国际人力资源管理背景-National institutions
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practices differ across countries (Edwards and Rees, 2011).
Unlike global level analysis, this analysis takes a ‘highcontext’ approach
Countries vary widely with regard to national culture and institutions
BHL6018 International Human Resource Management (IHRM)
The context for international HRM (II) - National contexts - National institutions
Dr Xiaoni Ren
xren@cardiffmet.ac.uk
Effect of the institution context on organisations
Organisations are deeply embedded in the wider institutional context (Powell 1988; DiMaggio & Powell 1991).
International HRM strategies and practices
Recap: How is HRM shaped and practiced across the world?
Globalisation The role of multinational companies (MNCs) National differences (e.g. institutional and cultural differences) Technological change and the knowledge economy Demographic trends and labour market change EU enlargement Emerging economies (e.g. China)
political and legal systems Economic systems Education, training and skills levels
Recap: How to understand IHRM? - Four lFra Baidu bibliotekvels of analysis
Global effect Regional effect National effect Organisational effect
(Lucas et al., 2010)
Recap: Analysis of National Effects
An analysis at this level emphasises the importance of national context in understanding how and why HR systems and
Next…
We will look at how the following key national institutions influence MNCs’ HRM policies and practices: Political-legal systems Economic systems Education and training systems, and skills level
They influence how managers make decisions regarding business and HR strategies
National effects usually lead to divergent HR practices
Studies looking at how HR practices vary across different locations within the same multinational company show that differences in institutions can offer a better explanation of why HR systems/policies vary from country to country than cultural differences.
They need to ensure that employees have the necessary skills through their interaction with the vocational training and education system
They must secure the cooperation of the workforce by interacting with employees
So, what are institutions?
What are institutions?
Institutions are the structures and activities that provide stability to a society. They consist of the family, education, economic, religious, social and political systems (Thomas and Lazarova, 2014)
Examples of institutional factors
Local laws Enforcement mechanisms/agencies Government and local government policies Trade unions Financial establishments Labour market institutions Educational systems/institutions National training systems Pension arrangements Social security systems
Introduction to Module
Outline
Key objective: to understand how national institutions affect HRM practices in MNCs
National institutions Institutional context and its impact on HRM
Esu.gc.cbeessnfcuhlmoragrakninisgaatigoaninsst and imitating other similar and Normative mechanisms (learning forces)
Eas.gs.oecniagtaiognesment with professional bodies, employers’ (Thomas and Lazarova, 2014)
They must interact with financial institutions to raise capital They must interact with other organisations to secure access to inputs and
technology
These institutional factors influence how HR is practiced on a daily basis.
Institutional context
It refers to the systems of formal laws, regulations, and procedures, and informal conventions, customs, and norms, that broaden, mold, and restrain socio-economic activity and behaviour.
Source: Thomas, D.C. and Lazarova, M.B. (2014) Essentials of International HRM: Managing people globally. London: SAGE.
How institutions influence IHRM?
It is the source of legitimisation, rewards or incentives for, as well as constraints or sanctions on, organisational activities (Meyer & Rowan 1977). The relevance of institutional theory to HRM was initially derived from this view (Rosenzweig & Nohria 1994).
National institutions guide, constrain and enable management practices and decisions. They shape and determine HR and IHRM practices (Sparrow & Hiltrop 1994)
In order to achieve their goals, organisations need to interact with societal institutions in the following five aspects:
They must interact with industrial relations system (e.g. trade union) to regulate wages and working conditions
Political-Legal Systems
A country’s political-legal system refers to its government, laws, and regulations.
The legislation determines the firm-employee relationship (Brewster et al., 2011).
Three mechanisms: Coercive mechanisms (constraining forces)
Ew.og.rkLsegcoisulantcioilsn and government policies, trade unions, and Mimetic mechanisms (cloning forces)
A country’s laws often dictate the requirements for HRM practices: pay, hiring, firing, training, and layoffs.
A company that expands internationally must gain expertise in the host country’s legal requirements and ways of dealing with its legal system.
The most significant laws to employers are national labour laws influencing the level of organisational autonomy, health and safety regulations, and regulations in the field of social policy (e.g. minimum wages; annual and maternity leave entitlements).
