lecture 1.sv-1
TRANSCRIPT
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OBJECTIVES
Define key terms in international humanresource management (IHRM)
Outline the differences between domesticand international human resourcemanagement
Discuss challenges in the global work
environment and the context in whichIHRM functions and activities areconducted
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Background to HRM
Definitions Strategic Human Resources Management
Organizational use of employees to gain or
keep a competitive advantage against
competitors
Human Resource (HR) Planning
The process of analyzing and identifying the
need for and availability of human resourcesso that the organization can meet its
objectives.
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What is unique about Human
Resource Management?
HR is multidisciplinary: It applies the disciplinesof Economics (wages, markets, resources),Psychology (motivation, satisfaction), Sociology
(organization structure, culture) and Law (min.wage, labor contracts)
HR is embedded within the work of all
managers, and most individual contributors dueto the need of managing people (subordinates,peers and superiors) as well as teams to getthings done.
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Context of HR System
The Five Factors Influencing the HR System
1. External Environment
Social: social values, roles, trends, etc.
Political: political forces, changes (Minimum
wages, Govt MOU).
Legal: laws, court decisions (IDT), regulatory
rules.
Economic: product, labor, capital, factormarkets.
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Context of HR System
2. The Workforce
Demographics
3. Organization Culture
Weak vs. Strong culture
Type of culture
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Context of HR System
4. Organization Strategy What are a firms distinctive competencies?
What are a firms strategic objectives?
5. Technology (Production) & Organization of Work
Physical layout/employee proximity
Required employee skills
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HR Operational Overview
2002 Southwestern College Publishing. All rights reserved.
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There are 3 broad approaches in the field
of IHRM:
Cross cultural management
Industrial relations
HRM in international firms
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Inter-relationships between approaches in the field
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Just what are we talking about?
Lets start at the beginning:
What is HRM? Simply it is those tasks that ensure weutilize the organizations human resources effectively.Typically this means:
H R Planning
Staffing (Recruitment, selection and placement)
Performance Management
Training and Development
Compensation and benefits
Industrial Relations
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When an organization goes International thebasics obtain, plus:
1. Basic procure, allocate and utilize
2. Now involves:
Host country ( where subsidiary is)Parent country (headquarters)
Other country (support such as finance)
3. Categories of employees:
Host-country national (HCN)Parent-country national (PCN)
Third-country national (TCN)
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A model of IHRM
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Differences with IHRM
More H R activities
Need for broader perspective
More involved in the personal lives of employees
Risk exposure
Broader external influences
Emphasis changes as the workforce mix
changes i.e. the number of locals vs. expatriates
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More H R activities
Language translation services
Relocation and orientation
Pre departure training
Housing
Medical care, recreation, education
International taxation
Application of policies differ Will they be a disincentive to assignments
Lag time
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Broader perspective
Compensation issues
Administration of umbrella policies
Premiums for assignments
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More involvement
Selection and training
Housing arrangements HC and abroad
Medical conditions Banking
Visas and spousal arrangements
Discrimination issues on selection
Children and schooling - especially if leftbehind
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Risk exposure
Terrorism
Safety of expatriate employees and family
Consequences to human resources andfinances at times considerably more
detrimental than in domestic situation.
Expatriate failure premature return
Underperformance high cost of problems
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Broader perspective
Government
Economy generally accepted business
practices
Cost of labour
Learning curve of expatriate manager
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Oh how we forget..
The perception that H R is easy, and not
that important blinds some organizations in
underestimating the number of issues thatare involved.
Poor operational results are often linked tothe poor management of human resources.
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Operating Variables
Cultural Environment
Industry type
Reliance of multinational on home countrymarket
Attitudes of senior management to
international operations.
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The Organizational Context
Human Resources must always operate
from a business perspective.
Policies should lead rather than follow
operational decisions.
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Approaches to International
Operations
Ethnocentric
Polycentric Geocentric
Regiocentric
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ETHNOCENTRIC centralised decision-
making, little autonomy at subsidiaries.Key positions at both Head Office andforeign operations are held by HOpersonnnel
POLYCENTRIC subsidiary is distinct,decision making entity, managed bylocals.
GEOCENTRIC ability over nationality.
REGIOCENTRIC operations within theambit of a particular geographical region.
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Additional Sources
www.csus.edu/indiv/e/estenson/153/HRM10eChap02
leeds-faculty.colorado.edu/.../ MBAO