Ihrm ppt

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Ihrm ppt

  1. 1. StudsPlanet Leading Education consultant in India www.StudsPlanet.com
  2. 2. INTERNATIONAL HUMAN RESOURCE MANAGEMENT
  3. 3. 3 Definition • 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 IHRM 4 HR Activities • Procure • Utilise • Allocate Types of employees • Home country nationals • Host country nationals • Third country nationals Countries • Home country • Host country • Third country
  5. 5. 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 Characteristics of IHRM 5
  6. 6. More Human Resource Activities6 • Difficulty in implementing HR in host countries • Developmental opportunities for international managers. Human Resource Planning • Ability to mix with organisation’s culture • Ethnocentric, polycentric or geocentric staffing approach • Selection of expatriates • Managing repatriation process Employee Hiring • Emphasis on cultural training • Language training • Training in manners & mannerisms Training & Development
  7. 7. 7 • Devising an appropriate strategy to compensate expatriates • Minimising difference in pay between parent, host & third country nationals • Issues relating to the re-entry of expatriates into the home country Compensation • Constraints while operating in host countries need to be considered. • Physical distance, time differences & cost of reporting system add to the complexity. Performance Management • Handling industrial relations problems in a subsidiary. • Attitude of parent company towards unions in a subsidiary Industrial Relations
  8. 8. 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 Need for Broader Perspective 8
  9. 9.  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 9 More Involvement in Employee’s Personal Lives Changes in Emphasis
  10. 10. 10 • Physical safety of the employees. • Failure of expatriates to perform well  financial losses to the firm Risk Exposure • Dealing with ministers, political figures, economic & social interest groups • Hiring procedures dictated by host country. • Catch up with local ways of doing business. External Influence
  11. 11. Reasons for Growing Interest in IHRM11 Globalisation of Business Effective HRM  determinant of success in international business Movement to network organisations from traditional hierarchical structures Significant role in implementation & control of strategies
  12. 12. Basic Steps in IHRM 12 HRP Recruitment & Selection Training & Development Performance Management Remuneration Repatriation Employee Relations
  13. 13. Recruitment & Selection 13 Ethnocentric Approach • Key management positions held by parent- country nationals • Appropriate during early phases. Polycentric Approach • Host-country nationals hired to manage subsidiaries • Parent-country nationals occupy key positions at corporate HQ. Geocentric Approach • Seeks best people for key jobs, irrespective of nationality • Underlying principle of a global corporation Regiocentric Approach • Variation of staffing policy to suit particular geographic areas • Provides a 'stepping stone' for a firm wishing to move from an ethnocentric or polycentric approach to a geocentric approach 3 categories of employees can be hired – parent country nationals (PCNs), host country nationals (HCNs) & third country nationals (TCNs)
  14. 14. Advantages & Disadvantages of Using PCNs  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 14 Advantages Disadvantages
  15. 15. Advantages & Disadvantages of Using HCNs  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 Advantages Disadvantages
  16. 16. Advantages & Disadvantages of Using TCNs  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 Advantages Disadvantages
  17. 17. Expatriate Assignment Life Cycle17 Determining the need for an expatriate Selection Process Pre-assignment training Departure Post-arrival Orientation & Training Crisis & Adjustment Crisis & Failure Repatriation & Adjustment Reassignment Abroad
  18. 18. Expatriate Failure 18 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 & Development 19 Cross Cultural Training Language Training Practical Training Management Development & Strategy
  20. 20. HCN Training 20 Gaining knowledge about parent organisation Technical know- how specific to organisation Role of the subsidiary in the MNC General awareness of the parent country cultural norms
  21. 21. Repatriation Preparation Physical Relocation Transition Readjustment  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 21
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