1、1International Human Resourse Management Managing Perple in a Multinational ContextTeaching Materials of English2Chapter 1 IntroductionLearning objectivesAfter considering this chapter, the reader will be able to describe The internationalization of business The internationalization of HRM The three
2、 major forms of IHRM Differences between international and domestic HRM The theories for HRM but its biggest potential target market is seen as Japan. In an experimental shop in Tokyo, the Japanese took to this product, despite their traditional aversion to greasy food. So Harry Ramsdens began to lo
3、ok for Japanese partner to establish a joint venture in Japan.As for the future, Richard Taylor states their international strategy: “we want Harry Ramsdens to become a global brand. In the short term the greatest return will be in the UK. But it would be a mistake to saturate the UK and the turn to
4、 the rest of the world. Wed probably come a cropper (失败) when we internationalized. We need experience now.“2. The importance of study IHRMACTION 1.2Demonstrate the issue by a case in ShanghaiSupplementary material -from China Daily, 20080102, page 5Shanghai heaven for expatriates 60,000 foreign pro
5、fessionals drawn to opportunities in cityBY WANG HONGYI AND QIAN YANFENGSHANGHAI: For 28-year-old Selvamaniam Kosala, working in Shanghai is both a refreshing and rewarding experience.The electronics engineer from Kuala Lumpur, Malaysia, moved to the city in November 2005 with her husband, a product
6、 manager for the Asia-Pacific region of Royal Philips Electronics.Kosie, as she likes to be called, said that while she was quite content with her life and work back home, the opportunities offered in a rapidly developing China were just too good to resist.“I think I made the right decision.“ Kosie
7、said.“The city provides great opportunities for foreigners like us who want to start a career here.“ Kosie works in the technical writing division at IBM in the citys Pudong hi-tech zone. “I have been even happier since my daughter was born 10 months ago,“ she said.“She seems to like the city as muc
8、h as we do, and I hope that growing up in a bilingual environment will benefit her in the future.“In recent years, Shanghai has witnessed a huge rise in the number of foreigners moving to the city to live.According to the municipal labor and social security bureau, the number of expatriate workers l
9、iving in the city grew from 4,000 in 2000 to more than 60,000 at the end of last year.Sun Hande, director of the bureaus labor and employment center for foreigners, said: “This shows Shanghai is becoming more and more foreigner-friendly and an increasingly popular choice among expats as a place to s
10、tart a new career.“The largest numbers of expats hail from Japan, the United States and South Korea. “Most of them have good academic qualifications, with 89 percent holding bachelors degrees or better,“ he said.4Most expats work for foreign firms in managerial and technical positions in areas such
11、as real estate, banking, insurance and consultancy.“My friends think Shanghai is heaven. This is partly because foreigners are paid more than local people, but the cost of living is low,“ Marie Sander, a young German woman working as an intern at a Chinese consultancy firm in Shanghai, who plans to
12、stay after graduation in Germany, said.Sun said foreigners looking to work in Shanghai can now apply online for an official permit and the bureau will process their applications within five days, faster than the national standard of 15 days.Procedures at the entry-exit administration have also been
13、simplified to encourage the inflow of foreign professionals in selected fields, Sun told.China Daily, 20080102, page 5.3. The internationalization of Human Resource Management3.1 Defination of IHRMThe above paragraphs make the point that business is global. All aspects of the enterprise are affected
14、. This course is about one specific function of business, the international nature and implications of the management function termed human resource management (HRM). Thus the focus of this text is International HRM (IHRM). The more broadly defined field of IHRM, is about understanding, researching,
15、 applying and revising all human resource activities in their internal and external contexts as they impact the process of managing human resources in enterprises throughout the global environment to enhance the experience of multiple stakeholders; including investors, customers, employees, partners
16、, suppliers, environment and society.广义的国际人力资源管理是指：理解、研究、应用与改善全球环境下影响企业人力资源管理过程的内、外部情景中所有人力资源活动，以提高投资者、顾客、员工、合作者、供应商、环境与社会等多种利益相关者的体验。As the global economy expands, as more products and services compete on a global basis and as more and more firms operate outside their countries of origin, the impac
17、t on various business functions becomes more pronounced. Practitioners in all business functions must develop the knowledge, skills, and experience in the international arena which will enable them and their firms to succeed in this new environment. This new reality is just as true (as this course w
