Professional Documents
Culture Documents
Dr.Yogananthan
Content
Introduction Ice breaker Myths!!! International orientation (IB?) Strategic IHRM Reasons to go for IHRM IHRM model Differences between HRM & IHRM Challenges of IHRM
Global Competition
Figure 151
Types of Organizations
Global corporation
Firm that has integrated worldwide operations through a centralized home office.
Transnational corporation
Firm that attempts to balance local responsiveness and global scale via a network of specialized operating units.
Ethnocentric: Highly centralized. HQ controls PCNs dominate. Polycentric: Decentralized. Each subsidiary has some degree of decision making autonomy. HCNs manage subsidiaries. Geocentric: Ignores nationality in favor of ability and competence needs in a worldwide integrated business strategy.
Convergence or Divergence?
Large corporations preference for consistent worldwide systems Smaller companies desire for more professional systems
Need to follow local HRM laws Development of unique techniques and practices to suit local cultural and legal requirements
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Managerial Responses
Developing a global mindset: More weighting on informal control mechanisms: Fostering horizontal communication: Using cross-border and virtual teams: Using international assignments:
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A Model of IHRM
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What is an expatriate?
An employee who is working and temporarily residing in a foreign country
Some firms prefer to use the term international assignees Expatriates are PCNs from the parent country operations, TCNs transferred to either HQ or another subsidiary, and HCNs transferred into the parent country
Global flow of HR: more complexity in activities and more involvement in employees' lives
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Models of IHRM
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Reference
Chris Chan, Introduction to IHRM, BUSN3025 seminar, 2003. Peter J Dowling, Denice E Welch,International Human Resource Management, Cengage Learning.