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Introduction To IHRM - 1,2

This document discusses international human resource management (IHRM). It provides definitions of IHRM, including Morgan's "3-D" definition which covers HR activities, countries, and employees involved. IHRM is more complex than domestic HRM due to factors like more HR activities across countries, a need for broader perspectives, and greater risk exposure. The document also identifies six differences between domestic and international HRM: human resource planning, staffing, performance management, training and development, compensation and benefits, and industrial relations. Finally, it presents a model of five moderators - complexity, culture, industry, reliance on domestic market, and management attitudes - that influence differences between domestic and international HRM.

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70 views13 pages

Introduction To IHRM - 1,2

This document discusses international human resource management (IHRM). It provides definitions of IHRM, including Morgan's "3-D" definition which covers HR activities, countries, and employees involved. IHRM is more complex than domestic HRM due to factors like more HR activities across countries, a need for broader perspectives, and greater risk exposure. The document also identifies six differences between domestic and international HRM: human resource planning, staffing, performance management, training and development, compensation and benefits, and industrial relations. Finally, it presents a model of five moderators - complexity, culture, industry, reliance on domestic market, and management attitudes - that influence differences between domestic and international HRM.

Uploaded by

Jaanu
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Introduction

Dowling, Festing & Engle, 6/e, Cengage


1
Learning
Figure 1 - Inter-relationships between
approaches to the field

Dowling, Festing & Engle, 6/e, Cengage


2
Learning
HRM activities
1. Human resource planning
2. Staffing: recruitment, selection, placement
3. Performance management
4. Training & development
5. Compensation & benefits
6. Industrial relations

Dowling, Festing & Engle, 6/e, Cengage


3
Learning
Morgan’s “3-D” definition of IHRM
1. The HR activities of
procurement, allocation & utilization
2. The countries where IHRM occurs:
• Host-country where subsidiary may be located
• Parent-country where firm is headquartered
• Other-countries that may be
source of labor, finance & other inputs
3. The employees of an international firm:
• HCNs (host country nationals)
• PCNs (parent .. .. )
• TCNs (host .. .. )
Dowling, Festing & Engle, 6/e, Cengage
4
Learning
Inter-relationships between approaches to the field

Dowling, Festing & Engle, 6/e, Cengage


5 5
Learning
Figure 2 - International assignments create
expatriates

Dowling, Festing & Engle, 6/e, Cengage


6
Learning
Stahl-Björkman-Morris def. of IHRM

The field of IHRM covers


• All issues related to firm outcomes
• A wide range of HR issues facing MNEs in
different parts of their organizations

This definition includes comparative analyses of


HRM in different countries.

Dowling, Festing & Engle, 6/e, Cengage


7
Learning
IHRM is more complex than domestic
HRM
IHRM has …
1. more HR activities
2. a need for a broader perspective
3. more involvement in employees’ personal lives
4. changes of emphasis as the mix of expatriates & locals
varies
5. more risk exposure
6. broader external influences
Dowling, Festing & Engle, 6/e, Cengage
8
Learning
IHRM has international HR activities

■ International taxation
■ International relocation & orientation
■ Administrative services for expatriates
■ Host-government relations
■ Language translation services

Dowling, Festing & Engle, 6/e, Cengage


9
Learning
Differences between domestic HRM and IHRM

IHRM complexity can be attributed to six factors:


1. Human resource planning
2. Staffing (recruitment, selection, placement)
3. Performance management
4. Training and development
5. Compensation (remuneration) and benefits
6. Industrial relations

Dowling, Festing & Engle, 6/e, Cengage


10 10
Learning
International relocation involves
■ Arranging for pre-departure training
■ Providing immigration & travel details
■ Providing housing, shopping, medical care,
recreation & schooling information
■ Finalizing compensation details such as:
 Delivery of salary overseas
 Determination of overseas allowances
 Taxation treatment
Dowling, Festing & Engle, 6/e, Cengage
11
Learning
Four more moderators
in addition to IHRM complexity
1. The cultural environment
2. The industry(ies) with which the MNE is
primarily involved – multidomestic and global
industry
3. The extent to which the MNE relies on
its HC domestic market
4. The attitudes of senior management

Dowling, Festing & Engle, 6/e, Cengage


12
Learning
Figure 3 - A model of all 5 variables that moderate the
differences between domestic and international HRM

Dowling, Festing & Engle, 6/e, Cengage


13
Learning

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