OHT 9.1 Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 International Human Resource Management.

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Presentation transcript:

OHT 9.1 Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 International Human Resource Management

OHT 9.2 Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 Model of strategic change and human resource management Source: Hendry and Pettigrew (1990)

OHT 9.3 Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 Impacts of internal organisational considerations on human resource management

OHT 9.4 Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 A model for investigating human resource strategies

OHT 9.5 Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 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)

OHT 9.6 Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 IHRM solutions Choice of IHRM approach depends upon: –Degree and type of internationalisation –Type of industry and markets served –Characteristics of staff –Cultural preferences

OHT 9.7 Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 Decentralised IHRM 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

OHT 9.8 Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 Cross-cultural awareness Supports for employees moving to overseas subsidiaries 1.Environmental briefings 2.Cultural orientation 3.Cultural assimilation 4.Language training 5.Sensitivity training 6.Field experience

OHT 9.9 Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 Appraisal Identifies individual’s strengths and weaknesses Reveals organisational obstacles blocking progress Provides feedback to improve human resource planning Improves communication