Lecture 1- Comparative HRM Flashcards
What are the three business strategies in a global economy?
Horizontally Integrated
Vertically Integrated
Conglomerates
What is International HRM?
Management of employees in an “international” environment, within the confines of the MNC
What is comparative HRM?
Comparison how people are managed in different national contexts, in different national employment systems
What are the three main approaches to HRM?
Universalists (based on economic theory)
Culturalists (rooted in psychological theory)
Institutionalists (embedded in society systems)
What is the Universalist Approach?
Universally applicable common models
What is the Cultralist Approach?
Differences in culture used to explain differences in organisational and management forms; differences in employment practices
What is the Institutionalist Approach?
Focus on institutional arrangements and societal structures in which an organisation is located
Describe characteristics of an LME (UK, USA)
- Deregulated labour market
- Weak unions
- General skills
- Shareholder based governance
- Short term contracts
- Weak bargaining rights
Describe characteristics of a CME (Germany, Japan)
- Regulated labour markets
- Strong unions
- Firm-specific skills
- Stakeholder based governance
- Long term contracts
- Strong bargaining rights
Why do organisations expand abroad?
To improve operational efficiency and commercial gains
Extensive public training, weak bargaining rights, short term contracts, supports which national model?
LME (UK, USA)
Regulated labour markets, long term contracts, firm specific skills and strong unions, supports which national model?
CME (Germany, Japan)
