International and Comparative Human Resource Management - International... · International and...
Transcript of International and Comparative Human Resource Management - International... · International and...
International and Comparative Human
Resource Management
Introduction to the Module
Module Tutor:
Rosliana Binti Ahmad Razilan
email: [email protected]
Learning Outcomes
On successful completion of this module you will be
able to:
Demonstrate an understanding of the reasons for the existence of key
similarities and differences in national HRM practices (Knowledge and
Understanding)
Critically evaluate the potential people management problems
(Intellectual, practical, affective and transferable skills)
Critically analyse a range of tasks and techniques used when
undertaking comparative HRM studies (Intellectual, practical, affective
and transferable skills)
Main Themes
Globalisation and TNCs/MNCs and the current and future trajectory of HRM
Concepts and debates about the international transfer of HRM practice (Policy diffusion)
Debates and ideas about international employee resourcing – staffing, performance management, development and rewards
Institutions, regimes, ideas and debates about the international regulation and management of Human resources, including, Corporate Social responsibility
Assessment for this module consists of one
part
Written paper 3000 word limit
Submission 8th May 2014 5pm
Write a 3000 word paper which critically
evaluates a range of potential strategic
problems facing Human Resource Managers
operating in multi-national companies.
See Module guide (pages 6-10 for details about the
assignment, including; assessment criteria,
submission guidelines, etc.
Readings (1) – Books
Brewster, C, Sparrow, P, and Vernon, G (2007): International Human
Resource Management 2nd edition. London, CIPD Publishing
Briscoe, Dennis R, Schuler, Randall, S and Claus, Lisbeth (2008):
International Human Resource Management: Policy and Practice for
Multinational Enterprises (Global HRM) 3rd edition London Routledge
Beardwell and Holden (Various editions): Human Resource
Management. Harlow, Prentice Hall/FT
Edwards, T. and Rees, C. (2011, 2006), IHRM: Globalisation, National
Systems London: FT. London: Sage,
Dicken, P. (2007) Global shift: Mapping the Changing Contours of the
World Economy (5th edition.), London: Sage
Dicken, P. (2003) Global shift: Reshaping the Global Economic Map in
the 21st Century (4th edition.), London: Sage
Rubery, J. and Grimshaw, D. (2003) The Organisation of Employment:
An International Perspective. London: Palgrave
Harzing, A. and Pannington, A. H. (eds.) (2011)) International Human
Resource Management (3rd Edition), London: Sage
Harzing, A. and van Ruysseveldt, J. (eds.) (2004) International Human
Resource Management (2nd Edition), London: Sage.
Scullion, H. and Lineham, M., (Eds.) (2005) International Human
resource management, Basingstoke: Palgrave Macmillan
Rugman, A., Collinson, S. and Hodgetts, R. (2006) International
Business, 4th Edition. Harlow: FT Prentice Hall
Readings (2) Book
Reading: Journals
European Business Review,
Human Resource Management Journal,
IDS Employment Europe,
Personnel Review,
International Journal of Manpower,
Employee Relations,
Journal of European Industrial Training,
International Journal of Human Resource Management
International Journal of Cross Cultural Management
European Journal of International Management
European Journal of Industrial Relations
Human Resource Management Journal
Journal of International Business Studies
Asia Pacific Journal of Human Resources
Reading: Journals
International and Comparative HRM
Week 1
The Globalisation of International Human
Resource Management
Alhajie Saidy Khan
Lord Ashcroft International Business School
Lecture outline
Lecture focuses upon the:
Historical developments in
international economic activity
What is Globalisation? The
definitional debate
Key characteristics of Globalisation
Globalisation: a critical perspective
Nature and dominance of MNCs
Globalisation, MNCs and
international transfer of practice
Globalisation: the historical context (1)
Historical developments in the World economy:
Long history of international trading relations
Importance of colonial expansion (C17th & C18th)
Manufacturing multinationals appeared in world economy after mid
C19th and established by WWI Annual growth of volume of international
trade of 3.4% 1870-1913.
Impact of protectionism prior to WWI; fall in world trade in 1930s
following Depression; WWII.
(Hirst and Thompson 1996, Chapter 2; Harzing & Ruysseveldt, 2004/5, 2011)
Globalisation: the historical context (2)
Post War developments in the World economy
USA domination: economic development as instrument of the cold war)
International institutions (GATT, IMF, OECD)
Exchange rate system
‘Golden Age’ by 1950s and 1960s volume of trade increasing more rapidly than production, rapid economic growth and full employment
(see Bretton Woods Revisted - Economist 9.7.1994 )
Key indicators of Economic
Internationalisation
Trends on international trade: the data(next slide
Phenomenon of Regional trading blocs and
increase in regional trade
Foreign Direct investment
Economic liberalisation
Dominance of TNCs
Growth in World production and
trade (% in volume)
Trade Production
12
10 8 6 4 2 0
1950-63 1963-73 1973-90 1990-01
(WTO, 2002)
Theories of determinants of
economic internationalisation
Theory of Absolute advantage (Adam Smith, 1776)
Relative advantage Theory (Ricardo, 1917)
H-O theorem – differences in factor endowment (Ohlin, 1933)
Porter’s 6 criteria theory of comparative and competitive advantage (1990)
Dunning’s Eclectic paradigm (2003)
See various editions of Edward and Rees
Internationalisation vs. globalisation
Internationalisation: the simple extension of economic
activities across national boundaries.
