INTERNATIONAL HUMAN RESOURCE MANAGEMENT（U. OF NEWCASTLE, AUSTRALIA; BETTY RYAN）PART 2-11.ppt

Chapter 2 The organizational context Chapter objectives structural responses to international growth control and coordination mechanisms (cont.) Chapter objectives (cont.) mode of operation used in various international markets effect of responses on human resource management approaches and activities. The path to global status Causes structural responses, due to: Strain imposed by growth and geographical spread Need for improved coordination and control across business units The constraints imposed by host-government regulations on ownership and equity Evolution path common but not normative Stages of internationalization: Exporting Typically the initial stage of international operations Usually handled by an intermediary (foreign agent or distributor) Role of HR department unclear at this stage Sales subsidiary Replacing foreign agents/distributors with own through sales or branch offices/subsidiaries May be prompted by: Problems with foreign agents More confidence in international activities Desire for greater control Give greater support to exporting activities PCNs may be selected, leading to some HR involvement International division Creation of a separate division in which all international activities are grouped Resembles ‘miniature replica’ of domestic organization Subsidiary managers report to head of international division Objectives regarding foreign activities may determine approach to staffing of key positions Expatriate management role of corporate HR Global product/area division Strain of sheer size may prompt structural change to either of these global approaches Choice typically influenced by: The extent to which key decisions are to be made at the parent country headquarters or at the subsidiary units (centralization versus decentralization) Type or form of control exerted by parent over subsidiary The matrix An attempt to integrate operations across more than one dimension Violates Fayol’s principle of unity of command Considered to bring