International HRM unit 1.pptx..........

Hrm

1. International HRM Unit -1

2. Human Resource Management According to Edwin Flippo , HRM as “planning, organizing, directing, controlling of procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and social objectives are achieved.”

3. IHRM The process of procuring, allocating and effectively utilizing human resources in an international business is called international human resources management (IHRM). This is the HRM issues and problems arising from the internationalization of business, and the HRM strategies, policies and practices which firms pursue in response to the internationalization process. IHRM is the management of HR in business operations in at least two nations.

4. In short, IHRM is concerned with handling the human resources at Multinational Companies (MNCs) and it includes managing three types of employees − Home country employees:  Employees residing in the home country of the company where the corporate head quarter is situated, for example, an Indian working in India for some company whose headquarters are in India itself. Host country employees:  Employees residing in the nation in which the subsidiary is located, for example, an Indian working as an NRI in some foreign country. Third country employees:  These are the employees who are not from home country or host country but are employed at the additional or corporate headquarters. For example , an Indian MNC, which has its corporate office in America, may employ a French person as the CEO to the subsidiary. The Frenchman employed is a third country employee.

5. Need for IHRM Managing expatriates. Globalization has forced HRM to have international orientation. Effectively utilize services of people at both the corporate office and at the foreign plants.

6. Need for IHRM Business activities e.g. taxation, international relocation, expatriate remuneration, performance appraisals, cross- cultural training and repatriation. Increased complexities e.g. currency fluctuations, foreign HR policies and practices, different labor laws

7. NEED FOR IHRM Complex employee mix cultural, political, religious, ethical, educational and legal background. Increased risks e.g. emergency exits for serious illness, personal security, kidnapping and terrorism.

8. Business activities e.g. taxation, international relocation, expatriate remuneration, performance appraisals, cross- cultural training and repatriation.  Increased complexities e.g. currency fluctuations, foreign HR policies and practices, different labor laws. Increased involvement in employee's personal life e.g. personal taxation, voter registration, housing, children's education, health, recreation and spouse employment. Complex employee mix cultural, political, religious, ethical, educational and legal background. Increased risks e.g. emergency exits for serious illness, personal security, kidnapping and terrorism.

9. INTERNATIONAL HRM Three nation or country categorized in international HRM activities are. HOST country HOME country OTHER country .

10. Three types of employees in IHRM Host country nationals. Parent country nationals. The third country nationals.

11. Features of International HRM IHRM involves employment of right people at right job at right time, irrespective of geographic locations. It requires the development of long-term HR plan to make sure of effective alignment of HR strategies with corporate objectives. It requires the development of a diversified range of skills for employees, especially for those who need to work beyond national boundaries. It necessitates the determination of compensation for parent, host & third country nationals on the basis of country specific factors. It creates the centralized reporting relationships around the world .

12. Developments Leading to International HRM Perspective Rapid growth of global competition and internationalization. Need of effective management. Need for international managers. Development of different organizational culture. Knowledge Management (create, transmit and assimilate knowledge beyond borders)

13. International HRM: Role and Distinguish Activities Responsible for the administrative services for expatriates ( a person who lives outside his/her own country ) like selecting, training and appraising local and the international employee. Recruitment and Selection. On the Job Training. Performance Evaluation. Compensation and Benefits. Ensuring Legal Compliances. Distinguish taxation. International relocation and orientation. Managing host government relationship .

14. Organizational structure and HRM Defining and communicating the human resource terms and definitions used by a company ensures all personnel use the same terminology.  HR professionals help company leaders and their subordinates define an effective, cohesive organizational structure that supports the company in achieving its business goals. 

15. TYPES Horizontal Organization:  Matrix Organization:  Divisional Organization: Vertical Organization: Horizontal Organization : In a horizontal organization, only a few layers exist. Instead of a complex hierarchy, most employees report to the same boss. In these types of organizations, work typically gets done by functional project teams. This structure works well for small companies but tends to become unwieldy as the company becomes larger, more diverse and located in more than one location.

16. Matrix Organization: Employees who work in a matrix organization report to more than one manager.   This allows valuable, highly trained resources to support different departments. Employees who work in this type of structure tend to rely on professional organizations or informal group meetings with people performing similar roles for their own development. For example, an HR professional may report to both an HR department manager and the finance department manager. They may work exclusively with finance professionals and attend only the finance team meetings, relying on informal communication from his HR peers about industry trends and best practices.

17. Matrix organization

18. 3. Divisional Organization:    In this case, the organization is divided into divisions which could be based on the product, Markets or Geographic area. Each division has its own set of functions like finance, marketing etc, like small micro organizations within one large organization. Vertical Organization: In a traditional company structure, each function has its own manager, who reports to the company’s executive leadership. In large companies, this results in multiple layers of managers. Top-level executives makes decisions for the subordinates. Departments tend to function independently and not share resources, tools or techniques. Employees in each department tend to require specialized skills, experience and competency levels.

19. Global Human Resource Planning The preliminary function of global Human Resource Management is that the organization carries a local appeal in the host country despite maintaining an international feel . To exemplify, any multinational / international company would not like to be called as local, however the same wants a domestic touch in the host country and there lies the challenge. We may therefore, enumerate the  objectives of global HRM as follows: 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.

20. Global Human Resource Planning Global HRM therefore is a very challenging front in HRM. If one is able to strike the right chord in designing structures and controls, the job is half done . Subsidiaries are held together by global HRM, different subsidiaries can function operate rationally only when it is enabled by efficient structures and controls.