...International Business (MOD001055) Chapter 8: International Human Resource Management Zubair Hassan (2013). International Human Resource Management. International Business 8.1. Introduction This chapter covers one major components of learning objectives/outcomes that are likely to examine via coursework or examination. This chapter will enable students to build their knowledge on global human resource issues faced by international business, such as the staffing, recruitment and selection, performance appraisal and training and development along with compensations policies. This chapter will cover the following topics: Human resource management function International human resource management (IHRM) International HRM approaches IHRM policies and practices Work practice in an international context 8.2. Human resource management function HRM can be described as a strategic, integrated and coherent approach to the employment, development and well-being of the people working in organizations. Te practice of Human Resource Management (HRM) is concerned with all aspects of how people are employed and managed in organizations. It covers activities such as: resourcing (human resource planning, recruitment and selection, and talent management); performance management; learning and development; reward management employee relations; employee well-being. Human resource management is important for various reasons. One of the most important reasons is that human...
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...Cultural Issues and Ethics in International Business Introduction The expansive and unstoppable process of globalization has forced employers to form their ability to trade and negotiate with the outside world. However, it is important not only they are immersed in this subject, your staff, or one who is qualified to do so, you should also have access to the most significant aspects of foreign trade, logistics, and the impact. Companies are not limited to conduct private and government operations locally, but also with other countries. Precisely what we call international business is the relationship between an organization and its external world (Maddox, 1993). This type of activity also involves foreign trade and international, which includes transactions such as exports, imports, investments, or financing that are performed worldwide. Among the success factors that can be mentioned in the international business operations are competitiveness, financial support between the parties and logistics. This aspect is very important because when the actors involved are from different countries or regions, the business success is more complicated. In analyzing the economy, we must review the dimension that transcends the borders of a country, i.e. which addresses the problems international economic purposes (Maddox, 1993). The importance of international relations in trading, politics or culture has reached a global level, a deeper meaning that one cannot speak only about...
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...Journal of Business Research 60 (2007) 277 – 284 Hofstede's dimensions of culture in international marketing studies Ana Maria Soares a,⁎, Minoo Farhangmehr a,1 , Aviv Shoham b,2 a School of Economics and Management, University of Minho, 4710-057, Braga, Portugal b Graduate School of Management, University of Haifa, Haifa, 31905, Israel Received 1 March 2006; received in revised form 1 August 2006; accepted 1 October 2006 Abstract Growth of research addressing the relationship between culture and consumption is exponential [Ogden D., Ogden J. and Schau HJ. Exploring the impact of culture and acculturation on consumer purchase decisions: toward a microcultural perspective. Academy Marketing Science Review 2004;3.]. However culture is an elusive concept posing considerable difficulties for cross-cultural research [Clark T. International Marketing and national character: A review and proposal for an integrative theory. Journal of Marketing 1990; Oct.: 66–79.; Dawar N., Parker P. and Price L. A cross-cultural study of interpersonal information exchange. Journal of International Business Studies 1996; 27(3): 497–516.; Manrai L. and Manrai A. Current issues in the cross-cultural and cross-national consumer research. Journal of International Consumer Marketing 1996; 8 (3/4): 9–22.; McCort D. and Malhotra NK. Culture and consumer behavior: Toward an understanding of cross-cultural consumer behavior in International Marketing. Journal of International Consumer Marketing...
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...Journal of Business Research 60 (2007) 277 – 284 Hofstede's dimensions of culture in international marketing studies Ana Maria Soares a,⁎, Minoo Farhangmehr a,1 , Aviv Shoham b,2 a School of Economics and Management, University of Minho, 4710-057, Braga, Portugal b Graduate School of Management, University of Haifa, Haifa, 31905, Israel Received 1 March 2006; received in revised form 1 August 2006; accepted 1 October 2006 Abstract Growth of research addressing the relationship between culture and consumption is exponential [Ogden D., Ogden J. and Schau HJ. Exploring the impact of culture and acculturation on consumer purchase decisions: toward a microcultural perspective. Academy Marketing Science Review 2004;3.]. However culture is an elusive concept posing considerable difficulties for cross-cultural research [Clark T. International Marketing and national character: A review and proposal for an integrative theory. Journal of Marketing 1990; Oct.: 66–79.; Dawar N., Parker P. and Price L. A cross-cultural study of interpersonal information exchange. Journal of International Business Studies 1996; 27(3): 497–516.; Manrai L. and Manrai A. Current issues in the cross-cultural and cross-national consumer research. Journal of International Consumer Marketing 1996; 8 (3/4): 9–22.; McCort D. and Malhotra NK. Culture and consumer behavior: Toward an understanding of cross-cultural consumer behavior in International Marketing. Journal of International Consumer Marketing 1993;...
