Slide 11.1
Part 2
Contemporary themes
and issues
Chapter 11
International HRM
Wilkinson and Redman, Contemporary Human Resource Management PowerPoints on the Web, 4th edition © Adrian Wilkinson and Tom Redman 2014
Slide 11.2
Introduction
•  Strategies, structures, policies and processes used to
manage people in organisations that operate in more than
one country
•  Multinational corporations (MNCs)
•  International governmental organisations (IGOs)
•  International non-governmental organisations (INGOs)
•  Historical development of international organisations
•  Personnel challenges
•  Mindsets, strategic competitive considerations and structural
consequences in MNCs
•  How organisations expand abroad.
Wilkinson and Redman, Contemporary Human Resource Management PowerPoints on the Web, 4th edition © Adrian Wilkinson and Tom Redman 2014
Slide 11.3
Historical development of the multinational
organisation
•
Not a recent phenomenon.
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Armed forces.
Assyrian commercial organisations were active in several
geographical regions, had overseas subsidiaries and employed
foreigners (4,000 years ago).
Strong parallels between modern MNCs and historical predecessors.
English and Dutch East India companies.
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Second World War – numbers and geographical expansion of MNCs
increased dramatically.
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Technological advances in transport, communication, information
processing and reduced trade barriers.
Wilkinson and Redman, Contemporary Human Resource Management PowerPoints on the Web, 4th edition © Adrian Wilkinson and Tom Redman 2014
Slide 11.4
The mindsets of senior leaders
•  Organisational, strategic and structural forms shaped by
administrative heritage and senior management cognitions.
•  Ethnocentric
– One size fits all, head office knows best.
•  Polycentric
– Foreign markets work differently, locals know best.
•  Regiocentric
– Geographical regions are different, professionals from diverse parts
of the specific region know best, within region economies of scale
are possible.
•  Geocentric
– Worldwide approach, each part has unique contribution, ability not
nationality counts, integration and scale economies where possible.
Wilkinson and Redman, Contemporary Human Resource Management PowerPoints on the Web, 4th edition © Adrian Wilkinson and Tom Redman 2014
Slide 11.5
The dualities of integration and
responsiveness
•
Decisions about MNC structures and link with pressures to coordinate
corporate activities, control and at times standardise them (integration)
with pressures to react to local variations (responsiveness) (Prahalad
and Doz, 1987).
•
Ethnocentric companies
– Operational integration
– Strategic co-ordination.
•
Polycentric companies
– Respond successfully to local situations
– e.g. religious implications in meat production.
Wilkinson and Redman, Contemporary Human Resource Management PowerPoints on the Web, 4th edition © Adrian Wilkinson and Tom Redman 2014
Slide 11.6
Competitive challenges and international
HRM configurations
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Multidomestic
– Polycentric strategy with a dispersed structure that has low degrees
of integration and knowledge exchange.
Global
– Ethnocentric strategies, structures and integrated policies and
practices with strong knowledge transfer from the head office
outwards.
International
– Intense focus on worldwide innovation leads to high knowledge
networking activities.
Transnational
– An ideal, networked organisation that has simultaneously high
degrees of integration where possible, responsiveness where
necessary and knowledge transfer.
Wilkinson and Redman, Contemporary Human Resource Management PowerPoints on the Web, 4th edition © Adrian Wilkinson and Tom Redman 2014
Slide 11.7
Global expansion of MNCs and international
HRM implications
•
IHRM model (Adler and Ghadar,1990).
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Phase I: Domestic
Focus on home market
Products assumed unique and successful
Exports largely unadjusted
Head office crucial.
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Phase II: International
Competition increases
Foreign markets increasingly attractive
Cultural sensitivity becomes important
Manage knowledge transfer outwards.
Wilkinson and Redman, Contemporary Human Resource Management PowerPoints on the Web, 4th edition © Adrian Wilkinson and Tom Redman 2014
Slide 11.8
Global expansion of MNCs and international
HRM implications (Continued)
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Phase III: Multinational
Product reaches maturity
Strong focus on competition and economies of scale
Coordination of resources, production and supply-chains through
integration paramount
HR approaches strive to establish a strong company culture.
Phase IV: Global
Sophisticated networks internally and externally to compete successfully
HR works towards global strategic competitive advantage
The global enterprise will have expatriates from diverse countries and
foreign experience becomes key for executive careers.
Wilkinson and Redman, Contemporary Human Resource Management PowerPoints on the Web, 4th edition © Adrian Wilkinson and Tom Redman 2014
Slide 11.9
International HRM policies and practices
– working abroad
Organisational and Individual
Perspectives in International Mobility
•  Dickmann and Baruch (2011).