18、ill demonstrate) for the HRM function as it is for other business disciplines, such as finance or marketing, which often get more attention. The purpose of this course is to describe the knowledge, skills, and experiences necessary for the successful management of the IHR function, a function that i
19、s increasingly performed by all employees in companies, including HR professionals (in the HR department), managers and non-managers.3.2 Forms of International HRMIn the case of HRM, internationalization can take many forms. For practical purposes, HR managers in most types of firms can or will conf
20、ront at least some aspects of internationalization. This is to say, the globalization and technology factors that have led to there being “no place to hide“ for business, in general, have also led to there being no place to hide for the HR professional. Human resource professionals can find themselv
21、es involved in and therefore must understand - IHRM issues in any of the following possible situations (which include HRM positions in all types of firms, not just international HR positions within the types of firms usually focused on, i.e., 5working at the headquarters of an MNE or in the parent-c
22、ountry operations).In all cases, the international aspects of the situation increase the exposure and liabilities for HR managers and place on them ever-increasing demands for new, internationally focused competencies. This text is dedicated to helping develop the understanding and competencies nece
23、ssary for HR managers to succeed (personally and professionally as business contributors) in the international arena.3.2.1 The operation of parent-country firms overseasThis situation involves working as a parent-country HR professional in the main or regional headquarters of the traditional multina
24、tional enterprise (MNE). Increasingly, this could also mean working as an expatriate HR manager in a foreign subsidiary of an MNE. This is the best-known of the international business situations and includes, for example, a parent-country HR manager working in the headquarters or parent-country oper
25、ations of firms like Coca-Cola, Ford, Motorola, and Citibank from the US, orShell, Ericsson, and Unilever from Europe, or sony, and Acer from Asia, all firms that have extensive foreign business activity. Typical headquarters IHRM responsibilities include selecting and preparing employees for and tr
26、ansferring them between the various country locations of the firm, determining and administering compensation and benefit packages for these international assignees, and establishing HRM policies and practices for the firms foreign operations. Usually the parent firm either applies its parent-countr
27、y HRM practices directly to-its foreign subsidiaries, or it tries to merge its personnel practices with those that are common in the host countries. In terms of HR management in the foreign subsidiaries of MNEs, as a matter of practice and probably necessity, local HR managers are almost always host
28、-country - nationals (HCNs). That is, these positions do not tend to be filled with HR managers from the parent firm (although these subsidiaries are usually established through the efforts of parent-country managers and HR managers). The use of local HR managers as part of the subsidiary management
29、 team makes sense because the host-country workforce is normally hired locally and work rules and practices must fit local laws and customs. Host-country nationals are more likely to be effective in the subsidiary HR position than are expatriate HR managers from the parent firm, even though HR polic
30、y is often “dictated“ from the parent-company headquarters. (However, HR policy is typically - though not always - adapted to fit local law and Custom.) This centralization of HR policy can create problems with interface for host-country (subsidiary) managers - including local HR managers - who will
31、 differ in their orientations from the parent-country (HQ) HR managers.An additional complexity, however, for IHRM, involves the increasingly common headquarters strategy in global firms that wants as many managers as possible to acquire international experience. This often also includes HR managers
32、. So MNEs are beginning to send HR managers on foreign assignments as well as other types of managers. The result of this is that increasingly it may be possible to find HR managers serving in HR positions outside their countries of origin which could involve an HR manager either from headquarters o
33、r from a foreign subsidiary being posted to another country (that is, being an expatriate HR manager on assignment to a foreign subsidiary or regional office, in the case of a parent-country national or to another subsidiary or to headquarters, in the case of a host-country national). This situation
