chapter2 - ihrm
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Prepared by: hiew First Prepared on: 31-01-05 Last Modified on: xx-xx-xxQuality checked by: hkp
Copyright 2004 Asia Pacific Institute of Information Technology
International Human Resource
ManagementBUS-1-08-MB Chapter 2 RecentDevelopments in Theory &
Empirical Research
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Topic & Structure of the lesson
Learning Outcomes
Understanding the differences between
domestic and multinational firms
Professionalism
Social Responsibility in business
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Learning Outcomes
At the end of this module, YOU should be able to:
Recognise the Othree ideal type of multinational companies
Objective of HRM in MNCs
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Main Teaching Points
Strategy and International HRM
The role of the corporate HR function in the
international firm
Global Management Development
Roles and responsibilities of transnationalmanagers
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Introduction
The main reasons for the growth of interest inIHRM over the last decade have been confinedby Scullion:
1) The rapid growth of internationalisation &global competition has increased the number &significance of MNCs
2) The effective management of human
resources is increasingly being recognised asa major detriment to success or failure ofglobal business
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3)Underperformance or failure ofinternational assignments continues to be
costly; both in human & financial terms
4) the implementation of global strategies is
frequently constrained by shortages of
international management talent
5)IHRM issues are becoming increasingly
important in a wider range of organisation
partly due to the rapid growth of small &
SME
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Strategy & International HRM
Adler & Ghadars phases of inter-nationalisation:
Based on Vernons life cycle theory
distinguishes 3 phases in the international
life product cycle:
1) High tech focuses on product, R & D
2) growth & internationalisation developing
& penetrating markets
3) maturity implement cost control
measures
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Influences of Culture
According to Alder & Ghadar, the impactof cultural background of a country differsfrom one phase to the next:
Domestic: focus on home market & export International: focus on local
responsiveness & transfer of learning
Multinational focus on global strategy Global: focus on both local
responsiveness & global integration
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The Role of the Corporate HR
Function in the International Firm
Many studies of corporate HR role
largely ignored the links between the
growing internationalisation of thecompanies & the new corporate HR
roles
2 reasons for the above:1) British is more globally oriented
2) Since early 1990s there is a
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significant increase in the pace of internationalisation ofUK companies.
However, recent empirical study examined the role of thecorporate HR function specifically in the international firm
and identified emerging agenda for corporate HR(Scullion & Starkey, 2000) they identified 3 distinctivegroup of companies:
1) centralised HR companies
- international assignments were linked to the
organisational & career development process; group
wide appraisal, job evaluation & reward system
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3) Transition HR companies
- concentrates on how to develop global
managers
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Global Management Development
Researchers have identified a number of
important lessons for MNCs which do seek
to develop HCN (host country nationals)
1) the need to avoid the mistake of simply
exporting parent country training &
development programmes to other
countries
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2) the management development
programmes needs to be linked to the
strategic situation in each country as well
as overall strategy of the firm (Scullion &Brewster)
3) is the need to utilise the practice of
impatriation (selective process oftransferring)
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Roles & Responsibilities of
Transnational Managers
Global business management world
wide business strategists, resource
configuration, cross border co-ordinator &
controller
Worldwide functional management
responds to challenges of development &
diffusing innovation on a world wide basis
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* geographic subsidiary management multinational
responsiveness, responding to the needs of
national customers and satisfying the demands
of host country government
top-level corporate management take all
challenges like efficiency, learning and reponsivenes
into account
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Quick Review Question
1) Discuss the reasons for the rapid growth in
significance of international HRM over the last
decade.
2) Examine the changing role of the corporate
human resource function in international firm.
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Follow Up Assignment
Barlett, C A Ghoshall, S. (1989) Managing Across
Borders, The Transnational Solution
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Q & A
Question and Answer Session
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