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International Human Resource Management

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Title: International Human Resource Management


1
IHRM Chapter 3
International Human Resource Management
Managing people in a multinational context
The context of cross-border alliances and SMEs
2
Chapter Objectives
  • We learn about
  • Global perspective on IHRM with external partners
  • Cross-border alliances
  • Equity-based alliances (MAs, IJVs)
  • Globalizing SMEs

3
Terms
3
4
Figure3-1
Equity and non-equity modes of foreign operation
4
5
Figure3-2
The formation processes of MAs and HR challenges
5
6
Figure3-3
Mergers and acquisitions in US billions
6
7
Typical cross-border MA problems
  1. Within first year of merger, up to 20 of
    executives may be lost. Over a longer time frame,
    this tends to increase even further.
  2. Personnel issues are often neglected.
  3. A high number of MAs fail or do not produce the
    intended results.

7
8
Impact of the human integration and task
acquisition on acquisition outcome
Figure3-4
8
9
Figure3-5
HR activities in the phases of a cross-border MA
9
10
Table3-1
Post-acquisition trends in HRM practices
10
11
Figure3-6
Formation of an international equity joint venture
11
12
The main reasons for engaging in an IJV
  1. To gain knowledge and to transfer that knowledge
  2. Host government insistence
  3. Increased economies of scale
  4. To gain local knowledge
  5. To obtain vital raw materials
  6. To spread the risks (e.g. share financial risks)
  7. To improve competitive advantage in the face of
    increasing global competition
  8. Provide a cost effective and efficient response
    forced by the globalization of markets

12
13
Figure3-7
IJV development stages and HR implications
13
14
Table3-2
SME definition
14
15
Top 10 barriers to international markets by SMEs
15
16
Figure3-8
SME employer image and internationalization
16
17
Figure3-9
Learning in small organizations
17
18
Discussion Questions
  1. Describe the formation process of cross-border
    mergers, acquisitions and international joint
    ventures. What are the major differences?
  2. Describe the development phases of an MA and the
    respective HR implications.
  3. Outline the development phases of an IJV and the
    respective HR implications.
  4. In which ways do cultural and institutional
    differences impact the HR integration in MAs and
    in IJVs?
  5. What are the barriers to internationalization for
    SMEs?
  6. What are some of the typical challenges for HRM
    in internationalized SMEs?

18
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