D358 IHRM Cram Sheet 2025
Competency 1, Lesson 1
MNE: A company that owns or controls business operations in two or more counties.
Global Enterprises: "enterprises that operate all over the world and have consistent
policies and practices throughout their operations.
Transnational Firms: "global in scope but decentralized and localized in products,
marketing strategies, and operations"
International Human Resources Management: "the study and application of all human
resource management activities as they impact the process of managing human
resources in enterprises in the global environment."
What are the 11 drivers of the internationalization of business?
1. Decreased trade barriers through trade agreements and treaties.
2. Search for new markets and reduced costs.
3. Rapid and extensive global communication.
4. Rapid development and transfer of new technology, including improved
transportation.
5. Increased travel and migration, exposure to new countries and cultures.
6. Knowledge sharing across borders.
7. E-Commerce
8. Homogenization of culture and consumer demands
9. Global Internet and social media, television, music, movies, sports, publications, and
news.
10. Competitiveness of emerging market MNEs and SMEs.
11. Global pressure to locate and hire the best human talent.
Describe the growth and spread of internationalization: internationalization has grown
from a slow, elite process into a mainstream business strategy, spreading across
industries, regions, and firm size-reshaping how companies manage people, processes,
and performance around the world.
What are the four different settings of international resource management:
1. Headquarters of a Multinational Enterprise (MNE): Focus: Developing global HR
strategies and ensuring alignment across all international operations.
2. Subsidiaries and Foreign Affiliates: Focus: Implementing HR policies in a way that fits
local laws, culture, and labor practices.
3. International Assignments (Expatriates and Global Mobility): Focus: Managing
employees who are temporarily or permanently relocated to foreign locations.
, 4. Non-Governmental Organizations (NGOs), Government Agencies, and Other
International Organizations: Focus: Managing international teams often working in
volatile, under-resourced, or cross-cultural environments.
What are the similarities between globalization vs. internationalization?
1. Cross-Border Activities
Both involve expanding business operations beyond national borders, whether
through trade, investment, or establishing subsidiaries.
2. Need for International HRM
Both require firms to manage human resources across different countries, dealing
with cultural, legal, and economic differences.
3. Focus on Global Markets
Companies engaging in either globalization or internationalization seek growth and
competitiveness in foreign markets.
4. Dependence on International Talent
Both strategies often involve recruiting, developing, and managing international
workforces—including expatriates, third-country nationals, and host-country
nationals.
5. Both refer to how individual companies, countries, etc. are connected. Globalization
in reference to economies and internationalization in reference to individual
organizations.
Who tracks the world's Transnational Corporations (TNCs)?
United Nations Conference on Trade and Development (UNCTAD) monitors and reports
on global trends in foreign direct investment (FDI) and the activities of TNCs.
It publishes the World Investment Report, which provides:
Rankings of the largest transnational corporations by foreign assets.
Data on the number of foreign affiliates, employment abroad, and international
revenues.
Analysis of global investment flows and the economic impact of TNCs in both developed
and developing countries.
What does an HR professional working in a domestic firm do?
The HR professional working in a domestic firm assists with the hiring of employees
from other countries, cultures, etc. They must be able to develop skills for IHRM if their
company does ultimately go globally.
What does an HR professional working in home country subsidiaries of foreign-owned
firms do?
, The HR professional is working in their home country for an MNE headquarters in
another country. They implement the HR practices as directed by the foreign HQ. They
help to integrate the local culture and laws with the culture of the MNE.
What does an HR professional working in the headquarters of a multinational organization
do?
Operates from the "central or regional headquarters of the traditional MNE." "Focus is
from the center HQ out to the subsidiaries, sub-contractors." "Develops and oversees
HRM practices in all foreign operations, administers the movement of employees
between HQ's and foreign subsidiaries and other foreign locations."
What does an HR professional working for government agencies or non-governmental
organizations do?
Competency 1, Lesson 2
Integration: Integration is about standardizing and centralizing HR functions, policies, and
systems across different countries to maintain consistency, control, and efficiency
within a multinational organization. Can thus provide the MNE with a variety of
competitive advantages such as economies of scale (being able to utilize all of the firms’
global resources), improved quality and standardization. “
Local Responsiveness: The extent to which subsidiaries or international units of a
multination enterprise adapt their operations, strategies, and HR practices to fit the
local cultural, legal, exonomic, and labor conditons of the host country.
Ethnocentrism: The belief that the home country's ways of doing business, including
management practices and cultural norms, are superior and should be applied across all
foreign operatons.
Polycentrism/Regio-centrism: Polycentrism: The belief that each host country is unique,
and local subsidiaries should operate independently with their own HR and
management practices.
Regiocentrism: the belief that business and HR starategies shoud be managed
regionally, grouping countries into clusters with shared cultural or economic traits.
Geocentrism: The belief that the best people and practices should be used regardless of
nationality, aiming for a truly global approach to HRM and leadership.
What does strategic international human resource management focus on?
1. Strategic Alignment: Ensures that HR practices support the overall business strategy
of the MNE- whether it's global intergration, local responsiveness, or both. HR is not
just operational; it's a strategic partner in achieving competitive advantage
internationlly.
2. Global Talent Management: Indentifying, developing, and retaining leaders who can
operate effectively in corss-cultural, cross-boarder roles. Succession planning,
expatriate development, and leadership pipelines are critical.
