International HRM | Maaike de Bot
Chapter 1
Internationalization = a company expanded its business beyond its home country
Globalization = a company + the company’s environment is internationally orientated and affected by
changes from abroad
Reasons to go abroad:
Companies that become global players
Relatively small domestic markets
BRIC countries becoming future economic leaders (Brazil, Russia, India, China)
Availability of the internet
Reduced costs of transport
Reducing barriers for trade and moving of people
1 Anglo Saxon model: minimal government intervention in economy, avoid collectively
2 Rhineland model: government interference is accepted, higher level of social securance
3 Communism: in Russia, China, Vietnam – government is the central point of everything
Brewster: reasons to go abroad:
Market
Cost advantages: countries with lower wages
Government favourable to compagnies
Ebbers: reasons to go abroad:
Surplus of financial means (investments, avoid paying tax)
Reducing risks
Creating a global image (more credible)
Uppsala model
No regular export activities
Goal: franchises agreements with licenses
Export via independent representatives
Establishment of sales subsidiary
Production / manufacturing
1 Multinational = various countries, managed from headquarters
2 Transnational = various countries, managed from several locations worldwide, delegated
management
Method Description
Ethnocentric Core of company made al major management decisions from out of HQ
Only if it is deeply necessary you see local tastes
Employees are PCN = parent country nationals
Polycentric Making decisions autonomic, treats each branch as a distinct entity
Employees are HCN = host country national, locally hired
Regio centric Region as its focal point: Europe, North America of South-East-Asia
Freedom in making decisions, not restricted by country but by regional boundaries
Geocentric More decisional freedom to local management, acknowledges differences
between regions/countries. Focus by recruitment on ability: knowledge,
education, skills. Shared common view developed and shared by a larger group of
managers
, Chapter 2
2.1 Approaches: universalist versus contextual
>> Universalist (convergent, globally) << Contextual (divergent, locally)
Everyone treated the same Takes into account the local context
Changes made at HR HQ when obligated by law (to local legislation, preference, labour market,
HRM practices)
Better fit between policy and local situation
Equal treatment of employees between Unfair treatment of employees between
different locations different locations
2.2 Fits (Brewster)
Horizontal Vertical Environment
Same goal, strategy, overall HR supports the overall Matching HRM policies to
goals business goals context of organisation (not a
part of it)
Make-orientation: intern junior
recruitment for example
Buy-orientation: external
recruitment for example
2.3 International fit
Meaning: policy of company fits the local legislation / culture / practise
Like environment fit but specifically related to the international locations of the organisation
Influenced by legislation / corruption by government
Change policies in stead of new policies makes a horizontal + vertical fit.
2.4 Determined HRM policy
Recruitment: no discrimination, accessible vacancy
Selection: equal chances to be hired
Reward: fair pay
Absenteeism
Working conditions
Promotion
Job security
Employee conditions
2.5 Extended responsibility
Companies abroad need to broad their scope of responsibility (for example Heineken and abuse or
HRM and child labour)
How: ethical relativism
Check the customs: what do other organisations pay the employees
Culture: when children do not work, the family is about to die
How: ethical absolutism
Certain behaviours are right, others are wrong
Hitting someone for no reason is wrong if it is to defend yourself it is right
2.6 John Elkington
People, Planet and Profit are important. Code of conduct as a policy statement.
Chapter 1
Internationalization = a company expanded its business beyond its home country
Globalization = a company + the company’s environment is internationally orientated and affected by
changes from abroad
Reasons to go abroad:
Companies that become global players
Relatively small domestic markets
BRIC countries becoming future economic leaders (Brazil, Russia, India, China)
Availability of the internet
Reduced costs of transport
Reducing barriers for trade and moving of people
1 Anglo Saxon model: minimal government intervention in economy, avoid collectively
2 Rhineland model: government interference is accepted, higher level of social securance
3 Communism: in Russia, China, Vietnam – government is the central point of everything
Brewster: reasons to go abroad:
Market
Cost advantages: countries with lower wages
Government favourable to compagnies
Ebbers: reasons to go abroad:
Surplus of financial means (investments, avoid paying tax)
Reducing risks
Creating a global image (more credible)
Uppsala model
No regular export activities
Goal: franchises agreements with licenses
Export via independent representatives
Establishment of sales subsidiary
Production / manufacturing
1 Multinational = various countries, managed from headquarters
2 Transnational = various countries, managed from several locations worldwide, delegated
management
Method Description
Ethnocentric Core of company made al major management decisions from out of HQ
Only if it is deeply necessary you see local tastes
Employees are PCN = parent country nationals
Polycentric Making decisions autonomic, treats each branch as a distinct entity
Employees are HCN = host country national, locally hired
Regio centric Region as its focal point: Europe, North America of South-East-Asia
Freedom in making decisions, not restricted by country but by regional boundaries
Geocentric More decisional freedom to local management, acknowledges differences
between regions/countries. Focus by recruitment on ability: knowledge,
education, skills. Shared common view developed and shared by a larger group of
managers
, Chapter 2
2.1 Approaches: universalist versus contextual
>> Universalist (convergent, globally) << Contextual (divergent, locally)
Everyone treated the same Takes into account the local context
Changes made at HR HQ when obligated by law (to local legislation, preference, labour market,
HRM practices)
Better fit between policy and local situation
Equal treatment of employees between Unfair treatment of employees between
different locations different locations
2.2 Fits (Brewster)
Horizontal Vertical Environment
Same goal, strategy, overall HR supports the overall Matching HRM policies to
goals business goals context of organisation (not a
part of it)
Make-orientation: intern junior
recruitment for example
Buy-orientation: external
recruitment for example
2.3 International fit
Meaning: policy of company fits the local legislation / culture / practise
Like environment fit but specifically related to the international locations of the organisation
Influenced by legislation / corruption by government
Change policies in stead of new policies makes a horizontal + vertical fit.
2.4 Determined HRM policy
Recruitment: no discrimination, accessible vacancy
Selection: equal chances to be hired
Reward: fair pay
Absenteeism
Working conditions
Promotion
Job security
Employee conditions
2.5 Extended responsibility
Companies abroad need to broad their scope of responsibility (for example Heineken and abuse or
HRM and child labour)
How: ethical relativism
Check the customs: what do other organisations pay the employees
Culture: when children do not work, the family is about to die
How: ethical absolutism
Certain behaviours are right, others are wrong
Hitting someone for no reason is wrong if it is to defend yourself it is right
2.6 John Elkington
People, Planet and Profit are important. Code of conduct as a policy statement.
