International HRM
LECTURE 12 : INTERNATIONAL HRM
Objective of this chapter:
1) IHRM and differentiate between domestic HRM and IRHM
2) Role of HR in international firm
2) Management of Expatriates
12.1 Introduction – Definition of International HRM from the perspective of a multinational firm
The field of international HRM has been characterized by three broad approaches. Early work in this field emphasized a cross-cultural management approach and examines human behavior within organizations from an international perspective (Adler, 1997; Phatak, 1997). A second approach developed from the comparative industrial relations and HRM literature seeks to describe, compare and analyse HRM systems in various countries (see for example, Brewster & Hegewisch, 1994). A third approach seeks to focus on aspects of HRM in multinational firms (see for example, Dowling, Welch & Schuler, 1999).
Before offering a definition of international HRM, we should first define the general field of HRM. Typically, HRM refers to those activities undertaken by an organization to effectively utilize its human resources. These activities would include at least the following: · Human resource planning
· Staffing
· Performance management
· Training and development
· Compensation and Benefits
· Labor relations
Research by Morgan (1986) on the development of international HRM presents a model of IHRM that consists of three dimensions:
1. The three broad human resource activities of procurement, allocation, and utilisation.
2. The three national or country categories involved in international HRM activities: (1) the host-country where a subsidiary may be located, (2) the home-country where the firm is headquartered, and (3) "other" countries that may be the source of labor or finance.
3. The three types of employees of an international firm: (1) host-country nationals (HCNs), (2) parent-country nationals (PCNs), and (3) third-country nationals (TCNs).3 Thus, for example, IBM employs Australian citizens
Objective of this chapter:
1) IHRM and differentiate between domestic HRM and IRHM
2) Role of HR in international firm
2) Management of Expatriates
12.1 Introduction – Definition of International HRM from the perspective of a multinational firm
The field of international HRM has been characterized by three broad approaches. Early work in this field emphasized a cross-cultural management approach and examines human behavior within organizations from an international perspective (Adler, 1997; Phatak, 1997). A second approach developed from the comparative industrial relations and HRM literature seeks to describe, compare and analyse HRM systems in various countries (see for example, Brewster & Hegewisch, 1994). A third approach seeks to focus on aspects of HRM in multinational firms (see for example, Dowling, Welch & Schuler, 1999).
Before offering a definition of international HRM, we should first define the general field of HRM. Typically, HRM refers to those activities undertaken by an organization to effectively utilize its human resources. These activities would include at least the following: · Human resource planning
· Staffing
· Performance management
· Training and development
· Compensation and Benefits
· Labor relations
Research by Morgan (1986) on the development of international HRM presents a model of IHRM that consists of three dimensions:
1. The three broad human resource activities of procurement, allocation, and utilisation.
2. The three national or country categories involved in international HRM activities: (1) the host-country where a subsidiary may be located, (2) the home-country where the firm is headquartered, and (3) "other" countries that may be the source of labor or finance.
3. The three types of employees of an international firm: (1) host-country nationals (HCNs), (2) parent-country nationals (PCNs), and (3) third-country nationals (TCNs).3 Thus, for example, IBM employs Australian citizens