16.Hall, Richard, And Nick Wailes. International and Comparative Human Resource Management.

8/9/2019 16.Hall, Richard, And Nick Wailes. International and Comparative Human Resource Management.

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International and Comparative Human Resource Management

Richard Hall and Nick Wailes THE INSTITUTIONALIST TURN IN COMPARATIVE AND

INTERNATIONAL HRM THE STRATEGIC TURN IN COMPARATIVE AND INTERNATIONAL

HRM AND THE PROSPECTS OF A SYNTHESIS TOWARDS A POLITICAL ECONOMY OF IHRM CONCLUSION NOTE ENTRY CITATION

International and co !arati"e #$ an re%o$rce ana&e ent 'HRM( are related )$tdi%tinct area% o* en+$ir,- Co !arati"e HRM i% lar&el, concerned .it# +$e%tion% a)o$t.#, and to .#at e/tent t#ere are di**erence% in HR !ractice% acro%% co$ntrie%-International HRM i% ore *oc$%ed on i%%$e% a%%ociated .it# t#e ana&e ent o*e !lo,ee% acro%% national )order% in $ltinational cor!oration% 'MNC%(- IHRM #a%t#ere*ore )een intere%ted in +$e%tion% a)o$t t#e e/tent to .#ic# $ltinationalco !anie% re!rod$ce %i ilar %et% o* HR !ractice% acro%% t#eir %$)%idiarie%- Do t#e,0*or e/a !le0 tr, to re!rod$ce %i ilar !ractice% acro%% all o* t#eir %$)%idiarie% or dot#e, ad1$%t t#eir HR !ractice% to #o%t co$ntr, !attern%2 3, contra%t co !arati"e HRM#a% )een traditionall, concerned .it# t#e de%cri!tion o*0 and ' ore recentl,( t#ee/!lanation o*0 t#e di**erence% and %i ilaritie% )et.een t#e HR !ractice% t#o$t to )edi%tincti"e o* di**erent national conte/t%- W#ile eac# tradition #a% rea%ona)l,di%tincti"e ori&in% 4 in t#e %t$d, o* MNC% and t#eir ana&e ent o* e/!atriate% in oneca%e0 and in t#e %t$d, o* co !arati"e ind$%trial relation% in t#e ot#er 4 .e ar&$e t#att#e di%tinction i% )eco in& increa%in&l, arti*icial and $n#el!*$l- In !artic$lar .ear&$e t#at International HRM need% to incor!orate t#e in%it% o* co !arati"e HRMand international !olitical econo , %o t#at it can o"e )e,ond it% traditional *oc$% one/!atriate ana&e ent-

T#e traditional narro.ne%% and lac5 o* t#eoretical %o!#i%tication in co !arati"e andinternational HRM %c#olar%#i! i% .ell doc$ ented in t#e literat$re '%ee 6oc#an et al-07889: Clar5e et al-0 7888: Sc#$ler et al-0 9;;9: Ferner0 t#i% "ol$ e(- A% Clar5e et al-

'7888( note to t#e e/tent t#at co !arati"e %t$die% #a"e traditionall, %o$t to &o )e,ond de%cri)in& HR !ractice% acro%% co$ntrie%0 and e/!lain %i ilaritie% anddi**erence%0 t#e, #a"e tended to attri)$te di**erence% to national c$lt$re- T#e IHRMliterat$re0 on t#e ot#er #and0 #a% traditionall, *oc$%ed on t#e ana&e ent o*e/!atriate ana&er% .it#in $ltinational% 'Sc#$ler et al-0 9;;9(- A&ain IHRM %t$die%#a"e o*ten %o$t to e/!lain di**erence% in HR !ractice% .it#in MNC% .it# re*erenceto Ho*%tede


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t#eoretical )a%i% *or e/!lainin& .#, HR !ractice% it di**er *ro one co$ntr, toanot#er )$t it #a% al%o contri)$ted to t#e %t$d, o* HRM in MNC%- Macro@in%tit$tionalt#eorie% #a"e !ro"ided t#e )a%i% *or a reconce!t$ali%ation o* t#e #o e and #o%tco$ntr, e**ect% t#at %#a!e MNC%< HR !olicie% and !ractice% 'Ed.ard% and 6$ri"illa09;; (- More recentl,0 %c#olar% .or5in& in t#i% tradition #a"e %$!!le ented acro@

in%tit$tionali% .it# icro@in%tit$tionali% in or&ani%ational t#eor, to e/!lore #o.di**erence% in !o.er relation%#i!% )et.een cor!orate #ead+$arter% and %$)%idiarie%%#a!e t#e di**$%ion o* HR !olicie% and !ractice% .it#in MNC% '%ee0 *or e/a !le0Ferner and Te !el0 9;;B(-

T#i% c#a!ter criticall, a%%e%%e% t#e in%tit$tionali%t t$rn in co !arati"e andinternational #$ an re%o$rce %c#olar%#i!- W#ile t#e in%tit$tionali%t literat$re !ro"ide%a t#eoretical *o$ndation *or )ot# co !arati"e and international HRM %c#olar%#i! and#a% !rod$ced %o e i !ortant in%it%0 t#ere are a n$ )er o* critici% % o*in%tit$tionali% .#ic# %$&&e%t t#at t#e in%tit$tionali%t t$rn a, )e li ited- In

