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International human resource management
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INTERNATIONAL
HUMAN RESOURCE
MANAGEMENT
Third Edition
TONY EDWARDS & CHRIS REES
www.pearson-books.com
MANAGEMENT
INTERNATIONAL HUMAN RESOURCE
EDWARDS & REES
This engaging textbook o ers an accessible introduction to International Human Resource
Management. It explores the international dimensions of managing human resources with a focus
on comparative HRM and multinational organisations. It tackles the issues raised by cross-national
di erences in HRM styles and explores key themes, including:
• The meaning of globalization and the extent to which it is a novel phenomenon.
• Challenges to national traditions and changes in national systems.
• Debates and controversy around key issues in International HRM.
Ideal for undergraduates taking International HRM courses, those taking Masters programmes in
HRM, and MBA students, the text may also be relevant to comparative industrial relations courses
that feature multinational companies.
Fully revised and updated in this new third edition, this textbook features:
• Clear, cohesive themes that run throughout the book and show the big picture.
• Broad depth of coverage of multinational companies, refl ecting current hot topics.
• Real-life case studies throughout, showing how the theory applies in practice.
• Contributions by experts in the fi eld, actively edited by the lead authors to ensure that the book
is clear and consistent for the reader.
About the authors
Tony Edwards is Professor of Comparative Management at King’s College, London.
Chris Rees is Professor of Employment Relations at Royal Holloway, University of London.
Cover image: Photo ephemera / Getty Images
Globalization, National Systems and
Multinational Companies
Globalization, National Systems and Multinational Companies
Third Edition
INTERNATIONAL HUMAN RESOURCE MANAGEMENT
TONY EDWARDS & CHRIS REES Third Edition
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International Human Resource Management
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Third Edition
International Human Resource
Management
Globalization, National Systems
and Multinational Companies
Tony Edwards and Chris Rees
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Pearson Education Limited
Edinburgh Gate
Harlow CM20 2JE
United Kingdom
Tel: +44 (0)1279 623623
Web: www.pearson.com/uk
___________________________
First published 2006 (print)
Second edition published 2011 (print and electronic)
Third edition published 2017 (print and electronic)
© Pearson Education Limited 2006 (print)
© Pearson Education Limited 2011, 2017 (print and electronic)
The rights of Tony Edwards and Chris Rees to be identified as authors of this work have been asserted by them in
accordance with the Copyright, Designs and Patents Act 1988.
The print publication is protected by copyright. Prior to any prohibited reproduction, storage in a retrieval
system, distribution or transmission in any form or by any means, electronic, mechanical, recording or otherwise,
permission should be obtained from the publisher or, where applicable, a licence permitting restricted copying in
the United Kingdom should be obtained from the Copyright Licensing Agency Ltd, Barnard’s Inn, 86 Fetter Lane,
London EC4A 1EN.
The ePublication is protected by copyright and must not be copied, reproduced, transferred, distributed, leased,
licensed or publicly performed or used in any way except as specifically permitted in writing by the publishers, as
allowed under the terms and conditions under which it was purchased, or as strictly permitted by applicable
copyright law. Any unauthorised distribution or use of this text may be a direct infringement of the authors’ and
the publisher’s rights and those responsible may be liable in law accordingly.
Pearson Education is not responsible for the content of third-party internet sites.
ISBN: 978-1-292-00410-5 (print)
978-1-292-00414-3 (PDF)
978-1-292-17189-0 (ePub)
British Library Cataloguing-in-Publication Data
A catalogue record for the print edition is available from the British Library
Library of Congress Cataloging-in-Publication Data
Names: Edwards, Tony, 1968– editor. | Rees, Chris, 1966– editor. | Edwards,
Tony, 1968- International human resource management.
Title: International human resource management : globalization, national
systems and multinational companies / [edited by] Tony Edwards and Chris Rees.
Description: Third Edition. | New York : Pearson, 2016. | Revised edition of
International human resource management, 2006.
Identifiers: LCCN 2016026134 | ISBN 9781292004105 | ISBN 9781292004143 (PDF) |
ISBN 9781292171890 (ePub)
Subjects: LCSH: International business enterprises—Personnel management. |
International business enterprises—Management.
Classification: LCC HF5549.5.E45 I5777 2016 | DDC 658.3—dc23
LC record available at https://lccn.loc.gov/2016026134
10 9 8 7 6 5 4 3 2 1
21 20 19 18 17
Print edition typeset in 9/13, Stone Serif ITC Pro by SPi Global (P) Ltd.