Globalisation qualitatively different processes that
involve the ‘functional integration of internationally
dispersed activities’
(Dicken, 2003, 2007, 2011)
Globalisation: a qualitative
explanation
Globalisation as qualitatively different form of international economy?
Deep-seated (irreversible) shift in structure and operation of production and markets
Undermining of nation-states as significant economic actors
Cultural Homogeneity or dominance without hegemony?
Global corporations (TNCs/MNCs) with no allegiance to any particular place and or community
(Dicken 2011, 2007, 2003)
Or, Globalisation as illusion
No fundamental changes in world economy
World economy more open and integrated 1870-1913
Global markets can be controlled by mixture of national/supranational regulation
Importance of cultural differences (Child 2002)
Relatively few truly international companies and concentration of FDI among advanced economies
(Dicken, various eds.; and Hirst and Thompson)
Characteristics of Globalisation
Uneven development and rate of globalisation
Key role of Multi/Transnational Corporations (MNCs/TNCs) in coordinating production chains and shaping new world economy
Foreign direct investment (FDI) as indicator of MNC/TNC activity and the growth of international production
Dynamic relationship between MNCs/TNCs and national (or supranational) regulatory regimes and growth of product market competition
(Dicken, 2003, 2007, 2011)
Dominance of Multi/Transnational
Corporations
What is Multi/Transnational Corporation?
Narrow Definition
direct ownership of operations overseas measured by FDI (foreign direct
investment)
Broad Definition
‘a company which either directly or indirectly controls production or service provision in two or more countries’
covers licensing, franchising, sub-contracting, joint ventures and strategic alliances as well as FDI
Significance of Multi/Transnational
Corporations (1)
TNCs are driving force behind internationalisation of
economic activity
Dominate international and national economies
Ability to take advantage of differences between states
Ability to shift resources and operations between countries
According to the UN, the stock of FDI had increased from
$560 billion in 1980 to $7,213 billion in 2002 (about $12,500
billion in 2006).
UNCTAD, 2006
MNCs/TNCs: from investment to Global control
By 1997 the UN estimated that 53,607 parent TNCs had
controlled 448,917 foreign subsidiaries, producing about 25%
of world output
In 2002, the top 100 TNCs employed over 14.3 million
workers of which just under half worked in their foreign
affiliates in 2002 (UNCTAD)
By 2004 the UN estimated that 61,000 parent TNCs had
controlled over 900,000 foreign subsidiaries, generating
annual sales of $19 trillion and employing around 54 million
people.
MNCs/TNCs and Sovereign states
Companies vs Countries (1997)
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Micro-level explanation for why Firms go ‘multinational’
Competitive strategies for product markets Gain market power by overcoming disadvantage of being
seen as foreign)
efficiency - possessing a strategic or ownership (benefits of
which can only be realised through internal transfer within
firm)
Factor Supply
Raw materials supply (secure control)
‘Transfer pricing’ strategies.
Labour supply (cheapest labour costs, ability to divide and
rule); but issues of labour costs as proportion of total costs
and productivity
Motivations for internationalisation: Dunnings’s Eclectic paradigm
Theory of synthesis of 3 conditions:
They possess ownership-specific advantages not possessed by competing firms (in host country)
Advantage most effectively secured by production overseas
(c.f. selling or leasing) i.e the firm internalises use of ownership-specific advantages
There must be location-specific advantages which make it
profitable for the firm to exploit its assets in overseas (c.f. domestic) locations
Internationalisation: Contradicting demands of centralisation and decentralisation
Centralised control: benefits of co-ordination and control
activities across divisions and countries) e.g. McDonalds
Decentralised control: benefits of local autonomy and
ability to respond to local conditions & optimise local
expertise
But are they mutually exclusive?
Different issues require different levels of decision-making
and response.
The scope for differences could, however, define differences
between TNCs
Country of origin effects and transfer of practice
Some evidence of TNCs becoming more global (spread
of international business divisions, management teams etc.)
Evidence of TNC reorganisation within EU (mergers,
acquisitions, joint ventures and strategic alliances)
Crucially most TNCs rooted in home country
Location of majority of assets
Management board dominated by home nationals
Finance largely raised in home country
Globalisation, MNCs and International transfer of practice
Globalisation as a process which has led to ‘regime
competition’ between national capitalisms
TNCs as ‘proxies’ in the competition between highly
regulated and highly deregulated systems (of employment
relations)
Do multinationals act as vehicles for transmitting HR/IR
practices from the parent country.. to the host countries in
which they operate, or do they attempt to drop what they see
as the constraining elements of their business systems once
they leave their own borders? (Ferner, 1997:20)