IHRM-Chapter1

PowerPoint Presentation: 

International Human Resource Management University of Kassel Kassel April 2008 Dr. Dilek Zamantılı Nayır

Dr. Dilek Zamantılı Nayır: 

Dr. Dilek Zamantılı Nayır Born and raised in Germany (until age of 12) German High School Istanbul Istanbul University Faculty of Business Administration 12 years private sector (local, MNC, expatriate) 8 years academia

Teaching: 

Teaching Strategic Management Organization Theory Organization & Planning Management of SME International Management Corporate Social Responsibility Entrepreneurship

Research: 

Research AIB, EGOS, EIBA Journal of International Management, Journal of Knowledge Management, Journal of Management Development etc.

Dr. Dilek Zamantılı Nayır: 

Dr. Dilek Zamantılı Nayır Married Two kids Turkish ... of age

PowerPoint Presentation: 

Deutschsprachiges Managementstudium am Bosporus Die Deutschsprachigen Abteilungen für Betriebswirtschaftslehre und Wirtschaftsinformatik

MARMARA UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION DEPARTMENT OF BUSINESS ADMINISTRATION IN GERMAN LANGUAGE: 

MARMARA UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION DEPARTMENT OF BUSINESS ADMINISTRATION IN GERMAN LANGUAGE Est. in 1991 under cooperation with the DAAD (German Academic Exchange Service) and the Marmara University Multi-cultural perspective on both academic and industrial aspects of the business environment.

Student profile of our department: 

Student profile of our department Total nr.: 400. About 600 graduates since establishment of the departments. Exchange students After the first four semesters of general education, Controlling – Marketing – M anagement&Organization Classrooms with max. 25 student s

Industry support: 

Industry support ALMANCA ŞLETME VE İŞLETME ENFORMATİĞİ BÖLÜMLERİ DESTEK ÇEMBERİ

PowerPoint Presentation: 

INTERNATIONAL HUMAN RESOURCE MANAGEMENT

Learning outcomes: 

Learning outcomes After reading this chapter, you should be able to: ■ Define the concept of human resource management. ■ Identify distinct theoretical contributions in the field of HRM. ■ Discuss the usefulness of these dominant mainstream approaches to HRM in an international context. ■ Define the concept of international human resource management and its key elements. ■ Understand the main models and themes of international human resource management.

Internationalization of the context of business: 

Internationalization of the context of business Increased speed of change in communication and transportation technologies Continues to widen the geographic imagination and reach of businesses beyond their traditional geographically constrained scope

Internationalization: 

Internationalization Expansion of economic markets Desire to access better pools of resources Challenge of competition Improved mobility of people

International, transnational and multinational companies: 

International, transnational and multinational companies Thriving on these favourable conditions Achieving unprecedented economic and political success Major challenges in the process of becoming international players.

New ways of doing business?: 

New ways of doing business? Or transfer established practices between their home and host countries? Some companies: Ethnocentric approaches, choosing to transfer their home-country practices to their international operations Others: Diversified or localized their business practices to the specific conditions of the host countries

Operational level: 

Operational level Strategic choices: Choices for functional areas in business, including human resource management.

Definitions of human resource management (HRM): 

Definitions of human resource management (HRM) Have evolved over time A number of competing meanings “... a range of management activities which aim to achieve organizational objectives through effective use of employees...”.

Cliché of our times: 

Cliché of our times “... people are the most important resource in business” One of the main organizational resources On a par with or even more significant than financial, technological and physical resources Radical departure from earlier approaches and definitions of people management (secondary business concern to management of other resources of organizations).

GROUP ACTIVITY: 

GROUP ACTIVITY

GROUP ACTIVITY: 

GROUP ACTIVITY Identify different names given to activities associated with people-management in your country. Define and discuss these different names and professional activities associated with each of them.

Historical development of human resources: 

Historical development of human resources Can shed some light on our understanding of its current definition and practice. Human resource management: Complex and elusive history Complex: Rhetoric and practice of HRM - different historical paths of development. HRM: History as old and complex as the history of work and organization

Human resource management as academic area of work: 

Human resource management as academic area of work Only in the 1950s with the works of Drucker (1954) and McGregor (1957). The Practice of Management: Peter Drucker coined the term “human resources” Wider international recognition in academic and practitioner circles by the 1980s, particularly in the Anglo-Saxon world.

