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Snelle samenvatting | International HRM

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  • Hoofdstuk 1-3, 5-7
  • 2 november 2021
  • 7
  • 2021/2022
  • Samenvatting
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International HRM | Maaike de Bot

Chapter 1
Internationalization = a company expanded its business beyond its home country
Globalization = a company + the company’s environment is internationally orientated and affected by
changes from abroad

Reasons to go abroad:
 Companies that become global players
 Relatively small domestic markets
 BRIC countries becoming future economic leaders (Brazil, Russia, India, China)
 Availability of the internet
 Reduced costs of transport
 Reducing barriers for trade and moving of people

1 Anglo Saxon model: minimal government intervention in economy, avoid collectively
2 Rhineland model: government interference is accepted, higher level of social securance
3 Communism: in Russia, China, Vietnam – government is the central point of everything

Brewster: reasons to go abroad:
 Market
 Cost advantages: countries with lower wages
 Government favourable to compagnies
Ebbers: reasons to go abroad:
 Surplus of financial means (investments, avoid paying tax)
 Reducing risks
 Creating a global image (more credible)

Uppsala model
 No regular export activities
 Goal: franchises agreements with licenses
 Export via independent representatives
 Establishment of sales subsidiary
 Production / manufacturing

1 Multinational = various countries, managed from headquarters
2 Transnational = various countries, managed from several locations worldwide, delegated
management

Method Description
Ethnocentric Core of company made al major management decisions from out of HQ
Only if it is deeply necessary you see local tastes
Employees are PCN = parent country nationals
Polycentric Making decisions autonomic, treats each branch as a distinct entity
Employees are HCN = host country national, locally hired
Regio centric Region as its focal point: Europe, North America of South-East-Asia
Freedom in making decisions, not restricted by country but by regional boundaries
Geocentric More decisional freedom to local management, acknowledges differences
between regions/countries. Focus by recruitment on ability: knowledge,
education, skills. Shared common view developed and shared by a larger group of
managers

, Chapter 2

2.1 Approaches: universalist versus contextual
>> Universalist (convergent, globally) << Contextual (divergent, locally)
Everyone treated the same Takes into account the local context
Changes made at HR HQ when obligated by law (to local legislation, preference, labour market,
HRM practices)
Better fit between policy and local situation
Equal treatment of employees between Unfair treatment of employees between
different locations different locations

2.2 Fits (Brewster)
Horizontal Vertical Environment
Same goal, strategy, overall HR supports the overall Matching HRM policies to
goals business goals context of organisation (not a
part of it)
Make-orientation: intern junior
recruitment for example
Buy-orientation: external
recruitment for example

2.3 International fit
 Meaning: policy of company fits the local legislation / culture / practise
 Like environment fit but specifically related to the international locations of the organisation
 Influenced by legislation / corruption by government
 Change policies in stead of new policies makes a horizontal + vertical fit.

2.4 Determined HRM policy
 Recruitment: no discrimination, accessible vacancy
 Selection: equal chances to be hired
 Reward: fair pay
 Absenteeism
 Working conditions
 Promotion
 Job security
 Employee conditions

2.5 Extended responsibility
Companies abroad need to broad their scope of responsibility (for example Heineken and abuse or
HRM and child labour)

How: ethical relativism
 Check the customs: what do other organisations pay the employees
 Culture: when children do not work, the family is about to die
How: ethical absolutism
 Certain behaviours are right, others are wrong
 Hitting someone for no reason is wrong if it is to defend yourself it is right

2.6 John Elkington
People, Planet and Profit are important. Code of conduct as a policy statement.

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