Competency 1, Lesson 1
MNE: A company that owns or controls business operations in two or more counties.
Global Enterprises: "enterprises that operate all over the world and have consistent
policies and practices throughout their operations.
Transnational Firms: "global in scope but decentralized and localized in products,
marketing strategies, and operations"
International Human Resources Management: "the study and application of all human
resource management activities as they impact the process of managing human
resources in enterprises in the global environment."
What are the 11 drivers of the internationalization of business?
1. Decreased trade barriers through trade agreements and treaties.
2. Search for new markets and reduced costs.
3. Rapid and extensive global communication.
4. Rapid development and transfer of new technology, including improved
transportation.
5. Increased travel and migration, exposure to new countries and cultures.
6. Knowledge sharing across borders.
7. E-Commerce
8. Homogenization of culture and consumer demands
9. Global Internet and social media, television, music, movies, sports, publications, and
news.
10. Competitiveness of emerging market MNEs and SMEs.
11. Global pressure to locate and hire the best human talent.
Describe the growth and spread of internationalization: internationalization has grown
from a slow, elite process into a mainstream business strategy, spreading across
industries, regions, and firm size-reshaping how companies manage people, processes,
and performance around the world.
What are the four different settings of international resource management:
1. Headquarters of a Multinational Enterprise (MNE): Focus: Developing global HR
strategies and ensuring alignment across all international operations.
2. Subsidiaries and Foreign Affiliates: Focus: Implementing HR policies in a way that fits
local laws, culture, and labor practices.
3. International Assignments (Expatriates and Global Mobility): Focus: Managing
employees who are temporarily or permanently relocated to foreign locations.
, 4. Non-Governmental Organizations (NGOs), Government Agencies, and Other
International Organizations: Focus: Managing international teams often working in
volatile, under-resourced, or cross-cultural environments.
What are the similarities between globalization vs. internationalization?
1. Cross-Border Activities
Both involve expanding business operations beyond national borders, whether
through trade, investment, or establishing subsidiaries.
2. Need for International HRM
Both require firms to manage human resources across different countries, dealing
with cultural, legal, and economic differences.
3. Focus on Global Markets
Companies engaging in either globalization or internationalization seek growth and
competitiveness in foreign markets.
4. Dependence on International Talent
Both strategies often involve recruiting, developing, and managing international
workforces—including expatriates, third-country nationals, and host-country
nationals.
5. Both refer to how individual companies, countries, etc. are connected. Globalization
in reference to economies and internationalization in reference to individual
organizations.
Who tracks the world's Transnational Corporations (TNCs)?
United Nations Conference on Trade and Development (UNCTAD) monitors and reports
on global trends in foreign direct investment (FDI) and the activities of TNCs.
It publishes the World Investment Report, which provides:
Rankings of the largest transnational corporations by foreign assets.
Data on the number of foreign affiliates, employment abroad, and international
revenues.
Analysis of global investment flows and the economic impact of TNCs in both developed
and developing countries.
What does an HR professional working in a domestic firm do?
The HR professional working in a domestic firm assists with the hiring of employees
from other countries, cultures, etc. They must be able to develop skills for IHRM if their
company does ultimately go globally.
What does an HR professional working in home country subsidiaries of foreign-owned
firms do?
, The HR professional is working in their home country for an MNE headquarters in
another country. They implement the HR practices as directed by the foreign HQ. They
help to integrate the local culture and laws with the culture of the MNE.
What does an HR professional working in the headquarters of a multinational organization
do?
Operates from the "central or regional headquarters of the traditional MNE." "Focus is
from the center HQ out to the subsidiaries, sub-contractors." "Develops and oversees
HRM practices in all foreign operations, administers the movement of employees
between HQ's and foreign subsidiaries and other foreign locations."
What does an HR professional working for government agencies or non-governmental
organizations do?
Competency 1, Lesson 2
Integration: Integration is about standardizing and centralizing HR functions, policies, and
systems across different countries to maintain consistency, control, and efficiency
within a multinational organization. Can thus provide the MNE with a variety of
competitive advantages such as economies of scale (being able to utilize all of the firms’
global resources), improved quality and standardization. “
Local Responsiveness: The extent to which subsidiaries or international units of a
multination enterprise adapt their operations, strategies, and HR practices to fit the
local cultural, legal, exonomic, and labor conditons of the host country.
Ethnocentrism: The belief that the home country's ways of doing business, including
management practices and cultural norms, are superior and should be applied across all
foreign operatons.
Polycentrism/Regio-centrism: Polycentrism: The belief that each host country is unique,
and local subsidiaries should operate independently with their own HR and
management practices.
Regiocentrism: the belief that business and HR starategies shoud be managed
regionally, grouping countries into clusters with shared cultural or economic traits.
Geocentrism: The belief that the best people and practices should be used regardless of
nationality, aiming for a truly global approach to HRM and leadership.
What does strategic international human resource management focus on?
1. Strategic Alignment: Ensures that HR practices support the overall business strategy
of the MNE- whether it's global intergration, local responsiveness, or both. HR is not
just operational; it's a strategic partner in achieving competitive advantage
internationlly.
2. Global Talent Management: Indentifying, developing, and retaining leaders who can
operate effectively in corss-cultural, cross-boarder roles. Succession planning,
expatriate development, and leadership pipelines are critical.
