Major differences between domestic and IHR
3 What are the major differences between domestic and IHR?
Discussion Questions CH 2
4 How does IHRM strategy vary with an MNE’s business strategy?
5 What are some of the IHRM challenges faced by an MNE with a transnational business strategy?
6 What are the pros and cons of centralization and decentralization of the IHRM function?
Discussion Questions CH 3
3 How can IHRM help to ensure the success of firms with a global organizational structure and a transnational organizational structure?
4 How do networks and learning organizations help to ensure an MNE’s competitive advantage?
Discussion Questions CH 4
3 What are the advantages and disadvantages of working for an IJV? An international alliance?
Discussion Questions CH 5
3 What do you consider to be the most important factors of culture in terms of their impact on business?
4 Are national cultures converging or diverging?
Discussion Questions CH 6
1 Why are local employment laws important to IHRM? Are some laws more important than others? If so, which ones?
2 Why are international employment standards important to IHRM? Are some standards more important than others? If so, which ones?
Discussion Questions CH 7
4 What are non-union workers representations? Do you think we will see more of these types of representations in the future?
Discussion Questions CH 8
1 Are immigrants a good source of workers to fill vacant positions? What are some of the barriers to employing immigrants? Are immigrants always welcomed by every country to fill job vacancies?
Discussion Questions CH 9
1 If you are given the opportunity in your next job to go on an extended foreign assignment, what types of support programs would you expect or ask for?
2 If you ever have the responsibility to select an associate for a foreign assignment, how would you go about doing that and what characteristics would you look for to ensure success?
Discussion Questions CH 10
1 What are the major issues related to international T&D?
Sample Solution
- Scope: Domestic HRM deals with employees within a single country, while IHRM manages a global workforce across diverse countries and cultures.
- Complexity: IHRM involves a broader range of responsibilities, including international taxation, labor laws, language barriers, cultural sensitivity, and work visas.
- Recruitment: IHRM requires strategies for attracting and selecting talent from different countries, often involving relocation and cultural adaptation programs.
- Training & Development: IHRM needs to tailor training programs to accommodate diverse cultural backgrounds and language levels.
Full Answer Section
- Compensation & Benefits: IHRM must consider global cost of living variations and comply with varying labor regulations regarding benefits.
- Labor Relations: IHRM navigates complex international labor laws and deals with diverse unions and employee representation models.
IHRM Strategy and MNE Business Strategy
IHRM strategy should align with an MNE's overall business strategy. Key considerations include:
Global vs. Multi-Domestic Strategy:
- Global: Standardized IHRM practices across all locations.
- Multi-Domestic: Adapted IHRM practices to local environments.
Level of Centralization vs. Decentralization:
- Centralized: Consistent IHRM practices across all locations, but may lack responsiveness to local needs.
- Decentralized: Flexibility to adapt IHRM practices to local environments, but may lead to inconsistencies.
Integration vs. Differentiation:
- Integration: Standardizing IHRM practices to achieve global efficiency.
- Differentiation: Adapting IHRM practices to local environments to attract and retain talent.
IHRM Challenges for Transnational MNEs
Transnational MNEs face unique IHRM challenges due to their complex global operations:
- Balancing Standardization & Localization: Meeting global needs while adapting to local regulations and cultural differences.
- Developing & Managing a Global Workforce: Attracting, developing, and motivating talent across diverse cultures and locations.
- Managing International Assignments: Selecting, preparing, and supporting employees for successful international assignments.
- Transferring Knowledge & Expertise: Sharing best practices and creating a global learning environment.
- Managing Global Compensation & Benefits: Designing competitive and compliant compensation packages across countries.
Pros and Cons of Centralization and Decentralization of IHRM
Centralization:
Pros:
- Consistency and efficiency
- Control and cost savings
- Easier to implement global strategies
Cons:
- May lack responsiveness to local needs
- May not be culturally sensitive
- May stifle innovation
Decentralization:
Pros:
- Responsive to local needs
- Culturally sensitive
- Encourages innovation
Cons:
- Inconsistency and inefficiencies
- Loss of control and potential cost increases
- Difficulty implementing global strategies
IHRM and Global Organizational Structures
Global:
- IHRM promotes standardization, knowledge transfer, and global talent management.
- Supports global coordination and decision-making.
Transnational:
- IHRM facilitates cultural sensitivity, local adaptation, and responsiveness to diverse markets.
- Enables a global network of knowledge and expertise.
Networks and Learning Organizations in IHRM
Networks:
- Facilitate knowledge sharing, collaboration, and innovation across the MNE.
- Support global learning and development initiatives.
Learning Organizations:
- Encourage continuous learning and development for employees at all levels.
- Create a culture of knowledge sharing and collaboration.
Working for an IJV or an International Alliance
IJV:
Advantages:
- Shared resources and expertise
- Increased market access
- Reduced risk
Disadvantages:
- Potential for conflict between partners
- Difficulty achieving consensus
- Loss of control
International Alliance:
Advantages:
- Flexibility and adaptability
- Synergy between partners
- Faster market entry
Disadvantages:
- Lack of control and coordination
- Potential for conflict and competition between partners
- Difficulty measuring success
Factors of Culture in Business
- Individualism vs. Collectivism: Individualistic cultures emphasize personal achievement, while collectivist cultures prioritize group harmony.
- Power Distance: Cultures with high power distance have greater social inequality and respect for authority.
- Uncertainty Avoidance: Cultures with high uncertainty avoidance prefer stability and predictability to ambiguity and risk.
- Masculinity vs. Femininity: Masculine cultures emphasize assertiveness and competitiveness, while feminine cultures value cooperation and relationship-building.
- Long-Term vs. Short-Term Orientation: Long-term cultures focus on the future and planning, while short-term cultures prioritize the present and immediate gratification.
Convergence vs. Divergence of National Cultures
- Convergence: Globalization and technology are leading to cultural homogenization.
- Divergence: Local cultural identities are becoming stronger in response to globalization.