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Stahl-Björkman-Morris def. of IHRM

Stahl-Björkman-Morris def. of IHRM

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For use with International Human Resource Management 6e

By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.



ISBN-10: 1408032090

© Cengage Learning



12 of 32



Chapter 1



Domestic vs. international



IHRM is more complex than

domestic HRM

IHRM has …

1. more HR activities

2. a need for a broader perspective

3. more involvement in employees’ personal lives

4. changes of emphasis as

the mix of expatriates & locals varies

6. broader external influences

For use with International Human Resource Management 6e

By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.



ISBN-10: 1408032090

© Cengage Learning



13 of 32



Chapter 1



5. more risk exposure



IHRM has international HR activities

■ International taxation

■ International relocation & orientation

■ Administrative services for expatriates

■ Host-government relations



For use with International Human Resource Management 6e

By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.



ISBN-10: 1408032090

© Cengage Learning



14 of 32



Chapter 1



■ Language translation services



International relocation involves:

■ Arranging for pre-departure training

■ Providing immigration & travel details

■ Providing housing, shopping, medical care,

recreation & schooling information

■ Finalizing compensation details such as:



For use with International Human Resource Management 6e

By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.



ISBN-10: 1408032090

© Cengage Learning



15 of 32



Chapter 1



 Delivery of salary overseas

 Determination of overseas allowances

 Taxation treatment



For use with International Human Resource Management 6e

By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.



ISBN-10: 1408032090

© Cengage Learning



16 of 32



Chapter 1



Variables that moderate the differences



Four more moderators

in addition to IHRM complexity

1. The cultural environment

2. The industry(ies) with which the MNE is

primarily involved

3. The extent to which the MNE relies on

its HC domestic market



For use with International Human Resource Management 6e

By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.



ISBN-10: 1408032090

© Cengage Learning



17 of 32



Chapter 1



4. The attitudes of senior management



For use with International Human Resource Management 6e

By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.



ISBN-10: 1408032090

© Cengage Learning



18 of 32



Chapter 1



Figure 1.3

A model of all 5 variables that moderate the differences

between domestic and international HRM



For use with International Human Resource Management 6e

By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.



ISBN-10: 1408032090

© Cengage Learning



19 of 32



Chapter 1



The cultural environment



Culture matters

■ Culture shock

■ Emic ≠ etic



For use with International Human Resource Management 6e

By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.



ISBN-10: 1408032090

© Cengage Learning



20 of 32



Chapter 1



■ Convergence hypothesis research

tends to focus on macro level

■ Divergence hypothesis research

tends to focus on micro level

■ The international HR manager must be

aware of cultural differences



For use with International Human Resource Management 6e

By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.



ISBN-10: 1408032090

© Cengage Learning



21 of 32



Chapter 1



Industry type



The MNE industry type continuum

An MNE performs somewhere in this range:

Multidomestic Industries



airlines, semiconductors, copiers



International strategy

Collapses to a

series of domestic strategies.



For use with International Human Resource Management 6e

By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.



Must integrate activities on a

worldwide basis.



ISBN-10: 1408032090

© Cengage Learning



22 of 32



Chapter 1



Examples

retailing, distribution, insurance



Global Industries



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Stahl-Björkman-Morris def. of IHRM

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