Human resource management

human resource management

1. International Human Resource Management

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3. Model of IHRM 3

4. Characteristics of IHRM 4

5. More Human Resource Activities 5

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7. Need for Broader Perspective 7

8. More Involvement in Employee’s Personal Lives Changes in Emphasis 8 More involvement for both parent-country & third-country nationals Housing arrangements Health care Remuneration packages Assist children left behind in boarding schools Need for parent-country & third-country nationals decrease as more trained locals become available Resources reallocated to selection, training & management development

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10. Reasons for Growing Interest in IHRM 10

11. Basic Steps in IHRM 11

12. HR Planning 12

13. Recruitment and Selection 13 The three categories of employees can be hired: Parent Country National- A parent-country national is a person working in a country other than their country of origin and is also referred to as an expatriate. Some of the benefits that an expatriate can have include the foreign earned income and housing allowance if the home is in the foreign country.

14. 14 Host country employees- A host country national is a person who is a citizen of a given country. This individual may be a citizen of the given country by birth or by naturalization. A national of Britain is referred to as a Briton.

15. 15 Third country employees- These are the employees who are not from home country/host country but are employed at subsidiary or corporate head quarters. As an example a American MNC which has a subsidiary at India may employ a French person as the CEO to the subsidiary. The Frenchman employed is a third country employee.

16. Advantages & Disadvantages of Using PCNs Advantages Disadvantages 16 Familiarity with home office, goals, practices Easy organisational control & coordination International exposure to promising managers PCNs  special skills & experiences Difficulty in adapting to foreign country Excessive cost of selecting, training & maintaining expatriates Promotional opportunities limited for HCNs May try to impose inappropriate HQ style Compensation differences for HCNs & PCNs Family adjustment problems

17. Advantages & Disadvantages of Using HCNs Advantages Disadvantages 17 Familiarity with the situation in host-country Lower hiring costs Locals motivated due to promotional opportunities Responds well to localisation of subsidiary’s operations No language barrier HCNs stay longer in positions Difficulty in exercising effective control over the subsidiary’s operations Communication problems with home office personnel No opportunity for home country’s nationals to gain international experience Limited career opportunity outside the subsidiary

18. Advantages & Disadvantages of Using TCNs Advantages Disadvantages 18 Salary & benefit requirements lower than that of PCNs May be better informed about host country environment Truly international managers Host country govt. may resent hiring TCNs May not return to their country after assignment Host country’s sensitivity w.r.t nationals of specific countries

19. Expatriate Assignment Life Cycle 19 Determining the need for an expatriate Selection Process Pre-assignment training Departure Post-arrival Orientation & Training Crisis & Adjustment Crisis & Failure Repatriation & Adjustment Reassignment Abroad

20. Expatriate Failure 20

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22. Components of Remuneration Package Factors Influencing Compensation 22 Base salary Benefits Allowances Incentives Taxes Internal Environment Goal Orientation Capacity to pay Competitive strategy Organisational culture Internal workforce composition External Environment Labour market characteristics Local culture Home & host country govts’ role Industry type

23. Repatriation 23 The activity of bringing the expat back to the home country Can cause re-entry shock or reverse culture shock Reasons Posting period over Children’s education Not happy with overseas assignment Failure to do a good job Repatriation Process

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