A Typology of International Human Resource Management Strategies and Processes

Powerful Essays
Int. J. of Hutnan Re.source Management 17:4 April 2006 580-601
^ ^ ^ ^^^^^^^^^^^^^

13 Rootledge l^k f *|*IT I* I ranr n (ji^Jp

A typology of international human resource management strategies and processes

Michael Dickmann and Michael MUller-Camen
Abstract This paper develops a framework of international human resource management (lHRM) that moves bcyotid strategy and structtire to focus on proces.ses. The results of six case studies of large German multinational corporations in three countries show different conligurations of IHRM strategies and policies. International knowledge flows and coordination varied in intensity, content, direction and tiiechanistiis used. With 'cognofederate ' IHRM one type was identified that has been hitherto neglected. Keywords International human resource management; multinational corporations; strategy; processes; coordination.

Intruductinn: The search for competitive advantage The search for the elements of intetnational competitive advantage has been a prominent theme in the management literature ofthe past decades. In the 1960s, Perltnutter (1969) presented inliuetitial ideas on the international orientation of managers. One of his types, geocentrism. balances dotiiestic and international tensions. Even if it is po.ssible to be sitnultaneously globally efficient and locally responsive, this does not on its own make a multinational corporation (MNC) successful. Instead, many authors have identified innovation as one key to corporate success (Bartlett and Ghoshal, 1989; Hedlund and Rolander, 1990; Porter, 198. 'S; Pucik. 1992). The ideas of competitive strategies aitiiing at responsiveness, efficiency and innovation have been applied to the realm of internalional hutnan resource management {IHRM). A number of authors (e.g.. Adler and Ghadar. 1990; Schuler and Jackson, 1987) have argued that the underlying dimensions determining business strategy and structure can also be used in IHRM. Given the importance of IHRM.

You May Also Find These Documents Helpful

  • Satisfactory Essays

    The World is becoming broader less by every second. Unlikely to last centaury, going international seems not a big seen in today’s business world.…

    • 505 Words
    • 3 Pages
    Satisfactory Essays
  • Best Essays

    A review of literature on international HRM reveals three different approaches (Dowling et al., 1999, p.2): Comparative, Cross-cultural and multi-national. Firstly, according to Adler (1997), the early approaches to researching international HRM focused on cross-cultural differences and examination of human behaviour from an international perspective. Certainly, research on cross-cultural organizational behaviour has become a conduit for the understanding of the dynamics of multicultural domestic and international workplaces within the advent of globalisation.…

    • 1884 Words
    • 8 Pages
    Best Essays
  • Better Essays

    References: Dennis R. B., & Randall S. S. & Lisbeth C. (2009). International Human Resource Management: Policies and Practices for Multinational Enterprises, Third Edition. Routledge, Taylor & Francis Group Ltd. ISBN 0203866967…

    • 1086 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Briscoe D., Schuler R., Tarique I., (2011). Internatonal Human Resource Management : Policies and Practices for Multinational Entreprise.…

    • 1551 Words
    • 7 Pages
    Powerful Essays
  • Best Essays

    Strategic Hrm

    • 2434 Words
    • 10 Pages

    * Korte, Russell. (2007). Strategic international human resource management: Choices and consequences in multinational people management. Human Resource Development Quarterly , 18 (3), p443-448.…

    • 2434 Words
    • 10 Pages
    Best Essays
  • Good Essays

    Creating an effective global work force means knowing when to use "expats," when to hire "locals" and how to create that new class of employees -- the "glopats."…

    • 6272 Words
    • 26 Pages
    Good Essays
  • Best Essays

    First of all, we should define what International Human Resource (IHRM) is. Literature providea variety of definitions. Bhattacharyya (2010, p.241) defines IHRM as “the process of sourcing, allocating, and effectively utilizing human resources in multinational organization”. Author also states that main purpose of IHRM is “to enable companies, very often multinational corporations (MNC’s), to be successful globally”. Stahl & Bjorkman (2006, p.1) when defining IHRM also includes its importance to MNC’s “definition of IHRM covers a wide range of human resource issues facing MNC’s in different parts of their organizations”. A slightly different overview brings Torrington (1994:6) where he suggests that ‘In many ways IHRM is simply HRM on a larger scale; the strategic considerations are more complex and the operational units more carried, needing coordination across more…

