StudsPlanetLeading Education consultant in India        www.StudsPlanet.com
International HumanResourceManagmentBino Joseph
Definition• The process of procuring, allocating and  effectively utilising human resources in an  international business ...
Model of IHRM                          • Procure                HR                          • Utilise             Activiti...
Characteristics of IHRM  More HR activities  Need for a broader perspective  More involvement in employee personal lives  ...
More Human Resource Activities   Human      • Difficulty in implementing HR in host countries  Resource    • Aligning stra...
• Devising an appropriate strategy to compensate expatriates               • Minimising discrepancies in pay between paren...
Need for Broader PerspectivePay issues • Different countries, different currencies • Gender based pay in Korea, Japan, Ind...
More Involvement in Employee’s          Personal Lives                 Changes in Emphasis                                ...
• Physical safety of the employees            • Terrorism poses a great threat  Risk      • Failure of expatriates to perf...
Reasons for Growing Interest inIHRM                            Effective HRM          Indirect costs of poor Globalisatio...
Basic Steps in IHRM                   HRP            Recruitment & Selection            Training & Development            ...
HR Planning             Key Issues in International HRP• Identifying top management potential early• Identifying CSF for f...
Recruitment & Selection   Ethnocentric            Polycentric             Geocentric             Regiocentric    Approach ...
Advantages & Disadvantages ofUsing PCNs         Advantages                       Disadvantages• Familiarity with home     ...
Advantages & Disadvantages ofUsing HCNs          Advantages                         Disadvantages• Familiarity with the si...
Advantages & Disadvantages ofUsing TCNs         Advantages                  Disadvantages• Salary & benefit          • Hos...
Expatriate Assignment Life CycleDetermining the                                     Crisis &            Reassignment  need...
Expatriate FailurePremature return of expatriates to their home countryReasons•   Inability to adjust to host country cult...
Culture Shock Cycle                      20
Family                        Req’ments                                       Cross-            Technical                 ...
Training & Development       Cross Cultural    Language          Training        Training                        Managemen...
HCN TrainingGaining knowledge     Technical know-  about parent        how specific to   organisation         organisation...
Expatriate PerformanceManagement     Linkage to                                    Identifying                         Set...
Setting    • Link unit goals to                individual/team goals Individual   • This will offer benchmarksPerformance ...
Paying ExpatriatesObjectives to be achieved• Attract qualified & interested employees• Facilitate movement of expatriates ...
Components of Remuneration            Package              Factors Influencing Compensation                               ...
Approaches to Designing the PayPackage•   Balance-sheet approach•   Going-rate approach•   Lumpsum method•   Cafeteria app...
Repatriation• The activity of bringing     Preparation  the expat back to the  home country• Can cause re-entry shock     ...
Types of Assignments                 Business     Short-term     Commuter         Long-term                 VisitsMin. Dur...
Commuter assignments          Advantages                    Disadvantages• Children’s education          • Big strain on f...
International Labour Relations      Handling Labour Issues               Union Tactics• Delegated to foreign           • S...
Multiculturalism• Culture – customs, beliefs, norms & values that guide behaviour of people in a  society or passed on fro...
Power Distance           Uncertainty avoidance                 Hofstede’s                   Cultural                 Dimen...
35
Upcoming SlideShare
Loading in...5
×

Internationalhumanresourcemanagment 100312034418-phpapp01

458

Published on

1 Comment
0 Likes
Statistics
Notes
  • This is great and to the point. Much easier than reading through all the articles for my course. Thank you!
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Be the first to like this

No Downloads
Views
Total Views
458
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
18
Comments
1
Likes
0
Embeds 0
No embeds

No notes for slide
  • Dealing with inequityPremium on job securityIndividual or group
  • Internationalhumanresourcemanagment 100312034418-phpapp01

