CHAPTER 1

INTRODUCTION
THE ENDURING CONTEXT OF IHRM
Kelompok 1 3MNME
1641043 Rio Renato
1641071 Frendy
1641081 Evangelina
1641132 Wilhelmina S.L.
THREE APPROACHES TO IHRM
Cross-cultural management
Examine human behavior within organizations from an
international perspective
Comparative HRM and Industrial Relations
Seeks to describe, compare and analyze HRM systems and IR
in different countries
HRM in multinational firms
Explore how HRM is practiced in multinationals
INTERRELATIONSHIPS
BETWEEN APPROACHES TO
THE FIELD
 A MODEL OF
IHRM
P.V. Morgan presents HRM on three
dimensions

4
GENERAL FIELD OF HRM
Major Functions and Activities
Human resource planning
Staffing
Recruitment
Selection
Placement
Performance management
Training and development
Compensation (remuneration) and benefits
Industrial relations
 WHAT IS AN EXPATRIATE?
An employee who is working
and temporarily residing in a
foreign country
Some firms prefer to use the
term international assignees
Expatriates are PCNs from the
parent country operations,
TCNs transferred to either HQ
or another subsidiary, and
HCNs transferred into the
parent country
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DEFINING
INTERNATIONAL
HRM
DIFFERENCES BETWEEN
DOMESTIC HRM AND IHRM
More HR activities
The need for a broader perspective
More involvement in employees personal lives
Changes in emphasis as the workforce mix of expatriates and
locals varies
Risk exposure
Broader external influences
VARIABLES THAT MODERATE
DIFFERENCES BETWEEN DOMESTIC HR
AND IHRM
 THE INDUSTRY
CULTURAL
ENVIRONMENT Multidomestic product customized for each market
Global product same in all countries

EXTENT OF RELIANCE
ON DOMESTIC MARKET
Small countries > outward-looking
Large countries/domestic markets -> inward-looking

SENIOR MANAGEMENT
ATTITUDES
Global Mindset
FACTORS THAT INFLUENCE
THE GLOBAL WORK
ENVIRONMENT
FORCES FOR CHANGE
Global competition
Growth in acquisitions and alliances
Organization restructuring
Advances in technology and telecommunication
IMPACTS ON
MULTINATIONAL
MANAGEMENT
Need for flexibility
Local responsiveness
Knowledge sharing
Transfer of competence
MANAGERIAL RESPONSES
Developing a global mindset
More weighting on informal control mechanisms
Fostering horizontal communication
Using cross-border and virtual teams
Using international assignments
QUESTIONS?
Feel free to ask