34、, working as a parent-country HR manager for an MNE, at headquarters or on foreign assignment, is the first - and most commonly studied and written about - role in IHRM.63.2.2 The operation of foreign firms in the home countryThe second possibility for IHR involves the HR manager who works at home i
35、n the foreign subsidiary of a foreign MNE (or the HCN HR manager mentioned in the previous paragraphs). Increasingly, this could also involve working for a home-country firm that has been purchased by a foreign firm and thus is now a foreign-owned firm. In either case, the HR manager is now on the r
36、eceiving end of corporate policy as it relates to HR practices. This will include working with a foreign headquarters (and, often, expatriate managers sent from the foreign - now parent - company) and typically will involve having to integrate into the local operations - the HR managers home country
37、 - a philosophy and organizational culture and practices that are different and/or unfamiliar. This situation involves HR management as practiced by, for example, an American working in the US subsidiary of a foreign firm such as Sumitomo Bank, Sony, or Volkswagen, or in the now foreign-owned (previ
38、ously US-owned) firm, such as Combustion Engineering (now a subsidiary of Asea Brown Boveri, ABB) or Haagen-Dazs ice cream (now owned by Grand Met of Great Britain), or Chrysler Group (now owned by Daimler Benz). Or it applies to the German HR manager working for Ford Motor Company in Germany or for
39、 Braun, in Germany (now owned by Gillette), or the Japanese HR manager working for the Japanese subsidiary of IBM in Japan or for Nissan, now with majority ownership by Renault from France.The different communication and business practice styles, motivation philosophies, and organizational structure
40、s and frequent lack of understanding of the host-country cultures, markets, employment laws and practices, and language, by the parent company, can cause difficulty for the local HR manager, and thus force that host-country HR manager to confront aspects of internationalization that are just as diff
41、icult as those confronted by the home-country HR manager working at headquarters and dealing with the “export“ of policy and practice.3.2.3 The employment of foreign citizens (or recent immigrants and/or their families)The situation of A firm depicts what is “on the surface“ a purely domestic firm,
42、such as a hospital, farm, dry cleaner, ski resort, or restaurant (or the purely domestic operations of an MNE, such as the local fast-food franchise for McDonalds or a local petrol station for Shell or BP). In many countries (particularly true in most locales in the US) even these types of firms con
43、front many of the complexities of international business. These complexities include: (1) the hiring of employees who come from another country, culture, and language (recent immigrants) or their families (who may have been born in the new country, and are, therefore, now citizens, but who may still
44、 be more familiar with the language and culture with which they grow up at home than with that of their familys new country); as well as (2) having to deal with competition from foreign firms for customers and supplies, or for capital which may well come from foreign-owned firms, or competition from
45、 these firms for resources, including employees.Sometimes this “domestic“ firm hires, or even relies on, foreign-born or first-generation immigrant employees because the employer cant find an adequate number of “traditional“ citizens to fill positions. Or it is done simply because these individuals
46、make up a large percentage of the local labor force. In any case, the local firm needs knowledge of local laws that govern such employees (such as visa requirements) as well as the ability to integrate these employees with a different language and cultural background into the domestic firm and its w
47、orkforce.Examples of this situation include the Boulder, Colorado, McDonalds that had recent immigrants from E1 Salvador, Mexico, Russia, and Vietnam on its payroll, none of whom spoke 7much English, the community hospital in Seattle that hires nurses from the Philippines and doctors from Europe and
48、 Asia, the local government computer services agency in Lansing, Michigan, that recruits programmers from India and Pakistan, and the local college in North Carolina that employs professors from other countries. Of course, there are local organizations with equivalent workforces in many countries ot
49、her than the US. The hiring - or recruiting - of immigrants (or, even, the first generation since immigration) in local, domestic firms can lead to many of the same internationalization concerns as those faced by an MNE, such as how to merge the cultures, languages, and general work expectations of employees from different countries, and such as how to respond to employees who bring to their new work situations sometimes very different attitudes toward supervision and have very different expectations related to the practice of management. The point