    • 2207 Words
    • 9 Pages
    Best Essays
  • Powerful Essays

    Rosenzweig P and Nohria N (1994) Influences on human resource management practices in multinational corporations. Journal of International Business Studies 25(2): 229-51.…

    • 11971 Words
    • 48 Pages
    Powerful Essays
  • Good Essays

    In today’s society, there are corporations that are making huge profits from customers on a daily basis lining the pockets of Upper Management, CEO’s, and the Owners. The essential part to any company is the Human Resource Department also known as HR or HRM. This department aids in the training and development of its employees. The company is making an investment in its employees to maximize the benefits of its employees. One of a company’s most expensive assets is its human capital, the human resources of the organization. (ITAP International, 2010) An organization’s success depends on the knowledge, skills, and abilities of the employees. The Human Resource Department has come a long way in the last few years in becoming the “central part” or the nucleus of a company. Human Resource Management is the voice of both the employee and the employer. The relationship between human resources and management is becoming more collaborative. Human resource executives are beginning to earn a seat at the management table. (U. S. Office of Personnel Management, 1999)…

    • 5936 Words
    • 24 Pages
    Good Essays
  • Better Essays

    The environment in which business competes is rapidly becoming globalized. More and more companies are entering international markets by exporting their products overseas, building plants in other countries, and entering into alliances with foreign companies. Global competition is driving changes in organizations throughout the world. Companies are attempting to gain a competitive advantage, which can be provided by international expansion. Deciding whether to enter foreign markets and whether to develop plants or other facilities in other countries is no simple matter and many human resource issues surface. (Noe, Hollenbeck, Gerhart, and Wright; 534)…

    • 2507 Words
    • 11 Pages
    Better Essays
  • Best Essays

    Strategic Hrm

    • 3048 Words
    • 13 Pages

    Festing M (1997). International human resource management strategies in multinational corporations: Theoretical assumptions and empirical evidence from German firms. Manage. Int. Rev., pp. 517-521…

    • 3048 Words
    • 13 Pages
    Best Essays
  • Good Essays

    A global organization needs a transnational HRM system that features decision making from a global perspective, managers from many countries, and ideas contributed by people from a variety of cultures. Decisions that are the outcome of a transnational HRM system balance uniformity (for fairness) with flexibility. This balance and the variety of perspectives should work together to improve the quality of decision making. The participants from various countries and cultures contribute ideas from a position of equality, rather than the parent country’s culture dominating. Organizations that operate in more than one country must recognize that the countries are not identical and differ in terms of many factors. The four major factors affecting HRM are:…

    • 536 Words
    • 3 Pages
    Good Essays
  • Good Essays

    European Journal of Economics, Finance and Administrative Sciences ISSN 1450-2275 Issue 29 (2011) © EuroJournals, Inc. 2011 http://www.eurojournals.com…

    • 3719 Words
    • 15 Pages
    Good Essays
  • Powerful Essays

    Current international human resource management (IHRM) literature focusing on multinational corporations (MNCs) presents evidence of both similarities and differences in the HRM practices adopted in different global locations. However, the drivers behind this duality require more detailed investigation. This paper focuses on exploring why MNCs position themselves within global markets as they do, exploring how extant theory can help explain the drivers behind both global and national HRM practices. Based on a worldwide sample of in-depth interview-based case studies of well-known MNCs, we explore the ways in which different firms react to both institutional and competitive pressures in selecting their approach to HRM. The findings uncover a differentiation between external global competitive isomorphic pressures, external national institutional isomorphic pressures, and internal processes of strategic choice and competitive differentiation. It is suggested that MNCs face all three drivers of HRM simultaneously, leading to different patterns of practice adoption, adaptation and innovation.…

    • 9830 Words
    • 40 Pages
    Powerful Essays
  • Powerful Essays

    Globalization trends have prompted multinational companies within the human resources of transnational transfer for fast and effective local response to reach the target of transnational business. International human resources management must be elevated to a strategic level to explore and environmental factors of international business strategy can be combined to a lasting victory. International Human Resource Management is an important guarantee for multinational corporations operating overseas success and there is a multinational question very worthy of study.…

    • 3278 Words
    • 14 Pages
    Powerful Essays