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Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning Peter Dowling and Denice Welch
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Chapter objectives
In this chapter, we examine how international growth places demands on management, and the factors that impact on how managers of internationalizing firms responds to these challenges. We start with the premise that the human resource (HR) function does not operate in a vacuum, and that HR activities are determined by, and influence, organisational factors. We cover the following areas: structural responses to international growth control and coordination mechanisms (cont.)
Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning Peter Dowling and Denice Welch
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Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning Peter Dowling and Denice Welch
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Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning Peter Dowling and Denice Welch
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Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning Peter Dowling and Denice Welch
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Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning Peter Dowling and Denice Welch
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Sales subsidiary
Replacing foreign agents/distributors with own through sales or branch offices/subsidiaries May be prompted by:
Problems with foreign agents More confidence in international activities Desire for greater control Give greater support to exporting activities
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Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning Peter Dowling and Denice Welch
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International division
Creation of a separate division in which all international activities are grouped Resembles miniature replica of domestic organization Subsidiary managers report to head of international division Objectives regarding foreign activities may determine approach to staffing of key positions
Expatriate management role of corporate HR
Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning Peter Dowling and Denice Welch
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Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning Peter Dowling and Denice Welch
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The matrix
An attempt to integrate operations across more than one dimension Violates Fayols principle of unity of command Considered to bring into the management system a philosophy of matching the structure to the decision-making process
Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning Peter Dowling and Denice Welch
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Proliferation of Creates informational logjams communication channels Produce turf battles and loss of Overlapping accountability responsibilities Barriers of distance, Make it virtually impossible to language, time and resolve conflicts and clarify culture confusion
Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning Peter Dowling and Denice Welch
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Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning Peter Dowling and Denice Welch
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Control mechanisms
Globalization brings considerable challenges which are often under-estimated. Every morning when I wake I think about the challenges of coordinating our operations in many different countries
Quote by Accor CEO
Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning Peter Dowling and Denice Welch
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Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning Peter Dowling and Denice Welch
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Interfirm linkages
Alliance (strategic alliance, cooperative venture, collaborative venture or corporate linkage) A form of business relationship that:
Involves some measure on interfirm integration Stops short of a full merger or acquisition
Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning Peter Dowling and Denice Welch
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HR factors
HR issues and activities that affect the successful functioning of international joint ventures include:
Assigning mangers to the joint venture Evaluating their performance Handling aspects pertaining to career path Compensation benefits
Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning Peter Dowling and Denice Welch
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Chapter summary
The purpose of this chapter has been to identify the HR implications of the various options and responses that international growth places on the firm. This chapter focused on: The organizational context in which IHRM activities take place. Different structural arrangements have been identified as the firm moves along the path to multinational status from export department through to more complex varieties such as the matrix, heterarchy, transnational and networked. Control and coordination aspects. Formal and informal mechanisms were outlined, with emphasis on control through personal networks and relationships, and control through corporate culture, drawing out HRM implications. (cont.)
Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning Peter Dowling and Denice Welch
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Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning Peter Dowling and Denice Welch
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