Cross Cultural and Global

Human Resource
Management

MBAH-4003
TOPICS TO BE COVERED:

Human and Cultural Variables in Global

Organisations;
Cross Cultural Differences and Managerial
Implications
Volume Expansion
Geographic
Expansion
Vertical Integration
Product
Diversification
Definition

 International human resource management as,

performing HRM and its related activities and
arranging for related and necessary immigration
facilities for prospective and current expatriate
employees, by organizations operating in domestic
and/or foreign countries………. Pulapa Subba
Dowling (1999) attributed to six factors that differentiate
international from domestic HRM:
 Wide range of HR activities
 Need for a broader perspective.
 More Involvement in personal life of the employee.
 Responsiveness to changes in staffing requirements as
international strategy changes.
 Higher risk exposure.
 More external influences.
Functions of HRM
 Acquire
 Allocate
 Utilise Reward
Differences Between International &
Global HRM
 More HR activities
 The need for a broader perspective
 More involvement in employees personnel life
 Changes in emphasis as the workforce mix of
expatriates and locals varies
 Risk exposure
 More external influences: Culture, Type of Industries,
Reliance of the company on its Home country
domestic Market
Developing International HR Strategies:
 Building Global Culture
 Developing leadership & Managerial Capability & Structure
 Gaining Mgt Interest & Involvement in HRM
 Ensuring optimum quality and depth of managerial personnel to
serve global customers
 Ensuring managerial & Technical skills
 Increasing the extent and scope of managerial talent
 Developing global & Local approaches to T & D
 Ensuring management Succession
 Establishing Total Quality culture
 Linking HRM to strategic objectives.
Types of International Employees
 Foreign Parent Expatriates
 Host Country Nationals
 Third Country Expatriates of the Foreign parent
 Third country expatriate of the new venture
Issues in HRM:
 Managing international assignments
 Employee and family adjustments
 Selecting the right person for a foreign assignment
 Culture, communication and gauge
 Language and Communication
Barriers
 HRP
 Staffing
 P Mgt
 T&D
 Compensation and Benefits
 Labour Relations
Morgan (1986) Model of I HRM

 The three broad human resource activities.

(Procurement, Allocation and Utilisation)

 The three national or country categories involved in

international HRM activities ( Host Country, Home
Country, other country)

 The Three types of employees of an international firm

(HCN, PCN, TCN)
Three dimensional Model of IHRM
Factors influencing HRM activities:
 Stage of Internationalization
 Mode of Operation used in the various foreign
Markets
 Method of Control and Coordination
 Strategic importance of the overseas operations to
total corporate profitability
International Approach
Perlmutter (1969)….
Aspects of OD such as…….decision making,
evaluation and control, information flows and
complexity of organisation.
Perpetuation: “Recruiting, staffing and development”
 Ethnocentric
 Polycentric
 Geocentric
 Regiocentric
Path to Global Status:

 Exports
 Initial division structure (early stages of
Internationalization)
 International Division
 Global Product /or Area Division
 Global Matrix Structure
CARGILL

https://economictimes.indiatimes.com/industry/cons-
products/food/international-food-giant-is-changing-the-way-
it-does-business/articleshow/65735650.cms?from=mdr
New Types of Multinational Structures
 Heterarchy: Hedland (1986)
 The Transnational: Bartlett & Ghoshal’s Model (1989)
 Networked Firm: U. Anderson, M. Forsgen, C.
Pahalberg, P Thilenius (1990)
 Keiretsu
Heterarchy
Keiretsu
 Control & Coordination in International Businesses
 Role of HRM in International Businesses
Strategies for International Organisation
 Perlmutter’s Model
 Bartlett and Ghoshal’s Model

https://www.ibef.org/industry/indian-food-
industry/showcase/kissan
Perlmutter’s Model
TYPES OF ORGANISATIONS(Bartlett and Ghoshal’s Model):
global integration and local responsiveness
 Multinational/Multidomestic
 Global
 International
 Transnational
Global Integration
Local Differentiation
World wide innovation
Bartlett and Ghoshal’s Model
Bartlett and Ghoshal’s Model
Integrated Strategic Framework

 Exogenous Factors:

Strategic MNA Components

Strategic HRM Issues
SIHRM Functions
SIHRM Policies & Practices
MNC Concerns and Goals

 Endogenous Factors:
Flexible Organisation

 The EU Model
1. Parent
2.Multidomestic
3. Global
Management Context & Organisation in Europe….
 No national Identity
 No common language or culture
 Change is Complex
 Increasing cross border activity through mergers &
acquisitions
 Increase emphasis on use of technology
 No need to manage increasing diversity
QUESTIONS:
1. What is International HRM? What are the issues
involved in it?
2.What are the barriers of effective HRM?
3. Define International HRM.
4.Explain the International HRM Model with an
example.
5. " India is seen to be more attractive than China for
Foreign Direct Investment". Substantiate this
statement.
6.What are the various steps required for a truly
international conception of HRM?
ASSIGNMENTS: