MN327 International Human Resource Management: 2013/14 Lecturers Prof. Michael Gold (Coordinator: autumn term) Founder’s FE156 m.gold@rhul.ac.uk Prof. Alice Lam (Coordinator: spring term) Founder’s FE148 alice.lam@rhul.ac.uk Brief outline and aims of the course The world is integrating as businesses locate cross-nationally, and employees and managers move through the multinational company from one country to another. Both the firm and human resource management (HRM) are being spatially stretched. This poses important questions for the management of human resources within the firm: are local or home-based management practices, or some global set of practices, most suited to local workplaces? How do managers and employees from different countries work together? In other words, are German firms in the UK practising mainly British or German employment and work practices, or some sort of novel hybrid? Do US firms in China treat workers differently from workers in the United States? Do Japanese firms in the UK become localised as managers are drawn from the local labour market and not Japan? Do multinational companies act as a law unto themselves as they move around the globe, or do local states tie them down and embed them within national rules, cultures and practices? What is the role of the European Union in regulating regional employment relations? And what is the roe of global labour regulation? What are the core human resource and employment issues in international business activities? What are the difficulties in coordinating workforces that are accustomed to contrasting management styles, and with skills and competences that are constructed differently? To what extent do multinational companies act as agents of knowledge transfer in a globalising economy? Answers to these questions are critical to the future of work, as that future comes to reflect a more globalised workplace, with standards and ideas about authority relations, payment systems and types of recruitment drawn from different sources and not just the nation state. We examine these issues through practical examples, case studies and the latest research. Learning outcomes On completion of the course, you should be able to: Understand the implications of changes in the global organisation of firms and the international workforce for HRM policy choices Demonstrate a detailed understanding of the key analytical concepts and models in international HRM Assess the principal comparisons and contrasts of the business and human resource systems in the UK and the USA, Germany and Japan. Evaluate the different approaches to and strategies for HRM in international business activities, and their impact on employees Evaluate the problems of transferring HRM practices from one country to another, and the role of MNCs as agents of knowledge transfer. 1 Overview of lecture and seminar topics 2013/14 Dates of Autumn term: Monday 23 September to Friday 13 December 2013 Date 1 October 8 October 15 October 22 October 29 October 5 November 12 November 19 November 26 November 3 December 10 December Lecture Comparative and international HRM: an introduction Organisational structures of multinational companies Culture and IHRM National business systems and IHRM Frameworks for understanding IHRM HRM in the UK and USA HRM in Germany Cross-border mergers and acquisitions Employment policy of the European Union Employee participation and the European Union Review of term one: questions and answers Seminar Topic No seminar ‘Liability of foreignness’: McDonald’s and WalMart ‘Liability of foreignness’: McDonald’s and WalMart (rpt) Cultural diversity in a Danish MNC Cultural diversity in a Danish MNC (rpt) Reading week – no seminar The German system of HR: is it under threat? The German system of HR: is it under threat? (rpt) EWCs and international HRM EWCs and international HRM (rpt) No seminar Dates of Spring term: Monday 13 January to Friday 28 March 2014 Date 14 January 21 January 28 January 4 February 11 February 18 February 25 February 4 March 11 March 18 March Lecture Business systems and HRM in Japan Skills, knowledge and organisational learning: national differences Strategic international HRM International staffing policy in MNCs Expatriation and careers Seminar Topic No seminar HRM and inter-organisational learning in international alliances HRM and inter-organisational learning in international alliances (rpt) International staffing International staffing (rpt) International compensation and performance Transferring HRM and work practices across national borders Global labour mobility International performance management International CSR and global labour standards Conclusion and revision Transnational communities (rpt) 2 International performance management (rpt) Transnational communities No seminar Organisation The course consists of twenty-one weekly one-hour lectures in MX 001 (Tuesdays 1.002.00pm) and eight fortnightly two-hour seminars in WIN 1-03 (Tuesdays 2.00-4.00pm), except in the first and last weeks of the teaching term, and in reading weeks, when there are no seminars. Basic reading for each seminar is contained in the reading packs posted on Moodle. Each pack is accompanied by a set of questions for discussion. To make the seminars as productive as possible, please read the pack and questions in advance, and bring them along with you. You are expected to contribute actively and make presentations in the seminars. These presentations, though not formally assessed, are designed to stimulate class discussion, deepen your understanding of your chosen topic and refine your presentational skills, as well as give you relevant feedback. Assessment Exam: 70% Coursework: 30% (two written assignments of 1,750 words at 15% each) Informal feedback given on seminar presentations Coursework deadlines Assignment one: noon, Thursday, 16 January 2014 Assignment two: noon, Thursday, 20 March 2014 Core texts Bamber, G. J., Lansbury, R. D. and Wailes, N. (2011) International and Comparative Employment Relations: Globalisation and Change, London: Sage Publications [5th ed.] Edwards, T. and Rees, C. (2011) International Human Resource Management: Globalization, National Systems and Multinational Companies, London: FT/ Prentice Hall [2nd ed.] Harzing, A.-W. and Pinnington, A.H. (2011) International Human Resource Management, London: Sage Publications [3rd ed.] Other useful background texts There are many books that cover international HRM, and these are just some suggestions to get you started (you’ll find a fuller list at the end of this course outline): Briscoe, D. R. and Schuler, R. S. (2008) International Human Resource Management: Policy and Practice for the Global Enterprise, London and New York: Routledge Dowling, P.J., Festing, M. and Engle, A. (2008) International Human Resource Management, London: Thomson Learning Gold, M. (ed.) (2009) Employment Policy in the European Union. Origins, Themes, Prospects, Basingstoke: Palgrave 3 Gooderham, P.N., Grøgaard, B. and Nordhaug, O. (2013) International Management. Theory and Practice, Cheltenham: Edward Elgar Hollinshead, G. (2010) International and Comparative Human Resource Management, Maidenhead: McGraw-Hill Education Perkins, S.J. and Shortland, S. (2006) Strategic International Human Resource Management, London: Kogan Page Scullion, H. and Linehan, M. (2005) International Human Resource Management. A Critical Text, Basingstoke: Palgrave Tayeb, M. H. (2005) International Human Resource Management: a Multinational Company Perspective, Oxford: Oxford University Press You should also read widely for the whole course amongst relevant journals, such as: British Journal of Industrial Relations Economic and Industrial Democracy European Journal of Industrial Relations Industrial Relations Journal International Journal of Human Resource Management Journal of International Business Studies Journal of Management Studies Journal of World Business People Management And don’t forget to read the business pages of the quality press on a regular basis to keep yourself up to date with views and trends. 4 Course Content and Reading List—Autumn Term 2013/14 Lecturer: Prof. Michael Gold Week 1: 1 October Comparative and International HRM: an Introduction What is comparative and international HRM? Why is it important? How has the process of globalisation affected HRM? What are convergence and divergence? What are the key issues in international HRM? Core reading: Bamber et al., chap.1; Edwards and Rees, chaps. 1, 2; Harzing and Pinnington, chaps. 1, 2 Supplementary reading: Dowling, P.J., Festing, M. and Engle, A. (2008) International Human Resource Management, London: Thomson Learning, chaps. 1, 2 Hollinshead, G. (2010) International and Comparative Human Resource Management, Maidenhead: McGraw-Hill Education, chap.1 Week 2: 8 October Organisational Structures of MNCs What is a multinational corporation? How do corporations structure themselves to do business internationally? How have their structures changed over time? What sort of strategies do they use? How do MNCs relate to local areas? Core reading: Edwards and Rees, chap. 5 Supplementary reading: Royle, T. (2000) Working for McDonald’s in Europe. The Unequal Struggle? London: Routledge, chaps. 4, 5 Christopherson, S. (2007) ‘Barriers to “US style” lean retailing: the case of Wal-Mart’s failure in Germany’, Journal of Economic Geography, 7: 451-69 Ghoshal, S. and Bartlett, C. (2002) Managing across Borders. The Transnational Solution, London: Random House, Introduction Morgan, G. (2005) ‘Multinationals and Work’, in S. Ackroyd, R. Batt, P. Thompson and P. S. Tolbert (eds.) The Oxford Handbook of Work and Organisation, Oxford University Press Week 3: 15 October Culture and IHRM What is meant by the term ‘culture’? What theories of cultural determination are there? How reliable are they? To what extent is the greatest influence on an MNC subsidiary the national culture of the country from which it originated? Core reading: Edwards and Rees, chap.3; Harzing and Pinnington, chap. 3 Supplementary reading: 5 Hofstede, G. (2001) Culture’s Consequences: Comparing Values, Behaviors, Institutions and Organizations across Nations, Thousand Oaks: Sage Hofstede, G. (2002) ‘Dimensions Do Not Exist: A Reply to Brendan McSweeney’, Human Relations 55(11): 1355-61 Hollinshead, G. (2010) International and Comparative Human Resource Management, Maidenhead: McGraw-Hill Education, chap. 2 McSweeney, B. (2002) ‘Hofstede’s Model of National Cultural Differences and their Consequences: A Triumph of Faith – A Failure of Analysis’, Human Relations 55(1): 89-118 Week 4: 22 October National Business Systems and IHRM What is meant by the terms ‘national business systems’ and ‘varieties of capitalism’? What theories of institutional determination are there? How reliable are they? To what extent is the greatest influence on an MNC subsidiary the institutions of the country in which it is located? Core reading: Edwards and Rees, chaps. 3, 4; Harzing and Pinnington, chap. 7 Supplementary reading: Hall, P.A. and Soskice, D. (eds) (2001) Varieties of Capitalism. The Institutional Foundations of Comparative Advantage, Oxford University Press Hancké, B., Rhodes, M. and Thatcher, M. (2007) Beyond Varieties of Capitalism, Oxford: Oxford University Press Streeck, W. and Thelen, K. (2005) Beyond Continuity. Institutional Change in Advanced Political Economies, Oxford: Oxford University Press Whitley, R. (2000) Divergent Capitalisms. The Social Structuring and Change of Business Systems, Oxford: Oxford University Press Week 5: 29 October A Framework for Understanding IHRM What are the main factors we have to understand in studying International HRM? What approaches are there to studying IHRM, and how helpful are they? What is meant by the terms ‘system effects’ and ‘societal effects’? How does diffusion of ‘best practices’ take place across borders? What is meant by ‘dominance effects’, and how might they be constrained? Core reading: Edwards and Rees, chap.7; Harzing and Pinnington, chap. 5 Supplementary reading: Elger, T. and Smith, C. (2005) Assembling Work: Remaking Factory Regimes in Japanese Multinationals in Britain, Oxford University Press, chap. 4 Metcalfe, B.D. and Rees, C.J. (2005) ‘Theorising Advances in International HR Development’, HR Development International, 8(4): 449-65 Rowley, C. and Warner, M. (2007) ‘Introduction: Globalising IHRM’, International Journal of Human Resource Management, 18(5): 703-16 Smith, C. and Meiksins, P. (1995) ‘System, Society and Dominance Effects in Cross-national Organisational Analysis’, Work, Employment and Society 9(2): 241-67 6 Week 6: 5 November HRM in UK/USA What are the key traits of the British and US business systems/HRM? How did they develop? What current trends and challenges are faced by British and US businesses? What are the respective impacts on British business of the EU, the USA and the Commonwealth? Core reading: Bamber, Lansbury and Wailes, chaps. 2 and 3 Supplementary reading: Augar, P. (2000) The Death of Gentlemanly Capitalism, London: Penguin Crouch, C. (2011) The Strange Non-death of Neo-liberalism, London: Polity Hollinshead, G. (2010) International and Comparative Human resource Management, Maidenhead: McGraw-Hill Education, chap. 7 Hutton, W. (2010) Them and Us: Politics, Greed and Inequality – Why We need a Fair Society, London: Little, Brown & Co Week 7: 12 November HRM in Germany What are the key traits of the business systems/HRM in Germany? How did they develop? What is the ‘German model’, and why has it appeared so attractive to many observers? What pressures is it under? To what extent is it adaptable? Core reading: Bamber, Lansbury and Wailes, chap.8 Supplementary reading: Doellgast, V. and Greer, I. (2007) ‘Vertical disintegration and the disorganisation of German industrial relations’, British Journal of Industrial Relations 45(1): 55-76 Ferner, A., Quintanilla, J. and Varul, M. (2001) ‘Country-of-origin effects, host-country effects, and the management of HR in multinationals: German companies in Britain and Spain’, Journal of World Business 36(2): 107-128 Haipeter, T. (2011) ‘“Unbound” Employers’ Associations and Derogations: Erosion or Renewal of Collective Bargaining in the German Metalworking Industry?’, Industrial Relations Journal 42(2): 174-94 Streeck, W. (2009) Re-Forming Capitalism. Institutional Change in the German Political Economy. Oxford: Oxford University Press. Week 8: 19 November Cross-border Mergers and Acquisitions What is the role of HRM in cross-border mergers and acquisitions? To what extent is it possible, desirable or necessary to integrate the HR policies of the companies involved? How do they handle the employment consequences of restructuring across national boundaries? Core