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International HR Management Strategies for Global Business Success

Learn about different international business strategies, challenges in managing HR across cultures, and key factors contributing to the success or failure of international managers. Dive into cultural environments and Hofstede’s dimensions for effective global HR management.

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International HR Management Strategies for Global Business Success

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  1. INTERNATIONALHRMANAGEMENT

  2. GOING INTERNATIONAL • Exporting • Licensing • One firm leases the right to use its intellectual property to another firm in exchange for a fee • Franchising • An independent organization operates a business under the name of another in exchange for a fee • Foreign Direct Investment • Joint Ventures; strategic alliances • Sole ownership

  3. International Business Strategies • Multilocal • Decentralized • Collection of independently operating organizations • Export Market • Parent company maintains centralized control • Global approach • Hybrid combination of multilocal and export

  4. Domestic vs. International HR • Basic function and objective remains the same: procurement, allocation, and utilization of people. • Primary difference between IHR and domestic HR lies in the complexity of operating in different countries with different cultures and laws. • Degree of complexity depends on: • Extent of cultural diversity • Approach taken to multinational entry • Top management attitudes (parochialism)

  5. International HR Strategies • Ethnocentric • Centralized HR • Managed by Parent Country Nationals (PCNs) • Pay based on local market for employees; home country for PCNs • Training aimed at KSAs to perform the job • Polycentric • Decentralized HR • Managed by Home Country Nationals (HCNs) • Pay based on local market • Training given added importance

  6. International HR Strategies • Geocentric • Global workforce deployed throughout the world • Positions filled by most qualified regardless of nationality: HCNs, PCNs, or TCNs, • Compensation based on value-added • Training and development emphasized • Regiocentric

  7. Why Do International Managers Fail? • Does it change the essence of HR? • Culture Shock • Cultural arrogance (Parochialism) • Cultural Insensitivity • The Key success factor? • Cultural adaptability

  8. CULTURAL ENVIRONMENT • Language • Communication styles • Nonverbal • Direct vs. Indirect • Greeting: physical and verbal • Space • Structural & interpersonal • Time orientation • Punctuality • Monochronic vs. Polychronic • Religion • Respect/formality • Consensus seeking

  9. HOFSTEDE’S DIMENSIONS • Individualism vs. Collectivism • Power Distance • Uncertainty Avoidance • Masculinity vs. femininity • Long-term orientation

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