Printed by Ashford Colour Press Ltd, Gosport
NOTE THAT ANY PAGE CROSS REFERENCES REFER TO THE PRINT EDITION
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Brief contents
Contents vii
Contributors xiii
Acknowledgements xv
Introduction
Tony Edwards and Chris Rees xvii
Part 1 The Context for International HRM
Chapter 1 Globalization, national systems and multinational companies
Chris Rees and Tony Edwards 3
Chapter 2 National employment systems and international HRM
Phil Almond 28
Chapter 3 The European Union: a case of advanced regional integration
Michael Gold 46
Part 2 MNCs and International HRM
Chapter 4 International structure and strategy
Tony Edwards and Chris Rees 71
Chapter 5 Global integration
Adam Smale 104
Chapter 6 The transfer of HR practices in MNCs
Tony Edwards, Chris Rees and Miao Zhang 126
Chapter 7 Cross-border mergers and acquisitions
Tony Edwards and Chris Rees 145
Part 3 The Management of International HRM
Chapter 8 Outsourcing and human resource management
Virginia Doellgast and Howard Gospel 169
Chapter 9 International leadership development
Nabil El Gazzar and David G. Collings 190
Chapter 10 Recruitment and selection of international managers
Fiona Moore 208
Chapter 11 International pay and compensation
Chin-Ju Tsai 230
Chapter 12 International and comparative employee voice
Enda Hannon 252
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Chapter 13 International corporate social responsibility
Lutz Preuss 275
Chapter 14 International migration and HRM
Stephen Bach 293
Index 315
vi Brief contents
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Contents
Contributors xiii
Acknowledgements xv
Introduction xvii
Tony Edwards and Chris Rees
1. Globalization versus embeddedness xviii
2. Cultures versus institutions xviii
3. Choices versus constraints xviii
4. Integration versus differentiation xviii
5. Standardization versus segmentation xix
6. Collaboration versus contestation xix
Part 1 The Context for International HRM
1 Globalization, national systems and multinational companies 3
Chris Rees and Tony Edwards
Key aims 3
Introduction 3
The nature of contemporary globalization 4
Debating globalization 8
Globalization and MNCs 12
MNCs, the state and ‘national effects’ 14
Conclusion 21
Review questions 23
Further reading 24
References 24
2 National employment systems and international HRM 28
Phil Almond
Key aims 28
Introduction 28
Types and numbers of national system 28
National business systems and HRM in MNCs 34
Management, ownership and country-of-origin effects 40
Conclusion 41
Review questions 42
Further reading 42
References 42
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viii Contents
3 The European Union: a case of advanced regional integration 46
Michael Gold
Key aims 46
Introduction 46
Regional integration agreements 48
Box 3.1 Deepening stages of RIAs 50
Evolution of the EU and its employment policy 51
Box 3.2 Principal institutions of the EU 52
The European social model 53
Bases of EU employment policy 54
Three key ‘moments’ in the development of EU employment policy 57
Box 3.3 Principal social partners in the EU 58
The emergence of ‘soft’ law and the Open Method of Coordination 59
Theorizing convergence of HR practice across the EU 60
Future challenges for EU employment policy 61
Box 3.4 ECJ cases cited 62
Box 3.5 Posted workers 63
Conclusion 64
Notes 64
Review questions 65
Further reading 65
References 66
Part 2 MNCs and International HRM
4 International structure and strategy 71
Tony Edwards and Chris Rees
Key aims 71
Introduction 71
Defining a multinational company 72
The motivations for internationalization 74
The arrival of the ‘global’ firm 79
Key influences on strategy and structure in MNCs 89
Box 4.1 ABB: a test case of the transnational strategy 95
Box 4.2 AutoPower: shaking off its American origins? 98
Conclusion 100
Review questions 100
Further reading 101
References 101
5 Global integration 104
Adam Smale
Key aims 104
Introduction 104
The case for global HRM integration 105
Tools of global HRM integration 112
Achieving global HRM integration 116
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Contents ix
Box 5.1 Globally integrating diversity management at Transco 118
Conclusion 120
Review questions 121
Further reading 121
References 121
6 The transfer of HR practices in MNCs 126
Tony Edwards, Chris Rees and Miao Zhang
Key aims 126
Introduction 126
The ‘diffusability’ of employment practices 127
The hierarchy of economies and the diffusion of practices 129
Box 6.1 CFS: adaptation, absorption or retention 132
Corporate characteristics promoting and hindering diffusion 134
The process of diffusion 137
Box 6.2 Engineering products: networking . . . but with the centre in charge 139
Conclusion 140
Review questions 141
Further reading 141
References 141
7 Cross-border mergers and acquisitions 145
Tony Edwards and Chris Rees
Key aims 145
Introduction 145
The national orientation of the parent in cross-border M&As 147
