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International HRM
To appreciate the role of HRM in the international organization, high-
lighting links between parent companies and geographically dispersed
affiliates
To understand the impact of diverse cultural and institutional
environments on HR policies and practices in differing locations and
organizational settings
To identify the ways in which relations between management and
employees are evolving in the global context
gain a practical perspective on the issues arising
in cross-cultural organizational environments,
including teams, networks and cross-border
alliances
Aims of the lecture
• To appreciate the strategic role of International HRM (IHRM)
in differing international contexts
• To evaluate the influence of national environmental factors on
HR policies and practices
• To identify the mechanisms designed to further relations
between managers and employees in differing countries
• To appreciate the ways in which cross-cultural management
skills are cultivated and utilized in international business
str Co Inter-
Industry tal at rp
en eg or nationalization
characteris- m
n rs ic ate strategy
ri o cto iss
tics v fa ue Center-
En s
Competitive International subsidiary
environment Human Resources relations
Management
Further References
International Employment Relations Resources Online
International Human Resource Management
Figure 9.2: Cultural and institutional environments of IHRM
Cultural dimensions National culture Legal framework
Language(s) Political system
Religion(s) Employment regulation
Social structures Institutional environment Labor law
Subsidiary
Parent company
Types of outward
(equity based)
expansion
Affiliate company
Investing company
(non-equity based)
•Hair
The comic cast of Outsourced
keeps each other laughing - even
in the makeup room.
•Measure of a Manmeet
Under orders from corporate to
perform, Todd must evaluate each
member of his team and lay
someone off.
Conclusions
• Meeting the challenge of managing people in diverse cultural
environments is the focus of strategic IHRM.
• Designing HR policy and practices in the MNE involves
balancing corporate goals and strategy with local
responsiveness and environmental sensitivities.
• Evolving mechanisms for employee voice and involvement
recognize the need to balance corporate and individual needs.
• Cross-cultural competencies contribute to managing foreign
subsidiaries and benefiting from local capabilities.
• IHRM is crucial to the success of cross-border alliances and
acquisitions.