International HRM

Module leader
Ed Blissett

Page 1
 Introduction
• Lectures/Tutors on the module
• Course Programme
• Assessment outline
• Expectations of students
• Why should we study International HRM?
• How is International HRM different from
domestic HRM?

Page 2
 Lecturers and tutors on the module
• Ed Blissett – e.f.blissett@herts.ac.uk
• Lectures: Friday 13.00
• Monday seminars commencing at 10.00 and 11.00
• Thursday seminars commencing at 17.00
• Friday seminars commencing at 14.00; 15.00 and
16.00.
• Mike Linnane – m.linnane@herts.ac.uk
• Monday seminars commencing at 15.00 and 16.00
• Seminars all begin next week – use the student
allocator system to allocate yourself a seminar
group.

Page 3
 Learning outcomes of module
• Appreciate the national, international and global
context within which businesses function;
• Demonstrate an understanding of different
countries’ cultures, along with their business,
industrial relations and human resource
management practices
• Demonstrate an ability to recognise the role and
impact of national and organisational culture on
business approaches and operations.

Page 4
 Assessment
• 30% coursework and 70% examination.
• Coursework = a 2000 word essay in answer to the
following question:
• You are an academic consultant to a Chinese precision engineering
company, which supplies components to the motor industry. This
company is considering opening its first plant in the EU, in either,
France, Germany, Sweden, or Britain. In your essay, critically
evaluate the economic, political, industrial relations and cultural
factors, appertaining to each of the four countries, which the Chinese
company will need to consider in making their investment decision.
• Essay due Friday 8th April 2010 at 14.00 hrs.
• Exam – Semester B exam period. Exam will cover all
aspects of the module. 2 hour duration. 4/5 questions
from which you answer two.

Page 5
 Reasons for the emergence of IHRM
• The growth of internationalisation and global competition
resulted in increased mobility of human resources
• The continued evidence of ‘underperformance’ of
expatriates
• A shortage of managers with international experience
• The growth of ‘micro- multinationals’ and need for
transferable management skills
• Continuing problems with the implementation of
strategic alliances and cross-border mergers and
acquisitions, particularly in culturally diverse regions
• A growing recognition that multinationals gain an
advantage if they have the ability to create, transfer and
integrate knowledge across borders
• An increased focus on ethical issues associated with
globalization, in particular the exploitation of labour.

Page 6
 The territory of International HRM
• Early definitions of IHRM included:
• The HRM strategies, policies and practices which firms
pursue in response to the internationalisation of business
(Scullion, 1995).
• IHRM is concerned with the four core activities of
recruitment and selection, training and development,
compensation, and repatriation of expatriates (Welch,
1994)
• More recently there has been a more strategic emphasis:
• ‘Localisation’ of management; international co-
ordination, global leadership development and cultural
challenges of global knowledge management (Evans et.
al. 2002)
• ‘Levering’ human resources to gain local and global
competitive advantage (Schuler et.al., 2002)

Page 7
 The reality of Multinational Production
In 2008 a typical US General Motors car had workers
from nine countries involved in some aspect of its
production or sale:
•Roughly 30% of car’s value was manufactured in South Korea
•17.5% of its components and advanced technology, came
from Japan
•7.5% of the car’s value design value originated in Germany
•4% of its minor parts came from Taiwan and Singapore
•2.5% of the marketing and advertising services, were located
in Britain
•1.5% of the cost in data processing was paid to subsidiaries in
Ireland and Barbados .
•Only 37% of car’s value was generated in the U.S.A

Page 8
 Standard HRM functions

• Human resource planning

• Staffing (recruitment, selection,
placement)
• Performance management
• Training and development
• Compensation (remuneration) and
benefits
• Industrial relations
Page 9
The complexities of International HRM
• Being responsible for a higher number (and greater
complexity) of activities, for example managing
expatriation.
• Having to expand areas of expertise to include broader
perspective, including knowledge of foreign countries,
their cultures, employment laws and industrial relations.
• A greater involvement in employees’ personal lives.
• The necessity of dealing with a wider variety of
employees.
• The need to cope with more external political cultural and
economic influences.
• Being faced with exposure to more problems, difficulties
and risks than in domestic HRM.

Page 10
 Forms of International HRM

• Involvement in the MNC’s overseas

operations from the host country:
• An example would be working in the head office
of Ford’s in Detroit, where you help select and
prepare employees for transfer between various
locations in different countries, whilst liaising with
the overseas operations on the establishment of
HRM policies and practices for Ford’s foreign
operations.

Page 11
 Forms of International HRM cont.
• Operation of foreign firms in the host country
• An example would be an American manager
working for Ford’s in Britain. This typically
involves integration of ‘foreign’ philosophies,
cultures and practices into domestic operations
• Employment of foreign citizens
• On the surface a purely domestic company such
as a cleaning company or a restaurant may seek
to hire another home country’s nationals in order
to to compete with foreign firms for customers,
supplies, labour or capital.
Page 12
 Academic considerations

• The aim of this course is to undertake a

critical examination of the practice of
International Human Resource
Management
• The course will also analyse the positive
and negative effects on home and host
countries (and their peoples) of the
operations of Multinational Companies.

Page 13
International HRM academic terminology

• ‘International’- study of HR policies and

practices within the MNC
• ‘Comparative’ investigation of contexts, policies
and practices in various countries
• ‘Universal’- standard and ‘best’ HR practices
may be transferred from nation to nation
• ‘Particularistic’- HR policies and practices
which are culturally/ institutionally specific

Page 14