!artic$lar0 t#e acro in%tit$tional t#eorie% .#ic# in*or $c# conte !orar,co !arati"e and international #$ an re%o$rce ana&e ent %c#olar%#i! #a"e )eencritici%ed a% %tatic0 deter ini%tic0 and !rone to e/a&&erate t#e #o o&eneit, o*o$tco e% .it#in in%tit$tional *ield% and to #a"e di**ic$lt, acco$ntin& *or c#an&e inin%tit$tional arran&e ent%- T#e%e *eat$re% can0 in t$rn0 )e attri)$ted to t#e tendenc, o* in%tit$tionali%t ar&$ ent% to do.n!la, t#e %i&ni*icance o* non@in%tit$tional "aria)le%in %#a!in& !olitical and econo ic o$tco e%- W#ile t#e%e critici% % relate toin%tit$tionali% in &eneral0 .e ar&$e t#at t#e, are !artic$larl, %i&ni*icant .#en t#eo)1ect% o* %t$d, are cor!oration% t#at o!erate acro%% national )order%-

In lit o* t#i% critici% 0 .e e/!lore t.o alternati"e *$t$re direction% *or co !arati"eand international #$ an re%o$rce %c#olar%#i!- Fir%t0 .e *oc$% on t#e !ro%!ect% *or a%,nt#e%i% )et.een t#e in%tit$tionali%t and %trate&ic a!!roac#e% t#at #a"e e er&ed int#e IHRM literat$re %ince t#e id 788;%- T#ere #a"e )een *e. atte !t% to dra. t#e%eliterat$re% to&et#er- Ho.e"er0 eac# #a% t#e !otential to addre%% .ea5ne%%e% in t#eot#er- On t#e one #and0 in%tit$tionali% !ro i%e% to o"erco e t#e e/ce%%i"e"ol$ntari% o* %trate&ic IHRM and it% tendenc, to i&nore t#e i !ortance o* conte/t-On t#e ot#er #and0 in%it% *ro %trate&ic HRM %$&&e%t a t#eor, o* a&enc, and a5eit !o%%i)le to identi*, %o e o* t#e non@in%tit$tional *actor% .#ic# %#a!e t#e HRdeci%ion% o* ana&er%- T#e *inal %ection o* t#e c#a!ter )rie*l, %5etc#e% a %econdalternati"e direction *or co !arati"e and international #$ an re%o$rce ana&e ent0one .#ic# dra.% ore #ea"il, on in%it% a%%ociated .it# !olitical econo ,- We $%e

t#e e/a !le o* t#e contri)$tion% t#at la)o$r !roce%% t#eor, can a5e to IHRM toill$%trate t#e !otential )ene*it% o* a !olitical econo , a!!roac# to co !arati"e andinternational HRM-

THE INSTITUTION !IST TURN INCOM" R TI#E N$ INTERN TION ! HRM

T#e la%t decade #a% %een t#e e er&ence o* an increa%in& )od, o* %c#olar%#i! .#ic#dra.% on in%tit$tional t#eor, to e/!lain %i ilaritie% and di**erence% in HR !ractice%acro%% co$ntrie% and to e/!lain t#e e/tent to .#ic# MNC% re!rod$ce t#e HR !olicie%

and !ractice% t#e, ado!t in t#eir #o e co$ntrie% in t#eir %$)%idiarie%- In !artic$lar0 anincrea%in& n$ )er o* %t$die% #a"e )een in*or ed ), Ric#ard W#itle,


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7888( national )$%ine%% %,%te % 'N3S( a!!roac#- Re1ectin& a)%tract and $ni"er%ali%te/!lanation% o* econo ic action0 W#itle, attri)$te% !er%i%tent national di**erence% int#e )e#a"io$r o* ana&er% and *ir % to di**erence% in national )$%ine%% %,%te %- ForW#itle, '7888 ( )$%ine%% %,%te % are di%tincti"e !attern% o* econo icor&ani%ation t#at "ar, in t#eir de&ree and ode o* a$t#oritati"e coordination o*

econo ic acti"itie%0 and in t#e or&ani ation o*0 and interconnection% )et.een0 o.ner%0ana&er%0 e/!ert%0 and t#eir e !lo,ee% - He ar&$e% t#at national )$%ine%% %,%te % can

)e di%tin&$i%#ed alon& t#ree !rinci!al di en%ion% o.ner%#i! relation%: [email protected]%#i! relation%: and e !lo, ent relation% and .or5 ana&e ent- On t#i% )a%i%#e identi*ie% %i/ )$%ine%% %,%te t,!e% *ra& ented: coordinated0 co !art entali%ed:%tate or&ani%ed: colla)orati"e: and #il, coordinated- For W#itle, '788= > ?(di**erence% in o.ner%#i! relation%0 non o.ner%#i! relation% and e !lo, ent relation%and .or5 ana&e ent0 are a !rod$ct o* di**erence% in t#e in%tit$tional arran&e ent%.#ic#

concern the organisation and conditions governing the availability of capital andlabour power, the governance of economic exchanges and the organisation ofcompeting interests. In particular variations in the nature and policies of the state, the

financial system, the education and training systems and prevalent norms and valueshave helped to structure qualitative differences between business systems.

W#ile W#itle, ad it% t#e !o%%i)ilit, t#at national )$%ine%% %,%te % a, c#an&e0 #i%5e, !oint i% t#at0 )eca$%e t#e c#aracteri%tic% o* national )$%ine%% %,%te % are %odee!l, e )edded in in%tit$tional arran&e ent%0 t#eir i !act on econo ic )e#a"io$r i%li5el, to )e !er%i%tent and end$rin&- Nota)l, #e %$&&e%t% t#at di**erence% in national

)$%ine%% %,%te % are li5el, to contin$e to !la, a !ro*o$nd role in %tr$ct$rin& t#e )e#a"io$r o* ana&er% and *ir %0 e"en in an era o* internationali ation0 )eca$%e

significant changes in national business systems imply substantial shifts in ownershiprelations, the division of organisational labour, the level and/or type of non-ownership coordination processes and/or employment and labour relations. Suchchanges are, then, large scale and far reaching, requiring considerable institutionalrestructuring and realignment of major societal interests. hey are unli!ely to develop

simply as a consequence of internationali"ation, or to occur within one or twodecades #$hitley %&&'( )*+ .