 Distinguishes individual and
organisational perspectives, embodying
the dual dependency idea.
 Timeframe goes beyond the immediate
return to cover career effects over time.
Figure 11.4
Individual and organisational areas of international work
Source: Adapted from Dickmann and Baruch, 2011: 171, Fig. 7.2.
Wilkinson and Redman, Contemporary Human Resource Management PowerPoints on the Web, 4th edition © Adrian Wilkinson and Tom Redman 2014
Slide 11.10
International HRM policies and practices –
working abroad (Continued)
I Dimensions and patterns of international work
•  Variations in international working can be captured by twodimensional matrix (Peiperl and Jonsen, 2007)
  Time spent away from the individual’s home culture/market
  Amount of interaction across cultures and markets.
•
Seven-dimensional matrix (Baruch et al., 2013)
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
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Time-spent away
Intensity of international contact
Breadth of interaction
Legal context of stay
International work instigator
Cultural gap
Specific role differences.
Wilkinson and Redman, Contemporary Human Resource Management PowerPoints on the Web, 4th edition © Adrian Wilkinson and Tom Redman 2014
Slide 11.11
International HRM policies and practices –
working abroad (Continued)
II The broad context: drivers of international work
•  Dual dependency (Larsen, 2004)
•  Key antecedents
– Family and social background
– Early experiences of visiting overseas
– Personality traits – inquisitiveness, resilience.
•  Individual motivations
– Career development
– Individual interests
– Financial impact
– Decision influences – e.g. family and partner considerations
– National and location-specific considerations.
Wilkinson and Redman, Contemporary Human Resource Management PowerPoints on the Web, 4th edition © Adrian Wilkinson and Tom Redman 2014
Slide 11.12
International HRM policies and practices –
working abroad (Continued)
III Pre-departure: resourcing, administrative support and
preparation
Factors to consider when selecting a foreign affiliate for a position
•  Pre-assignment – job design, selection (including negotiation and
contracting), administrative and logistical support as well as further
preparation.
•  Job design – facilitate cultural adjustment, uses personal capabilities
possesses.
•  Selection factors and link the decision to the following technical
ability, cross-cultural suitability, family requirements, country/cultural
requirements, language and MNC requirements.
•  International mobility selection systems – closed vs. open, formal vs.
informal.
Wilkinson and Redman, Contemporary Human Resource Management PowerPoints on the Web, 4th edition © Adrian Wilkinson and Tom Redman 2014
Slide 11.13
International HRM policies and practices –
working abroad (Continued)
IV During international work: host environment, individual
adjustment, development, careers and management of
international staff
•  Social environment and host-country national liaison role
•  Adjustment to the local environment
•  International reward management
•  Career capital during the assignment.
Wilkinson and Redman, Contemporary Human Resource Management PowerPoints on the Web, 4th edition © Adrian Wilkinson and Tom Redman 2014
Slide 11.14
International HRM policies and practices –
working abroad (Continued)
V After international work: repatriation, retention and long-term
Career issues – The organisational perspective
•
11 HR practices when returning from working abroad (Lazarova and Caligiuri,
2001).
1.  Pre-departure briefings
2.  Career planning sessions
3.  Guarantee/agreement outlining the type of position
4.  Mentoring programmes
5.  Re-orientation programmes
6.  Repatriation training seminars
7.  Financial counselling and financial/tax assistance
8.  Lifestyle assistance
9.  Communications with the home office
10.  Signs that the company values international experience
11.  Communications with home office about details of repatriation process.
Wilkinson and Redman, Contemporary Human Resource Management PowerPoints on the Web, 4th edition © Adrian Wilkinson and Tom Redman 2014
Slide 11.15
International HRM policies and practices –
working abroad (Continued)
V After International Work: Repatriation, Retention and Long-term
Career Issues – The individual perspective
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Reverse culture shock
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Frustration from losing benefits of working abroad
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Successful reintegration – Dickmann and Baruch (2011)
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Dickmann and Doherty (2010) outline a range of career capital activities that
increase the knowledge, skills, abilities and insights expatriates acquire
when working abroad. It is crucial to explore early (even at the preassignment planning stage) how these can be used upon return.
Wilkinson and Redman, Contemporary Human Resource Management PowerPoints on the Web, 4th edition © Adrian Wilkinson and Tom Redman 2014
Slide 11.16
Conclusion
•  Definition of IHRM, including configurations, strategies,
structures, policies and practices.
•  Types of multinational organisations that exist.
•  HRM models that charted the expanse of the global
people management arena.
•  Operational aspects of international working.
•  Longer-term perspective for employees.
Wilkinson and Redman, Contemporary Human Resource Management PowerPoints on the Web, 4th edition © Adrian Wilkinson and Tom Redman 2014