international mktg1st lec

International Human Resource Management

Definition Of Human Resources Management

“ Human” represents the dimension of HRM which relates to the soft aspects such as commitment of employees through participation and the most important assets being the employees.
“ Resource” represents the hard aspects such as the strategy link of HRM and the importance of efficient utilization of employees.
“ Management” represents the role of HRM as part of management that implies that it is not only an administrative function that carries out the formulated policies and strategies but also a managerial function that contributes to strategy formulation.

Responsibilities of Human Resource Management
To ensure that the employees of an organization are used in such a way that t he employer obtains the greatest possible benefit from their abilities and that the employees obtain both material and psychological rewards from their work.

Staffing : identifying the job requirements within an organization determining the numbers of people and the skills mix necessary to do these jobs and recruiting selecting and promoting qualified candidates.
Retention : rewarding employees for performing their jobs effectively insuring harmonious working relations between employees and managers and maintaining a safe healthy work environment.

Development : preserving and enhancing employees’ competence in their jobs through improving their knowledge skills abilities and other characteristics.
Adjustment : maintain compliance with the organization’s personnel policies and business strategies.

Performance Selection Appraisal Rewards Development The Michigan Matching Model of HRM

Stakeholder interests
Shareholders
Management
Employee groups
Government
Community
Unions
HRM Policy Choices Employee influence Human Resource flow Reward systems HR Outcomes Commitment Competence Congruence Cost effectiveness Long-term consequences Individual well being Organizational effectiveness Societal well- being Situational factors
Work force
characteristics
Business strategy
and conditions
Management
philosophy
Labor market
Unions
Laws and societal
values The Harvard Model of Human Resource Management

International Human Resource Management

IHRM is interplay among three dimensions:
HR Functions
Country of Operations
Types of Employees

HR Functions
Recruitment & Selection
Training & Development
Performance Appraisal
Compensation
Industrial & Labor Relations

Types Of Employees
Parent country nationals (PCNs) are residents of the international business’s home country who are transferred to one of its foreign operations
Host country nationals (HCNs) are residents of the host country, and are the most common choice for mid-level and lower-level jobs. Employing HCNs is popular because they are already familiar with local laws, culture, and economic conditions
Third country nationals (TCNs) are citizens of neither the firm’s home country nor of the host country. TCNs are most likely to employed in upper-level or technical positions

Who is an expatriate?
An employee who is working and temporarily residing in a foreign country or people working and residing in countries other than their native country
Some firms prefer to use the term ‘international assignees’
Expatriates are PCNs from the parent country operations, TCNs transferred to either HQ or another subsidiary, and HCNs transferred into the parent country.

International Vs Domestic HRM
More functions to perform (taxation culture orientation relocation admin services for expats)
Broader perspective (cater to needs of PCNs, HCNs & TCNs)
Greater involvement in the personal lives of employees
Greater risk exposure (expat failure, family problems & terrorism)
More external influences (government regulations, local ways of doing business, code of conduct)

Main challenges in IHRM
High failure rates of expatriation and repatriation
Deployment – getting the right mix of skills in the organization regardless of geographical location
Knowledge and innovation dissemination – managing critical knowledge and speed of information flow
Talent identification and development – identify capable people who are able to function effectively
Barriers to women in IHRM
International ethics
Language (e.g. spoken, written, body)

Main challenges in IHRM
Different labor laws
Different political climate
Different stage(s) of technological advancement
Different values and attitudes e.g. time, achievement, risk taking
Roles of religion e.g. sacred objects, prayer, taboos, holidays, etc
Educational level attained
Social organizations e.g. social institutions, authority structures, interest groups, status systems

International Recruitment and Selection
A selection program for international assignments involves assessing prospective candidates on certain criteria thought to be associated with assignment effectiveness.
In order to have a successful selection program there needs to be a broad range of prospective candidates from which to choose criteria of effectiveness and valid procedures for assessing candidates on them.

empathy
flexibility
patience
openness
reliability
confidence
emotional stability
communication skills
tolerance for differences
humor
resourcefulness
sensitivity
teaching skills
ability to handle alcohol
curiosity
positive regard for others
acceptability of assignment
desire to be abroad
non ethnocentrism
high motivation
courtesy
adaptability
tolerance for ambiguity
language skills
interest in host culture

International Training and Development
Empirical literature give guarded support to the proposition that cross cultural training has a positive impact on cross cultural effectiveness.
Cultural awareness training is not just for the employee going overseas. It has numerous applications domestically that will increase organizational effectiveness. Findings indicate that it should be a regular part of personnel training especially management development. The realities of a more pluralistic society and international business make this a necessity.

Area studies programs
Culture assimilator programs
Language training programs
Sensitivity training programs
Field experience programs
International Training and Development

International Compensation
If compensation is high then problems may be encountered on return to head office .
If compensation is not adequate then there may be no incentive to go for the international assignment given the hardships that are usually involved in doing so.

International Compensation
Expatriation Premium
Cost of Living Allowance
Shelter Allowance
Home Leave
Benefits – Medical, Educational Allowance
for children, Flights to Home etc

Repatriation
Virtually all repatriated personnel experienced some personal difficulty in reintegrating on return home. The main complaints were loss of status loss of autonomy lack of recognition of the value of the experience and lack of career direction.

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