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o Organisational structure and design o IHRM and global organisational design o Research on structure and performance of the MNE o The global learning organisation: The tie that binds
Factors contribute to the complexity of international business (IB) o Number of countries involved o Protection of foreign investments o Political uncertainty o Competitors o Operational differences abroad
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Eight forms of internationalisation 1. Internationalisation through export 2. International division or global product division 3. Multi-country/multi-domestic strategy 4. Regionalisation 5. The global firm 6. The transnational firm 7. The born global firm 8. The globally integrated enterprise
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International / global product division o International division (service-oriented) o Global product division (productoriented) o International responsibilities of the HR department can expand dramatically and become much more complex, including:
International assignment, development of HRM policies, practices, strategic decisions for foreign operations
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Regionalisation
o Conducting an international business on a regional basis o In only one or two regions, e.g., Europe or Asia o Manage HR from a regional headquarters
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The 21st Century globally integrated enterprise oIntegrated approach to deliver value to employees and customers worldwide oTalent and expertise within the MNE flow to where it creates most value
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o Not involving in setting up of directly owned subsidiary o IHR makes sure human rights of workers and OH&S are maintained in the productions
Outsourcing
Another form of subcontracting Contract out a/number of business process(es) to overseas firms Reasons for reducing costs, improving quality, freeing firms resources for greater focus on core competencies Directly linked to business management due to importance of the outsourced operations Very much involving IHR in planning, managing and execution of international assignments, business travel, training
Off shoring
Involving relocation of one or more business processes of a firms to another country For lowering costs Offshore process is still operated by the firms personnel but in an offshore location Same HR responsibilities as those in the parentfirm except under different legal system and influence of other national culture HR mostly dealing with employee satisfaction, recruitment & retention in wake of damaged staff morale caused by threats of off-shoring
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Wholly-owned subsidiary
o Own sale offices in foreign countries where sales are large o Own manufacturing factories in foreign countries to assemble and/or manufacture products o Managed by a sales manager from parentcompany o HR in HQs involved in matters related to international assignees and foreign employees
Mergers & Acquisitions oA preferred entry method oTo consolidate the scope of business activities and parent-firms position in global market oIHR input is important in:
pre-merger due diligence post merger integration
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o Additional factors
Coordination mechanisms
o Balance parent-firm HQs policies with local approaches o Reduced size of business units o Informal linkages o Global networks
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Research on structure and performance of the MNE - Empirical shortcomings o Manufacturing industry slant o More emphasis placed on strategy issues rather than management and organization issues o Failure to capture temporal context
The global learning organization: The tie that binds - Knowledge is power o Intellectual and social capital o Knowledge sharing o Facilitate learning on a global basis o Utilise full skill sets
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