International Human Resource

Management
Diploma in
International Business
 Session
12
IHRM Trends

Dowling, P. Festing, M and Engle, 7th Ed, A.D.(2017) International Human Resource Management, Cengage Learning.
Learning Outcomes

1. International business ethics and HRM

2. Identify IHRM trends and future directions
3. Mode of operation and IHRM
4. Safety and security issues
 International business ethics
• Ethical relativism, Ethical absolutism and Ethical
universalism
• Should they apply their own values everywhere
they do business?
– Irrespective of cultural context and standard of local
practices
– For instance, bribery is commonly practiced, child
labour is used and workplace safety is wanting
– Whose standard should prevail? Home or Host
country?
 International business ethics
• Ethical relativist
– There are no universal or international rights and
wrongs
– It all depends on specific cultural values and beliefs
– When in Rome, one should do as the Romans do
 International business ethics
• Ethical Absolutist
– Believes that when in Rome, one should do what
one would do at home (regardless of one’s own
cultural values)
– They are intolerant individuals who confuse respect
for local traditions with ethical relativism
 While some behaviours are wrong wherever they are practiced (eg
bribery of govt officials)
 other behaviours may be tolerated in their cultural context (eg routine
gift giving in Japan)
 International business ethics
• Ethical universalist
– There are fundamental principles of right and
wrong which transcend cultural boundaries
– MNEs must adhere to these fundamental principles
or global values
– We need to distinguish what practices are
culturally different and are morally wrong
• When practices/moral norms are understood, it is
plausible to recognise and respect differences where it is
morally appropriate to do so
 Criminalisation of Bribery
• Bribery involves the payment of agents to do
things that are inconsistent with the purpose of
their position or office in order to gain an unfair
advantage
• Bribery can be distinguished from so-called
gifts and facilitating or grease payments. The
latter are payments to motivate agents to
complete a task they would routinely do in the
normal course of their duties
 Criminalisation of Bribery
• It is generally agreed that bribery :
– undermines equity, efficiency and integrity in the
public service
– undercuts public confidence in markets and aid
programs
– adds to the cost of products; and
– may affect the safety and economic well-being of
the general public.
 Firms’ self-regulatory codes
• A public statement of the firm’s values and
guiding principles
• Employee participation and equal opportunity
• Responsible for the communities - CSR
• Encourage health well-being and continuous
learning – work-life balance and skills upgrading
• Protect the environment and natural resources
- sustainability
 Implications for HR in MNEs
• Minimise the exposure of employees to corrupt
conduct
• Ensure training programs cover areas of ethical
concern
• Link appraisal and compensation with ethical
compliance
• Address what is corrupt bribery payments, gifts and
allowable facilitation payments
• Communicate to staff who are expose to such issues in
their business dealings
Strategic HRM in MNE
 HR roles and responsibilities
• Searching for global talents
– the need to select, train and support international managers
who are able to lead a diverse work force
• Managing diversity
– migrants, women and aged group
• Managing ethical issues
– enhancing corporate social responsibility
– upholding ethical standards across global supply chains
• Integrate HR strategy with business strategy
 Challenges in an uncertain world
• Facility emergency and disaster preparedness
– Compliance with local safety laws, protocols for liaison with
public sector emergency agencies, media
• Facility security
– Perimeter security, lighting, cameras, search protocols,
bomb threats, etc.
• Industrial espionage, theft and sabotage
– Secure internal emails, telephones, records protection, data
privacy
 Challenges in an uncertain world
• Cyber terrorism
– System to deal with hacking, information theft, backup
systems
• Travel risk
– Travel policies, taking the same flight/hotel, security
update
 Theoretical development
• Two focus for development
– Micro-level: comparative HRM activities by
geographic areas
– Macro-level: globalisation impact on national and
international strategic IHRM direction
 Research challenges
• Strategic IHRM
• Impact of culture on IHRM operations
• Organisational restructuring such as M&A,
alliances, IJV and its impact on IHRM
• Comparative IHRM practices regionally and
globally
 Future Trends
• Hard HRM convergence
– Policy, structure, functions, etc.
– HR provide a competitive edge
– HR decision are of strategic importance
– Line managers play critical role in HRM
• Soft HRM divergence
– Culture, value, customs
– Lack of change suggests culture and shared mindsets
important constraints on convergence
– National/local differences remain relatively constant
– Differences due to institutional/organisational inertia
 Conclusion
• Challenges for IHRM is profound
• IHRM practices are complex and subject to
differing legal, customs, economic, political
environment
• Thinking Globally and Acting Locally