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We learn about:Issues of standardization & localizationStructural responses to international growthControl & coordination mechanisms,including cultural controlThe effect of responses onHRM approaches & activitiesObjectives# of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage LearningIntroduction # of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage LearningStandardization & localization of HRM practices # of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage Learningintegrative playerglobal innovatorimplementerexport oriented approach vs. integrative management orientationcorporate immune systemknowledge-sharing hostility, knowledge hoardingperson & non-person oriented coordinationborn globalsMNE structures: mother-daughter, matrix, heterarchy, N-form, transnational, network, meta-nationalchaebolsgreenfield building approachBamboo network firmclan = social controlsocial capitalVocabulary (2 of 2)# of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage LearningFactors driving localization # of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage LearningThe path to global status # of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage LearningManagement demands of international growthFigure 3.1

# of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage Learning7local staffcorporate cultureagents of socializationinternational boundary spannersintrinsic & extrinsic rewardsinstitutionalism perspectivecentralized set-upcountry-of-origin, host country, & home country effectsreverse diffusionlocal responsivenessglobal standardization, localizationSOEs, WOSsSix Sigma Quality ControlIJVglobal innovatorslocal innovatorsVocabulary (1 of 2)# of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage LearningChapter 3VocabularyObjectivesIntroductionStandardization & localization of HRM practicesFactors driving standardizationFactors driving localizationThe path to global statusControl mechanismsTHE ORGANIZATIONALCONTEXTClick on an item to go to its section.

Click on the book cover below to return to this table of contents. STARTTABLE OF CONTENTS # of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage LearningCultural valuesTraditionsLegislationGovernment policiesEducation systemsWhy locally responsive HRM?regarding HRM and work practicesTo respectlocal# of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage LearningBalancing the standardization and localization of HRM in MNEsFigure 3.2

# of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage Learning11MNEs that standardizepursue multinational or transnational corporate strategies

supported by corresponding org structures

that are

reinforced by a sharedworldwide corporate culture

# of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage LearningLocalization factors include:Cultural environmentmore social contextmore complete balance ofextrinsic & intrinsic rewardsmore individual more extrinsic rewardsor fast changingpersonal & social contexts

Institutional environment (country-of-origin & HC)Mode of operation abroadSubsidiary role: e.g., global innovator,integrated player, implementer# of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage LearningInstitutional effects on MNEsFigure 3.3

# of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage Learning16

Chapter 3Examples of impact of the cultural & institutional context on HRM practicesTable 3.1

# of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage Learning17Gupta & Govindarajans four generic subsidiary rolesTable 3.2

# of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage Learning18Organizational structures typically change due toStrain imposed by growth & geographical spreadNeed for improved coordination & control across business unitsConstraints imposed by host-government regulations on ownership and equity

# of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage LearningStages of internationalizationFigure 3.4

# of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage Learning21Export department structureFigure 3.5

# of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage Learning22Sales subsidiary structureFigure 3.6

# of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage Learning23International division structureFigure 3.7

# of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage Learning24Two major MNE issues of structureExtent to which key decisions are madeat PC headquarters or at subsidiary units(centralization vs. decentralization)

Type of control exerted by the parent over the subsidiary unit

# of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage LearningGlobal product division structureFigure 3.8A

# of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage Learning26Global product division structureFigure 3.8B

# of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage Learning27

Global matrix structureFigure 3.9

Chapter 3# of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage Learning28Internationally, matrix is difficultDual reporting can cause conflict & confusionMany communication channels can createinformation logjamsOverlapping responsibilities can produce- turf battles- loss of accountabilityDistance, language, time, & culture barriersmake it difficult for managers to resolve conflicts & clarify confusion

# of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage LearningMatrix requires managers whoKnow the business in generalHave good interpersonal skillsCan deal with ambiguities ofresponsibility & authorityHave training for presenting ideas in groups

HR planning in matrix MNEs is more criticalthan in traditional organizations# of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage LearningBeyond the matrix org. structuresThe HeterarchyMNEs have different kinds of centers apart from headquartersThe Transnationalresources & responsibilities are interdependent across national boundariesThe Networksubsidiaries are nodes, loosely coupled political systems

At this stage, there is less hierarchy & nostructure is considered inherently superior# of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage LearningThe networked organizationFigure 3.10

# of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage Learning325 dimensions of networked MNEsDecision-making authority is delegated to appropriate units & levelsKey functions are dispersed geographically across units in different countriesFewer organizational levelsFormal procedures are less bureaucraticWork, responsibility, & authority are differentiated across the networked subsidiaries

# of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage LearningBeyond networks: meta-nationalsMeta-nationals have 3 types of units:Sensing unitsUncover widely dispersed engineering & market insightsMagnet unitsAttract & create business plan to convert innovations into products & servicesMarketing & production unitsMarket & produce adaptations of theseproducts & services around the worldThink: An M-N = global tournament played at 3 levels# of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage LearningHRs place in structural formsThree ways HR develops with international growth:Centralized HR firmslarge, well-resourced:typically product-based or matrix structuresDecentralized HR firmssmall group, mostly for senior mgmt. at corp. HQ:mostly product- or regional-based structuresTransition HR firmsmedium-sized corp. HR with small staff at HQ:decentralized, product-based structure# of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage LearningDifferent countries, different pathsEuropean MNEs: mother-daughter global with product/area divisions or matrix structureSwedish MNEs: Tend to adopt mixture ofmother-daughter & product divisionsNordic MNEs: may prefer matrix structureUnited States MNEs: limited success with matrixJapanese MNEs: similar to US, but evolve more slowly, possibly not changing structureNot much info yet onChinese & Indian MNEs

# of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage LearningControl strategies for multinational firmsFigure 3.11

# of 38Chapter 3For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.ISBN-10: 1408032090 Cengage Learning38