W1: Introduction to HRM & IHRM

Three perspectives of IHRM -­‐ Cross Cultural Mgmt -­‐ IHRM in multinational context -­‐ comparative HR und IR system

1.1 GLOBALIZATION

-­‐ development of knowledge economy -­‐ competitive advantage: how people become “strategic” o industrial economy: labor money & materials o post industrial economy: human knowledge & other intellectual resources

Key features of globalization -­‐ greater integration & interdependency of national economies; leading to freer movements of goods, services, money, peope & knowledge -­‐ rise of regional integration blocs (trade etc.) -­‐ growth of global investment & financial flows -­‐ convergence of consumer lifestyles & preferences -­‐ globalization of production

Three different views on Globalization -­‐ economic level – trade liberalization worldwide -­‐ industry level – varies: highly standardizied vs. locally focussed -­‐ organization/product level – brands modified to suit consumer preference

Evolvement of managerial orientation in multinational businesses -­‐ Evolve from: o ethnocentric: favors use of managers from parent country o polycentric: favors use of managers from host country -­‐ Then to: o regiocentric: stylized around regional tastes & preferences o geocentric: selects managers based on best people for job irrespective of location

1.2 EVOLUTION OF HRM: ADMINSTRATIVE  STRATEGIC

Basic HRM functions -­‐ HR planning, staffing -­‐ performance mgmt., training & development -­‐ compensation & benefits -­‐ industrial relations management

Changing role of HRM -­‐ traditional: HR as Personnel Manager -­‐ Modern: HR as Strategic Partner o cultural change for innovation o create strategic alternatives o HR systems with strategic assets o contribute to orga’s core competence

Supporting & Shaping Business Strategy

Strategically reactive HR

Structure & Modes of INT.

IHRM Issues & Functions

Export Sales subs. & foreign branches

Limited IHRM involvement Staffing with PCNs & HCNs; cross cultural training Transfer of technology & mgmt. knowhow to HCNs Coordinating IHRM with domestic HRM subsidiaries Mix of TCNs, HCNs & PCNs; complex knowledge transfers Mgmt. progression; staff loyalty Increased complexity; equity issues

Foreign production Global product division Transnational structure International alliance Inter-­‐organizational networks

Additional dimensions of IHRM -­‐
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Greater range of HR activities More involvement in personal lifes (relocation of whole