveillance on
of other factors. Argentina: Employees
bonuses, salary expats – to make generally prefer fringe
increment, sales Soft: sure that they are benefits like food vouchers
commission etc Concern with each really working. and medical insurance than
For expats will be and every monetary increase in salary
employees, expats. or bonus due to unstable
the country
deployment across currency.
deployed to, living the borders
expenses etc
 Comparison of
both approaches to HRM
Mainstream E.g. in International
HRM Functions Critical context
(Hard & Soft)
Hard: Appears to be UK: ‘Britco’ gave free alcohol
See employee nice to everyone, at the co.’s social event the
Employee relations as a sharing night before the EWC
interaction. Thus at the
Relations waste of time, information but meeting in the next morning,
rather focus on this just aid to managers are able to
Relationship
promoting stop grapevine. manoeuvre freely thru the
between the meeting with minimal
shareholders’ Social event -
management and resistance due to the high
value After working
employees and absenteeism. (For those
Soft: hours party (beer
between the workers who were there,
bash) etc. To impaired abilities to reason
employees See ER as a
gain employees’ sensibly and lack of support)
crucial factor to trust &
foster HRM, encouraging
hence focus a lot unity.
on relationship
developing
Conclusion

 HR managers must always weigh what is

deemed right or wrong; ethical or not ethical.
 The national context & consistent
communication to all - workers, management
and stakeholders on HR issues are important
and crucial in all decisions made.
 There is no one definitive conclusion.