This chapter provides an overview of the meaning of corporate social responsibility (CSR) and its relationship with the subject of ethics to provide a backdrop for a discussion of dilemmas that multinationals and their expatriates face in managing international business. The chapter begins with an introduction to the meaning of CSR and discusses various aspects of ethics that form the basis for CSR today. It then shows the links between CSR and business ethics. The chapter illustrates the different approaches taken to discern right from wrong and the problems associated with coming to a common understanding of ethical behaviour in different cultures. It also shows the lack of ethical business practices and considers the difference between the concepts of universal ethics and ethical relativism in two separate case studies.
Chapter
Corporate social responsibility and ethics
Chapter
The dark side of international employment
This chapter addresses the growth of migration and the contribution of migrant labour to both western and developing economies. The ‘dark side’ refers to the exploitation and ill-treatment of employees, particularly migrant workers, across the world. The focus here is on legal migrant workers, but many of the scenarios covered also apply to marginalized workers, minority groups, and undocumented migrants. The chapter identifies the main types of migrants and their employment problems. The extent of worldwide migration is examined next, and the key differences between an expatriate's position and that of a migrant worker are identified. After this, the chapter explores the impact of different national regulations on migrant workers and the importance of temporary staffing agencies (TSAs), as well as the role and responsibility of multinationals. It concludes with calls for more monitoring of the activities of multinationals and a more humane approach by governments towards their migrant workers.
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Diversity management in an international environment
This chapter draws attention to the notion of diversity within a workforce, emphasizing the differences that exist between an organization's employees and suggesting the potential benefits of harnessing such a distinctive combination of qualities. In an organization where such diversity is readily accepted, each individual is respected and their contribution valued. For equality management (EM) and diversity management (DM) schemes to be truly successful, however, they must break the barriers of human prejudice, which are typically unthinking and anchored in cultural traditions. In short, they must modify people's attitudes and behaviour so that unfair treatment is eradicated, diversity is genuinely valued, and inclusion is consistently practised. The chapter thus differentiates between DM and EM and concludes that in order to be effective, DM needs to build on EM. Finally, the chapter highlights the problematic nature of the efforts of multinational enterprises (MNEs) to manage workforce diversity.
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Global staffing
This chapter explores global staffing. Global staffing takes into account influencing factors at the national level such as legal frameworks; local factors such as labour market conditions; and organizational factors such as size, strategy, and structure. When staffing occurs across a multinational company (MNC) operating in several regions, the complexities of selection are magnified. Rational–logical and impersonal approaches to selection that emanate from the Anglo-American model to find the highest performer and that are based on empirical data taken during the selection process do not necessarily travel very well. Organizational and national cultures interact to produce distinctive approaches to staffing. Indeed, there are good grounds for thinking that selection is the one HRM practice that varies the most between countries. However, caution is needed before criticizing staffing systems that deviate from empirically based, performance-chasing models.
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Global talent management
This chapter identifies a wide range of threats to fair and equitable talent management on an international scale. Talent management provides a rich arena for advances in practice and for researchers to understand how talent strategies work. The idea that organizations were competing for talent caught the imagination of business leaders and, latterly, of academics. Seeing good employees as talent opened up new ways of thinking about labour markets, and new discourses grew around the high performers that organizations wanted to attract and retain. This development forced, or at least obliged, HRM practitioners to rethink their human resource strategies to match and respond to the new love of ‘talent’. The basic idea and guiding principle is that talented employees make disproportionate or differential contributions to organizations. Thus, developing talent strategies that minimize impacts of the biasing factors identified in the chapter presents a major challenge to organizations.
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International reward management
This chapter turns to international reward management. Employment costs represent a big slice of corporate spending, and reward strategies influence the achievement of business objectives. Reward, however, is arguably the most difficult human resource management practice to optimize, and in multinational companies it becomes even more difficult. A wide range of institutional, cultural, organizational, and job-related factors influences the detailed design of reward programmes, as the chapter demonstrates. Employee satisfaction with reward is influenced by a range of personal factors. Although there is evidence that increasing multinational activity is spreading the use of different reward practices, there is also evidence that the adoption of reward practices is relatively immune to cultural differences.
Book
Eileen Crawley, Stephen Swailes, and David Walsh
Introduction to International Human Resource Management consists of two main parts. The first part is about the context of international human resource management (IHRM). It starts by defining key concepts before looking at the wider context of IHRM and key academic models, theories, and debates. It considers why culture is an important aspect to consider in the context of IHRM and introduces the institutional approach. The second part looks at the challenges of HRM in multi-national enterprises. This includes discussions on recruitment and selection, international reward management, performance management, training and development, and how to manage diversity. The second part also looks at corporate social responsibility and ethical issues, the employment relationship, global talent management, and the dark side of international employment.
