1. Chapter 1
Introduction of IHRM
IHRM, Dr. Yang

2. Chapter Objectives We will establish the scope of the textbook:
Define IHRM and key terms
Introduce and review expatriate/international assignment management and evolution
Outline differences between domestic HRM and IHRM
Identify variables that moderate these differences
Discover complexity and increasing challenges of current IHRM practices and models
Discuss trends and emerging challenges in the global work environment in which IHRM functions and activities are conducted
IHRM, Dr. Yang

3. 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 multinational firms
IHRM, Dr. Yang

4. Interrelationships between Approaches to the Field
Figure 1-1
IHRM, Dr. Yang

5. The General Field of HR Major Functions and Activities
Human resource planning
Staffing
Recruitment
Selection
Placement
Performance management
Training & development
Compensation & benefits
Industrial relations
IHRM, Dr. Yang

6. 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
IHRM, Dr. Yang

7. The Interplay of Three Dimensions (Morgan’s Model of IHRM)
IHRM, Dr. Yang

8. 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 human resources
IHRM, Dr. Yang

9. International Assignments Create Expatriates
Figure 1-2
IHRM, Dr. Yang

10. The Expansion Scope of IHRM
The field of IHRM covers all issues related to managing the global workforce and firm outcomes
A wide range of HR issues facing MNEs in different parts of their organizations
This definition includes comparative analyses of HRM in different countries (Stahl, Björkman & Morris, 2012).
IHRM, Dr. Yang

11. Added Complexity 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
IHRM, Dr. Yang

12. Examples of IHR Activities
International taxation
International relocation & orientation
Administrative services for expatriates
Host-government relations
Language translation services
IHRM, Dr. Yang

13. Expatriation and Relocation
Arranging for pre-departure training
Providing immigration & travel details
Providing housing, shopping, medical care, recreation & schooling information
Finalizing compensation details such as:
Delivery of salary overseas
Determination of overseas allowances
Taxation treatment
IHRM, Dr. Yang

14. Variables that Moderate Differences between Domestic HRM and IHRM
Figure 1-3
IHRM, Dr. Yang

15. Culture Matters Culture shock Emic-etic distinction
Convergence hypothesis
Research tends to focus on macro level variables
Divergence hypothesis
Research tends to focus on micro level variables
The international HR manager must be aware of cultural differences.
IHRM, Dr. Yang

16. The MNE Industry Type Continuum
An MNE performs somewhere in this range:
Multi-domestic Industries
Global Industries
Examples:
Retailing, distribution, insurance
International strategy:
Collapses to a series of domestic strategies
Airlines, semiconductors, copiers
Must integrate activities on a worldwide basis
IHRM, Dr. Yang

17. The world’s top 10 non-financial TNC ranked by TNI 2008a
IHRM, Dr. Yang

18. What does senior management think?
Some of the changes required to truly internationalize HR
Have more to do with a global mindset than with behaviors.
IHRM, Dr. Yang

19. A Framework of Strategic HRM in MNEs
Figure 1-4
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20. Asymmetric Events
Reflects heightened concerns about security, risk, and volatility in the global markets
Unmatched in our capabilities & plans
Highly leveraged against our particular assets
Designed not only to
Secure leverage against our assets, but also intended to
Work around, offset, and negate what in other contexts are our strengths
Difficult to respond to in a discriminate and proportionate manner
IHRM, Dr. Yang

21. The Changing Context of IHRM
MNEs fail primarily because of
A lack of understanding of
the essential differences
in managing human resources in foreign environments.
These human considerations are
as important as the financial and
marketing criteria
IHRM, Dr. Yang

22. Summary Defining IHRM and key terms Contrast between Domestic vs. IHRM
Variables that moderate the differences
Complexity and challenges of IHRM
The cultural environment
Industry type
Extent of MNE reliance on its domestic market
Senior mgmt. attitudes to international operations
Applying a strategic view of IHRM
The changing context
IHRM, Dr. Yang

23. Vocabulary HRM, IHRM PCN, HCN, TCN MNE
Expatriate, inpatriate, repatriate, international assignee,
Expatriation-Repatriation
Equity issues
Psychological contract
Culture shock
Convergence/divergence hypotheses
Porter’s value chain model
Index of transnationality
Global mindset
Asymmetric events
Environmental dynamics
Organizational culture
IHRM, Dr. Yang

24. Discussion Questions
What are the main similarities and differences between domestic and international HRM?
Define these terms: IHRM, PCN, HCN, and TCN.
Discuss two HR activities in which a MNE must engage that would not be required in a domestic environment.
Why is a greater degree of involvement in employees’ personal lives inevitable in many IHRM activities?
Discuss at least two of the variables that moderate differences between domestic and international HR practices.
IBUS 628 Dr. Yang