COMPARATIVE HUMAN RESOURCE MANAGEMENT

(HRM-502)

Multinational Strategy and IHRM

Md Mamun Mia, PhD.

MBA, Fall 2021
Daffodil International University
Multinational Strategy and IHRM

Learning objectives
This class will give an outline of the phenomena for multinational
strategy and IHRM. Upon successful completion of the lecture, we
will be able to:
▪ Multinational strategy?
▪ Strategy and International HRM
▪ Training in the multinational enterprise
Case study…
Multinational Strategy and IHRM

Multinational strategy?
Multinational Strategy and IHRM

Multinational strategy - A multinational strategy means

standardizing or regulating goods and services everywhere
the world to increase the efficiency.
Nevertheless, the strategy at this stage firms use two types
of phenomena's that are:
i. Vertical expansion
ii. Horizontal expansion
Multinational Strategy and IHRM

IHRM - International Human Resource Management?

Multinational Strategy and IHRM

IHRM - It is the study and application of all HRM activities as

they impact the process of managing HR in initiatives in the
global environment.
Effective SHRM is expected to assist the firm to achieve its
goals and objective.
Multinational Strategy and IHRM

Strategy and International HRM

Whereas the majority of international HRM study continues to
focus on:
▪ aspects of expatriation,
▪ to contribute to a better understanding of the relationship
between international strategy and HRM
Cont.…
Multinational Strategy and IHRM

Strategy and International HRM

▪ the fundamental strategic problem for top managers in
international firms is balancing the economic need for
integration with the pressures for local reaction,
▪ the international level the firm’s strategic choices execute
constraints or limits on the range of international HRM
options.
Cont.…
Multinational Strategy and IHRM

Strategy and International HRM

▪ The argument is that there should be distinct differences in
international HRM policy and practice in multidomestic and
multinational or globally integrated firms.

Is Coca Cola a multi-domestic company?

Cont.…
Multinational Strategy and IHRM

Strategy the influence of culture - The impact of the cultural

background of a country or region differs from one phase to the
next. They identify these phases as:
▪ domestic: focus on home market and export;
▪ international: focus on local responsiveness and transfer of
learning;
▪ multinational: focus on global strategy, low cost and price
competition;
▪ global: focus on both local responsiveness and global integration
Multinational Strategy and IHRM

Training in the multinational enterprise

▪ Since an MNE’s human capital may be its most important
source of competitive advantage, a well trained and
educated global work force is critical to success in the
global marketplace.
Cont.…
Multinational Strategy and IHRM

The following requirements have been suggested as key to

global organizational learning. These necessities provide a
statement of the values of training and management
development for the successful MNE:
▪ Think and act globally - a global enterprise must think
about and prepare for a incidence in all the critical markets
in the world, not just its home region.
Cont.…
Multinational Strategy and IHRM

▪ Become an equidistant global learning organization -

learning from all cultures, anytime, in any way possible,
must be simplified.
Honda, for example, has manufacturing divisions in Japan, North
America, and Europe—all three legs of the major markets of the
world. But its managers do not think or act as if the company were
divided between Japanese and overseas operations. In fact, the
actual training and management development name overseas has
no place in Honda’s dictionary, because the corporation sees itself
as equidistant from all its key customers
Cont.…
Multinational Strategy and IHRM

▪ Focus on the global system, not its parts - development

programs need to focus on breaking down the silos
(structure for storing bulk materials) of departments and
even the boundaries between countries.
Cont.…
Multinational Strategy and IHRM

▪ Develop global leadership skills - global leadership requires

capabilities different from those needed in the domestic
marketplace. These should be the focus of global training
and development programs.
Cont.…
Multinational Strategy and IHRM

▪ Allow teams to create a global future - cross-border and

virtual teams should be increasingly used and empowered
to perform critical organizational projects and problem-
solving activities.
In addition, these global teams can, themselves, be a major
tool in the development of cross-cultural capabilities.
Cont.…
Multinational Strategy and IHRM

▪ Make learning a core competence for the global

organization - the global organization needs to become a
global learning organization, where learning and
development fill all that the organization does.
Cont.…
Multinational Strategy and IHRM

▪ Regularly reinvent yourself and the global organization -

constant self-development must become the cornerstone of
strategies for success for both individuals and organizations
in today’s highly competitive global economy.
Multinational Strategy and IHRM

Practice(s) -
Case study: Boots
Thank you
Question(s)