Box 7.1 Case study: HealthCo 149
Restructuring at national level and the legacy of distinctive national systems 150
The political dimension to cross-border M&As 154
Box 7.2 Case study: Corus 156
Cross-border M&As and organizational learning 158
Conclusion 163
Review questions 163
Further reading 164
References 164
Part 3 The Management of International HRM
8 Outsourcing and human resource management 169
Virginia Doellgast and Howard Gospel
Key aims 169
Introduction 169
Conceptualizing outsourcing 170
Employment restructuring and the outsourcing decision 171
Coordination of HRM across organizational boundaries 176
Box 8.1 ‘Vendotel’: coordinating HRM in a multinational call centre vendor 179
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x Contents
The outsourcing of (parts of) the HR function 181
Box 8.2 The outsourcing of HRM by P&G and Unilever 183
Conclusion 184
Review questions 186
Further reading 186
References 186
9 International leadership development 190
Nabil El Gazzar and David G. Collings
Key aims 190
Introduction 190
What is global leadership? 191
The right stuff model to develop global leaders 192
Global leadership development mechanisms 196
Conclusion 200
Box 9.1 Case study: TRW 201
Note 202
Review questions 202
Further reading 203
References 203
10 Recruitment and selection of international managers 208
Fiona Moore
Key aims 208
Introduction 208
Key concepts and definitions 209
Criteria for recruitment 210
Selection 214
Box 10.1 Case study: Japanese expatriates through the decades 218
Diversity issues in international recruitment and selection 220
The changing international manager 224
Conclusion 225
Review questions 226
Further reading 226
References 227
11 International pay and compensation 230
Chin-Ju Tsai
Key aims 230
Introduction 230
Convergence versus divergence in compensation practices 231
Box 11.1 Variations in compensation between selected countries in three regions 233
Factors influencing international compensation 235
Pay strategy in MNCs 238
Box 11.2 Case study: balancing global strategic alignment and local
conformance pressures in a pharmaceutical MNC 240
Expatriate compensation 240
Conclusion 247
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Contents xi
Review questions 247
Further reading 248
References 248
12 International and comparative employee voice 252
Enda Hannon
Key aims 252
Introduction 252
Employee voice, employee participation and employee involvement 253
The European Union as a regional system of employee voice 255
Box 12.1 EU legislation on employee voice 255
Employee voice in ‘advanced industrialized economies’ 259
Box 12.2 The German system of employee voice 261
Managing employee voice in ‘industrializing’ or ‘developing’ economies 265
Box 12.3 Employee involvement in a British MNC in China 268
Conclusion 269
Review questions 270
Further reading 270
References 270
13 International corporate social responsibility 275
Lutz Preuss
Key aims 275
Introduction 275
The concept of corporate social responsibility 276
CSR in the multinational enterprise 280
Managing corporate social responsibility 282
Corporate social responsibility and human resource management 287
Conclusion 289
Review questions 290
Further reading 290
References 291
14 International migration and HRM 293
Stephen Bach
Key aims 293
Introduction 293
International migration: dimensions and trends 295
What shapes migration? 298
The impact of migration 302
Box 14.1 Case study: nursing 306
Worker and trade union responses 309
Conclusion 311
Review questions 312
Further reading 312
References 312
Index 315
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Phil Almond
Professor of Comparative Employment Relations at De Montfort University, Leicester.
Stephen Bach
Professor of Employment Relations at King’s College, London.
David G. Collings
Professor of Human Resource Management at Dublin City University.
Virginia Doellgast
Associate Professor of Comparative Employment Relations at Cornell University,
New York.
Tony Edwards
Professor of Comparative Management at King’s College, London.
Nabil El Gazzar
Doctoral student at Dublin City University.
Michael Gold
Professor of Comparative Employment Relations at Royal Holloway, University of
London.
Howard Gospel
Senior Research Fellow at King’s College, London.
Enda Hannon
Senior Lecturer in Employment Relations and Employment Law at Kingston University,
London.
Fiona Moore
Professor of Business Anthropology at Royal Holloway, University of London.
Contributors
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xiv Contributors
Lutz Preuss
Professor of Strategic Management at the University of Sussex.
Chris Rees
Professor of Employment Relations at Royal Holloway, University of London.
Adam Smale
Professor at the University of Vaasa, Finland.
Chin-Ju Tsai
Senior Lecturer in Human Resource Management at Royal Holloway, University of
London.
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