1. Introduction: The enduring context of IHRM
Chapter 1
Introduction: The enduring context of IHRM

2. Chapter objectives In this introductory chapter, we establish the
scope of the textbook. We:
define key terms in international human resource management (IHRM)
outline the differences between domestic and international human resource management and the variables that moderate these differences
(cont.)

3. Chapter objectives (cont.)
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.

4. Figure 1-1: Inter-relationships between approaches in the field

5. Figure 2-1: A model of IHRM

6. HR activities slide 1 Human resource planning Staffing Recruitment
Selection
Placement
Training and development

7. Figure 2-2: Stages of internationalization
HR activities slide 2
Compensation (remuneration) and benefits
Industrial relations
Figure 2-2: Stages of internationalization

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

9. Figure 1-3: International assignments create expatriates

10. Differences between domestic and international HRM
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

11. Figure 1-4: Variables that moderate differences between domestic and international HRM

12. The ‘top ten’ multinationals
Rio Tinto (UK/Australia)
Thomson Corporation (Canada)
ABB (Switzerland)
Nestlé (Switzerland)
British American Tobacco (UK)
6. Electrolux (Sweden)
7. Interbrew (Belgium)
8. Anglo American (UK)
9. AstraZeneca (UK)
10. Philips Electronics (The Netherlands)
UNCTAD Index of Transnationality

13. Figure 1-5: Factors influencing the global work environment

14. Forces for change Global competition
Growth in mergers, acquisitions and alliances
Organization restructuring
Advances in technology and telecommunication

15. Impacts on multinational management
Need for flexibility
Local responsiveness
Knowledge sharing
Transfer of competence

16. Managerial responses Developing a global ‘mindset’
More weighting on informal control mechanisms
Fostering horizontal communication
Using cross-border and virtual teams
Using international assignments

17. Chapter summary This chapter has established the scope of this
book. We have:
Defined international HRM and the term ‘expatriate’.
Discussed the differences between domestic and international HRM – looking at 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 and more external influences.
(cont.)

18. Chapter summary (cont.)
Examined what we have called the enduring context of IHRM. The focus is on the current global work environment, looking at the forces for change that have prompted managerial responses that have implications for the way in which people are being managed in multinationals at the turn of the 21st century. However, we have made a brief comparison with the situation that confronted a 14th-century merchant as a way of drawing out some of the constants in international business.
This treatment has enabled us to provide an overview of the field of IHRM and 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.