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International human resource management

International human resource management






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    International human resource management International human resource management Presentation Transcript

    •  What are reasons that encouraged globalorganizations to develop international HRstrategies? Global competition and differences inorganizational environment across nations. Powerpoint Templates Page 2
    • TYPES OF INTERNATIONAL ORGANIZATIONS1.International Corporations2.Multinational Corporations3.Global Corporations4.Transnational Corporations Powerpoint Templates Page 3
    •  International Corporations• Domestic firms that builds on its existing capabilities to penetrate overseas market. Example : Honda, General Electric, P&G Powerpoint Templates Page 4
    •  Multinational Corporations• MNCs have operating units (subsidiaries) located in foreign countries• Subsidiaries function as autonomous units Examples : Shell, Philips, Xerox Powerpoint Templates Page 5
    •  Global Corporations• Maintains control over its worldwide operations (subsidiaries) through a centralized home office.• They treat the entire world as a single market Examples : Matsushita Powerpoint Templates Page 6
    •  Transnational Corporations• Provides autonomy to independent country operations but bring these operations together into an integrated whole through networked structure• They combines the local responsiveness of an MNC and the efficiency of a global corporation Examples : Ford & Unilever Powerpoint Templates Page 7
    • INTERNATIONAL HUMAN RESOURCE MANAGEMENT• Simple definition is ‘the process of managing people in international settings’• Scyllion (1995) defined IHRM as ‘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 atleast two nations Powerpoint Templates Page 8
    • DIFFERENCES BETWEEN IHRM & DOMESTIC HRM IHRM Domestic HRM• Address a broad range of HRM • Address a narrow range of HRM activities activities• HR issues relate to employees • HR issues relate to employees belonging to more than one belonging to single nationality nationality • Limited involvement of HR• Greater involvement of HR manager in the personal life of manager in the personal life of employees employees Powerpoint Templates Page 9
    • IHRM Domestic HRM• Greater exposure to risks in • Limited risks in domestic International assignments assignments• Has to manage several external • Limited external factors to deal factors such as government with. regulations of foreign country Powerpoint Templates Page 10
    • External environment & IHRM• Political Environment• Cultural Environment Powerpoint Templates Page 11
    • IHRM Practices• International staffing• Pre-departure training for international assignments• Repatriation• Performance management in international assignments• Compensation issues in international assignments Powerpoint Templates Page 12
    • International staffing• refers to the process of selecting employees for staffing international operations of an MNC MNCs can be staffed using three different sourcesa. Home country or Parent Country National (PCN)b. Host Country Nationals (HCN)c. Third Country Nationals (TCN) Powerpoint Templates Page 13
    • • PCN Employees of an organization who are citizens of the country in which the headquarters of the company is located• HCN Employees of an organization who are the citizens of the country in which the foreign subsidiary is located• TCN Employees of an organization who are the citizens of the country other than the country where the organization is headquarterd and the country that is hosting the subsidiary Powerpoint Templates Page 14
    • Approaches to staffing subsidiaries• Ethnocentric foreign subsidiary has little autonomy. All strategic decisions are made at the headquarters. PCNs staff key positions at quarters as well as the foreign subsidiary• Polycentric staff foreign subsidiaries of the firm with HCNs and headquarters consist of PCNs• Geocentric staff my be PCNs, HCNs or TCNs ability and not nationality is the key to staffing Powerpoint Templates Page 15
    • Pre-departure Training for International Assignments• To make it easier for the employee to assume job responsibilities and be effective in the foreign country as soon as possible• To facilitate cultural adaptation as quickly and as effectively as possible Powerpoint Templates Page 16
    • 3 elements of T&D programme1. Language training2. Cultural training3. Managing personal and family life Powerpoint Templates Page 17
    • Repatriation• It is the process of bringing an expatriate home after he/she has completed the international assignment. Organizations can follow 3 practices1. Create knowledge and develop global leadership skills2. Ensure that candidates have cross-cultural skills to match their technical abilities3. Prepare people to make the transition back to their home offices Powerpoint Templates Page 18
    • Performance Management in International AssignmentsPerformance is the combination of several factors Compensation Package Task Assigned to the Expatriate Headquarter’s Support Environment Cultural Adjustment Powerpoint Templates Page 19
    • Compensating Managers in International AssignmentsComponents of expatriate compensation• Home leave and travel allowances• Children’s education allowance• Currency differential payments• Relocation allowance• Housing allowance• Cost of living adjustment• Payments to protect from negative tax consequences Powerpoint Templates Page 20
    • CONCLUSIONAs organizations have gone global in their operations, theimpact of cultural differences as well as workforce issues havecaught the attention of the HR managers. As the worldbecomes boundary less, the ability to work in a cross culturalenvironment becomes a valuable asset for any executive.Understanding, managing, and even exploiting these culturaldifferences could well spell the difference between successand failure in several business situations. Powerpoint Templates Page 21
    • Thank You Powerpoint Templates Page 22