Slide 1Slide 2Slide 3Slide 4Slide 5Slide 6Slide 7Slide 8Slide 9Slide 10Slide 11Slide 12Slide 13Slide 14Slide 15International Human Resource ManagementManaging people in a multinational contextvIHRM Chapter 92•Standardization drivers are MNE strategy and structure, maturity and age, and corporate culture•Localization drivers are the host country’s cultural and institutional environment, the mode of operation and subsidiary role•Outline measures which support the development of a balance of globalization and the localization of HRM•Address the global code of conduct as a device for controlling employee behavior worldwide•Focus on the strategic importance of offshoring Chapter ObjectivesWe discuss drivers shaping interplay between global standardization and the localization of HR practices in MN context:Then we:v Terms3IHRM Chapter 9offshoringglobal mindsetperformance culturenational business systemReverse diffusionBPOguanxiglobal standardizationlocal responsiveness culture constructs:power distanceuncertainty avoidancehuman orientationcollectivism I and IIassertivenessgender egalitarianismfuture orientationperformance orientationlingering ethnocentrismcountry-of-origin effecthost-country effecthome-country effectv4IHRM Chapter 9Balancing the standardization and localization of HRM in MNEsFigure9-1v5IHRM Chapter 9Table9-1aCulture construct definitions and sample questionnaire itemsCultural construct definitions Specific questionnaire itemPower distance:The degree to which members of a collective expect power to be distributed equally.Followers are (should be) expected to obey their leaders without question.Uncertainty avoidance:The extent to which a society, organization, or group relies on social norms, rules and procedures to alleviate unpredictability of future events.Most people lead (should lead) highly structured lives with few unexpected events.Humane orientation:The degree to which a collective encourages and individuals for being fair, altruistic, generous, caring and kind to others.People are generally (should be generally) very tolerant of mistakes.Collectivism I (institutional collectivism):The degree to which organizational and societal institutional practices encourage and reward collective distribution of resources and collective action.Leaders encourage (should encourage) group loyalty even if individual goals suffer.v6IHRM Chapter 9Table9-1bCulture construct definitions and sample questionnaire itemsCultural construct definitions Specific questionnaire itemCollectivism II (in-group collectivism):The degree to which individuals express pride, loyalty and cohesiveness in their organizations and families.Employees feel (should feel) great loyalty toward this organization.Assertiveness:The degree to which individuals are assertive, confrontational and aggressive in their relationship with others.People are (should be) generally dominant in their relationships with each other.Gender egalitarianism:The degree to which a collective minimizes gender inequality.Boys are encouraged (should be encouraged) more than girls to attain a higher education.Future orientation:The extent to which individuals engage in future-oriented behaviors such as delaying gratification, planning and investing in the future.More people live (should live) for the present rather than for the future.Performance orientation:The degree to which a collective encourages and rewards group members for performance improvement and excellence.Students are encouraged (should be encouraged) to strive for continuously improved performance.v7IHRM Chapter 9Institutional effects on MNEsFigure9-2v8IHRM Chapter 9Table9-2aExamples of the impactof the cultural and institutional context on HRM practicesv9IHRM Chapter 9Table9-2bExamples of the impactof the cultural and institutional context on HRM practicesv10IHRM Chapter 9Table9-3Gupta and Govindarajan’s four generic subsidiary rolesv HRM roles with global code of conduct11IHRM Chapter 91. Drawing up and reviewing codes of conduct2. Conducting a cost–benefit analysis to oversee compliance of employees and relevant alliance partners3. Championing the need to train employees and alliance partners in elements of the code of conduct4. Checking that performance and rewards systems take into consideration compliance to codes of conductv12IHRM Chapter 9Target countries for future foreign business operationsFigure9-3v HRM roles with offshoring13IHRM Chapter 91. Consultation with unions/employee representatives2. Manpower planning, considering the scope for employee redeployment3. Contributing to the internal communication strategy4. Identifying training needs5. Designing new jobs which stem from offshoring operations6. Highlighting potential risks, such as the implications of employment regulation both in the home country and in foreign locations.v14IHRM Chapter 9Table9-4Where talent is scarev Discussion Questions15IHRM Chapter 91. What are the determinants of the balance of standardization and localization in human resource management in MNEs?2. How does a subsidiary’s role affect its ability to transfer ideas and work practices to other parts of the global network? What is the impact of the resources controlled by the respective affiliate?3. What contributes to the poaching of subsidiary employees? What steps can be taken to recruit and retain key employees?4. What are typical HRM problems in offshoring organizations? How can companies, for example in India and in China, design their human resource management systems to avoid these