intro by sandeshbhat


									International Human Resource Management, 3rd ed. Briscoe, Schuler & Claus Introduction This book is about International Human Resource Management (IHRM). That is, it is about human resource management in a global context. The conduct of business is increasingly global in scope and managing human resources has become critical to the successful conduct of global business. This third edition has been written to update this most important but fast changing discipline. The majority of the book discusses the IHRM issues faced by multinational enterprises (MNEs), primarily from the perspective of the parent company or headquarters. However, MNEs increasingly manage their workforces on a global basis, so this edition not only examines management of parent companies’ workforces, but provides increased focus on management of workforces in subsidiaries, international joint ventures, and global partnerships, as well as issues related to human resource management of global workforces, with globalized policies, shared services, and global centers of HR excellence. New effort was made to globalize the information, to present it from the perspectives of as many different MNEs, from as many different countries as possible. So the examples in the chapters as well as the end-of-chapter vignettes draw from many small and medium-sized companies (many of which will be new to the reader), as well as the traditional and well-known large firms, which come from both large and small countries. Parts and chapters This book is divided into two parts (see the chapter map to understand how the topics relate to each other). Part I describes the key components of the context within


which IHRM operates. Each of these components contributes a critical part of the environment which determines the nature of IHRM. Part II describes the policies and practices that result from that context. The first part of the book sets the scene for International Human Resource Management—Third Edition: Policy and Practice for the Global Enterprise and explains why IHRM is so important to the success of international business, describing the nature of global commerce as it relates to IHRM. These chapters include (1) the globalization of HRM; (2) creating the international organization; (3) HRM and culture; and 4) global employment law, industrial relations, and international ethics. Chapter 1 introduces the globalization of business and describes how that has changed the nature of HRM. It describes the evolving nature of HRM as it meets the needs of changing multinational enterprises and explains how this has led to the development of strategic IHRM in helping MNEs attain sustainable competitive advantage in the global marketplace. Chapter 1 describes the basic nature and development of IHRM, differentiates IHRM from domestic HRM, and discusses some of the difficulties experienced in that development. Chapter 2 examines international business strategy, focusing on how varying approaches to international business (IB) affect the nature of and design of multinational firms and the important role that IHRM plays in those design decisions. The conduct of international business is increasingly complex, involving the need to—at the same time— focus on centralized control and influence and local adaptation to customers and culture. This chapter describes the many different approaches to IB and explains how IHRM


Part I Introduction to International Human Resource Management: the context

Chapter 1 The globalization of HRM

Chapter 2 Creating the international organization: strategy and structure

Chapter 3 HRM and culture

Chapter 4 Global employment law, industrial relations, and international ethics

Part II International HRM in the MNE: policies and practices

Chapter 5 Global talent management and staffing

Chapter 6 Training and management development in MNEs

Chapter 7 Global compensation, benefits, and taxes

Chapter 8 International employee performance management

Chapter 9 Well-being of the global workforce, global HRIS, and structure of today’s IHRM

Figure 1 Chapter map iii

changes and contributes to the design and management of those various options. Chapter 3 discusses national and organizational culture and the critical role it plays in determining IHR policies and practices. National cultural differences sometimes need to be accommodated and sometimes they are influenced by corporate culture. This chapter describes the nature of culture and how it influences in particular IHRM policies and practices, as described throughout Part II of the text. Chapter 4, the last chapter in Part I, describes international aspects of the legal, regulatory, labor relations, and ethical environments, all key components of the external context of IHRM. As is true for HRM in a domestic context, there are many aspects of the external (to the firm) environment that have a major impact on the importance and practice of human resource management when operating in the global arena. This chapter discusses a number of these issues: (1) international employment law and the institutions that develop and apply it; (2) the extra-territorial application of country laws outside the countries of origin, particularly the application of US laws outside the US; (3) immigration law, in particular the role IHR plays in obtaining visas for increasingly mobile employees of the MNEs; (4) elements of international labor relations that are especially important to MNEs, and (5) ethical standards, behavior, and decision making in the international arena, particularly as they impact IHRM. All of these areas are increasingly important to MNEs and to IHRM and all have growing impacts on the successful contribution of IHR managers and the growing impact on IHR and enterprises operating in the global marketplace. All of these components of the environment constitute the context within which IHRM creates and performs its policies and practices, and, therefore, also sets the stage


