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Use with International Human Resource Management ISBN 1-84480013-X

Published by Thomson Learning Peter Dowling and Denice Welch



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Chapter 1
Introduction:
The enduring context of IHRM

Use with International Human Resource Management ISBN 1-84480013-X
Published by Thomson Learning Peter Dowling and Denice Welch

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Chapter objectives
In this introductory chapter, we establish the
scope of the textbook. We:
define key terms in international human
resource management (IHRM)
outline the differences between domestic
and international human resource
management and the variables that
moderate these differences
(cont.)

Use with International Human Resource Management ISBN 1-84480013-X
Published by Thomson Learning Peter Dowling and Denice Welch

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Chapter objectives (cont.)
discuss trends and challenges in the global
work environment and the enduring context
in which IHRM functions and activities are
conducted including the way in which
forces for change affect the operations of
the internationalizing firm and have
consequences for the management of people
in the multinational context.


Use with International Human Resource Management ISBN 1-84480013-X
Published by Thomson Learning Peter Dowling and Denice Welch

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Figure 1-1: Inter-relationships between approaches in the field

Use with International Human Resource Management ISBN 1-84480013-X
Published by Thomson Learning Peter Dowling and Denice Welch

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Figure 2-1: A model of IHRM

Use with International Human Resource Management ISBN 1-84480013-X
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HR activities slide 1
Human resource planning
Staffing
Recruitment
Selection
Placement
Training and development

Use with International Human Resource Management ISBN 1-84480013-X
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HR activities slide 2
Compensation
(remuneration)
and benefits
Industrial
relations

Figure 2-2: Stages of
internationalization

Use with International Human Resource Management ISBN 1-84480013-X
Published by Thomson Learning Peter Dowling and Denice Welch

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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

Use with International Human Resource Management ISBN 1-84480013-X
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Figure 1-3: International assignments create expatriates

Use with International Human Resource Management ISBN 1-84480013-X
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Differences between domestic
and international HRM
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

Use with International Human Resource Management ISBN 1-84480013-X
Published by Thomson Learning Peter Dowling and Denice Welch

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Figure 1-4: Variables that moderate differences between domestic
and international HRM

Use with International Human Resource Management ISBN 1-84480013-X
Published by Thomson Learning Peter Dowling and Denice Welch

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The top ten multinationals
1. Rio Tinto
(UK/Australia)
2. Thomson
Corporation
(Canada)
3. ABB (Switzerland)
4. Nestl (Switzerland)
5. British American
Tobacco (UK)


6. Electrolux (Sweden)
7. Interbrew (Belgium)
8. Anglo American
(UK)
9. AstraZeneca (UK)
10. Philips Electronics
(The Netherlands)

UNCTAD Index of Transnationality

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Figure 1-5: Factors influencing the global work environment

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Forces for change
Global competition
Growth in mergers, acquisitions and
alliances
Organization restructuring
Advances in technology and
telecommunication

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Impacts on multinational
management
Need for flexibility
Local responsiveness
Knowledge sharing
Transfer of competence


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Managerial responses
Developing a global mindset
More weighting on informal control
mechanisms
Fostering horizontal communication
Using cross-border and virtual teams
Using international assignments

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Chapter summary
This chapter has established the scope of this
book. We have:
Defined international HRM and the term expatriate.
Discussed the differences between domestic and international
HRM looking at six factors: 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 and more external
influences.
(cont.)


Use with International Human Resource Management ISBN 1-84480013-X
Published by Thomson Learning Peter Dowling and Denice Welch

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Chapter summary (cont.)
Examined what we have called the enduring context of IHRM.
The focus is on the current global work environment, looking
at the forces for change that have prompted managerial
responses that have implications for the way in which people
are being managed in multinationals at the turn of the 21st
century. However, we have made a brief comparison with the
situation that confronted a 14th-century merchant as a way of
drawing out some of the constants in international business.

This treatment has enabled us to provide an overview of the field
of IHRM and establish how the general environment affects
IHRM. The next chapter examines the organizational context
where we explore how IHRM activities are determined by, and
influence, various internal changes as the firm internationalizes.