Chapter: Two
International Human Resource Management and Cross-Cultural Issues
• International human resource management (IHRM) is the process of sourcing,
allocating, and effective utilizing human resources in multinational organizations.
Objectives of IHRM
Remain competitive throughout
Be efficient
Be locally responsive
Be flexible and adaptable
Be capable of transferring learning across their globally dispersed units
Different Aspects of IHRM
IHRM encompasses strategic and operational HRM.
• Understanding international HRM strategies and practices in relation to change
strategies of the international business firm.
• Exploring the links between the implementation of international strategies and
international HRM policy and practice.
• Developing comprehensive frameworks to reflect the complex set of environmental
factors.
• Examining international HRM activities to recognize their systematic interaction.
Reasons for the emergence of IHRM
Components of IHRM
Acceptance of plurality
Acceptance that migration
Benefit of cross-cultural HRM
Enables organizations to overcome language barriers
makes people avoid misunderstandings when representative do business overseas.
Enables managers to work and manage diverse workforces.
Effective cross-cultural HRM
Attitude to time
Degree of individualism
Communication style
Preparatory steps for managing cultural diversity
Cultural audit
Briefing form cultural expert
Training
Model of IHRM
Human recourse planning
Staffing
Performance evaluation
Training and development
Compensation and benefit
Labor relations and safety and health
Human resource planning
Human resource planning (HRP) is an indispensable means of effective in interunit linkage.
• The considerations are reflected in the following critical human resource planning issues
facing MNCs:
Identifying top management potential at the earliest possible career stage.
Identifying critical success factors for the future international manager.
Provide developmental opportunities.
Specific factors in HRP of MNCs
Assignment and cost planning
Candidate selection
Tax administration
Career planning and development
Immigration processing
Cultural and language orientation/training
IHRM Policies and Practice
There are at least three ways of enhancing internal operations through IHRM policies
and practice:
Entails marching and adapting HR practices to closely accommodate the unit’s
competitive strategy, local culture, and government legal system.
Necessitates creating a modus operndi, where HRM practices can be modified swiftly to
respond to changing host conditions.
Set of IHRM policies at the MNC level that can encompass and legitimize the HRM
practices of the local units.
Goal setting or management by objectives ( MBO): is this the best approach in cultures
where there is less belief that the actions of individuals can make an impact an outcomes.
Performance appraisal: is this a system of feedback giving.
Performance pays: individual performance pay may be inappropriate is cultures where
collectivism and community are more valued than individualism.
Grievance producers: these may not be appropriate in cultures where it is not common to
conflict explicitly.
Information session may be enough for shorter visits.
affective education: e.g.: role plays and discussion session will be needed where attitude
change is important.
Chapter one
Global management is the process of developing strategies, designing and operating
systems, and working with people around the world to ensure sustained competitive
advantage.
globalism refers to global competition characterized by networks that bind countries,
institutions, and people in an interdependent global economy.
Workforce Diversity
The world labor force is undergoing
considerable change as a result of
• the increasing movement across borders of
workers at all skill levels;
• the rising average age of employees; and
An Open Systems Model: The Contingency Role of the Global Manager
Political Risk
Terrorism Risk
Economic Risk
Managing Political Risk
Equity sharing
Participative management
Localization of the operation
Development assistance
Some Means that Managers Might Use to Maintain Dependency
Input control
Market control
Position control
Staged contribution strategies
The Legal Environment A host country’s legal system may be derived from common law,
civil law, or Muslim law, and is a reflection of the country’s culture, religion, and
traditions.
The Technological Environment
Techno globalism is the phenomenon in which rapid developments in information and
communication technologies (ICTs) are propelling globalization and vice-versa.
Global E-Business
E-business is “the integration of systems, processes, organizations, value chains and
entire markets using Internet-based and related technologies and concepts.”
E-commerce refers directly to the marketing and sales process.
The Environment of the Global Manager
Political Environment Economic Environment Regulatory Environment Regulatory Environment
Form of Economic system Legal system Level of
government Stage of Protectionist laws technology
Political stability development Tax laws Availability of local
Foreign policy Economic stability Role of contracts technical skills
State companies GNP Transfer of
Role of military Foreign technology
investment Infrastructure
Environmental
protection
Chapter four
Communication describes the process of sharing meaning by transmitting messages
through media such as words, behavior, or material artifacts.
The Communication Process
Intercultural communication is when a member of one culture sends a message to a
member of another culture.
Attribution is the process in which people look for the explanation of another person’s
behavior.
Cultural Variables Affecting Communication
Attitudes
Social Organization
Thought Patterns
Roles
Language
Time
Nonverbal Communication
Forms of Nonverbal Communication
Facial expressions
Body posture
Gestures
Interpersonal distance (proxemics)
Touching,
body contact
Eye contact
Context
High context
Low context
Managing Cross-Cultural Communication
Developing cultural sensitivity
Careful encoding
Selective transmission
Careful decoding of feedback
Follow-up actions
Behaviors Most Important to Intercultural Communication Effectiveness
Respect
Interaction posture
Orientation to knowledge
Empathy
Interaction management
Tolerance for ambiguity
Personality Factors For Effective Intercultural Communication
Openness
Resilience