Introduction:

The Enduring Context of

IHRM
By, Priya Unadkat

Three Approaches to IHRM

Cross-cultural management
Examine human behavior within organizations from an
international perspective

Comparative HRM and Industrial Relations

Seeks to describe, compare and analyze HRM systems
and IR in different countries

HRM in multinational firms

Explore how HRM is practiced in multinationals

Interrelationships between Approaches to the

Field

The General Field of HR

HRM refers to activities

undertaken by an
organization to effectively
utilise its human resources
Major Functions and Activities

Human resource planning

Staffing Recruitment, Selection, Placement
Performance management
Training and development
Compensation (remuneration) and benefits

A Model of IHRM (Morgan)

O
T
H
E
R

H
O
M
E

Source of raw
material

TCN

He
ad
Quar
ter

PCN
H
O
S
T

SubsidiaryHCN

 As per Morgan,
IHRM is the interplay between three categories : HR
activities, Types of employees and countries of
operation.

What is an expatriate?
An employee who is working and temporarily residing
in a foreign country
International assignees
Inpatriate
Transpatriate
Global flow of HR

International Assignments Create Expatriates

Differences between Domestic HRM and

IHRM

More HR activities
The need for a broader perspective
More involvement in employees personal lives
Changes in emphasis as the workforce mix of
expatriates and locals varies
Risk exposure
Broader external influences

Contd
More HR activities
Tax equalization
Relocation & orientation
Administrative services
Host government relation
Language translation
The need for a broader perspective
More than one national group
Policies for PCNs, HCNs, TCNs

Contd
More involvement in employees personal lives
Schooling, housing
Banking, investment
Recreational program
Changes in emphasis as the workforce mix of expatriates and
locals varies
As operations matures
Local staff availability
Taxation, relocation, orientation
Staffing, training & development

Contd
Risk exposure
Expatriate failure
Under performance
Higher cost of failure direct & indirect
Terrorism

Broader external influences

Type of government
Developed / developing country

Labour availability, labour policies

Variables that differentiate

Domestic & IHRM

Variables that differentiate

Domestic & IHRM

 Not always a conscious effect

Culture shock
Cultural awareness
E.g.
Individualistic Collective
Vacation
Hand movement
..\..\..\Extra\2. Hand Gestures around the World.mp4
Hofstedes cultural framework

 Power distance
Individualism Vs Collectivism
Masculinity Vs Femininity
Uncertainty avoidance
Long term Vs Short term
orientation
..\..\..\Extra\Videos\Map The World - Hofstede's 5
Cultural Dimensions visualized on a world map.mp4

 Power distance
Degree to which people accept that power in
the organization is distributed unequally
High power distance

Low Power distance

(Large power inequalities)

Malaysia

(Equality &
opportunity) US

 Individualism Vs Collectivism
Individualism
Degree to which people prefer to act as individual
rather than group - US
Collectivism
Tight social frame work where people expect to be
in group where they can be look after and protected.

 Masculinity Vs
Femininity
Masculinity
Favors traditional masculine role as power, achievement,
control. Separate roles to men and women with men
dominating - US

Femininity
Little difference between men and women. Treat women as
equal to men.

 Uncertainty
avoidance
Degree to which people prefer structured over
unstructured situations.
High uncertainty avoidance
(Anxiety about uncertainty,
uses rules and laws to
reduce uncertainty)

Low uncertainty avoidance

(Accepting uncertainty,
less rule oriented, take
risk and accept change)
US

 Long term Vs Short term

orientation
Long
Look term
to the future, value thrift (saving), persistence
and tradition. Asian countries
Short term
Value here and now, accept change easily, dont see
commitment as obstacle to change - US

Japan

France

Germany

China

UK

Singapore

Thailand

Variables that differentiate

Domestic & IHRM

 International competition
Multi-domestic
Industry

Independent

Global
Industry

Influenced

Variables that differentiate

Domestic & IHRM

 Domestic market Vs Foreign market

Size
Availability of resources

Variables that differentiate

Domestic & IHRM

Barriers to effective global HRM

Variations Social, Political, Economical
Perception for HR
Attitude & actions of HQ towards HR

Resistance to change
Cultural differences in learning & teaching style
Instructional style

Used in
UScredible in
Not

Japan

Strategic view of IHRM

External factors
Industry chs
Country chs

Internal factors
MNE structure
MNE strategy
Experience in
international operations

SHRM
HR functions and
practices

MNE concerns and goals

Competitiveness
Efficiency
Flexibility

International orientation

(De Cieri & P.J. Dowling)

Factors that Influence the Global Work

Environment
Chinese multinationals
Bharti Airtel's acquisition
Zain Africa
Internet