Chapter 13: IHRM

Question 1

Globalization

Answer 1

The transition from local or regional activities to global activities

Question 2

Internationalization

Answer 2

The expansion of business activities, products, services, and markets of an organization to other countries

Question 3

IHRM

Answer 3

HRM in MNCs and HRM across borders

often closely related to MHRM and SHRM

Question 4

Brewster et al. 2 paradigms

Answer 4

1. Universalist paradim - assumes the existence of best practices in HRM that can be applied by orgs succesfully worldwilde
2. Contextual paradigm - assumes that there might be some general best brinciples in HRM, but the organizational context in the end determines the nature of the specific HRM practice

Question 5

Cultural map

Answer 5

presents the differences and similarities of countries on different dimensions

Question 6

Hofstede dimensions

Answer 6

1. Individualism - the degree to which individuals look out for themselves first and the org and society next
2. Masculinity
3. Power distance
4. Uncertainty avoidance
5. Confucianism // Long-term /short -term orientation
6. Indulgence / restrain

Question 7

Institutional differences

Answer 7

The difference between countries based on legislation, procedures, and stakehoders

Question 8

Global HR strategy

Answer 8

1 corporat people management strategy applied to all units of an MNC across the world

Question 9

Local HR strategy

Answer 9

A people management strategy within an MNC adapted to national or regional contextual factors

To some extent org have no choice in applying local HR policies

Question 10

what is one of the most challenging issues for expatriates?

Answer 10

cross-cultural adjustment

Question 11

ESP (expatriate support systems)

Answer 11

helps expatriates prepare to transfer

According to Blanco, an ESS may include:
educational programs for developing multicultural skills,
mentorship during the first period abroad
short travel programms to the country
info sharing and communication about schools, etc

Question 12

Necessary conditions for knowledge transfer across borders

Answer 12

1. existance of an info and comminication network
2. Access to the network for employees
3. Employee knowledge and skills to operate the knowledge inforrmation system
4. willingness to shar knowledge and experiences
5. cross-cultural awareness and good communication

Question 13

Outsourcing

Answer 13

Subcontracting business activities to external countries

Key drivers: cost reduction, and a renewed strategic focus on core businesses

Question 14

Offshoring

Answer 14

The relocation of business activities to other countries or regions

Key drivers: cost reduction

-> call centres, manufactoring, and supporting processes

Question 15

Offshore outsourcing

Answer 15

The subcontracting and relocation of business activities to an external companies in other countries or regions

Question 16

main conclusions of a report of the Organisation for Economic Cooperation and development (OECD)

Answer 16

• > primary motivation for offshoring: cut costs
• > skilled jobs are no longer safe from being offshored
• > offshoring is increasingly spreading to knowledge-intensive and technology intensive industries
• > China and India - main countries

-> All industries are affected by offshoring but industrial sectors that have downsized their
workforce the most are not the ones that have engaged in offshoring the most

-> Offshoring by European companies is responsible for less than 5 per cent of total job losses in
Europe, far behind bankruptcies, shut-downs and organizational restricting.

Question 17

HRM risks related to expatriates

Answer 17

war
natural disasters
political instability
acts of terrorism
kidnapping
traffic accidents

Question 18

The strategic relevance includess all 3 elements of balanced approach:

Answer 18

1. org performance
2. societal well-being
3. individual well being (+ health and fairness)