T#i% "ie. t#at t#e e )eddedne%% o* *ir % in a !artic$lar national )$%ine%% %,%te .ill

contin$e to %#a!e t#e )e#a"io$r o* ana&er% and *ir %0 e"en .#en *ir % e/!and )e,ond !artic$lar national )o$ndarie%0 #a% #el!ed in*or a &ro.in& )od, o*international and co !arati"e HRM re%earc#- T#e N3S a!!roac# #a% #el!ed to

!ro"ide a t#eoretical )a%i% *or e/!lainin& not onl, cro%% national %i ilaritie% anddi**erence% in HR )$t al%o #o e and #o%t co$ntr, e**ect% in IHRM- In t#i% %ection .e%electi"el, re"ie. %o e o* t#i% literat$re to ill$%trate #o. it #a% $%ed t#e N3Sa!!roac# to !ro"ide in%it% into 5e, i%%$e% in IHRM '*or re"ie.% o* t#i% literat$re%ee Ed.ard% and 6$ri"illa 9;; : Te !el et al-0 9;;B: Ferner0 t#i% "ol$ e- See al%oEd.ard% and Ree% 9;;B *or an e/cellent te/t)oo5 treat ent o* IHRM t#at dra.% ont#e national )$%ine%% %,%te % a!!roac#(-

Ferner '788?( artic$late% t#e ca%e *or t#e a!!lication o* W#itle,


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o* ori&in #a% a %i&ni*icant i !act on t#e HR !olicie% and !ractice% MNC% ado!t int#eir %$)%idiarie%0 t#ere i% a need *or a ore %,%te atic anal,tical *ra e.or5 *ore/a inin& co$ntr, o* ori&in e**ect%- He re1ect% t#e "ie. t#at t#i% e**ect i% %i !l, acon%e+$ence o* in#erent and i $ta)le c$lt$ral di**erence%0 notin&0 in !artic$lar0 t#atHo*%tede


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tea .or5 to e%ta)li%#ed !ractice% o* $nion a"oidance in t#e !arent co !an,- Indeed0one o* t#e *e. e/a !le% o* re"er%e di**$%ion too5 !lace in a !arent co !an, locatedin a rit to .or5 %tate0 .#ere $nion a"oidance .a% le%% o* an i%%$e- Here0 a&ain0 i%an e/a !le o* a %o!#i%ticated and n$anced $%e o* t#e N3S a!!roac# to e/!lain )ot#national di**erence% in HRM and IR in MNC%-

Ed.ard% et al- '9;; ( i% 1$%t one o* a lar&e n$ )er o* !$)lication% dra.n *ro a lar&eESRC !ro1ect *oc$%in& on t#e HR !olicie% and !ractice% o* US $ltinational% inE$ro!e- T#i% !ro1ect recentl, c$l inated in t#e !$)lication in 9;;B o* merican

ultinationals in urope( anaging cross 0ational 1orders 'Al ond0 Ferner andTe !el0 9;;B(- In o$r "ie.0 t#i% )oo5 i% a "er, i !ortant contri)$tion to t#e literat$reand ill$%trate% t#e e/tent to .#ic# t#e in%tit$tionali%t t$rn #a% tran%*or edco !arati"e and international HRM %c#olar%#i!- W#ile t#e odel o$tlined ), Fernerand Te !el '9;;B( ill$%trate% t#e e/tent to .#ic# t#i% in%tit$tionali%t literat$re #a%o"ed a.a, *ro %i !l, rel,in& on W#itle,


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re%$lt0 it i% ar&$ed t#at e"en t#o$ ca!itali%t %ocietie% a, )e *aced .it# co on !re%%$re% a%%ociated .it# &lo)ali%ation0 di**erence% in national le"el in%tit$tion%arran&e ent% re*ract t#e%e !re%%$re% in di**erent .a,% '%ee Waile% et al-0 9;; *or*$rt#er di%c$%%ion(-

W#ile t#e earl, ne. in%tit$tionali% tended to *oc$% on t#e i !act o* a %in&lein%tit$tional arran&e ent '*or e/a !le0 con%tit$tional arran&e ent0 collecti"e

)ar&ainin& %,%te % and trainin& and %5ill de"elo! ent %,%te %(0 .#at di%tin&$i%#e%t#eorie% o* ca!itali%t di"er%it, i% t#eir e !#a%i% on t#e interconnection% )et.eenin%tit$tional arran&e ent%- T#i% i% %!elt o$t o%t clearl, in Hall and So%5ice


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!artic$lar #i%torical circ$ %tance% )$t at ot#er ti e% #e $%e% econo ic e**icienc,ar&$ ent% to e/!lain t#e ori&in% and !er%i%tence o* N3S- Mor&an '9;;?( le&iti atel,clai % t#at critici% % o* t#e N3S a% a %tatic *ra e.or5 re*lect a i%$nder%tandin& o*ideal@t,!e anal,%i%- Ho.e"er #e al%o ac5no.led&e% t#e creati"e ten%ion )et.eenideal t,!e% o* national %,%te % and %!eci*ic e !irical %t$die% .#ic# .ere ore actor

centred and concerned .it# c#an&e and !roce%% in in%tit$tion% and or&ani%ation% - Ine**ect Mor&an i% ad ittin& t#at t#e N3S *ra e.or5 i% $na)le ), it%el* to acco$nt *orc#an&e in in%tit$tional arran&e ent%- T#e di**ic$lt, t#at in%tit$tionali%t ar&$ ent%#a"e in e/!lainin& in%tit$tional c#an&e #a% )een .idel, ac5no.led&ed in t#e literat$re'%ee Streec5 and T#elen0 9;; (-

