11-The Global Context of HRM.ppt................
- 1. HRM for MBA and Business Masters Students Lecture 11 The Global Context of HRM
- 2. Learning Outcomes • Be able to appreciate the different approaches to HRM possible in multinational companies (MNCS). • Know about Hofstede’s concept of dimensions of culture and some of the grounds for criticism of Hofstede’s work. • Understand the complexity of selecting, preparing and supporting personnel for expatriate assignments. • Have some appreciation of the idea of comparative HRM. • Have some understanding of the convergence – divergence debate in comparative HRM.
- 3. International Human Resource Management (IHRM) • ‘The process of employing and developing people in international organisations which operate … globally’ (Armstrong 2015)
- 4. Comparative HRM (CHRM) • CHRM is concerned with the degree to which HRM as practised in different countries shows similarities or differences.
- 5. Approaches to IHRM • Ethnocentric • Polycentric • Regiocentric • Geocentric
- 6. Approaches to IHRM • Ethnocentric: – HR practices and policies used in the home country transferred to foreign subsidiaries. Expatriates from the home country manage the foreign subsidiaries. – It involves placing expatriates from the home country in key positions at the foreign subsidiary. – Centralized decision-making, standardization of HR practices, and a belief in the superiority of the home country's practices.
- 7. Approaches to IHRM • Polycentric: – Subsidiaries develop own HR policies. Local managers manage HRM activities. – This approach uses host-country nationals to manage subsidiaries in their respective countries. – Decentralized decision-making, adaptation of HR practices to local cultures, and a recognition of local expertise.
- 8. Approaches to IHRM • Regiocentric: – HR policies are coordinated within the region. Subsidiaries may be staffed by managers from any of the countries within in the region. – It involves grouping countries based on regional similarities and adopting HR practices tailored to each region. – Regional coordination, acknowledging similarities within regions, and customization of HR policies within regional boundaries.
- 9. Approaches to IHRM • Geocentric: – the firm views itself as a single international business rather than one with a home base and a number of foreign subsidiaries. HR policies are developed to meet the global goals of the enterprise. – It seeks to integrate the best practices from around the globe, regardless of the employee's or subsidiary's origin. – Focus on merit and competence, a global perspective, and an emphasis on a cohesive corporate culture.
- 10. National Cultures (Hofstede) • Basic dimensions of the differences between national cultures: – Power - distance – Uncertainty avoidance – Individualism - collectivism – Masculinity - femininity (or Quantity of Life vs Quality of Life) – Long-term versus short-term orientation
- 11. Criticisms of Hofstede • Methodology • Data Collection • Generalisability • Unrealistic to think of uniform national cultures
- 12. The GLOBE Project • Global Leadership and Organizational Behaviour Effectiveness project. • Collected data over 7 years from 18,000 managers in 62 countries.
- 13. GLOBE Managers were compared on nine cultural dimensions: • performance orientation • future orientation • assertiveness • uncertainty avoidance • power-distance • institutional collectivism • family collectivism • gender egalitarianism • human orientation
- 14. Trust and Leadership (Tayeb) • The level of trust in other people’s good intentions varies widely between cultures. Managers will only delegate power to subordinates whom they trust: • Do they have the required knowledge and competence to do the task? • Will they put the company's interests first?
- 15. • Leadership – Preference for leadership styles varies across cultures • People in cultures which have low tolerance for ambiguity and risk taking, prefer major decisions to be taken by their leaders • Those in cultures with a higher tolerance for ambiguity prefer to participate in decisions
- 16. Selecting Expatriates Expatriates are individuals who went overseas for work, business, education, job, or on a travel visa. • Personality Traits • Interpersonal skills • Motivational State • Family/Personal Situation • Language Skills
- 17. Expatriate Re-entry The term 'repatriation' refers to the re-entry of expatriates into their home country. • Cultural readjustment • Job Readjustment
- 18. Criteria for successful expat. reintegration • The returning expatriates should: 1. Perform at a level and quality expected by their managers. 2. Exhibit a reasonable level of job satisfaction with the new position. 3. Be able to use the skills developed during the foreign assignment. 4. Be able to maintain a career progression comparable to cohorts who did not go abroad. 5. Remain with the employer for a reasonable period of time after returning. 6. Avoid dysfunctional levels of stress during re-entry.
- 19. Factors for successful expat. reintegration • The similarity of the international and domestic assignments. • The amount of change in the home organisation. • The nature and personality of the expatriate. • Support available to returning expatriate. • The career planning system of the organisation.