Distinction between academic rhetoric and managerial practice: 

Distinction between academic rhetoric and managerial practice Functions and operational aspects of human resource management: Practiced since much earlier internationally American - British – Western European academics: Only in the last two decades. 1990s: Wider adaptation of this concept in developing and less-developed countries.

GROUP ACTIVITY: 

GROUP ACTIVITY

Human resource management: 

Human resource management Series of changes in name and strategic direction. What constitutes human resource management? ‘New’ concept - Differs from personnel management, manpower management and welfare management? Change from personnel management to human resource management: Most significant turning point in the historical development of people-management discourses.

Critical evaluations: 

Critical evaluations Merely as a change of name? Simply an attempt at reviving a weakening area of work with a new buzz phrase? Or a change of strategic direction recognizing human resources as one of the strategically important resources of an organization?

Changing the name from personnel management to human resource management: 

Changing the name from personnel management to human resource management Inevitable outcome of the political economy and market conditions of the 1980s. HRM: Interdisciplinary and fast-changing area of study Encompassing: Welfare, manpower, personnel management. Close association with employee and industrial relations, sociology and psychology of work. Overwhelming majority of the earlier theoretical works on human resource management: USA & UK

THEORETICAL DEVELOPMENT OF HRM : 

THEORETICAL DEVELOPMENT OF HRM

Schools of management in the USA and the UK: 

Schools of management in the USA and the UK The Michigan Model: In order to improve their performance, companies must build a direct link between their corporate and human resource strategies and structures. Promoting an instrumental use of human resources in order to realize corporate objectives.

Academics from Harvard Business School: 

Academics from Harvard Business School Broader framework for HRM decisions and strategy: Decisions stakeholder interests and also a set of situational factors.

Two classical models of HRM: 

Two classical models of HRM ‘Hard’ and ‘soft’ variants of HRM, respectively. ‘Hard’ variant: Employees one of the key resources of organizations - should be used effectively in order to achieve organizational goals. ‘Soft’ variant: Employees first and foremost human beings who contribute to the organization More contemporary formulations of HRM: Combination of soft and hard attributes, rather than rejecting one for the other.

New York Model: 

New York Model Introduced and illustrated the concept of ‘strategic fit’ between corporate and human resource strategy. “A range of ‘needed role behaviours’ (Porter’s earlier works on competitive strategies) Can provide a set of prescriptions for desirable strategic choices for HRM and industrial relations functions.

Harvard, Michigan and New York models: 

Harvard, Michigan and New York models All three: ‘matching models’ of HRM, because of their common aim to match the human resources strategy with that of the corporation.

GROUP ACTIVITIES : 

GROUP ACTIVITIES Examine the HRM system of a company that you know, such as your current educational institution or workplace Discuss if their human resource management approach conforms to any of the theoretical models identified above. Discuss the reasons why your company of choice formulated their human resource approach in its current form.

PowerPoint Presentation: 

DEVELOPMENT OF INTERNATIONAL HRM

Mainstream HRM theories: 

Mainstream HRM theories Formulated in management schools in North America and the UK in the 1980s Quickly found their way to other developed and developing countries and gained much wider international recognition in the 1990s.

Take up of HRM principles and techniques in industrialized countries: 

Take up of HRM principles and techniques in industrialized countries Context factors: Early experiences of industrialization in Western Europe and North America: Workforces organized and supervised differently to the previous era - scientific management techniques. Industrial composition in the industrialized countries: From manufacturing to service industries. Need to develop new and effective methods of managing human resources in their emerging industries.

2. Skills shortages: 

2. Skills shortages Higher rates of employment and economic development, ageing populations Changing nature of competitive migration policies in USA, Canada, Australia and Germany. Boosting demand for skilled labour Encouraging competitive people-management techniques - limited supply of national human resources.

Rapid development and spread of HRM discourse and practice: 

Rapid development and spread of HRM discourse and practice Scientific knowledge on HRM taken up by management schools internationally. International companies contribute to the transfer of HRM techniques and practices Managers experience skills shortages and seek effective ways of managing the short supply of human resources.

HRM techniques: 

HRM techniques International variations in philosophies Approaches and structures of employment relations Trade unions, employment law, management systems, Societal and organizational cultures.

