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Exhibit 10.8: IHRM Orientation and IHRM Practices for Managers and Technical Workers

Exhibit 10.8: IHRM Orientation and IHRM Practices for Managers and Technical Workers

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Exhibit 10.8: IHRM Orientation and

IHRM Practices for Managers and

Technical Workers



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Exhibit 10.8: IHRM Orientation and

IHRM Practices for Managers and

Technical Workers



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Multinational Strategy and

IHRM

•• Ethnocentric

Ethnocentric IHRM:

IHRM: all

all aspects

aspects ofof HRM

HRM for

for managers

managers

and

and technical

technical workers

workers tend

tend toto follow

follow the

the parent

parent

organization’s

organization’s home-country

home-country HRM

HRM practices

practices



Copyrightâ 2005 South-Western/Thomson Learning All rights reserved



Benefits of Ethnocentric IHRM

Little

Little need

need toto recruit

recruit qualified

qualified host

host country

country nationals

nationals for

for

higher

higher management

management

•• Greater

Greater control

control and

and loyalty

loyalty ofof home

home country

country nationals

nationals

•• Key

Key decisions

decisions centralized

centralized



Copyrightâ 2005 South-Western/Thomson Learning All rights reserved



Costs of Ethnocentric IHRM

May

May limit

limit career

career development

development for

for host

host country

country

nationals

nationals

•• Host

Host country

country nationals

nationals may

may never

never identify

identify with

with the

the

home

home company

company

•• Expatriate

Expatriate managers

managers are

are often

often poorly

poorly trained

trained for

for

international

international assignments

assignments and

and make

make mistakes

mistakes

•• Expatriates

Expatriates may

may have

have limited

limited career

career development

development

Copyright© 2005 South-Western/Thomson Learning All rights reserved



Regiocentric and Polycentric

IHRM

•• Regiocentric

Regiocentric IHRM:

IHRM: region-wide

region-wide HRM

HRM policies

policies are

are

adopted

adopted

•• Polycentric

Polycentric IHRM:

IHRM: firm

firm treats

treats each

each country-level

country-level

organization

organization separately

separately for

for HRM

HRM purposes

purposes

•• Greater

Greater responsiveness

responsiveness toto host

host country

country differences

differences



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Benefits of Polycentric and

Regiocentric HRM Policies

•• Reduces

Reduces costs

costs for

for training

training ofof expatriate

expatriate managers

managers from

from

headquarters

headquarters

•• No

No investment

investment inin language

language training

training

•• Fewer

Fewer problems

problems with

with adjustments

adjustments toto local

local cultures

cultures

Less

Less expensive

expensive



Copyrightâ 2005 South-Western/Thomson Learning All rights reserved



Costs of Polycentric and

Regiocentric IHRM Policies

•• Coordination

Coordination problems

problems with

with headquarters

headquarters

•• based

based on

on cultural,

cultural, language,

language, and

and loyalty

loyalty differences

differences

•• Limited

Limited career-path

career-path opportunities

opportunities for

for host

host country

country and

and

regional

regional managers

managers

•• Limited

Limited international

international experience

experience for

for home

home country

country

managers

managers



Copyrightâ 2005 South-Western/Thomson Learning All rights reserved



Global IHRM Orientations







Recruiting

Recruiting and

and selecting

selecting worldwide

worldwide

Assigning

Assigning the

the best

best managers

managers toto international

international

assignments

assignments regardless

regardless ofof nationality

nationality



Copyrightâ 2005 South-Western/Thomson Learning All rights reserved



Global IHRM Orientations

Benefits

Benefits

Bigger

Bigger talent

talent pool

pool

•• Develops

Develops international

international expertise

expertise

•• Helps

Helps build

build transnational

transnational organizational

organizational cultures

cultures

•• Costs

Costs

•• Importing

Importing managerial

managerial and

and technical

technical employees

employees not

not

always

always possible

possible

•• Added

Added expense

expense

Copyrightâ 2005 South-Western/Thomson Learning All rights reserved



IHRM Orientation and

Multinational Strategy

Early

Early stages

stages ofof internationalization—ethnocentric

internationalization—ethnocentric

IHRM

IHRM

•• Multilocal

Multilocal strategies—ethnocentric

strategies—ethnocentric or

or regiocentric

regiocentric

•• Regional

Regional strategy—regiocentric,

strategy—regiocentric, polycentric

polycentric or

or global

global



Copyright© 2005 South-Western/Thomson Learning All rights reserved



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Exhibit 10.8: IHRM Orientation and IHRM Practices for Managers and Technical Workers

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