International HRM
Human Resource Management
Vak: International HRM
Opleiding: Human Resource Management
Onderwijsinstelling: Avans Hogeschool, ’s-Hertogenbosch
,Semiar 1&2 - Hoorcollege
International HRM
- Comparative HRM, national HRM systems
- Cross-cultural management, organizational behavior in international contexts
- International HRM, HRM policy and practice in organizations
A distinction is being made between three major perspectives
1. Comparative HRM explores the way that different aspects of HRM
practices vary across national boundaries. It is concerned with
different roles, governmental and educational systems.
2. Cross-cultural HRM, on the other end, is concentrated on cultural differences between
countries. It explores the extent to which aspects of work practices are nationally or locally
based.
3. International HRM looks how multinational companies attract, develop and deploy talented
employees in a multinational setting. And how to get them to work effectively despite
differences in culture, language and locations. International HRM tends to mitigate the
impact of national culture and national employment practice against corporate culture and
practices.
SIX component model: de bovenste helft
Drivers of internationalization of business
1) Decreased trade barriers through trade agreements and treaties (EU)
Many countries have allied with other countries to facilitate their mutual trade and free travel of
workers. Of course, this adds to globalization opportunities for countries.
2) Search for new markets and reduced costs
Many organizations are looking for new ways to increase their sales and also for new ways to
reduce their costs.
3) Rapid and extensive global communication and education (social media, television, movies)
Furthermore, a lot is possible with new communication technologies like Skype or Teams.
4) Rapid development and transfer new technology, including improved transportation
(shorter product-life cycles)
Of course, global commerce is also possible by technology advances, with are now global created
everywhere and shared across borders.
5) Increased travel and migration, exposure to new countries and cultures
Billions of people experience other countries and cultures every year and develop new attitudes
and expectations.
6) E-commerce
Also by its nature, e-commerce, ordering via the internet, is international and increasing rapidly
7) Homogenization of culture and costumer demands
Increasingly, for example the big brands, consumer demands are the same everywhere.
8) Competitiveness of emerging market multi national enterprises (MNEs) and small and
medium enterprises (SMEs)
Now there are competitive firms everywhere. Much world economic growth is now located in
emerging markets.
,Integration Differentiation
- Operational integration - Market demands
- Strategic coordination - Legislative demands
- Multinational clients - Political demands
IHRM approaches
In a similar way in HRM, there is a distinction between a universalistic versus a contextual approach.
- The universalist paradigm assumes the existence of best practices in HRM that van be applied
by MNCs successfully worldwide
In the universalistic approach, the HR policies from a subsidiary abroad differ as little as possible from
policies as dictated by the headquarters. Changes are only made to the headquarters HRM-policy
when obligated by local law.
- The contextual paradigm is building on the notion that there might be some general best
principles in HRM, but the organization context ultimately determines the nature of the
specific HR practice
In the contextual approach the HRM policy is tuned not only to the local legislation, but additionally
to local preferences, local labor markets and HRM practices.
SIX component model: The configuration + de onderste helft
Dominant social institutions
We can think of big differences between countries when we look at their government policies and
laws, the educational system and the employee representation bodies.
- State
- Financial system
- System of education and training
- Network of business associations
- System of employee relations
Economic models of countries
Looking at economic models a very important distinction can be drawn between the Anglo-Saxon
model and the Rhineland model.
, SIX component model: The configuration
The HR-strategy is strongly connected to the international orientation of the firm. In general, three
main approaches are being distinguished:
- The ethnocentric firm is highly centralized; little local adaptation
- The polycentric firm is decentralized, with locally adaptive policies and informal ties between
the HQ and subsidiaries
- The geocentric firm is combines global corporate strategy with local communication and
responsiveness
In this overview you recognize the three approaches we just discussed, explained in four aspects:
- Structure
- Strategy
- Role of the subsidiary
- Role of the headquarters
Organizations can be organized in various ways:
- Centralized
The director makes the policies and the rules funds for everyone. The subsidiaries
(dochterondernemingen) need to follow
- Decentralizes
The director makes the policies, the other teams can be follow or make their own policies
The organization of the HR-function basically follow the same philosophy. Most organizations have a
combination of a company-wide HR strategy and HR-strategies tailored to each business.