T#e !ro)le % t#at #a"e )een a%%ociated .it# t#eorie% o* ca!itali%t di"er%it, in &eneral0and W#itle,


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and local ana&e ent in MNC% to e/!lain o)%er"ed "ariation% in HR !ractice% inMNC% *ro t#e %a e co$ntr, o* ori&in and o!eratin& in t#e %a e nationalen"iron ent%-

W#ile .e %$!!ort t#e &reater *oc$% on intere%t% and t#e increa%in&l, %o!#i%ticated

"ie. o* MNC% t#at #a% a!!eared in t#i% literat$re0 .e .o$ld ar&$e t#at t#i% literat$re#a% not &one *ar eno$ in o"in& )e,ond t#e li itation% o* W#itle,


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3artlett and G#o%#al( #a% )een one o* t#e *e. to o!en $! t#e %!ace *or a ore %trate&ic role*or HR in MNC%- One o* t#e %tren&t#% o* Har in&


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In addition to t#e i !et$% *or $nder%tandin& t#e %trate&ic role o* HR in MNC% !ro"ided ), t#e international )$%ine%% odel o* 3artlett and G#o%#al0 a %econd *orceal%o e er&ed in t#e late 78=;% and earl, 788;% 4 %trate&ic HRM- Since t#e earl,78=;% an e/ten%i"e )od, o* re%earc# #a% e/a ined t#e .a,% in .#ic# t#e ana&e ento* #$ an re%o$rce% contri)$te% to t#e ac#ie"e ent o* t#e *ir


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el%e t#i% it tell $%0 it re!re%ent% a "er, traditional ran&e o* international HRMconcern% *oc$%%ed %+$arel, on %ta**in& and e/!atriate ana&e ent-

One o* t#e o%t in*l$ential atte !t% to inte&rate an $nder%tandin& o* %trate&ic HRMinto odel% o* international )$%ine%% #a% )een ade ), Sc#$ler and collea&$e%

'Sc#$ler et al-0 788 : De Cieri and Do.lin&0 7888: Sc#$ler and Tari+$e0 9;;?(- Since788 t#e%e a$t#or% #a"e )een de"elo!in& an inte&rati"e *ra e.or5 *or internationalHRM in MNC%- W#ile t#e odel #a% c#an&ed o"er t#e ,ear%0 t#e central *eat$re% o*t#e odel re ain t#e %!eci*ication o* e/o&eno$% *actor% 0 endo&eno$% *actor% and%trate&ic MNC co !onent% in*l$encin& HR !olicie%0 *$nction% and !ractice%0 .#ic#in t$rn in*l$ence MNC e**ecti"ene%%- T#e ori&inal 788 "er%ion o* t#e odel !laced%trate&ic international HRM 'SIHRM( at t#e centre and de*ined SIHRM in ter % o*t#e #$ an re%o$rce ana&e ent i%%$e%0 *$nction%0 and !olicie% and !ractice% t#atre%$lt *ro t#e %trate&ic acti"itie% o* $ltinational enter!ri%e% and t#at i !act t#einternational concern% and &oal% o* t#o%e enter!ri%e% 'Sc#$ler et al-0 788 >99(-

T#e odel .a% %$)%e+$entl, re"i%ed ), De Cieri and Do.lin& '7888(- In addition too"in& t#e %trate&ic MNC co !onent% into t#e endo&eno$% *actor% in t#e odel0 DeCieri and Do.lin& %i !li*ied t#e SIHRM !art o* t#e odel to t.o co !onent% HR*$nction %trate&, and HR !ractice% and retitled it %trate&ic HRM - T#e ot#ernota)le ela)oration introd$ced ), De Cieri and Do.lin& .a% t#e reco&nition t#at t#erelation%#i!% )et.een t#e co !onent% o* t#e odel .ere reci!rocal0 %$c# t#at%trate&ic HRM .a% not %i !l, deter ined ), endo&eno$% and e/o&eno$% *actor%'incl$din& MNC %trate&,( )$t co$ld al%o a**ect endo&eno$% and e/o&eno$% *actor%-

T#e odel .a% a&ain re"i%ed ), Sc#$ler and Tari+$e '9;;?(- T#eir late%t ela)oration%ee5% to $!date t#e odel in lit o* IHRM re%earc# o* t#e !a%t 7 ,ear%- T#e re"i%edodel #a% a %tron&er *o$ndation in %,%te % t#in5in& and HR i% &i"en a ore

