International Human Resources Management

York University Professor/Course Director Ron Alexandrowich ronalex@yorku.ca

Weighting of Course

Group Project 40% Participation 10% Mid term = 25% Final = 25 %

Chapter Learning Objectives

After reading this chapter, you should be able to: define key terms in international human resource management (IHRM) and consider several definitions of IHRM discuss the historically significant issue of expatriate assignment management and review the evolution of these assignments to reflect the increasing diversity with regard to what constitutes international work and the type and length of international assignments
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Chapter Learning Objectives

outline the differences between domestic and international human resource management, and detail a model which summarizes the variables that moderate these differences

Chapter Learning Objectives

discuss the complexity of IHRM, the increasing potential for challenges to existing IHRM practices and current models, and an increasing awareness of the wide number of choices within IHRM practices due to increased transparency and faster and more detailed diffusion of these practices across organizational units and firms

Multinational Enterprise (MNE)

a firm which owns or controls business activities in more than one foreign country

Defining HRM
An organizations HRM activities include human resource planning staffing (recruitment, selections, placement) performance management training and development compensation (remuneration) and benefits industrial relations
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A Model of HRM (Figure 1.2)

Defining Expatriate

an employee who is working and temporarily residing in a foreign country

International Assignments Create Expatriates (Figure 1.3)

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Defining Inpatriate

transfer of subsidiary staff into the parent country (headquarters) operations

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Differences Between Domestic HRM and IHRM

Differences Between Domestic and IHRM
1. More HR activities - tax, relocation, education, language, housing, medical care, schooling, permits 2. The need for a broader perspective equity issues among all groups 3. More involvement in employees personal lives healthcare/taxes/visa requirements/schooling
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Differences Between Domestic and IHRM

4. Changes in emphasis as the workforce mix of expatriates and locals varies workforce movement TCN/PCN 5. Risk exposure pre-mature return and underperformance reputation damage 3x costs, militant exposure, emergency evacuation 6. Broader external influences Govt., economy, business practice, laws, compliance, codes of conduct

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Variables that Moderate Differences Between Domestic and IHRM (Figure 1.4 )

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The Cultural Environment

Defining culture a shaping process overtime that generates relative stability, reflecting a shared knowledge structure that accentuates variability in values, behavioural norms, and patterns of behaviour.

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The Cultural Environment

Defining culture shock many adjustments to new cultural environments in short periods of time, challenging peoples frames of reference in that their sense of self (nationality) comes into question.

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The Cultural Environment

cultural awareness cultural differences differences in work-related values http://www.geert-hofstede.com/ (ADMS 4480)
(c) 2009 by Nelson Education Limited. 17

Industry Type
1. 2. 3. Domestic Multidomestic polycentric/adaptive Multinational product standardization ethnocentric/exportive Global culturally sensitive products/geocentric integrative approach Delivery of HR services and programs is linked to the above stages

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Industry Type

Laurents Steps to Truly International HRM recognize that ones own HRM reflects home culture assumptions and values recognize that ones own peculiar ways are neither universally better nor worse than others - just different and likely to exhibit strengths and weaknesses, particularly abroad
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Industry Type

recognize that organizations foreign subsidiaries may prefer other ways to manage people ways that are neither intrinsically better nor worse, but possibly more effective locally headquarters willingness to acknowledge cultural differences and steps to make them discussable and therefore usable
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