    1. 1. StudsPlanetLeading Education consultant in India www.StudsPlanet.com
    2. 2. International HumanResourceManagmentBino Joseph
    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 3
    4. 4. Model of IHRM • Procure HR • Utilise Activities • Allocate • Home country nationals Types of • Host country nationals employees • Third country nationals • Home country 4 Countries • Host country • Third country
    5. 5. Characteristics of IHRM 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 5
    6. 6. More Human Resource Activities Human • Difficulty in implementing HR in host countries Resource • Aligning strategic business planning to HRP & vice-versa • Developmental opportunities for international managers. Planning • Ability to mix with organisation’s culture Employee • Ethnocentric, polycentric or geocentric staffing approach • Selection of expatriates Hiring • Coping with expatriate failure • Managing repatriation process Training & • Emphasis on cultural training • Language training 6Development • Training in manners & mannerisms
    7. 7. • Devising an appropriate strategy to compensate expatriates • Minimising discrepancies in pay between parent, host &Compensation third country nationals • Issues relating to the re-entry of expatriates into the home country • Constraints while operating in host countries need to bePerformance considered • Physical distance, time differences & cost of reportingManagement system add to the complexity • Identification of raters to evaluate subsidiary performance Industrial • Handling industrial relations problems in a subsidiary • Attitude of parent company towards unions in a subsidiary Relations • Union tactics in subsidiaries 7
    8. 8. Need for Broader PerspectivePay issues • Different countries, different currencies • Gender based pay in Korea, Japan, IndonesiaHealth insurance for employees & their familiesNepotism common in small businesses in Asia Pacific regionOvertime working – Korean & Japanese firmsPromotions based on seniority or merit 8
    9. 9. More Involvement in Employee’s Personal Lives Changes in Emphasis • Need for parent-country & third-country nationals• More involvement for decrease as more trained both parent-country & locals become available third-country nationals • Resources reallocated to • Housing arrangements selection, training & • Health care management development • Remuneration packages • Assist children left behind in boarding schools 9
    10. 10. • Physical safety of the employees • Terrorism poses a great threat Risk • Failure of expatriates to perform well  financial losses to the firmExposure • Seizure of MNC’s assets in a foreign country • Dealing with ministers, political figures, economic & social interest External groups • Hiring procedures dictated by hostInfluence country • Catch up with local ways of doing 10 business
    11. 11. Reasons for Growing Interest inIHRM Effective HRM  Indirect costs of poor Globalisation of determinant of performance in Business success in international business international business very costly Movement to network Significant role in organisations from implementation & traditional hierarchical control of strategies structures 11
    12. 12. Basic Steps in IHRM HRP Recruitment & Selection Training & Development Performance Management Remuneration Repatriation Employee Relations 12 Multicultural Management
    13. 13. HR Planning Key Issues in International HRP• Identifying top management potential early• Identifying CSF for future international managers• Providing developmental opportunities• Tracking & maintaining commitment to individuals in international career paths• Tying strategic business planning to HRP & vice-versa• Dealing with multiple business units while focusing on global & regional strategies 13
    14. 14. Recruitment & Selection Ethnocentric Polycentric Geocentric Regiocentric Approach Approach Approach Approach• Key management • Host-country • Seeks best • Variation of positions held by nationals hired to people for key staffing policy to parent-country manage jobs, irrespective suit particular nationals subsidiaries of nationality geographic areas• Appropriate • Parent-country • Underlying • Provides a during early nationals occupy principle of a stepping stone phases key positions at global for a firm wishing• P&G, Philips corporate HQ corporation to move from an • HUL • Colgate- ethnocentric or Palmolive polycentric approach to a geocentric approach 3 categories of employees can be hired – parent country nationals (PCNs), host 14 country nationals (HCNs) & third country nationals (TCNs)
    15. 15. Advantages & Disadvantages ofUsing PCNs Advantages Disadvantages• Familiarity with home • Difficulty in adapting to foreign country office, goals, practices • Excessive cost of selecting,• Easy organisational control training & maintaining expatriates & coordination • Promotional opportunities limited for HCNs• International exposure to • May try to impose inappropriate promising managers HQ style• PCNs  special skills & • Compensation differences for experiences HCNs & PCNs • Family adjustment problems 15