!ro inent %trate&ic role re"er%in& De Cieri and Do.lin&


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tended to lea"e HR !ractice )e#ind 4 t#e %trate&ic !otential o* IHRM #a% )eenre!eatedl, e !#a%i%ed0 )$t t#e act$al HR !ractice% t#at con%tit$te %trate&ic IHRM are%till relati"el, "a&$e- Secondl,0 t#e conte/t o* IHRM and MNC )e#a"io$r i% *ar *ro*$ll, inte&rated- T#e Sc#$ler odel #a% al.a,% incl$ded re*erence to e/o&eno$%*actor%0 #o.e"er t#e%e *actor%0 %o central to t#e in%tit$tionali%t a!!roac#e%0 are onl,

ro$l, %5etc#ed in t#e odel-

T#e recent !ro!o%al o* a odel o* &lo)ali%in& HRM 'S!arro. et al-0 9;;>: 3re.%teret al-0 9;; : S!arro.0 9;;?( #a% addre%%ed %o e a%!ect% o* t#e t.o !ro)le % noteda)o"e- T#e%e re%earc#er% #a"e atte !ted to o"e )e,ond t#e traditional *oc$% o*international HRM on e/!atriate ana&e ent to &lo)al HR Manda *oc$% on t#eana&e ent o* all HRM acti"itie% ), MNC% t#ro$ t#e a!!lication o* &lo)al r$le%et%< '3re.%ter et al-0 9;; 8BB(- W#ile a .ea5ne%% o* t#i% a!!roac# #a% )een a *ail$reto date to clearl, di%tin&$i%# &lo)al HRM *ro t#e %t$d, o* t#e di**$%ion o* HR

!ractice% and !olicie% acro%% MNC $nit% 'central to an, %t$die% .it#in an IHRMtradition(0 a clear %tren&t# #a% )een t#e &ro$ndin& o* a odel o* &lo)ali%in& HRM ine !irical %t$die% o* MNC HR %trate&ie%0 !olicie% and !ractice%- 3a%ed on a %$r"e, o*B> lar&e U6 MNC%0 ? 9 HR !ro*e%%ional% and %e"en ca%e %t$die%0 t#e 3re.%ter0S!arro. and Harri% odel '%ee 3re.%ter et al-0 9;; 8B7( identi*ie% !artic$laror&ani%ational dri"er% and HR ena)ler% )ein& deli"ered t#ro$ t#ree 5e, HR

!roce%%e% 7( talent ana&e ent and e !lo,er )randin&: 9( &lo)al leader%#i! t#ro$international a%%i&n ent%: and ( ana&in& an international .or5*orce- W#ile t#e%t$die% add $%e*$l e !irical content in t#e *or o* de*inin& %!eci*ic co )ination% o*or&ani%ational dri"er% and HR ena)ler% ' %trate&ic reci!e%


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&reater $nder%tandin& o* conte/t i% .ell can"a%%ed in t#e e/i%tin& ain%trea%trate&ic literat$re '%ee0 *or e/a !le0 Sc#$ler et al-0 9;;9(0 t#ere #a% )een rat#er le%%con%ideration o* t#e contri)$tion% t#at t#e %trate&ic literat$re can a5e to t#ein%tit$tionali%t tradition- Ho.e"er0 .e .o$ld ar&$e t#at con%ideration o* t#e %trate&icdi en%ion% o* HR in MNC% #a% t#e !otential to addre%% 5e, .ea5ne%%e% in t#e

in%tit$tionali%t literat$re- In !artic$lar t#e %trate&ic literat$re i !lie% t#at t#e intere%t%o* MNC%0 in !artic$lar HR !olicie% and !ractice%0 and t#e e/tent to .#ic# t#e,atte !t to di**$%e t#e%e !ractice% acro%% t#eir %$)%idiarie%0 relate not 1$%t to #o e and#o%t co$ntr, in%tit$tional conte/t )$t are al%o %#a!ed ), a ran&e o* *ir @%!eci*ic*actor%- A %,nt#e%i% )et.een t#e%e t.o )odie% o* .or5 a, t#ere*ore !ro"ide t#e )a%i%*or a ore ro)$%t t#eor, o* a&enc, and lead to t#e de"elo! ent o* t#e t,!e o* actor@centred in%tit$tionali% t#at #a% recentl, )e&$n to e er&e in t#e co !arati"ecor!orate &o"ernance literat$re '%ee A&$ilera and Jac5%on0 9;; : Fi%% and a1ac09;;>(-

Ho.e"er0 de%!ite t#i% !otential0 t#ere are a n$ )er o* rea%on% to %$&&e%t t#at t#ee/i%tin& %trate&ic IHRM i% !oorl, %$ited to !ro"ide t#e )a%i% *or $nder%tandin& a&enc,and intere%t% in an in%tit$tionali%t *ra e.or5- In !artic$lar0 %trate&, i% not %ati%*actor,t#eori%ed- In o%t o* t#e odel% o* IHRM re"ie.ed a)o"e HR %trate&, i% lar&el,deter ined ), )roader cor!orate %trate&,- In t#e Sc#$ler odel%0 *or e/a !le0%trate&ic MNC co !onent% 'incl$din& *$nctionali%t IHRM and SHRM %,%te %(deter ine IHRM i%%$e%0 *$nction%0 !olicie% and !ractice%0 al)eit ediated ),&enerall,@%!eci*ied e/o&eno$% and endo&eno$% *actor%- In t#e 3re.%ter et al- odel%o* &lo)ali%in& HRM0 HR %trate&ie% a!!ear to )e re!re%ented ), t#e %trate&ic reci!e%

4 co )ination% o* "ario$% or&ani%ational dri"er% and HR dri"er%- F$rt#er ore0 HR !ractice% are t,!icall, %een to *lo. $n!ro)le aticall, *ro HR %trate&,- Once HR%trate&, i% %et0 t#e ta%5 *or HR i% t#e i !le entation o* HR !ractice% t#at *it< .it#t#at %trate&,-