for the rest of the text, which provides a comprehensive overview of the policies and practices of IHRM. These policies and practices are described both from a centralized, head-quarters-focused perspective, as well as from the local perspective of subsidiaries, joint ventures, partnerships, and contractors. Part II is concerned with the global HR management of all employees of MNEs. Thus the chapters in this section include: (5) global talent management and staffing; (6) training and management development in MNEs; (7) global compensation, benefits, and taxes; (8) international employee performance management; and (9) well-being of the global workforce, global HRIS, and structure of today’s IHRM. The first chapter in Part II, Chapter 5 focuses on the importance of talent management for the MNE and provides an overview of global staffing, including an explanation of global employment forecasting and planning and description of the many different types of international employees used by MNEs today. The central focus of this chapter is on description and analysis of international assignees, including their selection and preparation for foreign assignments as well as difficulties with and best practices in their management while on assignment. Chapter 6 describes the function of training for a global workforce as well as methods of management and leadership development in MNEs. In this chapter, attention is also paid to global (virtual) teamwork and the development of a global mindset among employees of the MNE. Chapter 7 describes the complex area of compensation, benefits, and taxes for both international assignees as well as for local workforces. Chapter 8 describes the topic of performance management with respect to a global workforce. And Chapter 9, the last chapter, looks at a number of issues of importance to today’s MNEs,


from maintaining and protecting employees’ health, safety, and well-being, provision of a number of important services, such as a global human resource information systems, relocation services, and IHR research, and lastly, the professionalization of IHR managers and design of HR departments and the services they provide. Chapter and book features This edition has been shortened, combining chapters in order to make the presentation more concise, and the language has been simplified in order to make the text more reader friendly, particularly for those who are not native speakers of English. Each chapter begins with “learning objectives” and a list of “key terms” introduced in that chapter. The learning objectives provide a focus for readers as they consider the material in each chapter. Similarly, the key terms allow the reader to focus on IHR-specific terminology as the global HR body of knowledge is becoming more codified. All chapters also contain one or more “IHRM in action” illustrations of current experiences of multinational enterprises, both large and small, and well-known and some probably not known at all, and from major countries and lesser-known countries. All of the examples have been chosen to point out to the reader how firms from around the world have implemented the policies and practices described in the text. At the end of each chapter there is a set of questions to guide class discussion of the themes and topics in the chapter as well as one or more “vignettes” written specifically for this text and for illustration and discussion of the central concepts in each chapter. The end-of-book materials include the notes that document the text in each chapter, including relevant classic resources and up-to-date, worldwide research and the experiences and stories of multinational enterprises. To add even more relevant


information as it unfolds, the reader is encouraged to visit numerous websites that are available, many of which are referenced in the notes and throughout the text. Additional websites and other materials are found on the website for this text, which is maintained by the publisher at Finally, there are thorough subject and author indexes. These provide the reader with further information about the various topics covered in the book as well as the many authors whose work has been used to compile this book and facilitates locating topics and authors throughout the text. Terminology In this text, a number of terms are used to refer to organizations that conduct international business. In general, the term MNE (multinational enterprise) is used to refer to all organizations that conduct business outside their countries of origin. The term MNE is used rather than MNC (multinational corporation—which is often a more commonly-used term) because in many countries there is no form of legal ownership equivalent to the American corporation, from whence derives the term MNC. So we chose a term that can be used with wider application without being tied technically to the legal structure of one particular country. Thus, in this text the generic term “enterprise” is used to refer to any type of organization involved with international business. For small and medium-sized MNEs, the term SME is sometimes used. Generally, the term MNE is used throughout the book. When appropriate, SME will be used to highlight special characteristics of small and medium-sized MNEs. MNEs can be described as operating multinationally, internationally, globally, or transnationally. While these terms often seem to be used interchangeably, some


distinctions can be made. For example the term “global” refers to enterprises that operate all over the world and have consistent policies and practices throughout their operations. Such MNEs have a high percentage of international turnover or sales (over 50 percent outside their home countries) and a high percentage of employees outside their home countries, as well, with operations in a large number of countries, and a global perspective and attitude reflected in their business strategies and in their mission statements. These firms tend to have highly centralized (or, at least, regionalized) policy, at least as it applies to financial issues and sharing of resources and innovations and world-class standards for their global products and services. In contrast, transnational firms are global in scope but decentralized and localized in products, marketing strategies, and operations. That is, they take advantage of their global presence to gain access to resources (ideas, technology, capital, people, products, and services) and develop economies of scale, while at the same time maintaining a local presence that is seen as comparable to that of domestic competitors. The other terms, such as “multinational” or “international,” generally refer to MNEs that have not yet developed their levels of international operations to this extent. Because more and more enterprises are moving in the direction of being more global, in thought at least, if not in action, the word “global” is used in both the sub-title of this book as well as in the title of the entire series. Thus most of the topics, policies, and practices discussed throughout this text are currently applicable to most enterprises, and are likely to soon apply to most others. In this text, if the terms global, multinational, or international enterprise make a difference to the particular topic, policy, or practice being discussed, then an attempt is made to


make it clear through explanation or the use of the terminology as to which type of enterprise is being described.


To top