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Key academic models, theories, and debates
This chapter begins with an introduction to human resources management (HRM) and includes some definitions of the scope and approaches to international human resources management (IHRM), comparing the universalistic and contextual perspectives. It considers the evolution of the concept of HRM before introducing some early models. Key concepts, and the frameworks that arrange these ideas, form the basis for understanding the operational aspects of IHRM. The chapter continues with conceptual models that explain IHRM, including its links to strategy and to the process of internationalization. It then considers recent theories that illuminate the challenges facing international managers. Finally, it examines some recent themes and debates, including the concepts of convergence and divergence, and provides an explanation of the key differences in the American and European approaches to IHRM.
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Managing the employment relationship in international organizations
This chapter deals with employment relationships, a simple concept central to the management of people in business organizations. Yet, paradoxically, its very simplicity is what masks its inherent complexity, as depicted in five of its dimensions. This means that management's efforts to manage this aspect of human resources are problematic. While the chapter identifies the range of choices open to management, any resultant strategy is likely to be a blunt instrument when seeking to cope with essentially dynamic situations which can combine (and oscillate between) forms of cooperation and conflict. Moreover, management choice is constrained or influenced by a range of factors. In some instances, however, multinational enterprises (MNEs) may attempt to combine them through a hybrid approach. Whatever approach an MNE adopts, contradictions will exist, underpinned by the dichotomous nature of the employer–employee relationship.
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Performance management
This chapter introduces the topic of performance management and its purpose and goes on to explain its links to theory. The complex role of the line manager in the appraisal process is then discussed. The chapter explains that performance management is a process of planning, goal setting, and evaluation of individual performance, ideally linked to specific strategic organizational objectives. The chapter suggests that the performance management process should include regular assessment of individual performance based on role specific goals and behaviours. However, goal agreement, measurement criteria, and the effectiveness of the evaluation process make performance management problematic even in the domestic scenario. Furthermore, there are also difficulties of standardization of performance management in different national contexts. Finally, it is argued that more attention should be paid to the needs of host country managers (HCMs), especially those who are managed from a distance.
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Training, development, and knowledge management
This chapter begins with a discussion of theory linked to training and development and its wider context and link to strategy. It then gives an example of how human capital theory is applied in a national context. The chapter indicates that culture affects perceptions of appropriate leadership style and outlines the various roles of expatriates and the types of training provided. Learning styles are also briefly discussed, leading to the concept of the learning organization. Next, the chapter provides an introduction to knowledge management and its traditional link to the roles of expatriates as parent country nationals (PCNs) and global managers. It argues that knowledge transfer and knowledge sharing in multinational organizations are complex processes which do not happen automatically. The many factors that prevent knowledge transfer include organization structure, culture, and expatriate willingness.
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Understanding IHRM: the cultural approach
This chapter looks at the meaning of culture in an organizational and national context and how these concepts overlap. It engages with the work of some key authors on culture and the ways in which they evaluate cultural difference. It then considers some aspects of how culture affects behaviour and the difficulties that can arise in living and working in different cultures because of differences in values and expectations. Culture is also examined briefly as an evolving and changing phenomenon as groups of people grow up in or emigrate to rapidly changing societies. Finally, the direct relevance of some of Geert Hofstede's dimensions to international human resources management (IHRM) issues is outlined to show how management decisions and local practices are influenced by national culture.
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Understanding IHRM: the institutional approach
This chapter discusses the impact of national institutions on international human resource management (IHRM) and introduces different approaches to its study. It then examines a number of institutional factors that impact on the management of human resources and that need to be considered by organizations operating overseas. The relevance of the stage of development is also evaluated, including the political, economic, and legal climate within which business operates. Diversity in human resources management (HRM) practices in terms of wages, hours, leave, and redundancy are also briefly considered, as are some of the contemporary pressures in the social environment, such as gender issues, ageing populations, and diversity in the context of sharia law. Finally, a review of recent debates on the value of institutional theory aims to show that in large multinational enterprises (MNEs), cultural, institutional, and numerous internal pressures determine the IHRM policies and practices chosen and the strategies that are adopted.
Chapter
What is IHRM? Definitions and perspectives
This chapter introduces the subject of international human resource management (IHRM) and some of the key terminology and approaches used; it also considers the ways in which authors may differ in their conceptualization and writing about the subject. It then goes on to consider some of the key challenges in managing human resources (HR) in international companies. In particular, the chapter looks at factors that influence approaches to the management of an overseas workforce, including an organization's structure and the dominant orientation of an organization. It also briefly explains some of the key differences between international and domestic HRM, and includes case studies that give a flavour of the type of issues faced in IHRM. Finally, the chapter provides an overview of the other chapters and the features contained within them.
Chapter
The wider context of IHRM
This chapter discusses the macroeconomic context within which international businesses operate. It describes the role of some of the most important supranational organizations which support international trade and business. It also discusses the importance of foreign direct investment (FDI) in countries. This acts as a support for business activity. In addition, the human element of globalization is illustrated through consideration of demographic change and the migration of people across the world seeking to better their economic condition. These macroeconomic and human factors help to form the constantly evolving business environment, which is the context in which managers in multinational enterprises (MNEs) work. Finally, the continuing economic crisis that began in 2008 is examined in view of its massive impact in terms of the slowing down of international investment which adversely affected global trade.
