International Human Resource Management

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IHRM Chapter 1
International Human Resource Management
Managing people in a multinational context
Introduction
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Chapter Objectives

• Define key IHRM terms
• Review expatriate management evolution
• Outline differences between domestic and
  international HRM
• Discover the increasing complexity and potential
  challenges of current IHRM

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Terms
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Figure1-1
Inter-relationships between approaches to a field

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Defining HRM

• An organizations HRM activities include
• Human resource planning
• Staffing (recruitment, selection, placement)
• Performance management
• Training and development
• Compensation (remuneration) and benefits
• Industrial relations

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Figure1-2
Inter-relationships between approaches to the
field
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Figure1-3
International assignments create expatriates

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Differences between domestic HRM and IHRM

• IHRM complexity can be attributed to six factors
• Human resource planning
• Staffing (recruitment, selection, placement)
• Performance management
• Training and development
• Compensation (remuneration) and benefits
• Industrial relations

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Variables that moderate differences between
domestic and international HRM
Figure1-4
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Laurents steps to truly international HRM

1. Recognize that ones own HRM reflects home
   cultureassumptions and values.
2. Recognize that ones own peculiar ways are
   neither universally better nor worse than others
   - just different and likely to exhibit strengths
   and weaknesses, particularly abroad.
3. Recognize that organizations foreign
   subsidiaries may prefer other ways to manage
   people ways that are neither intrinsically
   better nor worse, but possibly more effective
   locally.
4. Headquarters willingness to acknowledge cultural
   differences and steps to make them discussable
   and therefore usable.
5. Build shared genuine belief that cross-cultural
   learning will result in more creative and
   effective ways of managing people.

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World top ten non-financial transnational corps.,
ranked by transnational index
Table1-1
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World top ten non-financial transnational corps.,
ranked only by foreign assets
Table1-2
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Figure1-5
Strategic HRM in multinational enterprises

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Discussion Questions

1. What are the main similarities and differences
   between domestic and international HRM?
2. Define these terms IHRM, PCN, HCN, and TCN.
3. Discuss two HR activities in which a MNE must
   engage that would not be required in a domestic
   environment.
4. Why is a greater degree of involvement in
   employees personal lives inevitable in many IHRM
   activities?
5. Discuss at least two of the variables that
   moderate differences between domestic and
   international HR practices.

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