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International Human Resource Management

International Human Resource Management. Model of strategic change and human resource management. Source : Hendry and Pettigrew (1990). Impacts of internal organisational considerations on human resource management. A model for investigating human resource strategies. IHRM approaches.

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International Human Resource Management

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  1. International Human Resource Management

  2. Model of strategic change and human resource management Source: Hendry and Pettigrew (1990)

  3. Impacts of internal organisational considerations on human resource management

  4. A model for investigating human resource strategies

  5. IHRM approaches • Ethnocentric: key positions filled by nationals of parent company • Polycentric: host country nationals recruited to manage subsidiary in their own country • Geocentric: best people recruited, whatever their nationality • Regiocentric: best people recruited within region in which the subsidiary operates (e.g. EU, USA)

  6. IHRM solutions • Choice of IHRM approach depends upon: • Degree and type of internationalisation • Type of industry and markets served • Characteristics of staff • Cultural preferences

  7. Advantages Groups within the subsidiary can gain in status Groups within the subsidiary become more cohesive, fostering group identity IHRM takes place within a culture appropriate to the local workforce and customers Disadvantages Tendency to become ‘exclusive’ Loss of central control, higher administrative costs as HRM function is sent ‘down the line’ Loss of organisational control and organisational identity Decentralised IHRM

  8. Cross-cultural awareness • Supports for employees moving to overseas subsidiaries • Environmental briefings • Cultural orientation • Cultural assimilation • Language training • Sensitivity training • Field experience

  9. Appraisal • Identifies individual’s strengths and weaknesses • Reveals organisational obstacles blocking progress • Provides feedback to improve human resource planning • Improves communication

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