INTEGRATIVE APPROACHES TO HRM AND INTERNATIONAL DIMENSIONS OF IR,ROLE OF INTEGRATIVE HRM,Industrial Relation POLICIES & PRACTICES OF MNCs

1. INTEGRATIVE
APPROACHES TO HRM
AND
INTERNATIONAL
DIMENSIONS OF IR
By:
Shashank Shekhar

2. APPROACHES TO HRM

3. INTEGRATIVE APPROACHES TO
HRM
 Compared To Symphony Orchestra

4. HRM should be integrated into organization’s mainstream
with..
 Proper representation on all major decision making
body.
 Clear definition of Corporate Philosophy and
Objectives.
 Strategic Linkage.
 Appropriate Accountability.

5. ROLE OF INTEGRATIVE HRM
CURRENT ROLES  SUGGESTED ROLES
 Idependent Goals  Strategic linkage
with goals.
 Standardization of
HR policies  Flexibility

6. MANAGEMENT PHILOSPHY
CURRENT ROLE SUGGESTED ROLE
 Emphasis on direction  Seek to achieve
and control. consensus and
commitment.
 Employee as a cost.
 People as resource.
 Hire and Fire.  Attract and Retain
people.
 Maintain Discipline
 Build positive work ethos
and organization for
employee motivation.

7. PERFORMANCE MANAGEMENT
CURRENT ROLE SUGGESTED ROLE
 Emphasis on feelings  Develop database for
and reliance on objective measurement
subjective appraisal of facts for analysis with
system with an eye on an eye on the bottom
harmony. line.

8. RELATIONSHIPS
CURRENT ROLE SUGGESTED ROLE
 Master and servant
relationship reinforcing  Emphasize reciprocity
the negative, apartheid and mutually in relations
feature of the social
system in workplace

9. INTERNATIONAL
DIMENSION OF
INDUSTRIAL RELATION

10. INTRODUCTION
 Globalization has provided the trade union movement with a
number of new strategies to attempt to broaden in a very new
way industrial relations at the international level.
 Unions have sought to exert influence through initiatives at the
supra-national and international levels, principally aimed at
multinational enterprises, i.e. International Framework
Agreements (IFAs).
 Different MNCs adopt different labor relations strategies in
relation to the environmental factors peculiar to each firm.

11. IR POLICIES & PRACTICES OF MNCs
 Multinational Headquarters involvement in Industrial relations is
influenced by several factors :
3. Degree of Inter-subsidiary Production Integration :
When a subsidiary in one country relies on another foreign subsidiary as a
source of components or as a user of its output. In this context, a
coordinated industrial relations policy is one of the key factors in a
successful global production strategy.
6. Nationality of Ownership of the Subsidiary:
Nationality of Ownership of the Subsidiary US firms tend to exercise greater
centralized control over labor relations than do British or other European
firms. US-owned subsidiaries are much more centralized in labor
relations decision making than the British-owned

12. Contd…
 International Human Relation Management Approach :
An Ethnocentric predisposition is more likely to be associated with various
forms of industrial relations conflict. Conversely, more geocentric firms
will bear more influence on host-country industrial relations systems,
owing to their greater propensity to participate in local events.
 Prior Experience in Industrial Relations:
Prior Experience in Industrial Relations European firms tend to deal with
industrial unions at industry level (frequently via employer associations)
rather than at the firm level. The opposite is more typical for U.S. firms
In the U.S., employer associations have not played a key role in the
industrial relations system, and firm-based industrial relations policies
are the norm.

13. Contd..
 Subsidiary Characteristics:
Where the parent firm is a significant source of operating or investment
funds for the subsidiary – a subsidiary is more dependent on
headquarters for resources – there will tend to be increased corporate
involvement in industrial relations and human resource management.
 Characteristics of the Home Product Market:
Characteristics of the Home Product Market Lack of a large home market is
a strong incentive to adapt to host-country institutions and norms. If
domestic sales are large relative to overseas operations (as is the case
with many US firms ), it is more likely that overseas operations will be
regarded as an extension of domestic operations. For European firms ,
international operations are more like to represent the major part of
their business.