Introduction: The Enduring Context of IHRM Chapter 1 Introduction: The Enduring Context of IHRM IBUS 618 Dr. Yang

The Year of Rooster, 4702 Happy New Year! 01/31/1957 to 02/17/1958 (Fire) 02/17/1969 to 02/05/1970 (Earth) 02/05/1981 to 01/24/1982 (Metal) 01/23/1993 to 02/09/1994 (Water) 02/09/2005 to 01/28/2006 (Wood) 01/28/2017 to 02/15/2018 (Fire)  IBUS 618 Dr. Yang

IBUS 618 Dr. Yang

Chapter Objectives In this introductory chapter, we establish the scope of the textbook: Define key terms in IHRM Outline the differences between domestic HRM and IHRM Identify the variables that moderate these differences And discuss trends and challenges in the global work environment and the enduring context in which IHRM functions and activities are conducted, including the way in which forces for change affect the operations of the internationalizing firm and have consequences for the management of people in the multinational context. IBUS 618 Dr. Yang

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 IBUS 618 Dr. Yang

Interrelationships between Approaches to the Field IBUS 618 Dr. Yang

The General Field of HR Major Functions and Activities Human resource planning Staffing Recruitment Selection Placement Performance management Training and development Compensation (remuneration) and benefits Industrial relations IBUS 618 Dr. Yang

What does IHRM add into the Traditional Framework of HRM? Types of employees Within and cross-cultural workforce diversity Coordination Communication Human resource activities Procurement Allocation Utilization of human resources Nation/country categories where firms expand and operate Host country Parent country Third country IBUS 618 Dr. Yang

A Model of IHRM IBUS 618 Dr. Yang

What is an expatriate? An employee who is working and temporarily residing in a foreign country Some firms prefer to use the term “international assignees” Expatriates are PCNs from the parent country operations, TCNs transferred to either HQ or another subsidiary, and HCNs transferred into the parent country Global flow of HR IBUS 618 Dr. Yang

International Assignments Create Expatriates: IBUS 618 Dr. Yang

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 IBUS 618 Dr. Yang

Variables that Moderate Differences between Domestic HR and IHRM IBUS 618 Dr. Yang

The “Top Ten” Multinationals Rio Tinto (UK/Australia) Thomson Corporation (Canada) ABB (Switzerland) Nestlé (Switzerland) British American Tobacco (UK) Electrolux (Sweden) Interbrew (Belgium) Anglo American (UK) AstraZeneca (UK) Philips Electronics (The Netherlands) Source: UNCTAD Index of Transnationality IBUS 618 Dr. Yang

Forces for Change Global competition Growth in mergers, acquisitions and alliances Organization restructuring Advances in technology and telecommunication IBUS 618 Dr. Yang

Impacts on Multinational Management Need for flexibility Local responsiveness Knowledge sharing Transfer of competence IBUS 618 Dr. Yang

Managerial Responses Developing a global “mindset” More weighting on informal control mechanisms Fostering horizontal communication Using cross-border and virtual teams Using international assignments IBUS 618 Dr. Yang

Factors that Influence the Global Work Environment IBUS 618 Dr. Yang

Chapter Summary (cont.) We have established the scope of the textbook: Defined IHRM and the term “expatriate”. Discussed major differences between domestic HRM and IHRM – looking at six factors: More HR activities 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 and More external influences IBUS 618 Dr. Yang

Chapter Summary (cont.) Examined the enduring context of IHRM. The focus is on the current global work environment, looking at forces for change, requirement for MNE and managerial responses that have implications for the way in which people are being managed in multinationals at the turn of the 21st century. This treatment has enabled us to provide an overview of the field of IHRM and to establish how the general environment affects IHRM. The next chapter examines the organizational context where we explore how IHRM activities are determined by, and influence various internal changes as the firm internationalizes. IBUS 618 Dr. Yang