intro to ihrm -1

7/28/2019 Intro to IHRM -1

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Introduction toIHRM

By

Deepti Gautam


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Scope of the textbook,

Define key terms in international human resourcemanagement (IHRM)

Outline the differences between domestic and

international human resource management and thevariables that moderate these differences

Discuss trends and challenges in the global work

environment

Operations of the internationalizing firm and its

consequences on the management of people in the

multinational context.


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


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Figure 2-1: A model of IHRM


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What is an expatriate?

An employee who is working and temporarilyresiding in a foreign country

Some firms prefer to use the terminternational assignees

Expatriates are PCNs from the parent countryoperations, TCNs transferred to either HQ oranother subsidiary, and HCNs transferredinto the parent country


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Figure 1-3: International assignments create expatriates


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Differences between domestic

and international HRM

More HR activities

The need for a broader perspective

More involvement in employees personallives

Changes in emphasis as the workforcemix of expatriates and locals varies

Risk exposure

Broader external influences


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More HR Activities

Such as, International taxation

International relocation & orientation

Administrative services

Host- government relations

Language translation services

Providing housing

Shopping

Recreation & Schooling etc.


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Need for a broader Perspective

A broader, more international perspective

on expatriate benefits would endorse the

view that all expatriate employees ,

regardless of nationality, should receive a

foreign service or expatriate premium when

working in a foreign location.

Example complex equity issues arise when

employees of various nationalities work together


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More involvement in employees

personal lives

IHRM involves a greater degree of

involvement in employees personal life

than domestic HRM.Such as ,

Handling banking, investments

Providing suitable housing and schooling Assist children in left behind in the home country

Marital status


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Changes in emphasis as the workforce

mix of expatriates and locals varies

After a foreign operation mature, the focus

is changed from

Expatriate taxation, relocation , orientation

to activities such as

selection, training & MDPs


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Risk ExposureThe human & financial consequences of failure

in the international arena are more severe than

in domestic business.

It includes Direct & Indirect costs

Eg. Expatriate Failure

Broader external influences

Ex.- Types of government

State of economy

Employment opportunities


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Figure 1-4: Variables that moderate differences between domestic and

international HRM


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Cultural Environment

Culture is understood as the customs,

beliefs, norms and values that guide the

behavior of the people in a society that arepassed on from one generation th the

next.

Culture has a normative value People experience Cultural shock


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Levels of Culture

Dominant Culture

Organizational

Culture

Sub-Culture

Occupational

Culture


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Hofstedes Cultural Dimension

1. Power Distance

2. Uncertainty Avoidance

3. Individualism Vs. Collectivism4. Masculine Vs. Feminine

5. Universalism Vs. Particularism


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Industry Type


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Reliance of the multinational on its home-

country domestic market

1. Rio Tinto(UK/Australia)

2. ThomsonCorporation(Canada)

3. ABB (Switzerland)

4. Nestl(Switzerland)

5. British AmericanTobacco (UK)

A large domesticmarket influencesthe attitudes of

senior managerstowards theirinternational

assignments.


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Complexities Involved

Forces for change1. Global competition

2. Organizational restructuring

3. Advances in technology and

telecommunication

4. Growth in mergers, acquisition and

alliances

5. Knowledge sharing

6. Transfer of competence


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Figure 1-5: Factors influencing the global work environment

intro to ihrm -1

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