International Human Resource Management

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• InternationalHuman ResourceManagement
• University of Kassel
• Kassel
• April 2008
• Dr. Dilek Zamantili Nayir

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Dr. Dilek Zamantili Nayir

• Born and raised in Germany (until age of 12)
• German High School Istanbul
• Istanbul University Faculty of Business
  Administration
• 12 years private sector (local, MNC, expatriate)
• 8 years academia

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Teaching

• Strategic Management
• Organization Theory
• Organization Planning
• Management of SME
• International Management
• Corporate Social Responsibility
• Entrepreneurship

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Research

• AIB, EGOS, EIBA
• Journal of International Management, Journal of
  Knowledge Management, Journal of Management
  Development etc.

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Dr. Dilek Zamantili Nayir
Married Two kids Turkish ... of age
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Deutschsprachiges Managementstudiumam Bosporus
Die Deutschsprachigen Abteilungen
für Betriebswirtschaftslehre und
Wirtschaftsinformatik
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MARMARA UNIVERSITYFACULTY OF BUSINESS
ADMINISTRATIONDEPARTMENT OFBUSINESS
ADMINISTRATION IN GERMAN LANGUAGE

• Est. in 1991 under cooperation with the DAAD
  (German Academic Exchange Service) and the
  Marmara University
• Multi-cultural perspective on both academic and
  industrial aspects of the business environment.

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Student profile of our department

• Total nr. 400.
• About 600 graduates since establishment of the
  departments.
• Exchange students
• After the first four semesters of general
  education, Controlling Marketing
  ManagementOrganization
• Classrooms with max. 25 students

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Industry support
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• INTERNATIONAL HUMAN RESOURCE MANAGEMENT

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Learning outcomes

• After reading this chapter, you should be able
  to
• Define the concept of human resource
  management.
• Identify distinct theoretical contributions in
  the field of HRM.
• Discuss the usefulness of these dominant
  mainstream approaches to HRM in an international
  context.
• Define the concept of international human
  resource management and its key elements.
• Understand the main models and themes of
  international human resource management.

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Internationalizationof the context of business

• Increased speed of change in communication and
  transportation technologies
• Continues to widen the geographic imagination and
  reach of businesses beyond their traditional
  geographically constrained scope

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Internationalization

• Expansion of economic markets
• Desire to access better pools of resources
• Challenge of competition
• Improved mobility of people

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International, transnationaland multinational
companies

• Thriving on these favourable conditions
• Achieving unprecedented economic and political
  success
• Major challenges in the process of becoming
  international players.

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New ways of doing business?

• Or transfer established practices between their
  home and host countries?
• Some companies Ethnocentric approaches, choosing
  to transfer their home-country practices to their
  international operations
• Others Diversified or localized their business
  practices to the specific conditions of the host
  countries

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Operational level

• Strategic choices Choices for functional areas
  in business, including human resource management.

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Definitions of human resource management (HRM)

• Have evolved over time
• A number of competing meanings
• ... a range of management activities which aim
  to achieve organizational objectives through
  effective use of employees....

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Cliché of our times

• ... people are the most important resource in
  business
• One of the main organizational resources
• On a par with or even more significant than
  financial, technological and physical resources
• Radical departure from earlier approaches and
  definitions of people management (secondary
  business concern to management of other resources
  of organizations).

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GROUP ACTIVITY
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GROUP ACTIVITY

• Identify different names given to activities
  associated with people-management in your
  country.
• Define and discuss these different names and
  professional activities associated with each of
  them.

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Historical development of human resources

• Can shed some light on our understanding of its
  current definition and practice.
• Human resource management Complex and elusive
  history
• Complex Rhetoric and practice of HRM - different
  historical paths of development.
• HRM History as old and complex as the history of
  work and organization

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Human resource management as academic area of work

• Only in the 1950s with the works of Drucker
  (1954) and McGregor (1957).
• The Practice of Management Peter Drucker coined
  the term human resources
• Wider international recognition in academic and
  practitioner circles by the 1980s, particularly
  in the Anglo-Saxon world.

