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International Human Resource Management

IHRM Chapter 9. International Human Resource Management. IHRM in the host-country context. Managing people in a multinational context. Chapter Objectives. Standardization drivers are MNE strategy and structure, maturity and age, and corporate culture

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International Human Resource Management

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  1. IHRM Chapter 9 International Human Resource Management IHRM in the host-country context Managing people in a multinational context

  2. Chapter Objectives • Standardization drivers are MNE strategy and structure, maturity and age, and corporate culture • Localization drivers are the host country’s cultural and institutional environment, the mode of operation and subsidiary role • Outline measures which support the development of a balance of globalization and the localization of HRM • Address the global code of conduct as a device for controlling employee behavior worldwide • Focus on the strategic importance of offshoring We discuss drivers shaping interplay between global standardization and the localization of HR practices in MN context: Then we: IHRM Chapter 9

  3. Terms culture constructs: power distance uncertainty avoidance human orientation collectivism I and II assertiveness gender egalitarianism future orientation performance orientation offshoring global mindset performance culture national business system Reverse diffusion BPO guanxi global standardization local responsiveness country-of-origin effect host-country effect home-country effect lingering ethnocentrism 3 IHRM Chapter 9

  4. Figure9-1 Balancing the standardization and localization of HRM in MNEs 4 IHRM Chapter 9

  5. Culture construct definitions and sample questionnaire items Table9-1a 5 IHRM Chapter 9

  6. Culture construct definitions and sample questionnaire items Table9-1b 6 IHRM Chapter 9

  7. Figure9-2 Institutional effects on MNEs 7 IHRM Chapter 9

  8. Examples of the impact of the cultural and institutional context on HRM practices Table9-2a 8 IHRM Chapter 9

  9. Examples of the impact of the cultural and institutional context on HRM practices Table9-2b 9 IHRM Chapter 9

  10. Table9-3 Gupta and Govindarajan’s four generic subsidiary roles 10 IHRM Chapter 9

  11. HRM roles with global code of conduct Drawing up and reviewing codes of conduct Conducting a cost–benefit analysis to oversee compliance of employees and relevant alliance partners Championing the need to train employees and alliance partners in elements of the code of conduct Checking that performance and rewards systems take into consideration compliance to codes of conduct 11 IHRM Chapter 9

  12. Figure9-3 Target countries for future foreign business operations 12 IHRM Chapter 9

  13. HRM roles with offshoring Consultation with unions/employee representatives Manpower planning, considering the scope for employee redeployment Contributing to the internal communication strategy Identifying training needs Designing new jobs which stem from offshoring operations Highlighting potential risks, such as the implications of employment regulation both in the home country and in foreign locations. 13 IHRM Chapter 9

  14. Table9-4 Where talent is scare 14 IHRM Chapter 9

  15. Discussion Questions What are the determinants of the balance of standardization and localization in human resource management in MNEs? How does a subsidiary’s role affect its ability to transfer ideas and work practices to other parts of the global network? What is the impact of the resources controlled by the respective affiliate? What contributes to the poaching of subsidiary employees? What steps can be taken to recruit and retain key employees? What are typical HRM problems in offshoring organizations? How can companies, for example in India and in China, design their human resource management systems to avoid these problems? 15 IHRM Chapter 9

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