So e.#at ironicall,0 t#e%e odel% o* IHRM !ro"ide little %!ace *or a&enc, in t#ede"elo! ent and i !le entation o* HR %trate&ie% and !ractice% .it#in MNC%- To t#ee/tent t#at a&enc, i% &ranted to actor% in *or $latin& HR %trate&, and !ractice%0 t#eactor% are !re%$ ed to )e t#e %enior ana&e ent elite% re%!on%i)le *or deter inin&o"erall )$%ine%% %trate&,0 .#ic# *or Sc#$ler et al- it incl$de t#e ca!acit, toin*l$ence or deter ine t#e de%i&n o* IHRM and SHRM %,%te %0 or *or 3re.%ter et al-0t#e %election o* an a!!ro!riate %trate&ic reci!e - In an, e"ent0 .e %$&&e%t t#at t#i% i% ana "e and $nderde"elo!ed acco$nt o* HR %trate&,0 !olic, and !ractice-

Rat#er t#an HR !olicie% and !ractice% *lo.in& $n!ro)le aticall, *ro a rational0 !redeter ined HR %trate&,0 .e %ee5 to e !#a%i%e t#at HR %trate&,0 !olic, and !ractice i% ore li5el, to )e conte%ted ), a ran&e o* actor% in t#e conte/t o* an arra,o* &lo)al0 national0 or&ani%ational and .or5!lace *orce% .#ic# %#a!e0 condition anda**ord on&oin& !roce%%e% o* con*lict and conte%tation- T#e%e *orce% are $lti!le andco !le/ and incl$de %$!ra@national in%tit$tion%0 *or % o* ca!ital acc$ $lation

!re"ailin& in di**erent %ector% and re&ion%0 !attern% o* ca!ital0 la)o$r andtec#nolo&ical o)ilit,0 national in%tit$tional %ettin&% and !olicie% 'ind$%trial relation%0*inance0 *i%cal0 ind$%tr, and %5ill% !olicie% and in%tit$tion%(0 !rod$ct ar5etcondition%0 %ectoral %$!!l, c#ain arran&e ent%0 a% .ell a% a .ide arra, o*

or&ani%ational@le"el "aria)le% '%$c# a% or&ani%ational %tr$ct$re and )$%ine%% %trate&,(and .or5!lace@le"el "aria)le% '%$c# a% t#e !o.er o* la)o$r and ca!ital and t#e


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or&ani%ation o* .or5(- We al%o contend t#at t#e%e *orce% are not &i"en or *i/ed0 )$t areal%o t#e %$)1ect o* conte%tation and con%tr$ction ), actor%- For e/a !le0 a #o%tco$ntr,


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co !etencie%- Cro%%@national a!!roac#e% can )e c$lt$rali%t or in%tit$tionali%t inorientation- C$lt$rali%t "ariant% 4 t#e ain%ta, o* traditional IHRM a!!roac#e% todi**$%ion 4 %ee5 to e/!lain t#e tran%*er and tran%lation o* HR !ractice% in ter % o* t#ec$lt$ral condition% t#at c#aracteri%e #o e co$ntr, and #o%t co$ntr, en"iron ent%-T#$%0 !artic$lar HR !ractice% 'e& !er*or ance )a%ed !a,( .ill )e %een a% t,!ical o*

MNC% *ro !artic$lar #o e co$ntrie% '%$c# a% t#e US( and t#eir tran%*er to%$)%idiarie% .ill al%o )e %#a!ed ), t#e rece!ti"it, o* #o%t co$ntr, c$lt$ral condition%-In%tit$tionali%t a!!roac#e%0 a% di%c$%%ed earlier0 e/!lain t#e $!ta5e0 tran%lation orre1ection o* cor!orate HR !ractice% ), re*erence to t#e in%tit$tional condition% o*#o e and #o%t co$ntrie%- La%tl,0 icro@!olitical a!!roac#e% e !#a%i%e #o. t#e

!roce%%e% o* tran%*er are %#a!ed ), t#e action% o* or&ani%ational actor% %ee5in& to !ro ote t#eir intere%t% and t#o%e o* t#eir con%tit$ent% or !rinci!al%-

T#e inte&ration o* all t#ree a!!roac#e% allo.% Ed.ard% et al- '9;;?( to !ro"ide %!ace*or t#e a&enc, o* "ario$% H and %$)%idiar, ana&er%0 .or5er% and $nion%0 .#ilereco&ni%in& t#at an, *reedo to act i% con%trained or conditioned ), t#e in%tit$tionaland c$lt$ral c#aracteri%tic% o* di**erent national en"iron ent% and ar5et realitie%-W#ile .e %tron&l, %$!!ort Ed.ard% et al-


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!er%!ecti"e% to !ro"ide a ore !oliticall,@in*$%ed acco$nt o* t#e .or5!lace andor&ani%ational i !act o* IHRM #a% onl, rarel, )een reco&ni%ed '*or a recent e/a !le%ee0 Mir and S#ar!e '9;;>((- T#e core t#eor, o* t#e la)o$r !roce%% can )e %$ ari%ed

), re*erence to *o$r 5e, clai % 'T#o !%on0 78=8: S it# and T#o !%on0 788=( 7(t#e centralit, o* t#e la)o$r !roce%% 4 t#e .a, in .#ic# .or5 i% or&ani%ed i% a

%i&ni*icant %ite o* conte%tation )et.een la)o$r and ca!ital: 9( t#e de%5illin& i !erati"e 4 t#e or&ani%ation o* .or5 and t#e %5ill% re+$ired to )e de!lo,ed ), .or5er% arecon%tantl, )ein& c#an&ed and rene.ed ), ana&e ent0 o*ten0 t#o$ ), no ean%al.a,%0 .it# ad"er%e con%e+$ence% *or t#e %5ill% o* .or5er%: ( t#e control i !erati"e