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...is a process of international trade, investment among people, organisations and governments from different countries (Chen, 1999). This process has effects on the environment, culture, political systems, and economic development around the world (Deresky, 2008). Due to globalization, the international dimension of management has become a major challenge to countries, institutions and people. International management is becoming more important within the academic setting. International management is a process of developing strategies, designing and operating systems, and working with people around the world to ensure sustained competitive advantage (Sepehri, 2010, as cited in Lecture notes 1). This essay identifies the challenges of operating in different national cultures for international managers by using Hofstede’s theory. In addition, the essay explains international skills and knowledges required by managers to be successful in different countries. Cultural Value Dimensions Culture in a global economy is one of the most important factors in global economy. In international management research, Hofstede defined culture as "…the collective programming of the mind which distinguishes the members of one group or category of people from those of another" (Hofstede, 1991, as cited in Jones, 2007). Within the context of international management, culture involves different dimensions. Four major dimensions provide frameworks for identifying international differences in culture...
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...Kalra U5511377 Do Cultural factors have an impact on Internationalization of a firm, with special focus on Retailing/Marketing ? Eriksson et all [1] state: “For a firm to go international it has to venture on a journey into the unknown. The step that a firm takes abroad, regardless of the size of the step or whether it is the first or an additional one, involves the commitment of resources to realize perceived business opportunities.” This research is based on the belief that has been widely proven through various researches, that the process of internationalization is not a simple step-by-step, checklist-based process but instead a whole complex phenomenon that involves more factors than what meets the eye. What are the factors effecting internationalization process? Research in this area has been extensive and has been summarised by Cavusgil and Naor (1987), Aaby and Slater (1989) and Zhou and Stan (1998). These factors can be categorised according to whether they are management characteristics, organisation characteristics, external impediments or external incentives to engage in business overseas. Richard Fletcher identifies the important management characteristics are demographic such as age [2] and education [3]; and those involving aspects of international exposure such as country of birth [4], time spent living overseas [5], and frequency of business trips overseas [6]; those which reflect a knowledge of international business such as familiarity with...
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...TOPIC 1 INTERNATIONAL STAFFING IN A MALAYSIAN MULTINATIONAL ( PROTON ) MANAGING PEOPLE IN MULTINATIONAL ORGANISATIONS TBS 981 MASTER OF INTERNATIONAL BUSINESS SYDNEY BUSINESS SCHOOL – INTI CAMPUS PREPADED BY: Yeow Sin Kah (4785149) LECTURER: Dr. Peter McLean SUBMISSION DATE: October 19, 2014 Executive Summary This report examines and evaluates various topics concerning the difficulty of international staffing. We aim to provide a holistic guideline and report that can aid and assist Proton in their staffing selection of selecting either a Malaysian expatriate or a Chinese local to be operations manager for Proton’s new factory in China. We anticipate that it is by having the significant understanding on the overall issue regarding international staffing approach, knowing how regarding international assignment selecting process, knowing why on the cause of expatriate failure, then only Proton’s IHRM would be able to come out with a strategic International HR Management approach that could minimize the cost and failures of international assignment. Table of Content Page 1.0 Introduction 4 2.0 International Staffing Policies 5 3.1 Ethnocentric Approach 5 3.2 Polycentric Approach 6 3.3 Region centric Approach 7 3.4 Geocentric Approach 7 3.0 International Assignment Selection 8 3.1 Technical Competency 8 3.2 Personal Traits 8 3.3 Ability to...
