INTERNATIONAL HUMAN RESOURCE MANAGEMENT Submitted By- Manisha Gupta MBA-4A 02614803912
What is IHRM? IHRM can be defined as set of activities aimed managing organizational human resources at international level to achieve organizational objectives and achieve competitive advantage over competitors at national and international level. IHRM includes typical HRM functions such as recruitment, selection, training and development, performance appraisal and dismissal done at international level and additional activities such as global skills management, expatriate management and so on.
OBJECTIVES OF IHRM Create a local appeal without compromising upon the global identity. Generating awareness of cross cultural sensitivities among managers globally and hiring of staff across geographic boundaries. Training upon cultures and sensitivities of the host country.
NEED FOR IHRM Managing expatriates Globalization has forced HRM to have international orientation Effectively utilise services of people at both the corporate office and at the foreign plants
FUNCTIONS OF IHRM RECRUITMENT SELECTION EXPATRIATES PERFORMANCE APPRAISAL TRAINING AND DEVELOPMENT COMPENSATION WOMEN IN INTERNATIONAL BUSINESS DUAL CAREER GROUPS INTERNATIONAL INDUSTRIAL RELATIONS TRADE UNIOUNS PARTICIPATIVE MANAGEMENT
Characteristics of IHRM 6
More Human Resource Activities 7
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Need for Broader Perspective 9
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Reasons for Growing Interest in IHRM 12
STAFFING POLICIES IN IHRM Ethnocentric: Here the Key management positions are filled by the parent country individuals. Polycentric: In polycentric staffing policy the host country nationals manage subsidiaries whereas the headquarter positions are held by the parent company nationals. Geocentric: In this staffing policy the best and the most competent individuals hold key positions irrespective of the nationalities.
Recruitment & Selection 14 categories of employees can be hired – parent country nationals (PCNs), host country nationals (HCNs) & third country nationals (TCNs)
IHRM MODEL
How It Is Different from D omestic HRM Domestic HRM is done at national level and IHRM is done at international level. Domestic HRM is concerned with managing employees belonging to one nation and IHRM is concerned with managing employees belonging to many nations (Home country, host country and third country employees) Domestic HRM is concerned with managing limited number of HRM activities at national level and IHRM has concerned with managing additional activities such as expatriate management. Domestic HRM is less complicated due to less influence from the external environment. IHRM is very complicated as it is affected heavily by external factors such as cultural distance and institutional factors.
ACTIVITIES INVOLVED IN IHRM
ISSUES IN IHRM Managing International Assignments Employee and Family Adjustments Selecting the right person for foreign assignments Culture and Gauge Language and Communication
EFFECTIVE IHRM IMPLEMENTATION The following checklist identifies some of the critical decisions/actions required in the formulation and implementation of an effective IHR strategy. 1. As certain the current and intended nature of international operations in the organisation (multi-domestic, international, global or transnational?) 2. Determine the extent to which HR policies and practices should be standardised or localised in accordance with overall organisational strategy. 3. Assess the extent to which local cultural, social, political, economic and legal factors will impinge on any attempts to apply standard HR policies if integration is a key factor in organisational strategy.
4. Ensure a computerised database of global human resources is used if integration is desired. 5. Work with the senior management team to identify the competencies required to achieve global organisational objectives. 6. Work with national HR and line managers to formulate IHR policies and practices in the key areas of sourcing, development and reward which will embed a transnational mindset in the organisation.
Expatriate Assignment Life Cycle 22 Determining the need for an expatriate Selection Process Pre-assignment training Departure Post-arrival Orientation & Training Crisis & Adjustment Crisis & Failure Repatriation & Adjustment Reassignment Abroad