4 ana&e ent t,!icall, %ee5% to %ec$re and e/tend control o"er t#e la)o$r !roce%%:and >( t#e %tr$ct$red anta&oni% relati"e a$tono , i !erati"e 4 relation% )et.eenla)o$r and ca!ital at t#e .or5!lace le"el are c#aracteri%ed ), %tr$ct$red anta&oni%alt#o$ t#e%e %tr$ct$ral intere%t% do not deter ine action and actor% t#ere*ore #a"e ade&ree o* a$tono ,- T#$%0 .#ile control co onl, &enerate% re%i%tance0 a .ide ran&eo* relation% are al.a,% !o%%i)le 4 acco odation0 co !liance0 con%ent a% .ell a%"ario$% *or % o* re%i%tance-

Recon%iderin& t#e HR %trate&ie%0 !olicie% and !ractice% o* MNC% t#ro$ t#i% len%%$&&e%t% a n$ )er o* ill$%trati"e line% o* en+$ir, and anal,%i% *or a ne. !oliticalecono , o* IHRM-

7- T#e introd$ction o* ne. HR !olicie% and !ractice% .ill t,!icall, i !act on0and )e %#a!ed ),0 *or % o* .or5 or&ani%ation- For e/a !le0 t#e introd$ctiono* tea .or5 .ill a**ect t#e ran&e o* ta%5% $nderta5en ), .or5er%0 t#e relation%

)et.een .or5er% and )et.een .or5er% and ana&er%0 t#e %5ill% re+$ired o*.or5er%0 t#e a$tono , and creati"it, o* .or5er%0 t#e role o* ana&e ent0 and%o on- T#e di**$%ion and de"elo! ent o* tea .or5 in MNC% and acro%%

)order% ore &enerall, .ill )e %#a!ed ), t#e nat$re o* co !etition in !artic$lar %er"ice !rod$ct ar5et% ' ar5et@)a%ed "aria)le%(0 national@c$lt$raland national@in%tit$tional *actor% %$c# a% tradition% o* collecti"i% and IR%,%te re&$lation o* e !lo,ee in"ol"e ent and !artici!ation 'cro%%@national"aria)le%( and t#e !o.er and in*l$ence o* MNC H 0 MNC %$)%idiar, anddo e%tic cor!orate ana&e ent elite% and $nion% ' icro@!olitical "aria)le%(-

9- HR !olicie% and !ractice% .ill #a"e di"er%e )$t di%tincti"e i !lication% *or t#e%5ill% o* .or5er%- T#e introd$ction o* detailed %tandard o!eratin& !roced$re%*or .or5ta%5%0 *or e/a !le0 a, red$ce t#e !ro)le @%ol"in& and tacit %5ill%re+$ired o* .or5er%0 )$t a, en#ance %o e o* t#eir tec#nical %5ill%- Trainin&0

HR de"elo! ent and or&ani%ation de"elo! ent !ro&ra % .#ic# a**ect %5ill*or ation .ill )e %#a!ed ), t#e cor!orate !olicie% o* MNC%0 t#e a$tono , o*%$)%idiarie%0 t#e %5ill %#orta&e% and de and% rele"ant to !artic$lar national0re&ional and &lo)al %er"ice !rod$ct ar5et%0 c$lt$ral condition% and national%5ill% and trainin& !olicie% a% .ell a% ), t#e !o.er o* $nion%0 %ectoral )odie%and e !lo,er a%%ociation% to in*l$ence !attern% o* %5ill de"elo! ent-

- HR !olicie% and !ractice% .ill tend to en#ance ana&e ent control o"er t#ela)o$r !roce%% and t#e or&ani%ation o* .or5- In t#e conte/t o* internationalHRM0 t#e control i !erati"e i% e%!eciall, in%tr$cti"e- It .a% noted earlier t#atHar in& '9;;>( #a% )een one o* t#e *e. IHRM %c#olar% .#o #a% e !#a%i%edt#e relation )et.een #ead+$arter% and %$)%idiarie% a% one o* control: MNC%

.ill o*ten $%e HR !olicie% and !ractice% in an atte !t to en#ance t#eir controlo"er %$)%idiar, o!eration% or !er*or ance- LPT %$&&e%t% t#at t#e relation%


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.it#in MNC .or5!lace% .ill al%o )e c#aracteri%ed ), control- T#e control@re%i%tance d,na ic0 !er#a!% t#e o%t i !ortant LPT eta!#or0 .#en a!!liedto IHRM %et% $! t#e !o%%i)ilit, o* anal,%in& t#e "ario$% relation% )et.een *o$r %et% o* actor% H ana&e ent0 H .or5er%0 local ana&e ent and local.or5er%- T#i% al%o %$&&e%t% t#e need to con%ider t#e e/tent to .#ic# t#e

!re"alence o* HR !ractice% !ro oted ), !ro inent MNC% in #o%t co$ntrie%co !el% do e%tic or&ani%ation% to *ollo. %$it 'i%o or!#i% ( or !$r%$edi%tinct %trate&ie% 'di**erentiation(-

>- T#e notion o* a de&ree o* a$tono , )ein& e/erci%ed ), actor% .it#in a*ra e.or5 o* %tr$ct$rall, anta&oni%tic intere%t% al%o #a% direct and i ediatea!!lication to IHRM- T#i% i% t#e %t$** o* or&ani%ational and .or5!lace le"elicro@!olitic% .#ic# IHRM need% to co !re#end and inter!ret- For e/a !le0.#ere a MNC introd$ce% a ne. cor!orate !er*or ance ana&e ent %,%te.it# a ne. ran&e o* detailed co on !er*or ance etric% *or co !an,@.idea!!rai%al%0 "ario$% intere%t% a, .ell )e t#reatened .#ile ot#er% it )een#anced- Fir%t0 t#e %,%te a, i !act on t#e intere%t% o* %$)%idiar, .or5er%.#o%e a$tono , and di%cretion it )e atten$ated ), t#e ne. ore e/actin&ea%$re ent o* t#eir ta%5 !er*or ance- Second0 t#e intere%t% o* localana&e ent it )e t#reatened ), centrall,@de*ined !er*or ance etric%%idelinin& local control and ana&e ent tec#ni+$e%- T#ird0 t#e intere%t% o* H.or5er% it al%o )e t#reatened 'or ad"anced( ), t#e e/!o%$re o* t#eir