Human Resource Management
Vak: International HRM
Opleiding: Human Resource Management
Onderwijsinstelling: Avans Hogeschool, ’s-Hertogenbosch
,Semiar 1&2 - Hoorcollege
International HRM
- Comparative HRM, national HRM systems
- Cross-cultural management, organizational behavior in international contexts
- International HRM, HRM policy and practice in organizations
A distinction is being made between three major perspectives
1. Comparative HRM explores the way that different aspects of HRM
practices vary across national boundaries. It is concerned with
different roles, governmental and educational systems.
2. Cross-cultural HRM, on the other end, is concentrated on cultural differences between
countries. It explores the extent to which aspects of work practices are nationally or locally
based.
3. International HRM looks how multinational companies attract, develop and deploy talented
employees in a multinational setting. And how to get them to work effectively despite
differences in culture, language and locations. International HRM tends to mitigate the
impact of national culture and national employment practice against corporate culture and
practices.
SIX component model: de bovenste helft
Drivers of internationalization of business
1) Decreased trade barriers through trade agreements and treaties (EU)
Many countries have allied with other countries to facilitate their mutual trade and free travel of
workers. Of course, this adds to globalization opportunities for countries.
2) Search for new markets and reduced costs
Many organizations are looking for new ways to increase their sales and also for new ways to
reduce their costs.
3) Rapid and extensive global communication and education (social media, television, movies)
Furthermore, a lot is possible with new communication technologies like Skype or Teams.
4) Rapid development and transfer new technology, including improved transportation
(shorter product-life cycles)
Of course, global commerce is also possible by technology advances, with are now global created
everywhere and shared across borders.
5) Increased travel and migration, exposure to new countries and cultures
Billions of people experience other countries and cultures every year and develop new attitudes
and expectations.
6) E-commerce
Also by its nature, e-commerce, ordering via the internet, is international and increasing rapidly
7) Homogenization of culture and costumer demands
Increasingly, for example the big brands, consumer demands are the same everywhere.
8) Competitiveness of emerging market multi national enterprises (MNEs) and small and
medium enterprises (SMEs)
Now there are competitive firms everywhere. Much world economic growth is now located in
emerging markets.
,Integration Differentiation
- Operational integration - Market demands
- Strategic coordination - Legislative demands
- Multinational clients - Political demands
IHRM approaches
In a similar way in HRM, there is a distinction between a universalistic versus a contextual approach.
- The universalist paradigm assumes the existence of best practices in HRM that van be applied
by MNCs successfully worldwide
In the universalistic approach, the HR policies from a subsidiary abroad differ as little as possible from
policies as dictated by the headquarters. Changes are only made to the headquarters HRM-policy
when obligated by local law.
- The contextual paradigm is building on the notion that there might be some general best
principles in HRM, but the organization context ultimately determines the nature of the
specific HR practice
In the contextual approach the HRM policy is tuned not only to the local legislation, but additionally
to local preferences, local labor markets and HRM practices.
SIX component model: The configuration + de onderste helft
Dominant social institutions
We can think of big differences between countries when we look at their government policies and
laws, the educational system and the employee representation bodies.
- State
- Financial system
- System of education and training
- Network of business associations
- System of employee relations
Economic models of countries
Looking at economic models a very important distinction can be drawn between the Anglo-Saxon
model and the Rhineland model.
, SIX component model: The configuration
The HR-strategy is strongly connected to the international orientation of the firm. In general, three
main approaches are being distinguished:
- The ethnocentric firm is highly centralized; little local adaptation
- The polycentric firm is decentralized, with locally adaptive policies and informal ties between
the HQ and subsidiaries
- The geocentric firm is combines global corporate strategy with local communication and
responsiveness
In this overview you recognize the three approaches we just discussed, explained in four aspects:
- Structure
- Strategy
- Role of the subsidiary
- Role of the headquarters
Organizations can be organized in various ways:
- Centralized
The director makes the policies and the rules funds for everyone. The subsidiaries
(dochterondernemingen) need to follow
- Decentralizes
The director makes the policies, the other teams can be follow or make their own policies
The organization of the HR-function basically follow the same philosophy. Most organizations have a
combination of a company-wide HR strategy and HR-strategies tailored to each business.
