A typology of international human resource management strategies and processes

Abstract

This paper develops a framework of international human resource management (IHRM) that moves beyond strategy and structure to focus on processes. The results of six case studies of large German multinational corporations in three countries show different configurations of IHRM strategies and policies. International knowledge flows and coordination varied in intensity, content, direction and mechanisms used. With ‘cognofederate’ IHRM one type was identified that has been hitherto neglected.

Keywords:

• International human resource management
• multinational corporations
• strategy
• processes
• coordination

Acknowledgements

The authors gratefully acknowledge the helpful comments of Anthony Ferner and David Guest. They would also like to express their gratitude to Ralph Levine who suggested cognofederate as the most suitable description.

Notes

1 An advantage of the term ‘standardization’ is that the focus of analysis is shifted from the corporate centre to a ‘meta-perspective’ looking at intra-company networks. Standardization can include various degrees of unitary integration around HQ standards as well as different extents of cross-national joint coordination of strategy and structure within people management.

2 The term ‘knowledge networking’ was chosen to reflect the increasing relative size and influence of local affiliates in many companies. It reflects the in-depth understanding of the HR implications of the local business system and organizational culture indigenous HR experts are likely to possess. Moreover, it indicates the contribution foreign subsidiaries can make to the IHRM of the whole organization.

3 Since the time of the research Engineerco was acquired by a foreign MNC.

4 ‘Cognofederate’ was chosen to signify the union that the foreign affiliates have with the head office. The term expresses the high degree of knowledge and awareness of the IHRM of the head office and other subsidiaries (cf. The Concise Oxford Dictionary, Ninth Edition, 1995, Oxford: Clarendon Press). Similar to the institutional arrangements in the Federal Republic of Germany some powers are reserved for the centre and some are exercised locally. In the case of an MNC, the centrally reserved powers may relate to non-HR issues or be used on a meta-level of philosophies while operational practices may be locally defined.