Introduction

Dowling, Festing & Engle, 6/e, Cengage

1
Learning
Figure 1 - Inter-relationships between
approaches to the field

Dowling, Festing & Engle, 6/e, Cengage

2
Learning
 HRM activities
1. Human resource planning
2. Staffing: recruitment, selection, placement
3. Performance management
4. Training & development
5. Compensation & benefits
6. Industrial relations

Dowling, Festing & Engle, 6/e, Cengage

3
Learning
 Morgan’s “3-D” definition of IHRM
1. The HR activities of
procurement, allocation & utilization
2. The countries where IHRM occurs:
• Host-country where subsidiary may be located
• Parent-country where firm is headquartered
• Other-countries that may be
source of labor, finance & other inputs
3. The employees of an international firm:
• HCNs (host country nationals)
• PCNs (parent .. .. )
• TCNs (host .. .. )
Dowling, Festing & Engle, 6/e, Cengage
4
Learning
Inter-relationships between approaches to the field

Dowling, Festing & Engle, 6/e, Cengage

5 5
Learning
Figure 2 - International assignments create
expatriates

Dowling, Festing & Engle, 6/e, Cengage

6
Learning
 Stahl-Björkman-Morris def. of IHRM

The field of IHRM covers

• All issues related to firm outcomes
• A wide range of HR issues facing MNEs in
different parts of their organizations

This definition includes comparative analyses of

HRM in different countries.

Dowling, Festing & Engle, 6/e, Cengage

7
Learning
 IHRM is more complex than domestic
HRM
IHRM has …
1. more HR activities
2. a need for a broader perspective
3. more involvement in employees’ personal lives
4. changes of emphasis as the mix of expatriates & locals
varies
5. more risk exposure
6. broader external influences
Dowling, Festing & Engle, 6/e, Cengage
8
Learning
IHRM has international HR activities

■ International taxation
■ International relocation & orientation
■ Administrative services for expatriates
■ Host-government relations
■ Language translation services

Dowling, Festing & Engle, 6/e, Cengage

9
Learning
Differences between domestic HRM and IHRM

IHRM complexity can be attributed to six factors:

1. Human resource planning
2. Staffing (recruitment, selection, placement)
3. Performance management
4. Training and development
5. Compensation (remuneration) and benefits
6. Industrial relations

Dowling, Festing & Engle, 6/e, Cengage

10 10
Learning
 International relocation involves
■ Arranging for pre-departure training
■ Providing immigration & travel details
■ Providing housing, shopping, medical care,
recreation & schooling information
■ Finalizing compensation details such as:
 Delivery of salary overseas
 Determination of overseas allowances
 Taxation treatment
Dowling, Festing & Engle, 6/e, Cengage
11
Learning
 Four more moderators
in addition to IHRM complexity
1. The cultural environment
2. The industry(ies) with which the MNE is
primarily involved – multidomestic and global
industry
3. The extent to which the MNE relies on
its HC domestic market
4. The attitudes of senior management

Dowling, Festing & Engle, 6/e, Cengage

12
Learning
Figure 3 - A model of all 5 variables that moderate the
differences between domestic and international HRM

Dowling, Festing & Engle, 6/e, Cengage

13
Learning