Scribd Logo
Upload

Welcome to Scribd!

  • IHRM Sec 2 - Organizational Context

    Uploaded by

    Prem Joseph
    356 views24 pages
    The document discusses the organizational context of international human resource management (IHRM) and the stages of internationalization that companies often go through when expanding globally. It describes the stages as initially exporting through intermediaries, then establishing sales subsidiaries, followed by creating an international division or global product/area divisions. Later stages involve more matrix and networked organizational structures in response to the increasing strain of international growth. Control mechanisms and how the company's mode of operations impacts its IHR approaches are also examined.

    Original Description:

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document discusses the organizational context of international human resource management (IHRM) and the stages of internationalization that companies often go through when expanding globally. It describes the stages as initially exporting through intermediaries, then establishing sales subsidiaries, followed by creating an international division or global product/area divisions. Later stages involve more matrix and networked organizational structures in response to the increasing strain of international growth. Control mechanisms and how the company's mode of operations impacts its IHR approaches are also examined.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    356 views24 pages

    IHRM Sec 2 - Organizational Context

    Uploaded by

    Prem Joseph
    The document discusses the organizational context of international human resource management (IHRM) and the stages of internationalization that companies often go through when expanding globally. It describes the stages as initially exporting through intermediaries, then establishing sales subsidiaries, followed by creating an international division or global product/area divisions. Later stages involve more matrix and networked organizational structures in response to the increasing strain of international growth. Control mechanisms and how the company's mode of operations impacts its IHR approaches are also examined.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 24

    The organizational context

    IHRM

    Management demands of international growth

    IHRM

    The path to global status


    Causes
    Strain imposed by growth and geographical spread Need for improved coordination and control across business units The constraints imposed by host-government regulations on ownership and equity

    structural responses, due to:

    Evolution

    path common but not normative

    IHRM

    Stages of internationalization

    IHRM

    Stages of internationalization: Exporting


    Typically

    the initial stage of international operations


    Usually handled by an intermediary (foreign agent or distributor) Role of HR department unclear at this stage

    IHRM

    Export department

    IHRM

    Sales subsidiary
    Replacing

    foreign agents/distributors with own through sales or branch offices/subsidiaries May be prompted by:
    Problems with foreign agents More confidence in international activities Desire for greater control Give greater support to exporting activities

    PCNs

    may be selected, leading to some HR involvement

    IHRM

    Sales subsidiary

    IHRM

    International division
    Creation

    of a separate division in which all international activities are grouped Resembles miniature replica of domestic organization Subsidiary managers report to head of international division Objectives regarding foreign activities may determine approach to staffing of key positions
    Expatriate management role of corporate HR

    IHRM

    International division

    IHRM

    10

    Global product/area division


    Strain

    of sheer size may prompt structural change to either of these global approaches Choice typically influenced by:

    The extent to which key decisions are to be made at the parent country headquarters or at the subsidiary units (centralization versus decentralization) Type or form of control exerted by parent over subsidiary

    IHRM

    11

    Global product division

    Global area division

    IHRM

    12

    The matrix
    An

    attempt to integrate operations across more than one dimension Violates Fayols principle of unity of command Considered to bring into the management system a philosophy of matching the structure to the decisionmaking process
    IHRM

    13

    The matrix

    IHRM

    14

    Problems with the Matrix


    Bartlett and Ghoshal

    Dual reporting

    Leads to conflict and confusion


    Creates informational logjams Produce turf battles and loss of accountability

    Proliferation of communication channels Overlapping responsibilities Barriers of distance, language, time and culture

    Make it virtually impossible to resolve conflicts and clarify confusion


    15

    IHRM

    Beyond the matrix


    Less
    Heterarchy Transnational Networked firm

    hierarchical structural forms

    IHRM

    16

    The networked organization

    IHRM

    17

    US, European and Japanese structural changes

    IHRM

    18

    Control mechanisms
    Globalization brings considerable challenges which are often underestimated. Every morning when I wake I think about the challenges of coordinating our operations in many different countries
    Quote by Accor CEO
    IHRM

    19

    Control mechanisms

    IHRM

    20

    Mode of operation and HRM


    Not

    just subsidiary operations Firms may also adopt contractual modes


    Licensing Franchising Management contracts Projects

    And/or

    cooperative modes (such as joint ventures)

    IHRM

    21

    Linking operation mode and HRM

    IHRM

    22

    Interfirm linkages
    Alliance

    (strategic alliance, cooperative venture, collaborative venture or corporate linkage) A form of business relationship that:
    Involves some measure on interfirm integration Stops short of a full merger or acquisition

    IHRM

    23

    HR factors
    HR

    issues and activities that affect the successful functioning of international joint ventures include:
    Assigning managers to the joint venture Evaluating their performance Handling aspects pertaining to career path Compensation benefits

    IHRM

    24

    You might also like