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Summary International Human Resource Management, Briscoe, Schuler and Tarique
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International Human Resource Management, Briscoe, Schuler and Tarique
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INTERNATIONAL HUMAN RESOURCE MANAGEMENT – BRISCOE, SCHULER, TARIQUE (2012)SUMMARY PER CHAPTER
INTRODUCTION
IHRM: HRM in a global context. Main bases of comparative and international HRM: to provide the
broadest possible base for an overview of all major areas in the field of IHRM.
- Importance because of global business; fast changing.
- MNE of all sizes, primarily from the perspective of headquarter/parent company; other
international organizations, as governments, non-profits, and non-governmental
organizations (NGOs).
- MNE: not only global management of parent companies’ workforces, with globalized policies,
shared services and global centers of Hr excellence, but also focus on management of
workforces in subsidiaries, international joint ventures, and global partnerships.
MNE: multinational enterprise; organizations that conduct international business outside their
country of origin. They can operate multi domestically or internationally (not developed levels of
international operations to extent of other two terms), globally (all over the world; standardized and
centralized in IHRM policies etc.), transnationally (global in scope but decentralized and localized in
products, market strategies, and operations).
Strategic context: key strategic components of the context within which IHRM operates. For
instance, structure of MNEs and the role IHRM plays in their development.
National and cultural context: three important aspects of the country and/or national environments
which determine the cultural and legal contexts within which IHRM operates. The importance of
external factors that influence the MNE and IHRM in a variety of ways national and cultural
context.
Global talent management: overview of IHRM policies and practices (from different perspectives)
that are shaped by the context described in the first two sections.
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,CHAPTER 1 –INTERNATIONALIZATION OF HUMAN RESOURCE MANAGEMENT
Section 1: strategic context
Describes globalization of business and how that has changed the nature of IHRM; and the basic
nature and development of IHRM. Content and importance of IHRM practices and policies
Learning objectives:
- Describe the many drivers of the internationalization of business
- Describe the growth and spread of internationalization
- Describe the different settings of international human resource management
- Discuss the development of international human resource management
IHRM: the study of managing Hr in enterprises in the global environment (e.g. bring solutions to
business problems at global level).
Over last 50 years economies of the world have become increasingly integrated (driven by many
forces), leading to MNE, internationalized governments agencies, MSEs, and NGOs. Global activities
have increased in these organizations, so have required adaptation to global environment, including
HRM. Every person and every business confront constant global pressure for competitive excellence
(e.g. working across borders; supplier/materials, customers etc globally) interconnected world.
Internationalization impact HRM development IHRM IHRM for global company’s success
Drivers of the internationalization of business: enterprises are already global or in the process of
going global. Many drivers of this ‘internationalization of business’, most important ones:
- Trade agreements: trade between countries and within regions of the world is constantly
increasing, trade agreements (e.g. through WTO, EU, NAFTA, ASEAN or bilateral trade
treaties between two countries) decrease trade barriers and open markets. Freer trade
would result in faster growing economies throughout the world (e.g. supported by
government through tax incentives and free trade zones). centre of global trade may
move away from developed countries to for instance China, South Asia, Latin America, Africa
- Search for new markets and reduced costs: global competition pressures firms to search for
new markets and revenues and lower costs; often in other countries.
- Rapid an extensive global communication: technological revolution and digital reformation
have made global communication much easier, quicker, cheaper, and more varied, thus
enabling the coordination and competiveness of far-flung operations, subsidiaries and supply
chains. Also information about how people live, what they want and think increasing QoL.
- Rapid development and transfer of technology: developed around the world, due to modern
transportation, education and communication available everywhere. Also make it possible to
grow manufacture products and deliver services with world-class quality and prices
everywhere. Just about for every country to play a part in this global economy due to
education + information technology.