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Distinction between academic rhetoric and
managerial practice

• Functions and operational aspects of human
  resource management Practiced since much earlier
  internationally
• American - British Western European academics
  Only in the last two decades. 1990s Wider
  adaptation of this concept in developing and
  less-developed countries.

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GROUP ACTIVITY
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Human resource management

• Series of changes in name and strategic
  direction.
• What constitutes human resource management?
• New concept - Differs from personnel
  management, manpower management and welfare
  management?
• Change from personnel management to human
  resource management Most significant turning
  point in the historical development of
  people-management discourses.

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Critical evaluations

• Merely as a change of name?
• Simply an attempt at reviving a weakening area of
  work with a new buzz phrase?
• Or a change of strategic direction recognizing
  human resources as one of the strategically
  important resources of an organization?

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Changing thename from personnel management to
human resource management

• Inevitable outcome of the political economy and
  market conditions of the 1980s.
• HRM Interdisciplinary and fast-changing area of
  study
• Encompassing Welfare, manpower, personnel
  management. Close association with employee and
  industrial relations, sociology and psychology of
  work.
• Overwhelming majority of the earlier theoretical
  works on human resource management USA UK

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THEORETICAL DEVELOPMENT OF HRM
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Schools of management in the USA and the UK

• The Michigan Model In order to improve their
  performance, companies must build a direct link
  between their corporate and human resource
  strategies and structures.
• Promoting an instrumental use of human resources
  in order to realize corporate objectives.

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Academics from Harvard Business School

• Broader framework for HRM decisions and strategy
  Decisions stakeholder interests and also a set
  of situational factors.

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Two classical models of HRM

• Hard and soft variants of HRM, respectively.
• Hard variant Employees one of the key
  resources of organizations - should be used
  effectively in order to achieve organizational
  goals.
• Soft variant Employees first and foremost
  human beings who contribute to the organization
• More contemporary formulations of HRM
  Combination of soft and hard attributes, rather
  than rejecting one for the other.

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New York Model

• Introduced and illustrated the concept of
  strategic fit between corporate and human
  resource strategy.
• A range of needed role behaviours (Porters
  earlier works on competitive strategies)
• Can provide a set of prescriptions for desirable
  strategic choices for HRM and industrial
  relations functions.

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Harvard, Michigan and New York models

• All three matching models of HRM, because of
  their common aim to match the human resources
  strategy with that of the corporation.

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GROUP ACTIVITIES

• Examine the HRM system of a company that you
  know, such as your current educational
  institution or workplace
• Discuss if their human resource management
  approach conforms to any of the theoretical
  models identified above.
• Discuss the reasons why your company of choice
  formulated their human resource approach in its
  current form.

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• DEVELOPMENT OF INTERNATIONAL HRM

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Mainstream HRM theories

• Formulated in management schools in North America
  and the UK in the 1980s
• Quickly found their way to other developed and
  developing countries and gained much wider
  international recognition in the 1990s.

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Take up of HRM principles and techniques in
industrialized countries

• Context factors
• Early experiences of industrialization in Western
  Europe and North America Workforces organized
  and supervised differently to the previous era -
  scientific management techniques.
• Industrial composition in the industrialized
  countries From manufacturing to service
  industries.
• Need to develop new and effective methods of
  managing human resources in their emerging
  industries.

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2. Skills shortages

• Higher rates of employment and economic
  development, ageing populations
• Changing nature of competitive migration policies
  in USA, Canada, Australia and Germany.
• Boosting demand for skilled labour
• Encouraging competitive people-management
  techniques - limited supply of national human
  resources.

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Rapid development andspread of HRM discourse and
practice

• Scientific knowledge on HRM taken up by
  management schools internationally.
• International companies contribute to the
  transfer of HRM techniques and practices
• Managers experience skills shortages and seek
  effective ways of managing the short supply of
  human resources.

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HRM techniques

• International variations in philosophies
• Approaches and structures of employment relations
• Trade unions, employment law, management systems,
  
• Societal and organizational cultures.

