Chapter one

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Chapter one

  1. 1. IBUS 618 Dr. Yang 1Chapter 1Introduction:The Enduring Context ofIHRM
  2. 2. IBUS 618 Dr. Yang 2Chapter Objectives In this introductory chapter, we establish thescope of the textbook:Define key terms in IHRMOutline the differences between domestic HRM andIHRMIdentify the variables that moderate these differencesAnd discuss trends and challenges in the global workenvironment and the enduring context in which IHRMfunctions and activities are conducted, including theway in which forces for change affect the operations ofthe internationalizing firm and have consequences forthe management of people in the multinational context.
  3. 3. IBUS 618 Dr. Yang 3Three Approaches to IHRM Cross-cultural management Examine human behavior within organizationsfrom an international perspective Comparative HRM and Industrial Relations Seeks to describe, compare and analyze HRMsystems and IR in different countries HRM in multinational firms Explore how HRM is practiced inmultinationals
  4. 4. IBUS 618 Dr. Yang 4Interrelationships betweenApproaches to the Field
  5. 5. IBUS 618 Dr. Yang 5The General Field of HR Major Functions and Activities Human resource planning Staffing Recruitment Selection Placement Performance management Training and development Compensation (remuneration) and benefits Industrial relations
  6. 6. IBUS 618 Dr. Yang 6What does IHRM add into theTraditional Framework of HRM? Types of employees Within and cross-cultural workforce diversity Coordination Communication Human resource activities Procurement Allocation Utilization of human resources Nation/country categories where firms expand andoperate Host country Parent country Third country
  7. 7. IBUS 618 Dr. Yang 7A Model of IHRM
  8. 8. IBUS 618 Dr. Yang 8What is an expatriate? An employee who is working and temporarilyresiding in a foreign country Some firms prefer to use the term “internationalassignees” Expatriates are PCNs from the parent countryoperations, TCNs transferred to either HQ oranother subsidiary, and HCNs transferred into theparent country Global flow of HR
  9. 9. IBUS 618 Dr. Yang 9International Assignments CreateExpatriates:
  10. 10. IBUS 618 Dr. Yang 10Differences between Domestic HRMand IHRM More HR activities The need for a broader perspective More involvement in employees’ personallives Changes in emphasis as the workforce mix ofexpatriates and locals varies Risk exposure Broader external influences
  11. 11. IBUS 618 Dr. Yang 11Variables that Moderate Differencesbetween Domestic HR and IHRM
  12. 12. IBUS 618 Dr. Yang 12The “Top Ten” Multinationals1. Rio Tinto (UK/Australia)2. Thomson Corporation (Canada)3. ABB (Switzerland)4. Nestlé (Switzerland)5. British American Tobacco (UK)6. Electrolux (Sweden)7. Interbrew (Belgium)8. Anglo American (UK)9. AstraZeneca (UK)10. Philips Electronics (The Netherlands)Source: UNCTAD Indexof Transnationality
  13. 13. IBUS 618 Dr. Yang 13Forces for Change Global competition Growth in mergers, acquisitions andalliances Organization restructuring Advances in technology andtelecommunication
  14. 14. IBUS 618 Dr. Yang 14Impacts on MultinationalManagement Need for flexibility Local responsiveness Knowledge sharing Transfer of competence
  15. 15. IBUS 618 Dr. Yang 15Managerial Responses Developing a global “mindset” More weighting on informal controlmechanisms Fostering horizontal communication Using cross-border and virtual teams Using international assignments
  16. 16. IBUS 618 Dr. Yang 16Factors that Influence the GlobalWork Environment
  17. 17. IBUS 618 Dr. Yang 17Chapter Summary (cont.) We have established the scope of the textbook: Defined IHRM and the term “expatriate”. Discussed major differences between domesticHRM and IHRM – looking at six factors: More HR activities Need for a broader perspective More involvement in employees’ personal lives Changes in emphasis as the workforce mix ofexpatriates and locals varies, Risk exposure and More external influences
  18. 18. IBUS 618 Dr. Yang 18Chapter Summary (cont.) Examined the enduring context of IHRM. Thefocus is on the current global work environment,looking at forces for change, requirement for MNEand managerial responses that have implications forthe way in which people are being managed inmultinationals at the turn of the 21st century. This treatment has enabled us to provide an overview of thefield of IHRM and to establish how the general environmentaffects IHRM. The next chapter examines the organizational context wherewe explore how IHRM activities are determined by, andinfluence various internal changes as the firminternationalizes. This treatment has enabled us to provide an overview of thefield of IHRM and to establish how the general environmentaffects IHRM. The next chapter examines the organizational context wherewe explore how IHRM activities are determined by, andinfluence various internal changes as the firminternationalizes.

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