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International Human Resource Management

Conducting business across national borders is nothing new; the Knights Templar
were banking internationally as long ago as 1135. But modern globalization
processes raise different challenges. Multinational corporations increasingly out-
source their operations to low-cost countries, while even small firms can operate
globally through new technologies and fewer trade restrictions. And as the world
becomes smaller and labour movements more common, an international under-
standing of human resource management is essential.
The second edition of International Human Resource Management: A European
perspective provides a fully updated and revised analysis of this important area. Its
innovative, multidisciplinary approach allows a holistic picture to emerge in which
key issues are assessed from organizational, individual and societal perspectives.
The collection is divided into three parts:
■ The contemporary internationalization context
■ The management of international employees
■ Strategic issues facing international HR managers

Supported by new research, and including work from eminent writers in the
field, the book discusses issues as diverse as the relative absence of women in inter-
national work, the ethical merits of localization and the context faced by organiza-
tions like the United Nations. This important collection is an insightful and timely
addition to the literature. It will be a valuable tool for all students, researchers and
practitioners working in international business and human resource management.
Michael Dickmann is a Senior Lecturer in Human Resource Management at
Cranfield School of Management and Director of the Masters in International
HRM. Michael has published widely on international HR strategies, structures,
international mobility and global career topics and has consulted with many multi-
national corporations and intergovernmental organizations.
Chris Brewster is Professor of International Human Resource Management at
the University of Reading, UK. He has conducted extensive research in the field
of international and comparative HRM and published over 20 books and more than
100 articles.
Paul Sparrow is Director of the Centre for Performance-led HR and Professor
of International Human Resource Management at Lancaster University
Management School, UK. He has consulted with major multinationals, public
sector organizations and intergovernmental agencies, is on the US Academy of
Management’s HR Division and a member of the Human Capital Institute’s Global
Talent Management Panel.
International
Human Resource
Management
A European perspective

Second edition

Edited by

Michael Dickmann,
Chris Brewster and
Paul Sparrow
First edition published by Routledge in 1999
Reprinted 2000, 2004 Second edition published 2008
by Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
Simultaneously published in the USA and Canada
by Routledge
270 Madison Avenue, New York, NY 10016
Routledge is an imprint of the Taylor & Francis Group, an informa business
This edition published in the Taylor & Francis e-Library, 2008.
“To purchase your own copy of this or any of Taylor & Francis or Routledge’s
collection of thousands of eBooks please go to www.eBookstore.tandf.co.uk.”

© 1999 Editorial matter and selection Chris Brewster and Hilary Harris; individual chapters,
the contributors; 2008 Editorial matter and selection, Michael Dickmann, Chris Brewster and
Paul Sparrow; individual chapters, the contributors
All rights reserved. No part of this book may be reprinted or reproduced or utilized in any form
or by any electronic, mechanical, or other means, now known or hereafter invented, including
photocopying and recording, or in any information storage or retrieval system, without permission
in writing from the publishers.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging in Publication Data
International human resource management: a European perspective / edited by Michael Dickmann,
Chris Brewster & Paul Sparrow. – 2nd ed.
p. cm.
1. International business enterprises–Europe–Personnel management.
2. Personnel management–Europe. I. Dickmann, Michael. II. Brewster, Chris. III. Sparrow, Paul.
HF5549.5.E45I5774 2007
658.3–dc22 2007039889
ISBN 0-203-89139-2 Master e-book ISBN

ISBN10: 0–415–42392–9 (hbk)

ISBN10: 0–415–42393–7 (pbk)
ISBN10: 0–203–08902–2 (ebk)
ISBN13: 978–0–415–42393–9 (pbk)
ISBN13: 978–0–415–42392–2 (hbk)
ISBN13: 978–0–203–08902–6 (ebk)
 To my father, whose unbounded optimism has always energized me, and
my mother, whose unfailing love and understanding has been a tremendous support.
Michael Dickmann

Thanks to Lynn – for everything.

Chris Brewster

As always to Sue who lets me be focused but keeps me balanced.

Paul Sparrow

v
Contents

Figures ix
Tables xi
Text boxes xiii
Case studies xv
Contributors xvii
Acknowledgements xxi

Part I Context for internationalization 1

1 A European perspective on IHRM: an introduction 3
Chris Brewster, Michael Dickmann and Paul Sparrow

2 Localization: a strategic response to globalization 19

John Hailey and Wes Harry

3 HR sourcing and shoring: strategies, drivers, success factors 39

and implications for HR
Paul Sparrow and Werner Braun

4 Transfer of strategic HR know-how in MNCs: mechanisms, 67

barriers and initiatives
Jaime Bonache and Michael Dickmann

Part II HR management of international employees 85

5 Resourcing international assignees 87
David G. Collings and Hugh Scullion

6 An integrative framework for expatriate preparation and training 107

Ina Ehnert and Chris Brewster

7 Expatriate adjustment: a more nuanced view 130

Arno Haslberger

8 Rewards for internationally mobile employees 150

Marion Festing and Stephen J. Perkins

vii
CONTENTS

9 Repatriation: the end or the middle? 174

Noeleen Doherty, Chris Brewster, Vesa Suutari and
Michael Dickmann

10 Careers and expatriation 192

Jean-Luc Cerdin

Part III Strategic challenge or situational response? 217

11 Modern forms of international working 219
Wolfgang Mayrhofer, Paul Sparrow and Angelika Zimmermann

12 Capitalizing on an international career: career capital perspectives 240

Noeleen Doherty and Michael Dickmann

13 Women on international assignments 263

Iris Kollinger and Margaret Linehan

14 HRM and international organizations 289

Estelle Toomey and Chris Brewster

Author Index 307

Subject Index 310

viii
Figures

3.1 Multi-process HRO market growth 55

4.1 Strategic roles of subsidiaries 70
4.2 Initiatives to promote knowledge transfer through 81
international assignees
6.1 Disaggregating the population 114
6.2 An integrative framework for expatriate performance 122
7.1 Adjustment curve including ‘culture shock’ 138
7.2 Smooth adjustment curve 139
8.1 Levels of analysis of expatriate compensation 152
8.2 Compensation scheme for expatriates from a German MNC 153
12.1 International career management from organizational 247
and individual perspectives

ix
Tables

3.1 HRO market volume 54

3.2 Multi-process HRO market by geographies 58
4.1 Key mechanisms for HR knowledge management 76
5.1 Harris and Brewster’s selection typology 99
7.1 Driving and restraining forces in adjustment 135
7.2 Cross- and spillover in adjustment 142
9.1 Some individual and organizational value indicators 185
in expatriation
10.1 Contrasting qualities of expatriate assignments 204
10.2 Possible success criteria for international assignments 210
13.1 Key papers on female international managers 267
14.1 An overview of IOs in comparison to large MNCs 291
14.2 Some key IHRM challenges in IOs and MNCs compared 295
14.3 Personal, employment and family factors impacting upon 299
HRM issues in IOs and MNCs

xi
Text boxes

3.1 Management motivations to outsource HR 46

3.2 Characteristics of the multi-process HRO industry 55
7.1 Activity 136
7.2 Cultural niceties 144
8.1 Ten practical steps for firms in designing reward 164
approaches for expatriates
10.1 Expatriation motives 198
10.2 Practices in career management 208
14.1 Structural and political features of international organizations 297
14.2 Differences of motivations and experiences during 303
international work
14.3 International mobility changes in ABC organization 304

xiii
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