Podcast
Questions and Answers
Which condition is essential for effective knowledge sharing in multinational corporations?
Which condition is essential for effective knowledge sharing in multinational corporations?
Which statement best describes expatriates?
Which statement best describes expatriates?
What is the main purpose of expatriate support systems (ESS)?
What is the main purpose of expatriate support systems (ESS)?
What differentiates offshoring from offshore outsourcing?
What differentiates offshoring from offshore outsourcing?
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What is the primary focus of internationalization in a business context?
What is the primary focus of internationalization in a business context?
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Which paradigm in IHRM assumes best practices can be universally applied across organizations?
Which paradigm in IHRM assumes best practices can be universally applied across organizations?
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Cross-cultural differences in HRM primarily refer to what?
Cross-cultural differences in HRM primarily refer to what?
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What aspect does the contextual paradigm in IHRM emphasize?
What aspect does the contextual paradigm in IHRM emphasize?
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Which of the following is NOT one of Hofstede's dimensions used to classify countries?
Which of the following is NOT one of Hofstede's dimensions used to classify countries?
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What distinguishes a global HR strategy from a local HR strategy?
What distinguishes a global HR strategy from a local HR strategy?
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At which level is expatriate management typically classified in IHRM?
At which level is expatriate management typically classified in IHRM?
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Which of the following best describes the role of institutions in HRM across different countries?
Which of the following best describes the role of institutions in HRM across different countries?
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Study Notes
Globalization & Internationalization
- Globalization is the transition from local or regional activities to global activities.
- Digital photography, data transmission, communication, and social media have impacted businesses.
- Internationalization is the expansion of business activities, products, and markets to other countries.
- IHRM (International Human Resource Management) involves managing people in MNCs and across borders.
IHRM Paradigms
- Universalist Paradigm: Assumes best HRM practices can be applied globally, emphasizing best practice.
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Contextual Paradigm: There might be general principles, but specific HR practices are determined by the organizational context, emphasizing best fit.
- Includes a broader stakeholder perspective, including social partners.
- More widespread in Europe.
IHRM Levels
- Individual employee level (expatriate management)
- Site level (business unit)
- Organizational level (multiple sites in a country and across countries)
- National level (labor legislation and CBAs)
- Regional or Continental level (cultural differences)
- International level (legislation and the UN)
Cross-Cultural Differences
- Based on norms, values, rituals, and habits of citizens.
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Hofstede's Cultural Maps classify countries based on dimensions such as:
- Individualism
- Masculinity
- Power Distance (acceptance of unequal power distribution)
- Uncertainty Avoidance (dealing with uncertainty and decision-making)
HRM & Institutional Differences
- Differences between countries based on legislation, procedures, and stakeholders (trade unions).
Global & Local HR Strategies
- Global HR Strategy: One corporate people management strategy applied to all MNC units worldwide.
- Local HR Strategy: People management strategy adapted to national or regional contextual factors.
- In practice, both strategies are often combined, sometimes due to legislative requirements.
Convergence & Divergence in HRM
- Universalistic view: Globalization and internationalization promote convergence in HRM towards best practices.
- Divergence: Cross-cultural and institutional differences contribute to the persistence or widening of differences in HR practices.
- Evidence exists for both tendencies.
Expatriates
- Employees working temporarily or permanently in a different country than their home country.
- Issues include cross-cultural adjustment (going abroad and returning home).
- Expatriates facilitate internal mobility and knowledge transfer.
- Expatriate Support Systems (ESS) help expatriates prepare for transfer and manage culture shock.
Knowledge Sharing
- Sharing knowledge and experiences globally enhances MNC performance.
- Requires:
- Information and communication network
- Access to employee network
- Employee knowledge and skills to operate the system
- Willingness to share
- Cross-cultural awareness and good communication
Outsourcing, Offshoring, & Offshore Outsourcing
- Outsourcing: Subcontracting business activities to external companies.
- Offshoring: Relocating business activities to other countries or regions.
- Offshore Outsourcing: Subcontracting and relocating business activities to external companies in other countries or regions.
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Description
Explore the fundamental concepts of globalization and international human resource management (IHRM). This quiz covers different paradigms of IHRM and the various levels at which it operates within multinational corporations. Test your knowledge on how global practices integrate with local contexts in the realm of business.