Mainstream human resource approaches and theories: 

Mainstream human resource approaches and theories Inadequate in addressing the human resource issues facing international and multinational companies (MNCs). International human resource management (IHRM) emerged as a new area of academic study and management practice. Theory of IHRM: Recognition only since the late 1980s

Interest in the field of IHRM: 

Interest in the field of IHRM IHRM field of respectable scholarly interest between the disciplines of international management and HRM. Not a passing fad, but will grow Cross-national comparative human resources Expatriate management Cross-cultural diversity within multinational enterprises

PowerPoint Presentation: 

DEFINING INTERNATIONAL HUMAN RESOURCE MANAGEMENT

Involvement of more than one national context: 

Involvement of more than one national context No standalone definition of the concept. “... a range of people management functions, processes and activities which involve consideration of more than one national context ...”

Three levels of practice and study of IHRM: 

Three levels of practice and study of IHRM Single-country human resource activities often involve considerations of international human resource issues (skills shortages and recruitment of migrant labour)

Levels: 

Levels 2. Companies operating in more than one country: Management of international assignments, expatriates and the process of repatriation (management of succession, career development, strategic staffing, international management mobility and training, repatriation)

Levels: 

Levels 3. International companies need to address national differences between their home and host-country operations (national differences in management of human resources, providing descriptive and prescriptive analysis and critical evaluation of the current trends).

GROUP ACTIVITY: 

GROUP ACTIVITY

GROUP ACTIVITY: 

GROUP ACTIVITY Choose three companies, one which is nationally based, two with international operations, and discuss the relevance of IHRM issues to their business conduct.

PowerPoint Presentation: 

PRESCRIPTIVE MODELS AND CRITICAL THEMES IN IHRM

Three ‘tricks’ for a successful IHRM startup: 

Three ‘tricks’ for a successful IHRM startup Preventing the emergence of divisions and divisive perceptions between operations in different countries. Working in each country using the terms of reference used in that country. Avoiding the assumption that best practice can transcend national borders.

Seven keys to IHRM practice subsequent to the start-up stage : 

Seven keys to IHRM practice subsequent to the start-up stage Understanding the international and global context of business, including supply and demand dynamics of human resources in each country. Providing guidelines on service policy for international operations of the company.

PowerPoint Presentation: 

Considering the financial viability of human resource allocations internationally. Documenting and outlining the personal and domestic arrangements of individual workers who are involved in international assignments, with a view to accommodating their requirements.

PowerPoint Presentation: 

5. Providing clear guidelines on terms and conditions for international assignments to individual employees prior to allocation of their roles. 6. Arranging relocation of employees and their families. 7. Setting up a repatriation process which ensures smooth return and reintegration of the expatriates and their families.

Simplified model for the management of human resources of an international firm: 

Simplified model for the management of human resources of an international firm a cosmopolitan workforce culture and its diversity across national borders; compensation and its comparative meanings and value; the value of communication; the development of competences; the use of consultants ; and coordination of international operations in a way which values diversity.

Model for strategic implementation of IHRM: 

Model for strategic implementation of IHRM Resource-based theory of the firm A company’s business success: Shaped by its success in using its key resources. IHRM practice can draw on three resources for competitive advantage and business success

Three resources for competitive advantage and business success: 

Three resources for competitive advantage and business success Parent company’s resources: Economic, social and political conditions of the parent country Parent company’s resources: Assets, competencies and capabilities Host company’s resources: National and company levels ... that can provide competitive advantages and be sources of business success.

Critic to the strategic IHRM models: 

Critic to the strategic IHRM models Different kinds of international firms Differentiating international firms as ‘multidomestic, global or hybrid’ would enable a better understanding

Conclusion: 

Conclusion

PowerPoint Presentation: 

Before we go to the NISSERA Case

This chapter has ... : 

This chapter has ... ... provided an introduction to international human resource management, ... e xplor ed the development of HRM practice and theory in the international context. ... reviewed the definitions and mainstream theoretical frameworks of HRM and IHRM

Chapter 1: 

Chapter 1 ... suggested that IHRM has established itself in a respected position between academic and practitioner communities. ... also highlighted that IHRM currently experiences various challenges and dilemmas.