reading: Edwards and Rees, chap. 8; Harzing and Pinnington, chap. 4 Supplementary reading: Dowling, P.J., Festing, M. and Engle, A. (2008) International Human Resource Management, Andover: Cengage Learning, chap. 3 7 Aguilera, R. and Dencker, J. (2004) ‘The role of human resource management in cross-border mergers and acquisitions’, International Journal of Human Resource Management 15(8): 1355-70 Bower, J. (2001) ‘Not all M&As are alike – and that matters’, Harvard Business Review March: 93-101 Child, J., Faulkner, D. and Pitkethly, R. (2001) The Management of International Acquisitions, Oxford: OUP Week 9: 26 November Employment Policy of the European Union What is the significance of the European Union from an IHRM perspective? What are the elements of social and employment policy in the EU? What is their rationale? How did the system evolve and where is it heading? Does it represent a case of convergence or divergence? Core reading: Harzing and Pinnington, chaps. 7, 17 Supplementary reading: El-Agraa, A.M. (2004) The European Union. Economics and Policies, London: Prentice Hall, chap. 23 Gold, M. (ed.) (2009) Employment Policy in the European Union. Origins, Themes, Prospects, Basingstoke: Palgrave, chap.1 Hantrais, L. (2007) Social Policy in the European Union, Basingstoke: Palgrave, chaps. 1, 2 Week 10: 3 December Employee Participation and the European Union What role might European works councils play in IHRM? What is the significance of the recent directives introducing the European Company and information and consultation requirements across the EU? Core Reading: Edwards and Rees, chap. 12 Supplementary Reading: Cressey, P. ‘Employee Participation’, in Gold, M. (ed.) (2009) Employment Policy in the European Union, Basingstoke: Palgrave, pp.139-59 Gold, M. (2003) ‘European works councils: who benefits?’ in Gold, M. (ed.) New Frontiers of Democratic Participation at Work, Aldershot: Ashgate, chap.3 Greer, I. and Hauptmeier, M. (2012) ‘Identity Work: Sustaining Transnational Collective Action at General Motors Europe’, Industrial Relations 51(2): 275-297 Timming, A.R. and Veersma, U. (2007) ‘Living Apart Together? A Chorus of Multiple Identities’, in M. Whittall, H. Knudsen and F. Huijgen (eds) Towards a European Labour Identity. The Case of the European Works Council, London: Routledge, pp. 41-54 Week 11: 10 December Review of Term One: Questions and Answers Core readings: Everything you’ve covered so far! A review of the contents of Term One, and your chance to come along for a Question and Answer session. 8 Course Content and Reading List—Spring Term 2013/14 Lecturer: Prof. Alice Lam Week 1: 14 January Business Systems and HRM in Japan Along with Germany, Japan is seen as a leading exemplar of the coordinated market economies, according to the ‘varieties of capitalism’ literature. The Japanese business and HRM model has aroused a great deal of controversy and interest since the 1980s, not only because many of its distinctive features are associated with high employee commitment and productivity, but also because it poses a fundamental challenge to many of the principles underlying the Anglo-American model of management. This lecture will examine the distinctive features of the Japanese enterprise and HRM system from a comparative perspective, discuss how and why western evaluation of the Japanese model has shifted over time. Core reading: Bamber, Lansbury and Wailes, chap.10, ‘Employment relations in Japan’ Hayahsi, M. (2002) ‘A historical review of Japanese Management Theories: the search for a general theory of Japanese management’, Asian Business and Management, 1(2) Benson, J. and Debroux, P. (2004) ‘The changing nature of Japanese human resource management’, International Studies of Organization and Management, 34(1): 32-51 Arjan B. Keizer (2009) ‘Transformations in- and outside the internal labour market: institutional change and continuity in Japanese employment practices’, International Journal of Human Resource Management, 20 (7): 1521–1535. Supplementary reading: Schaede, Ulrike (2012) ‘From developmental state to the “New Japan”: the strategic inflection point in Japanese business’, Asia Pacific Business Review, 18(2): 167-185. Jacoby, Sanford, M (2005) ‘The Embedded Corporation: Corporate Governance and Employment Relations’ in Japan and the United States. Princeton and Oxford: Princeton University Press, chaps 1-3. Peltokorpi, V. (2013) “Job embeddedness in Japanese organizations” The International Journal of Human Resource Management, 24:8: 1551-1569. Kanai, A. (2009) ‘“Karoshi (work to death)” in Japan’, Journal of Business Ethics, 84 (SUPPL. 