StudsPlanetLeading Education consultant in India       www.StudsPlanet.com
INTERNATIONALHUMAN RESOURCEMANAGEMENT
Definition3    • The process of procuring, allocating and      effectively utilising human resources in an      internatio...
Model of IHRM4                             • Procure                  HR                Activities                        ...
Characteristics of IHRM5     More HR activities     Need for a broader perspective     More involvement in employee person...
More Human Resource6    Activities      Human       • Difficulty in implementing HR in host                    countries  ...
• Devising an appropriate strategy to                     compensate expatriates                   • Minimising difference...
Need for Broader Perspective8    Pay issues    • Different countries, different currencies    • Gender based pay in Korea,...
More Involvement in                                             Changes in Emphasis9    Employee’s Personal Lives       M...
10                 • Physical safety of the employees.       Risk                 • Failure of expatriates to perform well...
Reasons for Growing Interest in11     IHRM                                        Effective HRM              Globalisatio...
Basic Steps in IHRM12                               HRP      Recruitment &                   Repatriation        Selection...
Recruitment & Selection13          Ethnocentric Approach        Polycentric Approach         Regiocentric Approach        ...
Advantages & Disadvantages of14     Using PCNs     Advantages                        Disadvantages              Familiari...
Advantages & Disadvantages of15     Using HCNs     Advantages                              Disadvantages                  ...
Advantages & Disadvantages of16     Using TCNs     Advantages                         Disadvantages                      ...
Expatriate Assignment Life17       Cycle     Determining the                                         Crisis &           Re...
Expatriate Failure18     Premature return of expatriates to their home     country     Reasons     • Inability to adjust t...
Training & Development19              Cross                         Language             Cultural                         ...
HCN Training20          Gaining                           Technical know-      knowledge about                            ...
Repatriation21        The activity of bringing     Preparation         the expat back to the         home country       ...
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  1. 1. StudsPlanetLeading Education consultant in India www.StudsPlanet.com
  2. 2. INTERNATIONALHUMAN RESOURCEMANAGEMENT
  3. 3. Definition3 • The process of procuring, allocating and effectively utilising human resources in an international business is called international human resources management (IHRM). 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
  4. 4. Model of IHRM4 • Procure HR Activities • Utilise • Allocate • Home country nationals Types of • Host country employees nationals • Third country nationals • Home country Countries • Host country • Third country
  5. 5. Characteristics of IHRM5 More HR activities Need for a broader perspective More involvement in employee personal lives Changes in emphasis as the workforce mix of expatriates and locals vary Risk exposure More external influences
  6. 6. More Human Resource6 Activities Human • Difficulty in implementing HR in host countries Resource • Developmental opportunities for Planning international managers. • Ability to mix with organisation’s culture Employee • Ethnocentric, polycentric or geocentric staffing approach Hiring • Selection of expatriates • Managing repatriation process • Emphasis on cultural training Training & • Language training Development • Training in manners & mannerisms
  7. 7. • Devising an appropriate strategy to compensate expatriates • Minimising difference in pay between7 Compensation parent, host & third country nationals • Issues relating to the re-entry of expatriates into the home country • Constraints while operating in host countries need to be considered. Performance Management • Physical distance, time differences & cost of reporting system add to the complexity. • Handling industrial relations problems in a subsidiary. Industrial Relations • Attitude of parent company towards unions in a subsidiary
  8. 8. Need for Broader Perspective8 Pay issues • Different countries, different currencies • Gender based pay in Korea, Japan, Indonesia Health insurance for employees & their families Overtime working – Korean & Japanese firms Promotions based on seniority or merit
  9. 9. More Involvement in Changes in Emphasis9 Employee’s Personal Lives  More involvement for both  Need for parent-country parent-country & third- & third-country nationals country nationals decrease as more  Housing arrangements trained locals become  Health care available.  Remuneration packages  Resources reallocated to  Assist children left behind in selection, training & boarding schools management
  10. 10. 10 • Physical safety of the employees. Risk • Failure of expatriates to perform well Exposure  financial losses to the firm • Dealing with ministers, political figures, economic & social interest External groups • Hiring procedures dictated by host Influence country. • Catch up with local ways of doing business.
  11. 11. Reasons for Growing Interest in11 IHRM Effective HRM  Globalisation of determinant of Business success in international business Movement to network Significant role in organisations from implementation & traditional hierarchical control of strategies structures
  12. 12. Basic Steps in IHRM12 HRP Recruitment & Repatriation Selection Employee Relations Training & Development Performance Management Remuneration
  13. 13. Recruitment & Selection13 Ethnocentric Approach Polycentric Approach Regiocentric Approach Geocentric Approach • Key • Host-country • Variation of management nationals hired staffing policy to • Seeks best positions held to manage suit particular geographic areas people for by parent- subsidiaries key country jobs, irrespe nationals • Provides a • Parent-country stepping stone ctive of nationals for a firm wishing nationality • Appropriate occupy key to move from an during early positions at ethnocentric or phases. corporate HQ. polycentric • Underlying approach to a principle of a geocentric approach global corporation 3 categories of employees can be hired – parent country nationals (PCNs), host country nationals (HCNs) & third country nationals (TCNs)
  14. 14. Advantages & Disadvantages of14 Using PCNs Advantages Disadvantages  Familiarity with home  Difficulty in adapting to foreign country office, goals, practices  Excessive cost of selecting, training &  Easy organisational control maintaining expatriates & coordination  Promotional opportunities limited for  International exposure to HCNs promising managers  May try to impose inappropriate HQ  PCNs  special skills & style experiences  Compensation differences for HCNs & PCNs
  15. 15. Advantages & Disadvantages of15 Using HCNs Advantages Disadvantages   Familiarity with the situation in Difficulty in exercising effective control over the subsidiary’s operations host-country  Lower hiring costs  Communication problems with home  office personnel Locals motivated due to promotional opportunities   No opportunity for home country’s Responds well to localisation of nationals to gain international subsidiary’s operations experience  No language barrier   Limited career opportunity outside the HCNs stay longer in positions subsidiary
  16. 16. Advantages & Disadvantages of16 Using TCNs Advantages Disadvantages   Salary & benefit Host country govt. may requirements lower than resent hiring TCNs. that of PCNs.  May not return to their  May be better informed country after assignment. about host country environment.  Host country’s sensitivity w.r.t nationals of specific  Truly international managers countries
  17. 17. Expatriate Assignment Life17 Cycle Determining the Crisis & Reassignment need for an Adjustment Abroad expatriate Repatriation & Post-arrival Adjustment Departure Orientation & Training Selection Pre-assignment Crisis & Process training Failure
  18. 18. Expatriate Failure18 Premature return of expatriates to their home country Reasons • Inability to adjust to host country culture  leads to culture shock • Personal & emotional problems • Difficulties with the environment • Inability to cope with larger international responsibilities • Other family reasons
  19. 19. Training & Development19 Cross Language Cultural Training Training Management Practical Development Training & Strategy
  20. 20. HCN Training20 Gaining Technical know- knowledge about how specific to parent organisation organisation General Role of the awareness of the subsidiary in the parent country MNC cultural norms
  21. 21. Repatriation21  The activity of bringing Preparation the expat back to the home country  Can cause re-entry Physical Relocation shock or reverse culture shock  Reasons Transition  Posting period over  Children’s education  Not happy with Readjustment overseas assignment  Failure to do a good job
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