- Improving global education and a global talent pool: improving education around the world
is enabling firms everywhere to produce world-class products and services, raising
expectations for such. Global communication and travel combine with this quality global
education, so that no country has overriding advantages in global economy. The result is a
global talent pool enabling firms to operate almost everywhere in the world today.
- Increased travel and migration: international travel has become easier, quicker and cheaper:
see how people in other countries live and experience goods and services that are available
in those other countries take back home or new expectations of what is possible. Many
decide to trade in these products or recognize new opportunities to sell their own products
or services in the countries they visited. Also people go to other countries to (seek) work.
- Knowledge sharing: firms operating internationally ‘export’ their management philosophies
and techniques, technologies, products and services to their foreign subsidiaries, spread
their knowledge and their company culture everywhere.
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, - E-commerce: business over the internet on global basis (global access website of company).
- Homogenization of culture and consumer demands: integration of cultures and values
through the impact of all these pressures has led to common consumer demands for some
type of products and services over the world. However, differences in culture across
countries remain and international firms need to be sensitive to these local differences.
these drivers creating new global realities for organizations
when business internationalize HRM responsibilities (e.g. talent management, executive and
leadership development, performance management, compensation, and labor relations) take on
international characteristics, requiring IHRM to facilitate in successful international enterprise.
The growth and spread of internationalization: baceuase of rapid development of these drivers
internationalization is spreading faster than ever globalization: integration of markets,
technologies and nation-states that enables individuals, corporations and nation-states to reach
around the world farther, faster, deeper, and cheaper, and in a way that enables the world to reach
individuals, corporations and nation-states farther, faster, deeper, and cheaper than ever before.
Internationalization began with large (well-known) firms from the major developed countries (US,
UK, Germany, France, Japan), but international business is no longer only their domain.
Now globality everyone competing with everyone from everywhere for everything. More and
more countries (also SMEs and family-owned enterprises) involved in trade and have large firms.
Ranking lists: primary focus was on ranking the largest global firms, now because of integrating global
economy more analyses of specific issues (e.g. most powerful women; most innovative companies).
However, only firms that publish their results (e.g. no private and family or government-owned firms)
opening of markets, appearance of competitive foreign firms and products places intense pressure
on every enterprise to develop the capacity to operate at lower costs and with greater speed, quality,
customer service and innovation, both at home and abroad HR is called to recruit, select, develop
and retain workforce talent that can achieve this global competitiveness.
Different settings of international HRM: HR managers will confront at least some technology factors
and internationalization. Deal with IHRM issues in almost every job setting.
Head quarters of (traditional) multinationals: the focus is from the center out to the subsidiaries
and subcontractors, developing and overseeing IHRM practices in all foreign operations and
administering the movement of employees between headquarters and foreign locations, foreign
subsidiaries or foreign locales. IHRM major strategic partner in organization’s global planning and in
talent management of global workforce. HRM policies and practices from parent company or try to
merge its HRM policies and practices with those that are common in the host countries.
Home-country subsidiaries of foreign-owned firms: HR manager receiving end of policy and practice
from the foreign headquarter. HR manager will typically have to integrate the local culture and
organizational culture into the local operations. Different communication styles, worker motivation
philosophies, frequent lack of understanding of host country cultures, markets, employment laws
and practice, even language, by parent company can cause major problems for local HR manager.
Domestic (local) firms/’domestic multinationals’: e.g. hospital, farm, but also domestic operation of
MNE 9local fast food franchise, or local petrol station). These firms confront complexities as: hiring
employees who come from another country, culture, and language or families; having to deal with
competition from foreign firms for customers and suppliers but also resources as employees, or for
capital. Hiring immigrants in local domestic firms can lead to many of same internationalization
concerns as those faced by traditional MNEs, such as how to merge cultures, languages, and general
work expectations and how to respond to employees with differences in those aspects?
Government agencies and non-governmental organizations: e.g. foreign ministries of countries, UN,
World Bank, WTO, OECD, EU. Many IHRM responsibilities are similar to those face by commercial
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