INTERNATIONAL HUMAN RESOURCE MANAGEMENT

INTERNATIONAL HUMAN RESOURCE MANAGEMENT

SEMESTER B 2014/15 

GUIDANCE ON THE COURSEWORK/ASSESSMENT

1. Individual assignment (100% - see Appendix 2 for assessment criteria)

A 2,500 word essay:(excluding the Table of Contents and Bibliography)

Identify and analyse critical factors multi-national corporations (MNCs) should take into consideration when deciding on the extent to which they should centralise or localise HR functions in a new foreign national location? 

Due Date: 23rd April 2015

IMORTANT: Students must achieve an average of at least 40% to pass the module.   

1. General background

The coursework has been designed to be as wide-ranging as possible both in terms of HR functions and offering students the opportunity to display their knowledge of cross-cultural issues, the role of expatriates and the role of national managers.

It is not necessary for students to write about every factor that an MNC will take into consideration, but to choose those which are critical to decisions.  This offers students to write in depth about a few (3 – 5 approximately) issues, rather than writing very little about many and failing to critically analyse the important issues in detail.

2. Theoretical underpinning 

The two main (but not only) chapters in the module’s recommended texts that provide the academic focus for this coursework are:

Hollinshead’s ‘International and Comparative HRM’ – Chapter 4 ‘Staffing the multinational enterprise: expatriation and managing across borders’ 

Harzing & Pinnington’s ‘International Human Resource Management’ – Part 2, ‘International Assignments and Employment Practices’ Chapter 7 “Multinational companies and the host country environment”and Chapter 8 “The transfer of Employment Practices across borders in Multinational Companies”

3. Break-down of the question and possible range of responses

• Answers should focus on critical factors, not every factor. Therefore, better answers will quickly identify which factors have been chosen and explain why; and the essay will be structured around analysing and explaining these.
• A central part of identifying the critical factors and the way in which the decision making process works, is to consider risk management (how will the MNC analyse its chances of success and the risk of failure?) and sustainability (how will the MNC ensure that it can embed itself in the culture long-term?). Better answers will consider IHRM as part of corporate strategic planning, especially in terms of globalisation and expansion, and the practical examples used should offer the opportunity to discuss and analyse this.
• The concept of centralisation and localisation should be identified and defined. Better answers will set out the general benefits and disbenefits of each, which will lead into them being analysed in more depth in the body of the answer, with specific reference to practical examples.
• The concept of ‘foreign’ should be analysed from the perspective of the MNC and of the host country. Moving into a ‘foreign’ location will be defined by the MNC by comparison with its home, usually HQ, location.  Being perceived as foreign will be defined by the host country in comparison with its national culture.  Better answers will use these two contrasting, but valid and correct concepts of ‘foreign’ as an entrance to discussing cross-cultural IHRM issues in depth.

4. Practical examples

The coursework guidelines for students emphasise the need for a balance between theoretical knowledge and understanding, and the application of these to practical examples.  Both the Hollinshead and Harzing & Pinnington texts give practical examples that can be utilised: Harzing and Pinnington use case studies and point the students onward to internet resources.  In addition, weekly additions will have been made to ‘Module News’ covering a variety of current, international, HR topics that students will be able to use.  Better answers will, of course, include practical examples from the students’ own reading and research.

5. What might good answers include?

The examples below are not intended to be totally comprehensive.  Good students may well identify and analyse other parts of the theoretical framework and IHRM functions and good practice.  Nonetheless, these provide some general guidance about the range of topics that might be relevant.

• Sustainability – what risk factors will MNCs take into consideration when deciding to move into a foreign country? This should underpin the remainder of the discussion since no MNC will move without scoping and assessing the risk of failure. Hollinshead contains a very relevant discussion of the risks of expatriation
• Hofstede’s theory and notions of cultural familiarisation and adaptation
• The functions of IHRM – which will link to what the critical factors are in decision making before moving to a new location and possible discussions of systems and good practice convergence
• Cross cultural issues that required knowledge, understanding and adaptation for MNCs to be successful; possible host country effects
• Legal requirements and local processes, systems and procedures; government and local government requirements e.g labour market, industrial relations, health and safety regulations, work practices
• The four influences framework - country of origin, dominance, international integration and host country effects
• Black’s model of in-country adjustment
• Application and discussion of ethnocentrism, polycentrism and egocentrism, with application to the practical examples being cited
• A definition of ‘host’ and ‘local’ managers and the importance of deciding which to use in moving to a new location
• A discussion of ‘glocalisation’ in the merging of MNCs’ host country expertise and the employment of local managers
• Where appropriate, better answers may discuss the specific issues of moving into a developing nation and the impacts of Foreign Direct Investment