International Human Resource Management Managing people in a multinational context

2 Define key IHRM terms Review expatriate management evolution Outline differences between domestic and international HRM Discover the increasing complexity and potential challenges of current IHRM Chapter Objectives

Terms 3 MNE culture shock emi-etic distinction HCN PCN TCN NAFTA UNCTAD expatriate inpatriate HRM IHRM

4 Inter-relationships between approaches to a field Figure 1-1

Defining HRM 5 An organization’s HRM activities include: 1.Human resource planning 2.Staffing (recruitment, selection, placement) 3.Performance management 4.Training and development 5.Compensation (remuneration) and benefits 6.Industrial relations

6 Inter-relationships between approaches to the field Figure 1-2

7 International assignments create expatriates Figure 1-3

Differences between domestic HRM and IHRM 8 IHRM complexity can be attributed to six factors: 1.More HR activities 2.The need for a broader perspective 3.More involvement in employees’ personal lives 4.Changes in emphasis as the workforce mix of expatriates and locals varies 5.Risk exposure 6.Broader external influences

9 Variables that moderate differences between domestic and international HRM Figure 1-4

Laurent’s steps to truly international HRM 10 1.Recognize that one’s own HRM reflects home culture assumptions and values. 2.Recognize that one’s own peculiar ways are neither universally better nor worse than others - just different and likely to exhibit strengths and weaknesses, particularly abroad. 3.Recognize that organization’s foreign subsidiaries may prefer other ways to manage people – ways that are neither intrinsically better nor worse, but possibly more effective locally. 4.Headquarters willingness to acknowledge cultural differences and steps to make them discussable and therefore usable. 5.Build shared genuine belief that cross-cultural learning will result in more creative and effective ways of managing people.

11 Table 1-1 World top ten non-financial transnational corps., ranked by transnational index

12 Table 1-2 World top ten non-financial transnational corps., ranked only by foreign assets

13 Strategic HRM in multinational enterprises Figure 1-5