Week 1 - International HRM & MNC strategy Flashcards
What are the three distinct levels of analysis for IHRM?
- global (& regional)
- national
- local (or organisational)
IHRM cannot be separated by the inter-relationships between the processes of globalisation, national business systems and company operation
When did IHRM develop as a concept?
- followed the emergence of HRM in the 1980s
- intially focused heavily on the use of expatriates by MNCs
- late 1980s saw the rise of SHRM: which advocates the prominent role of HRM in business strategy
What do Boxall and Purcell (2003) argue about human capabilities?
Appropriate human capabilities are strategic to the success of every firm
What are the 3 critical elements for firm viability?
CAPABLE PEOPLE
- skilled and motivated managers and workers
APPROPRIATE BUSINESS GOALS
- achievable objectives
RELEVANT NON-HUMAN RESOURCES
- properties
- tech
- stocks of materials
What are the 4 different types of MNC business strategy?
INTERNATIONAL
- sub-contracting (some cross border activity)
MULTI-DOMESTIC
- subsidiaries operate independently in each country
GLOBAL
- the whole word is one market (high centralisation and product standardisation)
TRANSNATIONAL
- thinking globally, acting locally
Draw a diagram illustrating the MNC dilemma between integration and local responsiveness
Look at flash card
Outline the features of the Coca-Cola case study
Look at notes
Define what ethnocentrism is
International operations managed using/replicating home-country standards (most likely used by global companies)
Define what poly-centrism and regio-centrism are
Increased salience of host-country cultures and practices
Define what geo-centrism is
Importance of developing global networks and adopting a transnational strategy
What is IHRM strategy?
- creation and implementation of IHR practices that help achieve an MNC’s business strategy
- similar to business strategy, the formulation of IHRM strategy is shaped by the ‘integration v differentiation’ dilemma
- MNC choices range between centralised control and subsidiary autonomy
What is an ethnocentric MNC? Aligning IHRM and MNC strategy
Centralised IHRM (copying parent company practices)
What is a poly-centric MNC? Aligning IHRM and MNC strategy
Decentralised IHRM and more subsidiary autonomy
What is a geo-centric MNC? Aligning IHRM and MNC strategy
IHRM borrows best practices from around the world
What are the challenges of IHRM?
- cross-cultural communication and diversity (global, national and local)
- global knowledge management
- local and global sustainability (social, economic, environmental)
What are the three questions comparative HRM tries to address?
1) Can HRM in different contexts be conducted in similar ways or does it have to adapt to respective circumstances?
2) What are the factors accounting for the contextual differences in HRM?
3) How do similarities and differences across different contexts develop over time?
Can HRM in different contexts be conducted in similar ways or does it have to adapt to respective circumstances?
Best practice
- no need to ‘re-invent the wheel’: don’t need to spend money and use resources)
- creation of an internal labour market: trained on the same standards
- easier control and monitoring
- ethics, fairness and equity
BUT
- issues of culture and legislation: can be very diverse, even within companies
- hence ‘best fit’: understanding what is contextually unique and why
What are the factors accounting for contextual differences in HRM?
CULTURE AND INSTITUTIONS
- national culture is reflected in the differences in the way people are managed and HRM is conducted
- culture is difficult to define and measure, while national cultures do not always coincide with national boundaries
- company operation is shaped by coercive (e.g. TUs and the government), mimetic (imitation of strategies & practices of successful competitors) and normative (e.g. the impact of professional bodies and employer associations) institutional forces
- these forces require HRM to be legitimate for influential stakeholders in each context
How do similarities and differences across different contexts develop over time?
CONVERGENCE - DIVERGENCE
- an emerging global model of HRM?
- the role of MNCs is a mix of bringing in new practices, adapting to local ones and developing hybrid forms
- convergence, divergence or stasis (where nothing happens) with global regions or selected groups of countries?
- some similarity in trends in HRM configuration and practices but no final convergence
- convergence in trends but divergence in outcomes
Outline the cross-national comparisons of HRM at board level
More prominent in Sweden, Spain, France and Japan
Less likely in Germany, UK and Australia
Outline the cross-national comparisons of the role of line managers vs HRM department
Italy and UK more likely to prioritise the HR when compared to Denmark
