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International Human Resource Management

IHRM Chapter 1. International Human Resource Management. Managing people in a multinational context. Introduction. Chapter Objectives. Define key IHRM terms Review expatriate management evolution Outline differences between domestic and international HRM

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International Human Resource Management

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  1. IHRM Chapter 1 International Human Resource Management Managing people in a multinational context Introduction

  2. Chapter Objectives • 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

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

  4. Figure1-1 Inter-relationships between approaches to a field 4

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

  6. Figure1-2 Inter-relationships between approaches to the field 6

  7. Figure1-3 International assignments create expatriates 7

  8. Differences between domestic HRM and IHRM IHRM complexity can be attributed to six factors: 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 8

  9. Variables that moderate differences between domestic and international HRM Figure1-4 9

  10. Laurent’s steps to truly international HRM Recognize that one’s own HRM reflects home cultureassumptions and values. 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. 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. Headquarters willingness to acknowledge cultural differences and steps to make them discussable and therefore usable. Build shared genuine belief that cross-cultural learning will result in more creative and effective ways of managing people. 10

  11. World top ten non-financial transnational corps., ranked by transnational index Table1-1 11

  12. World top ten non-financial transnational corps., ranked only by foreign assets Table1-2 12

  13. Figure1-5 Strategic HRM in multinational enterprises 13

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