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

2. 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

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4. 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

5. 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
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6. Interrelationships between Approaches to the Field
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7. 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

8. 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
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9. A Model of IHRM
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10. 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
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11. International Assignments Create Expatriates:
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12. 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

13. Variables that Moderate Differences between Domestic HR and IHRM
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14. 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

15. Forces for Change Global competition
Growth in mergers, acquisitions and alliances
Organization restructuring
Advances in technology and telecommunication
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16. Impacts on Multinational Management
Need for flexibility
Local responsiveness
Knowledge sharing
Transfer of competence
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17. Managerial Responses Developing a global “mindset”
More weighting on informal control mechanisms
Fostering horizontal communication
Using cross-border and virtual teams
Using international assignments
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18. Factors that Influence the Global Work Environment
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19. 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

20. 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