Chapter2 - IHRM

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Copyright 2004 Asia Pacific Institute of Information Technology

International Human Resource

ManagementBUS-1-08-MB Chapter 2 RecentDevelopments in Theory &

Empirical Research
http://www.apiit.edu.my/


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Ethical and Social Issues

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Topic & Structure of the lesson

Learning Outcomes

Understanding the differences between

domestic and multinational firms

Professionalism

Social Responsibility in business


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Learning Outcomes

At the end of this module, YOU should be able to:

Recognise the Othree ideal type of multinational companies

Objective of HRM in MNCs


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Main Teaching Points

Strategy and International HRM

The role of the corporate HR function in the

international firm

Global Management Development

Roles and responsibilities of transnationalmanagers


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Introduction

The main reasons for the growth of interest inIHRM over the last decade have been confinedby Scullion:

1) The rapid growth of internationalisation &global competition has increased the number &significance of MNCs

2) The effective management of human

resources is increasingly being recognised asa major detriment to success or failure ofglobal business


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3)Underperformance or failure ofinternational assignments continues to be

costly; both in human & financial terms

4) the implementation of global strategies is

frequently constrained by shortages of

international management talent

5)IHRM issues are becoming increasingly

important in a wider range of organisation

partly due to the rapid growth of small &

SME


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Strategy & International HRM

Adler & Ghadars phases of inter-nationalisation:

Based on Vernons life cycle theory

distinguishes 3 phases in the international

life product cycle:

1) High tech focuses on product, R & D

2) growth & internationalisation developing

& penetrating markets

3) maturity implement cost control

measures


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Influences of Culture

According to Alder & Ghadar, the impactof cultural background of a country differsfrom one phase to the next:

Domestic: focus on home market & export International: focus on local

responsiveness & transfer of learning

Multinational focus on global strategy Global: focus on both local

responsiveness & global integration


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The Role of the Corporate HR

Function in the International Firm

Many studies of corporate HR role

largely ignored the links between the

growing internationalisation of thecompanies & the new corporate HR

roles

2 reasons for the above:1) British is more globally oriented

2) Since early 1990s there is a


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significant increase in the pace of internationalisation ofUK companies.

However, recent empirical study examined the role of thecorporate HR function specifically in the international firm

and identified emerging agenda for corporate HR(Scullion & Starkey, 2000) they identified 3 distinctivegroup of companies:

1) centralised HR companies

- international assignments were linked to the

organisational & career development process; group

wide appraisal, job evaluation & reward system


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3) Transition HR companies

- concentrates on how to develop global

managers


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Global Management Development

Researchers have identified a number of

important lessons for MNCs which do seek

to develop HCN (host country nationals)

1) the need to avoid the mistake of simply

exporting parent country training &

development programmes to other

countries


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2) the management development

programmes needs to be linked to the

strategic situation in each country as well

as overall strategy of the firm (Scullion &Brewster)

3) is the need to utilise the practice of

impatriation (selective process oftransferring)


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Roles & Responsibilities of

Transnational Managers

Global business management world

wide business strategists, resource

configuration, cross border co-ordinator &

controller

Worldwide functional management

responds to challenges of development &

diffusing innovation on a world wide basis


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* geographic subsidiary management multinational

responsiveness, responding to the needs of

national customers and satisfying the demands

of host country government

top-level corporate management take all

challenges like efficiency, learning and reponsivenes

into account


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Quick Review Question

1) Discuss the reasons for the rapid growth in

significance of international HRM over the last

decade.

2) Examine the changing role of the corporate

human resource function in international firm.


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Follow Up Assignment

Barlett, C A Ghoshall, S. (1989) Managing Across

Borders, The Transnational Solution


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Q & A

Question and Answer Session

Documents

Chapter2 - IHRM