2): 209-216 Benson, J, (2006) ‘Japanese management, enterprise unions and company performance’ Industrial Relations Journal, 37(3): 242-248 Morris, J. et al. (2006) ‘New Organizational Forms, Human Resource Management and Structural Convergence? A Study of Japanese Organizations’, Organization Studies, 27(10): 1485-1511 Lincoln, J.R. and Y. Nakata (1997) 'The transformation of the Japanese employment system: nature, depth and origins', Work and Occupations, 24(1). Week 2: 21 January Skills, Knowledge and Organisational Learning: National Differences The development of workforce skills and knowledge are widely believed to be central to the competitive performance of firms. The growth of the knowledge-based economy has led to a 9 growing interest in organisational learning and knowledge management. This session will discuss the various approaches to skill development, patterns of organisational learning and knowledge management, focusing on how these are shaped by wider societal factors, especially nationally constituted organisational forms and labour markets. It will also explore how differences in skills structure and organisation of knowledge between firms from different countries create barriers to inter-organisational learning in international alliances. Core reading: Lam, A. (1997) ‘Embedded firms, embedded knowledge: problems of collaboration and knowledge transfer in global collaborative ventures’ Organization Studies, 18(6): 973-996 Harzing and Pinnington (2011), chapter 10. Supplementary reading: Lam, A. (2000) ‘Tacit knowledge, organizational learning and societal institutions: an integrated approach’ Organization Studies, 21(3): 487-513 Hong, J. and R. Snell (2008) ‘Power inequality in cross-cultural learning: The case of Japanese transplants in China’, Asia Pacific Business Review, 14(2): 253-273 Scully, J. W. et (2013) “The role of SHRM in turning tacit knowledge into explicit knowledge: a cross-national study of the UK and Malta”, The International Journal of Human Resource Management, 24:12, 2299-2320 Koike, K. (2002) ‘Intellectual skills and competitive strength: is a radical change necessary?’ Journal of Education and Work, 15(4): 391-408 Nonaka, I. and Takeuchi, H. (1995) The Knowledge Creating Company, Oxford University Press, chaps. 1-3 Nonaka, I. and Toyama, Ryoko (2005) ‘The theory of the knowledge-creating firm: subjectivity, objectivity and synthesis’, Industrial and Corporate Change, 14(3): 419436 Week 3: 28 January Strategic International Human Resource Management The theory underpinning Human Resource Management is the belief that business strategy and HR strategy need to be integrated if the firm wishes to sustain competitive advantage. This session will examine the nature and directions of links between HRM and business strategies, and the unique issues in strategic HRM that arise in firms that are operating in a global environment. It will discuss the complexity and challenge of HR strategy formulation in multinational corporations. Core reading: Harzing and Van Ruysseveldt (2005), chaps. 2 and 3, or Harzing and Pinnington (2011) chap. 5 Schuler, R.S., P.J. Dowling and H. de Cieri ‘An integrative framework of strategic international human resource management’ in Schuler, R.S. and Jackson, S.E. (eds.) (1999) Strategic Human Resource Management chap 17. (Also available: International Journal of Human Resource Management, December 1993, pp, 71764.) Supplementary reading: 10 Brewster, C. ‘Strategic human resource management: the value of different paradigms’ in Schuler, R.S. and Jackson, S.E. (eds.) (1999) Strategic Human Resource Management chap 18. Briscoe, D.R. and Schuler S.S. (2004) International Human Resource Management, 2nd Edition, (London and New York: Routledge), chaps 1 & 2. Keating and Thompson (2004) ‘International human resource management: overcoming disciplinary sectarianism’ Employee Relations, 26 (4): 595-612. Scullion, H. and Linehan, M (2005) International Human Resource Management. A Critical Text (Basingstoke: Palgrave), chap.2. Week 4: 4 February International Staffing Policies in MNCs As the strategies for conducting international business have become more complex and difficult, so also have the staffing options for such firms. This session will introduce the nature of and problems associated with the staffing of multinational firms’ international operations. It will analyse the challenges in global workforce planning for MNCs and their staffing options within the changing global business environment and labour markets. It will also discuss the different approaches to managerial staffing and selection, the tensions between global coordination and local adaptation, and problems in managing workforces across borders. Core reading: Harzing and Pinnington (2011) chap.6 or Harzing and Van Ruysseveldt (2005), chap. 10 Harvey, M., Speier, C. and Novecevic, M. M. (2001) ‘A theory-based framework for strategic global human resource staffing policies and practices’, International Journal of Human Resource Management, 12(6): 898-915 Tarique, I. and Schuler R. (2008) ‘Emerging issues and challenges in global staffing: a North American Perspective’ International Journal of Human Resource Management, 19(8): 1397-1415. Supplementary reading: Global talent management (2010), Journal of World Business, special issue, 17, 1. Ibraiz, T. et al. (2006) ‘A model of multinational subsidiary staffing composition’, International Journal of Human Resource Management, 17(2): 207-224 Scullion, H. and Linehan, M (2005) International Human Resource Management. A Critical Text, Basingstoke: Palgrave, chaps. 