10
IHRM (Subject) / 1 (Lesson)
- Country of Origin Effect The country in which the MNE originates, creates a distinctive national effect on HRM
- Dominance Effect management practices of subsidiaries are neither shaped in accordance to the host country (localization), nor to the home country (country-of-origin effect), but according to that country which sets the standards for what are perceived global ‘best practices’
- Host Country Effect HRM practices are adjusted to characteristics of host countries such as system of employment law, labor market institutions, culture
- Key Challenge: Finding the right balance between Global Co-ordination (Country-of-Origin Effect & Dominance Effect) andLocal Responsiveness (Host-Country-Effect)
- What is culture? Most comprehensive and genererally accepted definition developed by Kroeber and Kluckhohn: „Culture consists in patterned ways of thinking, feeling, and reacting“.
- Three levels of Culture artifacts = visual organizational structures and processes espoused values = strategies, goals, philosophies basic underlying assumptions = unconscious, taken for granted beliefs, perceptions, thoughts and feelings
- Hofstedes cultural dimensions individualism vs collectivism power distance uncertainty avoidance masculinity vs feminity long-term vs short-term indulgence vs restraint
- cultural values that dominate ihrm research power distance, uncertaitny, individualims-collectivism
- Two recurring and central debates in international management literature convergence vs. divergence debate (macro- level / country) + standardization vs. localization debate (meso-level / company)
- Tightness-looseness · the overall strength of social norms and tolerance of deviance
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