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...Worthen International Business BUAD 450 INSTRUCTOR: Reoungeneria McFarland MWF, 2:00 p.m. - 3:00 p.m. Room 3 1. What factors influence cultural stability and cultural change? What factors influence how much cultural adjustment organizations make in foreign countries? Physical Environment, Isolation and Contact, & Attitudes and Values are factors of cultural stability and change. Language and religion plays a huge role as a cultural stabilizer and changer too. Speaking the same native tongue has a way of making people from different parts of the world more cohesive. People tend to feel more comfortable and docile when around people that speak the same language, this leads to stability within a culture. Most cultures are dynamic now days, research shows that by the end of the 21st century 50 to 90 percent of all languages will be extinct. English, French, and Spanish have such a wide acceptance because of the business that’s conducted within the boundaries of the language. To people in advanced nations and societies change is standard. Children and grown-ups there are socialized to expect and welcome change. By contrast say a tribe off the coast of South Africa has no concept of change and may not even have any words in their language to express or explain change. Then, some societies differ greatly in their general attitude toward change. People who revere the past and preoccupied with traditions and rituals will change slowly and unwillingly. Business picks up the...
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...Final Paper – International Management (2012-08-MAN-372-OL011) Management Strategies and Building a more Successful Global Business Introduction Globalization is a powerful real aspect of the new world system, and it represents one of the most influential forces in determining the future course of the planet. It has manifold dimensions: economic, political, security, environmental, health, social, cultural, and others. The focus here is on the concept of "globalization" as applied to the world economy. International expansion is simply about smart preparation and well-thought-out execution; it can be enticing and highly profitable, but only if you do it right. If you don’t plan for tax exposures, business model alterations, and international corporate structure in advance, then you’re setting yourself up for an uphill battle at best — and failure at worst. With the increasing trend of globalization, industries are rapidly expanding into the international market. With no exception, many U.S.-based companies are expanding beyond the home country despite the risks. Why is international expansion important? A company can grow by exploiting overseas market opportunities and imperfections through internationalization, and growth has a positive impact on the firm performance. In short, international expansion can be profitable to companies. Moreover, why is the relationship between international expansion and firm performance important? Ultimately, a company’s performance...
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...International Recruitment, Selection, and Training Strategies The world has been rapidly transforming due to the changes in technology, innovations, and the reduction of trade barriers into and out of countries which have permitted globalization. Due to globalization human resource management has been forced to take a more international approach, and has demonstrated that a more effective management of human resources internationally is imperative for the success of companies in international business (Shen). Therefore international organizations need to understand the roll that plays the international human resource management (IHRM) department, and the importance of adopting an effective recruiting, selecting, and training strategies that will enable the company to select the right talent for the right places. IHRM plays a very important and challenging roll in the international setting of organizations because “they must develop practices which will maintain congruence with the overall strategic plan of their respective multinational corporations, while balancing the economic, social, political, and legal constraints of the host countries” (Caligiuri). Companies understand that the only way to develop strong and successful global leaders, which are keys to competitive advantage, is through an IHRM department that has a well develop competitive strategy in place. Multinational Corporations (MNCs) like Unilever and Huawei Technologies Co., a Chinese networking and telecommunications...
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...We are living in a world where business is evolving the advancement in technology has seen companies expand there client base to a global level. This paper will discuss the standardized marketing strategy of IKEA and evaluate the issues surrounding standardized marketing on a global scale by relating it to multinational corporations alike. Using Hofstede’s Culture theory, it will also discuss whether our cultures of the world are becoming similar, or are we seeing a direct reflection of clever marketing. What standardization (and adaption) could be considered to be: the offering of identical product lines at identical prices through identical distribution systems supported by identical promotional programs in several different countries. (Buzzell, 1968 p 103) Although IKEA practice a standardized marketing strategy in some aspects of the marketing mix such as product, price and place they are certainly not entirely standardized when it comes to their promotion strategy, this is evident when looking at the move into China where they were forced to adapt to Chinese cultural differences. IKEA’s target market has always been ‘everyone’ in other countries however the target market was extremely different in China, the main target is women as they are considered the decision makers and were born in the ‘one child policy’ generation. This group was identified as being impulsive, easy to influence and committed to leading foreign consumer brands (Johannson 2009 p. 44). Due to the...