3 and 9 Briscoe, D.R. and S.S. Schuler (2004/2008) International Human Resource Management, 2nd Edition, London and New York: Routledge, chaps 8 and 9 Tayeb, M. H. (2005) International Human Resource Management: a Multinational Company Perspective, Oxford University Press, chap. 5 Evans, P. and Lorange, P. (1989) ‘The two logics behind human resource management’, in P. Evans, Y.Doz and A. Laurent (ed.) Human Resource Management in International Firms: Change, Globalisation, Innovation. Basingstoke: Macmillan, pp.144-61 Shen, J. (2006) ‘Factors affecting international staffing in Chinese multinationals’, International Journal of Human Resource Management, 17(2): 295-315 11 Week 5: 11 February Expatriation and Careers Expatriate management constitutes a core area of international HRM in multinational firms. Despite the high cost of expatriation, many MNCs continue to recruit internally instead of the local labour market when seeking to hire managerial personnel for subsidiaries. This session will look at the reasons behind this and explore the changing role of international assignments in MNCs global HR and knowledge management strategies. It will also examine the implications of expatriation for employee career development. Core reading: Harzing and Pinnington (2011) chap 11. or Harzing and Van Ruysseveldt (2005), chaps 11 and 13, or Edwards and Rees, chaps 9 and 10 Gollings, D.G. et al. (2007) ‘Changing patterns of global staffing the multinational enterprise: challenges to the conventional expatriate assignment and emerging alternatives’, Journal of World Business, 42: 198-213 Pinto, L.H. (2012) ‘Compelled to go abroad? Motives and outcomes of international assignments’, International Journal of Human Resource Management, 23, 11: 22952314. Supplementary reading: Tungli, Z. and M. Peiperl (2009). ‘Expatriate practices in German, Japanese, U.K., and U.S. multinational companies: A comparative survey of changes.’ Human Resource Management, 48(1): 153-171 Harzing, A-W. (2002) ‘Of bears, bumblebees and spiders: the role of expatriates in controlling foreign subsidiaries’, Journal of World Business, 36(4): 366-379 Vo, A. N. (2009). Career development for host country nationals: a case of American and Japanese multinational companies in Vietnam. The International Journal of Human Resource Management 20(6), 1402 - 1420. Scullion, H. and Linehan, M (2005) International Human Resource Management. A Critical Text, Basingstoke: Palgrave, chaps 7 and 9 Minbaeva and Michailova (2004) ‘Knowledge transfer and expatriation in multinational corporations’, Employee Relations, 26(6): 663-679 Foster, N. (2000) ‘The myth of the international manager’, International Journal of Human Resource Management, 11(1): 126-142 Stroh et al. (2000) ‘Triumphs and tragedies: expectations and commitments upon repatriation’, International Journal of Human Resource Management, 11(2): 681697. Week 6: 18 February International Compensation and Performance Management This session will deal with the compensation and performance management of staff in MNCs. It will discuss the factors influencing MNCs international compensation policies, problems of cost control, the complexity and difficulty in maintaining consistency across international locations, and issues of equity between workforces in multiple countries, and between local nationals and expatriates. Core reading: 12 Harzing and Pinnington (2011), chap 14, or Harzing and Van Ruysseveldt chap. 12, or Edwards and Rees, chap 11 Toh and Denisi (2003) ‘Host country national reactions to expatriate pay policies: a model and implications’, Academy of Management Review, 28(4): 606-621 Supplementary reading: Leung, K., Zhu, Y. et al. (2009) ‘Compensation disparity between locals and expatriates: Moderating the effects of perceived injustice in foreign multinationals in China’, Journal of World Business, 44(1): 85-93 Suutari and Tornikoski (2003) ‘The challenge of expatriate compensation: the sources of satisfaction and dissatisfaction among expatriates’, International Journal of Human Resource Management, 12(3): 389-404 Schuler, R.S. and Rogosvsky, N. (1998) ‘Understanding compensation practices across firms: the impact of national culture’, Journal of International Business Studies, 29(1): 159177 Shen, Jie (2004) ‘International performance appraisals: policies, practices and determinants in the case of Chinese multinational companies’, International Journal of Manpower 25(6): 547-563 Briscoe, D.R. and Schuler, S. (2004/2008) International Human Resource Management, 2nd