!er*or ance to )enc# ar5% %et ), #i@!er*or in& %$)%idiarie%0 no. t#at$ni"er%al etric% *acilitate direct co !ari%on acro%% &eo&ra!#icall, di%!er%ed$nit%- Finall,0 t#e intere%t% o* H ana&e ent it )e ad"anced a% t#eirca!acit, to onitor and e"al$ate t#e !er*or ance o* %$)%idiar, ana&e enttea % and .or5er% ali5e i% en#anced t#ro$ t#e ne. %,%te - O* co$r%e0 t#e

!rinci!le o* relati"e a$tono , i !lie% t#at di**erent %cenario% are al.a,% !o%%i)le- Ne. !er*or ance ea%$re% it e+$i! local ana&e ent .it# t#edata to ar&$e t#e ca%e *or ore re%o$rce% to t#e )ene*it o* local ana&e entand .or5er% ali5e- Strate&ic icro@!olitical alliance% )et.een .or5er% andana&er% in t#e one %$)%idiar, it t#ere*ore e er&e- T#e cate&orie% o*la)o$r !roce%% t#eor, 4 control0 re%i%tance0 %5ill%0 a$tono , and %tr$ct$rall,anta&oni%tic intere%t% 4 can )e $%ed to e/tend o$r anal,%i% o* t#e nat$re andi !act o* !artic$lar HR %trate&ie%0 !olicie% and !ractice%-

CONC!USION

In t#i% c#a!ter .e #a"e re"ie.ed t#e in%tit$tionali%t t$rn in co !arati"e andinternational HRM- T#i% literat$re #a% tran%*or ed t#e *ield to t#e e/tent t#at .e donot )elie"e t#at it i% !o%%i)le to addre%% i%%$e% o* national di**erence% in HRM or t#etran%*er o* HR !ractice% in MNC% .it#o$t attention to t#e in%tit$tional conte/t- W#ilet#i% literat$re #a% !ro"ided %o e i !ortant in%it% into 5e, i%%$e% in co !arati"e andinternational HRM0 it i% no. %trainin& at t#e li it% o* t#e national )$%ine%% %,%tea!!roac# *ro .#ic# it .a% ori&inall, deri"ed- I* t#i% *ield i% to contin$e to ad"ance0.e #a"e ar&$ed0 it need% to &o )e,ond e%ta)li%#in& t#at in%tit$tion% and conte/t atter and e/a ine t#e interaction )et.een intere%t% and in%tit$tion%- One .a, t#at t#i%it )e ac#ie"ed i% t#ro$ a %,nt#e%i% o* t#e in%tit$tionali%t literat$re .it# t#e lar&e

)od, o* .or5 t#at lin5% IHRM to )$%ine%% %trate&,- In o$r "ie. t#ere are too an, !ro)le % .it# t#e %trate&ic literat$re a% it c$rrentl, %tand% *or t#i% to )e a !o%%i)ilit,-Rat#er0 .e ar&$ed #ere *or a ore a"o.edl, !olitical a!!roac# to co !arati"e and


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international HRM- HR !olicie% and !ractice% in t#e $ltinational *ir are not %i !l,t#e re%$lt o* !roce%%e% o* rational deci%ion@ a5in&0 in%tit$tional i%o or!#i% ornational@c$lt$ral deter ination- I* IHRM i% to !ro%!er and reac# it% critical !otentialt#en it need% to reco&ni%e a .ider ran&e o* rele"ant actor%0 incl$din& ana&er% and.or5er% in "ario$% MNC H 0 MNC %$)%idiar, and do e%tic or&ani%ational conte/t%-

It al%o need% to reco&ni%e t#at t#e action% o* t#o%e actor% are %#a!ed ), conte%tedcon%tr$ction% o* a d,na ic acro !olitical econo ,0 and a %erie% o* ar5et realitie%0a% .ell a% ), an or&ani%ational and .or5!lace en"iron ent t#at i% )ein& contin$all,re!rod$ced t#ro$ on&oin& !olitical %tr$&&le%-

NOTE

7 For a criti+$e o* Ho*%tede % odel %ee McS.een, '9;;9(- See al%o Ger#art andFan& '9;; ( *or a criti+$e o* it% a!!lication to #$ an re%o$rce ana&e ent-

F$rt#er Readin&%

Entr( Citation)

Hall0 Ric#ard0 and Nic5 Waile%- International and Co !arati"e H$ an Re%o$rceMana&e ent- he S 4 5andboo! of 5uman 6esource anagement - 9;;8- SAGEP$)lication%- 7 A!r- 9;7;- Q#tt! ...-%a&e@ere*erence-co #d)5 #$ anre%o$rce & t Article n=-#t l -

C#a!ter DOI 7;->7 8?=@7@= ?;@97>8@ -n=
http://www.sage-ereference.com/hdbk_humanresourcemgmt/FurtherReading_n8.htmlhttp://www.sage-ereference.com/hdbk_humanresourcemgmt/FurtherReading_n8.html

16.Hall, Richard, And Nick Wailes. International and Comparative Human Resource Management.

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Transcript of 16.Hall, Richard, And Nick Wailes. International and Comparative Human Resource Management.