HRM386-Study-Guide-revised人力资源管理.docx

HRM386
International Dimensions of Human Resource Management
FACULTY OF BUSINESS

Study Guide

*HRM386*
1

International Dimensions of Human Resource Management

HRM386 Study Guide

Faculty of Business

Written and compiled by
Dr Chrys Gunasekara

Updated by
Jay Myers

Educational designer
ED Name

Media publishing officer
Sandra Wait

Produced by Division of Learning and Teaching Services, Charles Sturt University, Albury - Bathurst - Wagga Wagga, New South Wales, Australia.

First Published December 2010
Updated October 2015

Printed at Charles Sturt University

© Charles Sturt University

Previously published material in this book is copied on behalf of Charles Sturt University pursuant to Part VB of the Commonwealth Copyright Act 1968.
Contents

Page

Topic 1 Introduction and the cultural and organisational contexts of IHRM 3
Topic 2 IHRM in cross border mergers and acquisitions, international alliances and SMEs 9
Topic 3 Sourcing human resources for global markets 13
Topic 4 International Performance management 19
Topic 5 International training, development and careers 23
Topic 6 International compensation 28
Topic 7 International industrial relations and the global institution context 33
Topic 8 IHRM Trends and future challenges 38

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HRM386 Study Guide
Overview of the subject

Welcome to HRM386, and to the interesting and topical area of international human resource management (IHRM). As global business is dominated increasingly by emerging economies such as China, India, South America and Africa, the importance of capable graduates with a good knowledge of IHRM will increase.

This subject critically examines the activities and policies of human resource management in the context of international business operations. In particular, it explores how human resource management is practiced in multinational organisations in the contemporary global business world. It also identifies trends and future challenges that are likely to have an impact on international human resource management.

Learning Outcomes

Upon successful completion of this subject, students should:

· be able to explain the role of International Human Resource Management (IHRM) in sustaining the growth of international business activity and globalisation;
· be able to draw contextually appropriate conclusions as to the cultural and organisational applications of IHRM;
· be able to evaluate sourcing, training and development, compensation and the performance management of human resources for global markets;
· be able to evaluate the role and context of international industrial relations; and
· be able to determine and explore current IHRM trends and future challenges and apply them to a contemporary workplace issue.
The subject will cover the following topics:

· Introduction and the cultural and organisational contexts of IHRM
· IHRM in cross border mergers and acquisitions, international alliances and SMEs
· Sourcing human resources for global markets
· International performance management
· International training, development and careers
· International compensation
· International industrial relations and the global institution context
· IHRM trends and future challenges
Before we begin, please be clear about the purpose of this Study Guide. The topics and the content of this subject will follow the textbook quite closely. You will be able to read the Study Guide and then look at the textbook and be able to see very clear links between the two. There are additional reading resources provided for each topic, which will illustrate one or more aspects of the topic.
The Study Guide is intended to guide your reading of the textbook and the additional resources provided. The Study Guide is not a summary of the textbook chapters or the readings – it is a map that will help you to see where you are meant to be going. It is very important, therefore, that you read the textbook, and keep up with your instructor’s lectures. We hope that you find this subject interesting and enjoyable.
Read

Your textbook for this subject is Dowling, P., & Fasting, M. (2013). International human resource management (6th ed.). Andover: Cengage Learning. In this study guide that book will be referred to ‘the textbook’ or ‘your textbook’.
Ackowledgement
This study guide is based on the previous version of the study guide and updated to include new material included in the latest version of the textbook. Wherever possible, it includes learning support content provided by the publisher of the textbook. Topic 1 Introduction and the cultural and organisational contexts of IHRM
Introduction
The first topic in this subject introduces the scope and nature of IHRM – what is it? How is it different do domestic HRM? How do we apply a strategic view of IHRM? There are several key pieces of knowledge that you will need to learn in order to understand later topics in the subject. IHRM has quite a lot of jargon or specific terminology that it uses. It can be difficult to keep up with all of the terms. That is why, from the beginning, you should learn the key terms and concepts so that you can use these later to understand other topics, and to answer exam questions.
Learning objectives
Upon successful completion of this topic you should be able to:
· define international human resource management
· describe and apply a model of IHRM
· explain the differences between IHRM and domestic HRM
· describe a model of strategic IHRM.
· Define culture and discuss the development of culture.

Read

The textbook pages: 1-18, 22-39, 46-74
Bartlett, C. and Beamish, P. (2011). Transnational Management: Text, Cases and Readings in Cross-border Management, 6th edn, Boston, MA: McGraw-Hill/Irwin.

Festing, M. (2012). Strategic Human Resource Management in Germany: Evidence of Convergence to the U.S. Model, the European Model, or a Distinctive National Model? Academy of Management Perspectives, Vol 26, (2), 37-54.

Saha, S. K. (June, 1993). Managing human resources: China vs. The West. Canadian Journal of Administrative Sciences, 10(2), 167–177.

The nature and scope of IHRM
There are different approaches that have been used in studying IHRM. The approach that we will use in this subject involves the study of aspects of HRM in multinational organisations.
The discipline of HRM involves those activities undertaken by an organisation to effectively manage its human resources, or people. These activities would include:
· Human resource planning
· Staffing (recruitment, selection, placement)
· Performance management
· Training & development
· Compensation (remuneration) and benefits
· Industrial relations.
How do we understand these activities in an international context?
This question is answered in the model of IHRM presented in your textbook. As you will see, the model has three dimensions:
· HRM activities
· Countries
· Categories of employees.