Edition, London and New York: Routledge, chaps 11 and 12 Scullion, H. and Linehan, M (2005) International Human Resource Management. A Critical Text, Basingstoke: Palgrave, chap. 6 Week 7: 25 February Transferring HRM and Work Practices across Borders This lecture will explore the theme of transfer of HRM and work practices across national borders by discussing the case of global diffusion of lean production and high performance work practices. Core reading: Harzing and Pinnington (2011), chap. 8 or Harzing and Van Ruysseveldt (2005), chap 15. or Edwards and Rees, chap 7 . Friel, D. (2005) ‘Transferring a lean production concept from Germany to the United States: the impact of labour laws and training systems’, Academy of Management Executive, 19, 2: 50-58. Supplementary reading: Zhang, L. (2008) ‘Lean production and labour controls in the Chinese automobile industry in an age of globalization’, International Labour and Working Class History, 73: 24-44. Doeringer, P.B. et al (2003) ‘The adoption and diffusion of high-performance management: lessons from Japanese multinationals in the West’ Cambridge Journal of Economics, 27, 265-286. Maccoby, M. (1997) ‘Is there a best way to build a car?’ Harvard Business Review, November-December 1997: 161-171. Brown, G. D. and O’Rourke, D. (2007) ‘Lean manufacturing comes to China: A case study of its impact on workplace health and safety’ International Journal of Occupational Evironment and Health, 13(3): 249-257. 13 Elger, T. and Smith, C. (2005) Assembling Work: Remaking Factory Regimes in Japanese Multinationals in Britain (Oxford: Oxford University Press), Chaps. 1 & 12. Edwards, T, and Kuruvilla, S. (2005) ‘International HRM: national business systems, organizational politics and the international division of labour in MNCs’ International Journal of Human Resource Management, 16 (1): 1-25. Berggren C. (1993) 'Lean production: the end of history?' Work Employment and Society, 7:2 June, pp. 163-188. Week 8: 4 March Global Labour Mobility and Transnational Communities Human mobility plays a critical role in the transfer of advanced knowledge across national borders. In the postwar decades, the migration of highly skilled individuals from developing to advanced economies was viewed as ‘brain drain’ that exacerbated global inequality. However, recent research suggests that the global migration of skilled workers has been shifting from a one-way ‘brain drain’ to a two-way ‘brain circulation’. Since the late 1980s, growing numbers of foreign-educated technical/managerial professionals from Asia have been returning to their home countries and are playing a critical role in upgrading the innovative capabilities of home-based firms by transferring the latest technological and business knowledge. This session will examine the role of returnee migrants as transnational agents in global knowledge diffusion and regional economic development. Core reading: Tung RL (2008) ‘Brain circulation, diaspora, and international competitiveness’. European Management Journal 26(5): 298-304. Saxenian A and Hsu JY (2001) ‘The Silicon Valley-Hsinchu Connection: Technical Communities and Industrial Upgrading’. Industrial and Corporate Change 10(4): 893-920. Williams AM (2007) ‘Listen to Me, Learn with Me: International Migration and Knowledge Transfer’. British Journal of Industrial Relations 45(2): 361-382. Supplementary reading: Beaverstock JV and Hall S ‘Competing for talent: global mobility, immigration and the City of London's labour market’. Cambridge Journal of Regions, Economy and Society 5(2): 271-288. Docquier Fdr, Lohest O and Marfouk A (2007) ‘Brain Drain in Developing Countries’. The World Bank Economic Review 21(2): 193-218. Freeman RB ‘Globalization of scientific and engineering talent: international mobility of students, workers, and ideas and the world economy’. Economics of Innovation and New Technology 19(5): 393-406. Horwitz, Frank M. (2013) “An analysis of skills development in a transitional economy: the case of the South African labour market”, The International Journal of Human Resource Management, 24:12, 2435-2451. JÖNs H (2009) ‘Brain circulation’ and transnational knowledge networks: studying long-term effects of academic mobility to Germany, 1954–2000. Global Networks 9(3): 315338. Tung RL and Lazarova M (2006) ‘Brain drain versus brain gain: an exploratory study of exhost country nationals in Central and East Europe’. The International Journal of Human Resource Management 17(11): 1853-1872. 