Unlike global level analysis, this analysis takes a ‘highcontext’ approach
Countries vary widely with regard to national culture and institutions
BHL6018 International Human Resource Management (IHRM)
The context for international HRM (II) - National contexts - National institutions
Dr Xiaoni Ren
xren@cardiffmet.ac.uk
Effect of the institution context on organisations
Organisations are deeply embedded in the wider institutional context (Powell 1988; DiMaggio & Powell 1991).
International HRM strategies and practices
Recap: How is HRM shaped and practiced across the world?
Globalisation The role of multinational companies (MNCs) National differences (e.g. institutional and cultural differences) Technological change and the knowledge economy Demographic trends and labour market change EU enlargement Emerging economies (e.g. China)
political and legal systems Economic systems Education, training and skills levels
Recap: How to understand IHRM? - Four lFra Baidu bibliotekvels of analysis
Global effect Regional effect National effect Organisational effect
(Lucas et al., 2010)
Recap: Analysis of National Effects
An analysis at this level emphasises the importance of national context in understanding how and why HR systems and
Next…
We will look at how the following key national institutions influence MNCs’ HRM policies and practices: Political-legal systems Economic systems Education and training systems, and skills level
They influence how managers make decisions regarding business and HR strategies
National effects usually lead to divergent HR practices
Studies looking at how HR practices vary across different locations within the same multinational company show that differences in institutions can offer a better explanation of why HR systems/policies vary from country to country than cultural differences.
They need to ensure that employees have the necessary skills through their interaction with the vocational training and education system
They must secure the cooperation of the workforce by interacting with employees
So, what are institutions?
What are institutions?
Institutions are the structures and activities that provide stability to a society. They consist of the family, education, economic, religious, social and political systems (Thomas and Lazarova, 2014)
Examples of institutional factors
Local laws Enforcement mechanisms/agencies Government and local government policies Trade unions Financial establishments Labour market institutions Educational systems/institutions National training systems Pension arrangements Social security systems
Introduction to Module
Outline
Key objective: to understand how national institutions affect HRM practices in MNCs
National institutions Institutional context and its impact on HRM
Esu.gc.cbeessnfcuhlmoragrakninisgaatigoaninsst and imitating other similar and Normative mechanisms (learning forces)
Eas.gs.oecniagtaiognesment with professional bodies, employers’ (Thomas and Lazarova, 2014)
They must interact with financial institutions to raise capital They must interact with other organisations to secure access to inputs and
technology
These institutional factors influence how HR is practiced on a daily basis.
Institutional context
It refers to the systems of formal laws, regulations, and procedures, and informal conventions, customs, and norms, that broaden, mold, and restrain socio-economic activity and behaviour.
Source: Thomas, D.C. and Lazarova, M.B. (2014) Essentials of International HRM: Managing people globally. London: SAGE.
How institutions influence IHRM?
It is the source of legitimisation, rewards or incentives for, as well as constraints or sanctions on, organisational activities (Meyer & Rowan 1977). The relevance of institutional theory to HRM was initially derived from this view (Rosenzweig & Nohria 1994).
National institutions guide, constrain and enable management practices and decisions. They shape and determine HR and IHRM practices (Sparrow & Hiltrop 1994)
In order to achieve their goals, organisations need to interact with societal institutions in the following five aspects:
They must interact with industrial relations system (e.g. trade union) to regulate wages and working conditions
Political-Legal Systems
A country’s political-legal system refers to its government, laws, and regulations.
The legislation determines the firm-employee relationship (Brewster et al., 2011).
Three mechanisms: Coercive mechanisms (constraining forces)
Ew.og.rkLsegcoisulantcioilsn and government policies, trade unions, and Mimetic mechanisms (cloning forces)
A country’s laws often dictate the requirements for HRM practices: pay, hiring, firing, training, and layoffs.
A company that expands internationally must gain expertise in the host country’s legal requirements and ways of dealing with its legal system.
The most significant laws to employers are national labour laws influencing the level of organisational autonomy, health and safety regulations, and regulations in the field of social policy (e.g. minimum wages; annual and maternity leave entitlements).