International Human Resource Managment
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International Human Resource Managment Presentation Transcript

  • 1. International Human Resource Managment
    Bino Joseph
  • 2. 2
  • 3. Model of IHRM
    3
  • 4. Characteristics of IHRM
    4
  • 5. More Human Resource Activities
    5
  • 6. 6
  • 7. Need for Broader Perspective
    7
  • 8. More Involvement in Employee’s Personal Lives
    Changes in Emphasis
    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
    8
  • 9. 9
  • 10. Reasons for Growing Interest in IHRM
    10
  • 11. Basic Steps in IHRM
    11
  • 12. HR Planning
    12
  • 13. Recruitment & Selection
    13
    3 categories of employees can be hired – parent country nationals (PCNs), host country nationals (HCNs) & third country nationals (TCNs)
  • 14. Advantages & Disadvantages of Using PCNs
    Advantages
    Disadvantages
    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
    14
  • 15. Advantages & Disadvantages of Using HCNs
    Advantages
    Disadvantages
    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
    15
  • 16. Advantages & Disadvantages of Using TCNs
    Advantages
    Disadvantages
    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
    16
  • 17. Expatriate Assignment Life Cycle
    Determining the need for an expatriate
    Crisis & Adjustment
    Reassignment Abroad
    Repatriation & Adjustment
    Departure
    Post-arrival Orientation & Training
    Selection Process
    Crisis & Failure
    Pre-assignment training
    17
  • 18. Expatriate Failure
    18
  • 19. Culture Shock Cycle
    19
  • 20. Individual Situation
    20
  • 21. Training & Development
    21
  • 22. HCN Training
    22
  • 23. Expatriate Performance Management
    23
  • 24. 24
  • 25. Paying Expatriates
    25
  • 26. Components of Remuneration Package
    Factors Influencing Compensation
    Base salary
    Benefits
    Allowances
    Incentives
    Taxes
    Tax equalisation
    Tax protection
    Internal Environment
    Goal Orientation
    Capacity to pay
    Competitive strategy
    Organisational culture
    Internal workforce composition
    Labour relations
    Subsidiary role
    External Environment
    Parent nationality
    Labour market characteristics
    Local culture
    Home & host country govts’ role
    Industry type
    Competitors’ strategies
    26
  • 27. Balance-sheet approach
    Going-rate approach
    Lumpsum method
    Cafeteria approach
    Regional approach
    Approaches to Designing the Pay Package
    27
  • 28. Repatriation
    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
    28
    Repatriation Process
  • 29. 29
    Types of Assignments
    Short term assignments
  • 30. 30
    Commuter assignments
    Long term assignments
  • 31. International Labour Relations
    31
  • 32. Culture – customs, beliefs, norms & values that guide behaviour of people in a society or passed on from one generation to the next
    Multiculturalism – people from many cultures (countries) interact regularly
    Benefits
    Greater creativity & innovation
    Sensitivity in dealing with foreign customers
    Possibilities of hiring best talent
    ‘Superorganisational culture’
    Universally acceptable HR policies & practices
    Functions of IHR manager
    Possess strong personal identity
    Have knowledge of beliefs & values of different cultures
    Display sensitivity
    Communicate clearly according to the cultural group
    Cultivate cosmopolitan outlook & attitudes
    Multiculturalism
    32
  • 33. 33
  • 34. 34