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What three broad approaches is IHRM characterised by?

Cross cultural management
Comparative HR and IR systems
HRM in multinational context


What is HRM?

Human resource planning
Staffing (recruitment, selection and placement)
Performance management
Training and development
Compensation (remuneration) and benefits
Industrial relations


What is Morgan's 3D model of IHRM?

1. Broad human resource activities of procurement, allocation and utilisation
2. National or country categories involved in IHRM activities
(i.e. host country where subsidiary is located, parent country where firm is headquartered, other countries that may be source of labour, finance etc)
3. The three categories of employees of international firm
(i.e. host, parent and third country nationals)


What are some similarities between domestic and international HRM?

Both undertake HR activities, (hr planning, staffing, performance management, T&D, compensation and benefits, industrial relations)


What is an expatriate?

Staff that is moved across national boundaries into various roles within international firms operations


What are the main differences between domestic and international HRM?

- Staff are moved across national boundaries
- IHRM has more HR activities (international taxation, relocation and orientation, administrative services for expatriates, host government relations, language translation services)
- More involvement in employees personal lives
- Risk exposure
- Broader external influences
- Change in emphasis as workforce mix of expatriates and locals varies
- Cultural environment and differences
- Multinational industries
- Extent of reliance of multinational on home country domestic market
- Attitudes of senior market


Why are tax equalisation policies in place for expatriates?

Expatriates are subject to international taxation and often have domestic and host country tax liabilities.
Tax equalisation in place to ensure no tax incentive or disincentive associated with any assignment


What is involved in international relocation and orientation?

Arranging pre departure training
Providing immigration and travel details
Providing housing, shopping, medical care, recreation and school info
Finalising compensation details (delivery of salary overseas, overseas allowances, tax treatment etc)


What are some of the things involved with risk exposure for IHRM?

- Extreme high costs of expatriate failure and premature return
- Terrorism attacks (need to assess areas, devise emergency procedures)
- Sickness/outbreaks (SARS etc)


What are some of the broader external influences?

Government (dictating hiring policies, communism)
State of the economy
Ways of doing business in different countries (gift giving, not shaking left hand etc)


What is culture shock?

Phenomenon experienced by people who move across cultures.
Shock in relations to new culture experiences that cause psychological disorientation.


What can culture shock lead to?

Negative feelings about host country and longing to return home.


What is emic-etic distinction?

Emic = Cultural specific aspects of concepts or behaviours
Etic = Culture common aspects


What is a multidomestic industry?

One in which competition in each country is essentially independent of competition in other countries.
e.g. Retail, insurance,


What is a global industry?

One in which a firms competitive position in one country is significantly influenced by position in other countries.
e.g. airlines, semiconductors and copiers


What are Laurent's steps for IHRM?

Recognition by parent organisation that:
1. its way of managing HR reflect some assumptions and values of home culture
2. that its ways are neither universally better or worse, just different
3. its foreign subsidiaries may have other preferred ways of managing people, that could be more effective locally
4. Willingness from headquarters to not only acknowledge but take active steps in order to make cultural differences more usable
5. Building of genuine belief of all parties involved that more creative and effective ways of managing people could be developed through cross culture learning


What are the 4 basic elements of culture derived from Hansen?

Standardisation of:


What is cross cultural management studies?

Aims to describe and compare the working behaviour in various cultures.


What is the aim of cross cultural management studies?

Aim is to include suggestions on improving interactions between members of various cultures


What are the four underlying dimensions of country cultures identified in Hofstede's model?

Power distance
Uncertainty avoidance
Femininity vs masculinity
Individualism vs collectivism


What is the power distance dimension in Hofstede's model?

Expresses emotional distance between employes and superiors. High power distance = hierarchical organisation structure, low power distance = aspiring to equal power.
China has higher score than Australia. Chinese people very much respect elders and seniors in business sense.


What is the uncertainty avoidance dimension in Hofstedes model? Examples

Extent to which member feel threatened by uncertain, ambiguous or unstructured situations. High UA = strict beliefs, behaviour codes and rules and regulations. Low UA = High tolerance for deviations. Example Australia has high UA, lots of laws, legislation etc. China has low


What is femininity vs masculinity in Hofstedes model? Examples?

Masculinity = pursuit of financial success, heroism and strong performance
Feminine oreintation = life balance and interpersonal relationships
China slightly higher as males play a larger role then females


What is individualism vs collectiveism in Hofstedes model?

The importance of personal achievements and needs against the needs of the group. In China they are under communist rule so they value group more than individual as opposed to australia


What are some impacts of low in group collectivism on recruitment and selection?

Individual achievements represent high importance on selection criteria


What are some impacts of high in group collectivism on recruitment and selection?

Emphasis in recruiting phases on team related skills rather then individual competencies


What are some impacts of low gender egalitarianism on training and development?

Female managers rare


What are some impacts of high gender egalitarianism on training and development?

Women have same chance as men


What are some impacts of high uncertainty avoidance on compensation?

Be risk adverse and prefer fixed compensation packages


What are some impacts of low uncertainty avoidance on compensation?

Risk takers and accept high income variability through performance pay