It is very important to learn this model and especially, the different terms, such as ‘host’, ‘home’ and ‘third country’. These terms are used constantly in IHRM.
Learning activity
A key piece of terminology that you will see in the models and that you will encounter throughout this subject is, expatriate. In this activity we ask: What is an expatriate? Make notes on this term here.
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You may be wondering why it is necessary to study IHRM. Why is it important to take this subject in your course?

What is different about IHRM?
The next point to consider in this topic is: What makes IHRM different to domestic HRM?
Your textbook provides a good summary of the factors that help to explain why IHRM is different to domestic HRM, on pages 5-16. There are two parts to the explanation.
Firstly, IHRM is more complex than domestic HRM. Six reasons are given for this:
1. More HR activities
2. Need for a broader perspective
3. More involvement in employees’ personal lives
4. Variations in the mix of expatriates and locals
5. Risk exposure
6. Broader external influences.
You need to study these six factors, on pages 5-8, and be able to explain the nature of each one. Learn the examples also, or think or your own examples to illustrate each factor.
The second part of the explanation of why IHRM is different to domestic HRM relates to moderating variables. These are discussed on pages 9-16 of your textbook. There are four variables or factors that influence the way that HRM practices are applies across national boundaries. These moderators are:
a. The cultural environment
b. The industry environment
c. Extent of reliance by the multinational on its home-country domestic market
d. The attitudes of senior management.
Many of these concepts are not new to you. They were covered in your previous studies in management and HRM. Here, we are looking at them from an international perspective. Model 1-4 on page 9 of your textbook provides a good summary of these factors.
You should learn about these moderators, be able to explain them, and be able to use an example to illustrate each one. You can use an example from the textbook or think of your own example.

Cultural context of IHRM

An adequate understanding of the cultural context, as it impacts on the behavior of an organization’s employees, is of critical importance. Thus, the results of cross- cultural comparative research may provide valuable hints to managers about how to cope with employees from foreign cultures. Furthermore, these research results can form the basis for the development of intercultural training measures. These results could also be of great use to HRM in an international firm, because they could assist in undertaking a structured analysis of the transferability of specific elements of a parent firm’s existing HR policy to foreign subsidiaries. In this context, it would be conceivable to decide whether incentive systems for groups or for individuals would be effective in a specific culture

Table 2.1 in the textbook summarizes these ideas about the cultural context and gives examples of environmental differences which could lead to problems when MNEs attempt to introduce worldwide standardized HRM practices. Within this context, it is important to recall the discussion on the convergence and divergence of HRM and work practices, as mentioned in chapter 1 of the textbook.

The organisational context

Let’s now identify the HR implications of the various options and responses that international growth places on the firm. In this phase of growth MNE’s need to consider:
· Balancing the standardization and localization of operations, and how this balancing act runs throughout all human resource planning, processes, activities, and systems.
· The organizational context in which IHRM activities take place. Different structural arrangements are required as the firm moves along the path to multinational status—from the export department through more complex variations such as matrix, heterarchy, transnational, and networked structures.
· Control and coordination aspects. Formal and informal mechanisms are utilised in different circumstances.
· How international growth affects the firm’s approach to HRM. Firms vary from one to another as they go through the stages of international development, and they react in different ways to the circumstances they encounter in various foreign markets. There is a wide variety of matches between IHRM approaches, organizational structure, and the stage of internationalization. Over twenty years ago, almost half of the US firms surveyed by Dowling reported that HR operations were unrelated to the nature of the firm’s international operations. A study by Monks of nine subsidiaries of multinationals operating in Ireland found that the majority adopted a local approach to the HR function, with headquarters involvement often limited to monitoring the financial implications of HR decisions. Stages of development and organizational forms should not to be taken into consideration, as normative research does suggest a pattern and a process of internationalization, although firms do vary in how they adapt to international operations.

Review activity

Read the jourbal article, Saha, S. K. (June, 1993). Managing human resources: China vs. The West. Canadian Journal of Administrative Sciences, 10(2), 167–177.
This reading is a comparative study of HRM practices in Chinese and western organisations. This reading will give you some insights into the practice of IHRM and the factors that help to explain why there are different approaches taken in different national settings. Make a few notes summarizing your thoughts about this article.
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Tutorial exercises

The purpose of tutorial activities in this subject is to help you to understand the subject content better. They are also good preparation for your exam.
There are two questions to look at in the tutorial for this topic.
1. Using what you have learned from chapter 1 the textbook, think of examples of how this IHRM model could be used to look at staffing in:
a. A Chinese company based in Changchun, with operations in San Francisco and Brazil.
b. A Brazilian company with operations in Changchun and in New Delhi
c. Indonesians employed by a Chinese company based in Changchun, with operations in Changchun and New Delhi.
2. China has a large domestic market. It is also a major exporter of commodities and goods to the world. How would this affect IHRM strategy in Chinese multinationals? Look at chapter 1 of your textbook.
3. In your tutorial group review chapter 2 of the text and discuss how culture can be conecptualised.
4. In your tutorial group review chapter 3 of the text and discuss what are the specific HRM challenges in a networked firm?

Review the Interact Website
Review the additional resources provided for this topic on the Interact Website.
Topic summary
In this first topic we have set down some foundations. We’ve looked at the meaning of IHRM – what makes it different from domestic HRM. We have also started to define some key terms that relate to this discipline. Finally, we have seen two important models – one that describes the basic structure of IHRM, and a second model that shows how we can think of IHRM in a strategic way.

There is an interconnection betwe