Critical issues in International HRM

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  • In some countries it is seen as normal for corruption and bribery.
  • By looking at the table the countries with the most working hours are generally countries with lots of low-skilled labour. These countries are deemed the least productive. On the contrary the countries who are the most productive are those who work the least hours.
  • Governments are stable and do not interfere. The regulation is also stable. The domestic HRM does not have to worry too much about the political and legal scene.
  • In this day and age; risk of terrorism and kidnapping has to be factored in(Scullion et al, 2007). however its is more difficult to plan terrorism and kidnapping prevention measures in a foreign country because of the lack of in-depth knowledge of the area
  • Under 20% of UK workers feel that they are not safe at workNearly 50% of workers in Latvia feel they are not safe at workThe high % could be as a result of poor legislation or lack of
  • Better educated countries provide highly skilled labour.Poorly educated countries provide unskilled labour.IHRM has to know what type of labour force is available in the country.
  • Critical issues in International HRM

    1. 1. DOES HRM DIFFER SIGNIFICANTLY BETWEEN NATIONAL & INTERNATIONAL CONTEXTS? By Munya Zvimba & Craig Halliday
    2. 2. WHAT IS HUMAN RESOURCE MANAGEMENT?(HRM)  “ Typically, HRM refers to those activities undertaken by an organization to effectively utilise its human resources.” (Dowling, 2008)  “The process of hiring and developing employees so that they become more valuable to the organization”. (business dictionary, 2014)  Some of the activities could include:  Human Resource planning  Staffing ( recruitment, education, selection & placement)  Training & development
    3. 3. WHAT IS DOMESTIC HUMAN RESOURCE MANAGEMENT (DHRM)?  DHRM occurs when employees reside within one national boundary.  DHRM tends to deal with one currency and one tax rate and one set of regulations.
    4. 4. WHAT IS INTERNATIONAL HUMAN RESOURCE MANAGEMENT (IHRM)?  “All issues related to the management of people in an international context including; human resource issues facing MNCs in different parts of their organisations and comparative analyses of HRM in different countries’ (Stahl and Björkman, 2006)  “The complexity of working in different countries and employing different national categories of workers is a key variable that differentiates domestic and international management.” (Dowling, 2008)
    5. 5. DIFFERENCES BETWEEN DOMESTIC HRM & IHRM?  DHRM focuses on one domestic market which usually has one nationality, where as IHRM deals with different markets and different nationalities. (whatishr.com, 2014)  Other areas of focus for IHRM include:  Culture.  Work ethic.  Political and legal.  Health & Safety.  Economic.  Staffing.  Placement.  Education.  Training and development.
    6. 6. CULTURE  DHRM tends to focus on one culture.  IHRM has to deal with different cultures.  IHRM has to be aware of issues such as the local codes of conduct, religious beliefs and hierarchy’s in local communities.
    7. 7. CULTURE  10 most corrupt countries. Source: Transparency International, 2014
    8. 8. CULTURE  10 least corrupt countries. Source: Transparency International, 2014 .
    9. 9. WORK ETHIC Source: BBC 2012
    10. 10. POLITICAL & LEGAL  Most mnc’s home nations have stable Governments and proper rule of law.  A stable government equals economic stability.  IHRM has to consider the political climate when expanding abroad.  Here are some examples of unstable governments:  Egypt –Arab springs.  Ukraine –Divide between Russian speaking Ukrainians and the indigenous Ukrainians.
    11. 11. POLITICAL & LEGAL  Terrorism and Kidnapping(Scullion et al, 2007)  Here are some examples of kidnappings:  2005 – BBC reported that 6 Shell oil workers were kidnapped in the Nigerian oil delta. (BBC, 2005)  2010 – CBC reported that 7 local oil workers were kidnapped from Exxon Mobil Corp to disrupt operations of western companies  2014 - Daily mail reported an employee of Sigma Ltd (sub-contractor for Chevron Texaco) was kidnapped and held to ransom for £72000.(Dailymail, 2014)
    12. 12. HEALTH & SAFETY
    13. 13. EDUCATION  Education levels determine what type of workforce is available.

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