IHRM CHP 1 & 2 - GROUP ZI LIN, EVVON, KAMIL & RAIN by Louise https://padlet.com/louiseozl27/v7w783azv9pqxdo9 IHRM en-us 2023-03-02 23:47:24 UTC 2026-02-17 16:34:55 UTC hello@padlet.com https://padlet.net/icons/png/1f602.png CHP 1 - INTRODUCTION (IHRM) louiseozl27 https://padlet.com/louiseozl27/v7w783azv9pqxdo9/wish/2501858562 IHRM Definition

-Refers to the process of managing people in a multinational organization, including the recruitment, selection, training, and development of employees who are working in different countries and cultures.

-It also involves addressing the unique challenges that arise in managing a global workforce, such as adapting to local laws and regulations, managing diverse workforces, and dealing with cultural differences.

-IHRM aims to align HR practices with the strategic goals of the organization, while also ensuring that the needs and expectations of employees are met.


Differences between domestic and international HRM

Domestic HRM

-process of procuring, allocating and effectively utilising the HR in local countries.

-operates within the national borders

-concerned with managing employees belonging to one nation

-less complicated

-concerned about managing limited number of HRM activities at national levels

-HR managers in domestic environment administer

International HRM

-A set of activities aimed managing organizational HR at international level to achieve organizational and achieve competitive advantage over at national and international level.

-operates beyond national borders

-concerned with managing employees belonging to many nations (home country, host country and 3rd country employees)

-very complicated as it involved external factors such as cultural distance and institutional factors

-concerned with managing additional activities such as expatriate management

-HR managers working international


Variables that moderates differences between domestic and international HRM

-The cultural environment
People from different culture work together peacefully unlike other countries like Japan etc

-Extend of reliance of multinational on its home
The person which are very reluctant for going to work on that country as the culture does not suits the person and he also having language problem

-Industry within which the MNC is primarily involved
It is not suitable for giving the foreign workers to work others that they couldn't as they might not understand as well due to the knowledge different that received by both countries

-Attitudes of senior management
Seniors must understand to be a fair person unlike some superiors like to assign many tasks to the newbies if they felt not interesting to the tasks that had given

-Complexity involved in operating in different countries and employing different national categories of employees
Major of the foreign countries always treat the workers that come from other countries differently and they frequently met the cases such as raping, get killed and others etc]]> 2023-03-03 00:11:28 UTC https://padlet.com/louiseozl27/v7w783azv9pqxdo9/wish/2501858562 CH 2- The organizational context https://padlet.com/louiseozl27/v7w783azv9pqxdo9/wish/2502450767  

The path to global status
Organizational structures change due to:

1. Growth or contraction of the organization: Changes in the size of an organization can require adjustments to its structure. For example, if a company grows rapidly, it may need to adopt a more hierarchical structure to maintain control and coordination.
2. Technological advancements: Changes in technology can require organizational structures to adapt to new ways of working
3. Mergers and acquisitions: When companies merge or are acquired, their organizational structures may need to be combined or reorganized to align with the new entity's goals and objectives.
4. Globalization: As organizations expand their operations globally, they may need to adapt their structures to accommodate cultural and regulatory differences in different markets.


Stages of internationalization
1. Exporting: The company begins by exporting its products or services to international markets using agents, distributors, or e-commerce platforms.
2. Licensing and franchising: The company licenses or franchises its intellectual property or business model to partners in other countries to expand its market reach
3. sales subsidiary is -  business entity that is established by a company in a foreign country to sell its products or services directly to customers in that country. A sales subsidiary is often used as a way to enter and establish a presence in a foreign market, and it may be necessary if the company's sales volume in that market reaches a certain threshold.
4. Foreign production is one of the later stages of internationalization, where a company establishes a physical presence in a foreign market through direct investment in production facilities.
5. Subcontracting is a business strategy that may be used in the earlier stages of internationalization, where a company outsources some of its production or service functions to local suppliers in a foreign market.

MNEs’ two major issues of structure
1. Control: MNEs need to balance centralization and decentralization of decision-making to ensure effective control over their global operations. If decision-making is too centralized, local subsidiaries may feel disconnected from the parent company's strategy and vision. However, if decision-making is too decentralized, the parent company may lose control over critical aspects of its global operations, such as brand management and intellectual property.

2. Coordination: MNEs operate in multiple countries with diverse cultures, languages, and business practices. This creates coordination challenges, particularly in areas such as marketing, supply chain management, and product development.

Management involves less hierarchical structure and
features 5 dimensions:
1. Complexity: The matrix structure can be highly complex, with multiple reporting lines and a complex web of relationships between functional teams, project teams, and geographical regions.
2. Conflicting priorities: With team members reporting to both functional and project managers, there can be conflicting priorities and demands placed on employees. 
3. Communication breakdowns: In a matrix structure, communication can become more complicated and challenging. Team members may have different reporting lines and may not always be physically co-located, making it more difficult to share information and maintain alignment.

The role of MNE culture of origin

The culture of origin of a multinational enterprise (MNE) can play a significant role in shaping its organizational culture, decision-making processes, and management style. The culture of origin refers to the social norms, values, beliefs, and practices of the country where the MNE was founded and where its headquarters are located. The culture of origin can influence the following aspects of an MNE of  Organizational culture, Decision-making processes and Management style







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