    16. 16. Advantages & Disadvantages ofUsing HCNs Advantages Disadvantages• Familiarity with the situation • Difficulty in exercising effective in host-country control over the subsidiary’s• Lower hiring costs operations• Locals motivated due to • Communication problems with promotional opportunities home office personnel• Responds well to localisation • No opportunity for home of subsidiary’s operations country’s nationals to gain• No language barrier international experience• HCNs stay longer in positions • Limited career opportunity outside the subsidiary 16
    17. 17. Advantages & Disadvantages ofUsing 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 • Host country’s sensitivity environment w.r.t nationals of specific• Truly international countries managers 17
    18. 18. Expatriate Assignment Life CycleDetermining the Crisis & Reassignment need for an Adjustment Abroad expatriate Repatriation & Post-arrival Adjustment Departure Orientation & Training Selection Pre-assignment Crisis & Failure Process training 18
    19. 19. Expatriate FailurePremature return of expatriates to their home countryReasons• 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
    20. 20. Culture Shock Cycle 20
    21. 21. Family Req’ments Cross- Technical cultural Ability SuitabilityIndividual Situation Expatriate Selection Country- MNC cultural Req’ments Req’ments Language 21
    22. 22. Training & Development Cross Cultural Language Training Training Management Practical Development Training & Strategy 22
    23. 23. HCN TrainingGaining knowledge Technical know- about parent how specific to organisation organisation General awareness Role of the of the parent subsidiary in the country cultural MNC 23 norms
    24. 24. Expatriate PerformanceManagement Linkage to Identifying Setting individual organisational variables impacting performance goals strategy performance Providing regular Providing feedback on Appraising the opportunities for progress towards performance improvement goals Linking results with 24 rewards
    25. 25. Setting • Link unit goals to individual/team goals Individual • This will offer benchmarksPerformance for employees to strive towards excellence Goals • Compensation packages Variables • Type of task Impacting • Moral & physical support • Host environmentPerformance • Multicultural adjustability 25
    26. 26. Paying ExpatriatesObjectives to be achieved• Attract qualified & interested employees• Facilitate movement of expatriates between subsidiaries• Consistent & reasonable relationship between pay levels• Cost-effectiveProblems faced in deciding remuneration package• Discrepancies in pay between parent, host & third country nationals• Vary compensation based on family situation of expat• Remuneration when re-entering parent-country organisation• Must accommodate changes in international business 26 environment
    27. 27. Components of Remuneration Package Factors Influencing Compensation • Internal Environment • Goal Orientation • Capacity to pay• Base salary • Competitive strategy• Benefits • Organisational culture • Internal workforce composition• Allowances • Labour relations• Incentives • Subsidiary role • External Environment• Taxes • Parent nationality • Tax equalisation • Labour market characteristics • Tax protection • Local culture • Home & host country govts’ role • Industry type • Competitors’ strategies 27
    28. 28. Approaches to Designing the PayPackage• Balance-sheet approach• Going-rate approach• Lumpsum method• Cafeteria approach• Regional approach 28
    29. 29. Repatriation• The activity of bringing Preparation the expat back to the home country• Can cause re-entry shock Physical or reverse culture shock Relocation• Reasons • Posting period over • Children’s education Transition • Not happy with overseas assignment • Failure to do a good job Readjustment 29
    30. 30. Types of Assignments Business Short-term Commuter Long-term VisitsMin. Duration 1-30 days 1-3 months Returns home 6-12 months at regular intervalsMax. Duration 183 days 6-12 months 2-4 years 3-5 yearsShort term assignments Advantages Disadvantages• Employee less restricted by family • Family split concerns • Identical benefits taxed differently• Spouse’s career unaffected in home & host 30• Generally less expensive
    31. 31. Commuter assignments Advantages Disadvantages• Children’s education • Big strain on family undisturbed relations if more than 1• Spouse’s career unaffected yearLong term assignments Advantages Disadvantages• Family remains together • Spouse’s career affected• All emoluments subject to a • Children’s education disturbed single tax legislation • Loss of support from relatives & friends 31
    32. 32. International Labour Relations Handling Labour Issues Union Tactics• Delegated to foreign • Strike  most common tactic subsidiaries • International Trade Secretariats• Labour relations centralised (ITS) when inter-subsidiary • Lobbying for restrictive national production integration is legislations present • Intervention of ILO, UNCTAD, EU• Depends on nationality of & OECD ownership of subsidiary • Principles of ILO• More intervention when • Freedom of associations subsidiary is of strategic • Right to organise & importance collectively bargain • Abolition of forced labour • Non-discrimination in 32 employment
    33. 33. Multiculturalism• 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 33
    34. 34. Power Distance Uncertainty avoidance Hofstede’s Cultural DimensionsIndividualism Masculinity 34
    35. 35. 35
    1. A particular slide catching your eye?

      Clipping is a handy way to collect important slides you want to go back to later.

    ×