Professional Documents
Culture Documents
IHRM Sec 2 - Organizational Context
IHRM Sec 2 - Organizational Context
IHRM
IHRM
Evolution
IHRM
Stages of internationalization
IHRM
IHRM
Export department
IHRM
Sales subsidiary
Replacing
foreign agents/distributors with own through sales or branch offices/subsidiaries May be prompted by:
Problems with foreign agents More confidence in international activities Desire for greater control Give greater support to exporting activities
PCNs
IHRM
Sales subsidiary
IHRM
International division
Creation
of a separate division in which all international activities are grouped Resembles miniature replica of domestic organization Subsidiary managers report to head of international division Objectives regarding foreign activities may determine approach to staffing of key positions
Expatriate management role of corporate HR
IHRM
International division
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of sheer size may prompt structural change to either of these global approaches Choice typically influenced by:
The extent to which key decisions are to be made at the parent country headquarters or at the subsidiary units (centralization versus decentralization) Type or form of control exerted by parent over subsidiary
IHRM
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IHRM
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The matrix
An
attempt to integrate operations across more than one dimension Violates Fayols principle of unity of command Considered to bring into the management system a philosophy of matching the structure to the decisionmaking process
IHRM
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The matrix
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Dual reporting
Proliferation of communication channels Overlapping responsibilities Barriers of distance, language, time and culture
IHRM
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Control mechanisms
Globalization brings considerable challenges which are often underestimated. Every morning when I wake I think about the challenges of coordinating our operations in many different countries
Quote by Accor CEO
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Control mechanisms
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And/or
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Interfirm linkages
Alliance
(strategic alliance, cooperative venture, collaborative venture or corporate linkage) A form of business relationship that:
Involves some measure on interfirm integration Stops short of a full merger or acquisition
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HR factors
HR
issues and activities that affect the successful functioning of international joint ventures include:
Assigning managers to the joint venture Evaluating their performance Handling aspects pertaining to career path Compensation benefits
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