Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch 1/1 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 1/2 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 1/3 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 1/4 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 1/5 Figure 2-1: A model of IHRM Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch 1/6 HR activities slide 1 • Human resource planning • Staffing – Recruitment – Selection – Placement • Training and development Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch 1/7 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 1/8 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 Published by Thomson Learning © Peter Dowling and Denice Welch 1/9 Figure 1-3: International assignments create expatriates Use with International Human Resource Management ISBN 1-84480013-X Published by Thomson Learning © Peter Dowling and Denice Welch 1/10 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 [...]... (UK) 10 Philips Electronics (The Netherlands) UNCTAD Index of Transnationality Use with International Human Resource Management ISBN 1- 8 4480 013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 1/ 12 Figure 1- 5 : Factors influencing the global work environment Use with International Human Resource Management ISBN 1- 8 4480 013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 1/ 13... with International Human Resource Management ISBN 1- 8 4480 013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 1/ 15 Managerial responses • Developing a global ‘mindset’ • More weighting on informal control mechanisms • Fostering horizontal communication • Using cross-border and virtual teams • Using international assignments Use with International Human Resource Management ISBN 1- 8 4480 013 -X...Figure 1- 4 : Variables that moderate differences between domestic and international HRM Use with International Human Resource Management ISBN 1- 8 4480 013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 1/ 11 The ‘top ten’ multinationals 1 Rio Tinto (UK/Australia) 2 Thomson Corporation (Canada) 3 ABB (Switzerland) 4... Learning © Peter Dowling and Denice Welch 1/ 13 Forces for change • Global competition • Growth in mergers, acquisitions and alliances • Organization restructuring • Advances in technology and telecommunication Use with International Human Resource Management ISBN 1- 8 4480 013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 1/ 14 Impacts on multinational management • Need for flexibility • Local... 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- 8 4480 013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 1/ 17 Chapter summary (cont.) • Examined what we have called the enduring context of IHRM The focus is on the current global work environment, looking... organizational context where we explore how IHRM activities are determined by, and influence, various internal changes as the firm internationalizes Use with International Human Resource Management ISBN 1- 8 4480 013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 1/ 18 ... assignments Use with International Human Resource Management ISBN 1- 8 4480 013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 1/ 16 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... managed in multinationals at the turn of the 21st century However, we have made a brief comparison with the situation that confronted a 14 th-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 . Peter Dowling and Denice Welch 1/ 4 Figure 1- 1 : Inter-relationships between approaches in the field Use with International Human Resource Management ISBN 1- 8 4480 013 -X Published by Thomson Learning. 1/ 5 Figure 2 -1 : A model of IHRM Use with International Human Resource Management ISBN 1- 8 4480 013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 1/ 6 HR activities slide 1 • Human. external influences Use with International Human Resource Management ISBN 1- 8 4480 013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 1/ 11 Figure 1- 4 : Variables that moderate