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Mainstream humanresource approaches and theories

• Inadequate in addressing the human resource
  issues facing international and multinational
  companies (MNCs).
• International human resource management (IHRM)
  emerged as a new area of academic study and
  management practice.
• Theory of IHRM Recognition only since the late
  1980s

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Interest in the field of IHRM

• IHRM field of respectable scholarly interest
  between the disciplines of international
  management and HRM.
• Not a passing fad, but will grow
• Cross-national comparative human resources
• Expatriate management
• Cross-cultural diversity within multinational
  enterprises

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• DEFINING INTERNATIONAL HUMAN RESOURCE MANAGEMENT

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Involvement ofmore than one national context

• No standalone definition of the concept.
• ... a range of people management functions,
  processes and activities which involve
  consideration of more than one national context
  ...

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Three levels of practice and study of IHRM

• Single-country human resource activities often
  involve considerations of international human
  resource issues (skills shortages and recruitment
  of migrant labour)

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Levels

• 2. Companies operating in more than one country
  Management of international assignments,
  expatriates and the process of repatriation
  (management of succession, career development,
  strategic staffing, international management
  mobility and training, repatriation)

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Levels

• 3. International companies need to address
  national differences between their home and
  host-country operations (national differences in
  management of human resources, providing
  descriptive and prescriptive analysis and
  critical evaluation of the current trends).

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GROUP ACTIVITY
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GROUP ACTIVITY

• Choose three companies, one which is nationally
  based, two with international operations, and
  discuss the relevance of IHRM issues to their
  business conduct.

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• PRESCRIPTIVE MODELS AND CRITICAL THEMES IN IHRM

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Three tricks for a successful IHRM startup

• Preventing the emergence of divisions and
  divisive perceptions between operations in
  different countries.
• Working in each country using the terms of
  reference used in that country.
• Avoiding the assumption that best practice can
  transcend national borders.

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Seven keys to IHRM practice subsequent to the
start-up stage

• Understanding the international and global
  context of business, including supply and demand
  dynamics of human resources in each country.
• Providing guidelines on service policy for
  international operations of the company.

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• Considering the financial viability of human
  resource allocations internationally.
• Documenting and outlining the personal and
  domestic arrangements of individual workers who
  are involved in international assignments, with a
  view to accommodating their requirements.

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• 5. Providing clear guidelines on terms and
  conditions for international assignments to
  individual employees prior to allocation of their
  roles.
• 6. Arranging relocation of employees and their
  families.
• 7. Setting up a repatriation process which
  ensures smooth return and reintegration of the
  expatriates and their families.

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Simplified model for the management of human
resources of an international firm

• a cosmopolitan workforce
• culture and its diversity across national
  borders
• compensation and its comparative meanings and
  value
• the value of communication
• the development of competences
• the use of consultants and
• coordination of international operations in a way
  which values diversity.

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Model for strategicimplementation of IHRM

• Resource-based theory of the firm
• A companys business success Shaped by its
  success in using its key resources.
• IHRM practice can draw on three resources for
  competitive advantage and business success

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Three resources for competitive advantage and
business success

• Parent companys resources Economic, social and
  political conditions of the parent country
• Parent companys resources Assets, competencies
  and capabilities
• Host companys resources National and company
  levels
• ... that can provide competitive advantages and
  be sources of business success.

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Critic to the strategic IHRM models

• Different kinds of international firms
• Differentiating international firms as
  multidomestic, global or hybrid would enable a
  better understanding

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Conclusion
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• Before we go to the NISSERA Case

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This chapter has ...

• ... provided an introduction to international
  human resource management,
• ... explored the development of HRM practice and
  theory in the international context.
• ... reviewed the definitions and mainstream
  theoretical frameworks of HRM and IHRM

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Chapter 1

• ... suggested that IHRM has established itself in
  a respected position between academic and
  practitioner communities.
• ... also highlighted that IHRM currently
  experiences various challenges and dilemmas.