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...| | |[pic] | |United Business Institutes | |Full Name | | |Student ID | | |Program |BBM | |Module Code |MGT 402 | |Module Name |International Business Management | | | | |Submission Date | | |Total Pages (Including Cover Page) |19 | | | | |Face-to-Face...
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...purpose of this research paper is to define the most difficult challenges of international human resource management, such as cultural diversity and the problem of managing people in different cultures and environments, convergence and divergence and the variety of international organizational models that exist. This paper proves that human resource managers of global organizations can not afford to ignore challenges of international human resource management, in order to ensure company’s success. Moreover, this work focus on investigating the correlation between these problems, that also must be understood. During the past fifty years, technological advances in transportation and communications have spurred the pace of globalization. Many companies envolved from being purely domestic to becoming truly global. The first step in this evolution might be to export goods for sale in one or two foreign markets. The next step might be to manufacture those goods overseas because it is more efficient than shipping products thousands of miles to foreign markets. Setting up all those complex operations to enter a foreign market change the companies that eventually envolve into multinational enterprises. Although developing international business increase the requirement for understanding ways in which companies operate effectively on a global scale. In order to become successful in the global, competitive business world, firms must overcome certain challenges. Globalization influences...
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...HOW TO DEAL WITH CROSS CULTURAL PROBLEMS IN INTERNATIONAL BUSINESS NEGOTIATION. EMEM UDOBONG* ABSTRACT: Businesses all over the world today are extending their frontiers beyond domestic markets. In this global business environment, cross cultural negotiation becomes a common field of research. This is primarily due to the fact that the negotiating parties are often from different countries, with different cultural values and beliefs which they usually bring with them to the negotiating table. What is communicated, how it is communicated, how people think and behave during negotiations can differ across cultures. The purpose of this paper is to examine the effect of culture on negotiation and suggest ways to deal with cross cultural problems in international business negotiations. An analytical approach is applied in this research. The conclusion reached is that effective international negotiators need to know not only the fundamentals of negotiation, but also how culture can influence the negotiator’s behavior and the negotiation agreement. Understanding, accepting and respecting the cultural values of the other parties is very important as it will lead to a more successful outcome. * The Author is a legal practitioner and holds an LL.B (Hons) from the Igbinedion University, Okada. She is currently a postgraduate student of CEPMLP University of Dundee, Scotland, where she is pursuing an LL.M Degree in Energy Law and Policy. TABLE OF CONTENTS Page ABBREVIATIONS...
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...International Business MBAE Group Assignment 5/23/2013 Submitted By: Tamima Shan Chowdhury, ID: 0712270987 Table of Contents Contents | Pg No. | Introduction | 4 | Part A: Importance of SWOT | 5 | Part B: Importance of Stakeholders | 7 | Part C: Importance of PESTLE Analysis | 8 | Part D: Modes of Entry | 9 | Part E: Importance of Cultural Implication | 11 | Part F: International Human Resource Strategy (IHRS) | 15 | Conclusion and Justification | 20 | List of References | 21 | List of Figures Figure | Description | Page No. | 1 | Components of SWOT Analysis | 5 | 2 | Components to be considered in PESTLE Analysis | 8 | 3 | Macro Environmental Forces Impacting any Organization | 10 | 4 | Modes of Entry for International Businesses | 11 | 5 | Hofstede’s Cultural Dimensions- Comparison between Thailand and Norway | 17 | Introduction The globalization of the world economy has prompted organizations to expand their business market ventures. One of the strategies through which an organization can expand their business in the international context is by operation as a multinational company (MNC). The characteristic of a MNC is that it operates in multiple countries. The transformation towards adaptation of the MNC strategy has been due to the advantages the organization can benefit from compared to the other strategies. With the advent of improved communication and the advancement of technology, organizations such as Telenor have...
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