37:533:315 Lecture 3: CHAPTER 3

• School: Rutgers University
• Department: Human Resource Management
• Course: 37:533:315
• Professor: H.El- Farr

Document Summary

Chapter 3: design and structure of the mne. Initially a sales office: structure of reporting directly to executives in hq, primary concern: transferring technology, products & management from. In traditional multi-domestic enterprise- free standing subsidiaries are loosely affiliated missing out on opportunities for economies of scale, joint marketing efforts, or shared technology and innovations may be lost. Ihrm & international organizational design & structure: organizational design- the process/style used by leaders & managers to arrange various components of organizational structure. Issues: cross-border negotiations, culture sensitivities, coordination & controls across borders and time zones, cross border teamwork. Ihrm= (cid:862)glue te(cid:272)h(cid:374)olog(cid:455)(cid:863) to i(cid:374)tegrate mne: hq hrm- incapable of managing outside host country, local hrm- expensive and lack mne strategic components, (cid:862)shared services - (cid:862)(cid:272)e(cid:374)ter of e(cid:454)(cid:272)elle(cid:374)(cid:272)e(cid:863)- new structure to deliver hr services. Individual country operations can specialize in varying aspects of ihrm services and other countries can access this service without developing them themselves.