14 Week 9: 11 March International CSR and Global Labour Standards This session will look at the development of regional and international labour regulations that impact on IHRM and multinationals, debates on decent work and the difficulty of formulating labour standards in the twenty-first century. It will also discuss the issue of ethical conduct for HR managers in the conduct of their enterprises around the globe. Core reading: Edwards and Rees, chaps 12& 13 or Harzing and Pinnington (2011), chap. 17-18 Kolk, A. and Tulder, R. (2004) ‘Ethics in multinational approaches to child labour’, Journal of World Business, 39: 49-60. Shen, J. (2011) ‘Developing the concept of socially responsible international human resource management’, International Journal of Human Resource Management, 22(6): 13511363. Supplementary reading: Briscoe and Schuler (2004), chaps 6 and 7, ‘Global employment law and labour relations’, ‘Global ethics and labour standards’. Hartman, Laura, P. et al (2003) ‘Exploring the ethics and economics of global labour standards: a challenge to integrated social contract theory’ Business Ethics Quarterly, 3 (2): 193-220. Kolk, A and van Tulder, R. (2002) ‘The effectiveness of self-regulation: corporate codes of conduct and child labour’, European Management Journal, 20(3): 260-271 Parkes, C. & Davis, A.J. (2013) “Ethics and social responsibility– do HR professionals have the ‘courage to challenge’ or are they set to be permanent ‘bystanders?’, The International Journal of Human Resource Management, 24:12, 2411-2434. Preuss, L., Haunschild, A. and Matten, D. (2009) ‘The rise of CSR: implications for HRM and employee representation’, International Journal of Human Resource Management, 20(4): 975-995 Verma, A. (2003) ‘Global labour standards: can we get from here to there’, The International Journal of Labour Law and Industrial Relations, 19/4 Week 10: 18 March Conclusion and Revision 15 Further Reading Please note that the following are merely suggested sources. Many other books not quoted here cover these topics just as well, and you should aim to read as widely as possible. Altman, Y. and Shortland, S. (2008) ‘Women and International Assignments: Taking Stock – A 25-year Review’, Human Resource Management, 47(2): 199–216. Bartlett, C.A. and Ghoshal, S. (2002) Managing across Borders. The Transnational Solution, London: Random House Brewster, C. Sparrow, P. and Vernon, G. (2007) International Human Resource Management, London: CIPD Doellgast, V. (2012) Disintegrating Democracy at Work. Labor Unions and the Future of Good Jobs in the Service Economy, Ithaca and London: ILR Press Elger, T. and Smith, C. (2005) Assembling Work: Remaking Factory Regimes in Japanese Multinationals in Britain, Oxford University Press Ferner, A. and Hyman, R. (1998) Changing Industrial Relations in Europe, Oxford: Blackwell Gold, M. (ed.) (2003) New Frontiers of Democratic Participation at Work, Aldershot: Ashgate Hall, E.T. (1976) Beyond Culture, New York: Doubleday Held, D., et al. (1999) Global Transformations: Politics, Economics and Culture, Cambridge: Polity Press Hofstede, G. (1994) Cultures and Organisations: Software of the Mind, London: Harper Collins Jackson, T. (2002) International HRM. A Cross-cultural Approach, London: Sage Katz, H.C. and Darbishire, O. (2000) Converging Divergences: Worldwide Changes in Employment Systems, Ithaca, NY: Cornell University Press Lecher, W., Platzer, H-W., Rueb, S. and Weiner, K-P. (2001) European Works Councils. Developments, Types and Networking, Aldershot: Gower, chap. 1 Morgan, G., Kristensen, P. H. and Whitley, R. (2001) The Multinational Firm: Organizing Across Institutional and National Divides, Oxford: Oxford University Press Micklethwait, J. and Wooldridge, A. (2000) A Future Perfect: The Challenge and Hidden Promise of Globalisation, London: William Heinemann Moore, F. (2005) Transnational Business Cultures: Life and Work in a Multinational Corporation, Aldershot: Ashgate Royle, T. (2000) Working for McDonald’s in Europe. The Unequal Struggle? London: Routledge Sparrow, P. (ed) (2009). Handbook of International Human Resource Management, London: 16 John Wiley and Sons Streeck, W. and Thelen, K. (2005) Beyond Continuity. Institutional Change in Advanced Political Economies, Oxford: Oxford University Press Tayeb, M. (2003) International Management. Theories and Practices, London: Prentice Hall Trompenaars, F. (1992) Riding the Waves of Culture, London: Nicholas Brealey Waddington, J. (2011) European Works Councils. A Transnational Institution in the Making, London: Routledge Womack, J.P., Jones, D. T. and Roos, D. (1990) The Machine that Changed the World. Oxford: Maxwell MacMillan International Whitley, R. (2000) Divergent Capitalisms: The Social Structuring and Change of Business Systems, Oxford: Oxford University Press Whittall, M., Knudsen, H. and Huijgen, F. (eds.) (2007) Towards a European Labour Identity. The Case of the European Works Council, London: Routledge General information Please ensure that you keep all course outlines as they may prove valuable in obtaining exemptions for professional qualifications. Note that the School of Management keeps previous year's outlines only for a limited period. Current outlines and other course materials are available from the School of Management Web Site - http://www.ms.rhul.ac.uk/courses/index.htm 17