International Human Resource Management

13 important questions on International Human Resource Management

What is offshore outsourcing?

Outsourcing a business activity to an external company in another country

IHRM is manifested at different levels

  • Individual employee level (expatriate management)
  • Site level (businessunit)
  • Organizational level (multiple sites in a country and across countries)
  • National level (labour legislation and CBAs)
  • Regional or Continental level: (cultural differences)
  • International level: (legislation and the UN)

Hofstede classifies countries througH cultural maps:

they present differences and similarities
of countries on different dimensions



•Individualism-Collectivism: (the degree to which individuals look out for themselves first and the organization and society next);
•Masculinity-Feminity: (e.g. aggressiveness and assertiveness);

3. Power distance: the degree to which individuals accept unequal distribution of power
4. Uncertainty avoidance: the way individuals accept and deal with uncertain situations and their willingness to make decisions in uncertain situations.
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Hofstede classifies countries througH cultural maps:

they present differences and similarities
of countries on different dimensions



•Individualism-Collectivism: (the degree to which individuals look out for themselves first and the organization and society next);
•Masculinity-Feminity: (e.g. aggressiveness and assertiveness);

3. Power distance: the degree to which individuals accept unequal distribution of power
4. Uncertainty avoidance: the way individuals accept and deal with uncertain situations and their willingness to make decisions in uncertain situations.

Sharing knowledge and experiences between employees on a global scale is a powerful instrument for increasing the MNC's global performance.

o An information and communication network
o Access to the network of employees
o Employee knowledge and skills to operate the knowledge information system
o The willingness of employees to share knowledge and experience with others
o Cross-cultural awareness and good communication among employees.

There are two paradigms within IHRM: universalist and contextual paradigm. What are its differences?

Universalist paradigm assumes the existence of best practices in HRM that can be applied to all organization's locations, worldwide.

Contextual paradigm assumes that there might be some general best principles in HRM, but they need to be adapted to the organizational context within a given country.

What are cross-cultural and institutional differences?

Cross-cultural differences are the differences between countries based on norms, values, rituals and habits of its citizens.

Institutional differences are differences between countries based on legislation, procedures and stakeholders (trade unions).

What are the four criteria on which Hofstede has based his cultural map?

- Individualism vs collectivism
- Masculinity vs femininity
- Power distance; the degree to which individuals accept unequal distribution of power
- Uncertainty avoidance; the way individuals accept and deal with uncertain situations.

Later on there were two more criteria added, respectively:
- Long term vs short term
- Indulgence

What is the difference between global and local strategy?

The global strategy is one corporate people management strategy applied to all units of an MNC across the world.

The local strategy is a people management strategy within an MNC adapted to national or regional contextual factors.

What is the difference between convergence and divergence issues in HRM?

Convergence issues are issues regarding a universalistic view, meaning that HR practices are getting closer to each other. (global strategy).

Divergence issues are issues regarding the HR practices that will grow further apart. These differences are caused by cross-cultural and institutional differences.

What are the five requirements of knowledge transfer within a global organization?

1. An information and communication network is available.
2. Employees have access to the network
3. Employee have knowledge and skills  to operate with the system
4. The willingness to share knowledge
5. Cross-cultural awareness and good communication among employees.

What is the difference between outsourcing and offshoring?

Outsourcing means you're subcontracting your business activities to external companies.

Offshoring means you relocate business activities to other countries and regions.

What does offshore outsourcing mean?

Subcontract and relocation of business activities to other companies and countries.

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