Human Resources - Topic 1.

These flashcards cover key terms and concepts from the lecture on International Management of Human Resources, providing essential definitions and context for understanding HR practices in a global environment.

What are the two main "sides" of Strategic HR Management regarding workers?

Costs: Workers are the largest single item of operating costs, which increase in different institutional and cultural contexts.

Benefits: Workers' capabilities and knowledge are key for organizational performance.

Name the two fundamental paradigms of HRM.

Universalist Paradigm: Dominant in the USA; focuses on "best practice" (universal truth) to improve strategic HR management within organizations.

Contextual / Comparative Paradigm: Concerned with multiple stakeholders (employees, society) and the importance of culture, ownership, and labor markets.

What are the four stages of a company’s life cycle and their typical financial traits?

Introduction: Low sales, high costs, little/no profit.

Growth: Increasing sales, reduced costs, some profit.

Maturity: Consistent sales, reduced costs, increasing profit.

Decline: Reducing sales, constant costs, reducing profit.

Distinguish between Multinational and Transnational Corporations.

Multinational (MNC): Operates in several countries but is managed from one home country.

Transnational: A global, centralised corporation that acquires cost advantages through centralized production and R&D while being responsive to local differences.

How does a "Cost Leadership" strategy impact HR practices?

It focuses on efficiency through rigid job descriptions, training for efficiency, and a control orientation.

How does a "Differentiation" strategy impact HR practices?

It focuses on uniqueness through flexible, multi-purpose positions, training for development, and teamwork.

What is the primary challenge for IHRM in Multinational Companies?

Managing the competing demands of international coherence (consistency and cost-effectiveness) while remaining responsive to local differences in different locations.

What are the two main external variables to consider in IHRM?

Culture: Shared systems of meanings and deep-seated values.

Institutional Context: The legal, political, and social framework of a country.

What is "Isomorphism" in the institutional context?

The tendency for firms operating in the same environment to adopt similar HRM practices to gain legitimacy. It can be coercive, mimetic, or normative

Define National Culture according to Geert Hofstede.

The programming of the human mind by which one group of people distinguishes itself from another group.

What is "Individual Multiculturalism"?

The degree to which an individual has knowledge of, identifies with, and has internalized more than one societal culture.

What four factors influence HRM policies and practices?

Culture, Institutional Context, Organizational Strategy, and Organizational Culture

Does globalisation mean HRM practices are becoming identical everywhere?

No. While there are common trends, globalization has not reduced the critical differences between countries in how HRM is managed.

Why should "Best Practice" (Universalist) approaches be viewed critically?

Because HRM is highly dependent on national cultural and institutional differences, making "universal" truths often inappropriate for different environments.

What are the four distinct levels of analysis for HR strategies?

The globalisation effect, the regional effect, the national effect, and the organisation effect.

How does Brewster define the central tension in IHRM for MNCs?

(Brewster) Managing the competing demands for international coherence (consistency/cost-effectiveness) versus being responsive to local assumptions about what works in different locations.

List at least five measurable factors of the "Institutional Context."

Political system, Law, Labor markets, Education profile, Wealth, Age profile, and Infrastructure.

What are the three types of "Isomorphism" that drive similar HRM practices?

1. Coercive (driven by pressure/authority). 2. Mimetic (imitating successful others). 3. Normative (driven by professional standards/expectations)