INTERNATIONAL HUMAN RESOURSE MANAGEMENT GROUP - 1INTERNATIONAL HUMANRESOURCE MANAGEMENT
MEANING AND DEFINATION• International Business must procure, motivate, retain and effectively utilize services of people both at the corporate office and at the foreign plant. The process of procuring, allocation, effectively utilizing human resources in an international business is called International Human Resources Management.• IHRM can be defined as set of activities aimed managing organizational human resources at international level to achieve organizational objectives and achieve competitive advantage over competitors at national and international level.
Model of IHRM Host Country Countries Third Country Nationals Types of Employees Procure HR Activities IHRM
Characteristics of IHRM thatdifferentiate IHRM from Domestic HRM• More HR activities.• Need for a broader perspective.• More involvement In employee personal lives.• Changes in emphasis as the work force mix of expatriates and locals vary.• Risk exposure.• More external influences.
Reasons for growing interest in IHRM• Globalization of business leading to mobilization of resources.• Effective management of human resources.• To minimize the risk of underperformance or failure in overseas assignments.• Implementation of international strategies by competent managerial personnel to man overseas assignments.• Movement from traditional hierarchical organizational structures towards the network organization.• Plays significant role in implementing and control of strategies in an international business.
Steps in IHRM HRP Recruitment and selection Training and Development Performance Management Remuneration Repatriation Employee Relations Multi-Cultural Management
Cultural Differences in IHRM• Language (e.g. spoken, written, body)• Different labour 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
Multicultural ManagementMulticulturalism means that people from many culturesinteract regularly . Global firms are the repositories ofmulticulturalism.Multicultural management offers the following benefits:• Greater creativity and innovation.• Awareness about the need to maintain sensitivity in dealing with foreign customers.• Possibilities of hiring the best talent.• Creating a „superorganisational culture‟, using the best of all cultures.• Evolving universally acceptable HR policies and practices.
Benefits of Multiculturalism• Greater creativity and innovation.• Awareness about the need to maintain sensitivity in dealing with foreign customers.• Possibilities of hiring the best talent.• Creating a “superorganisational culture” using the best of all the cultures.• Evolving universally acceptable HR policies and practices.
Pressures of globalization• Globalization is the system of interaction among the countries of the world in order to develop the global economy.• Globalization involves technological, economic, political, and cultural exchanges made possible largely by advances in communication, transportation, and infrastructure.• The advent of the era of globalization along with the advancements in information technology (IT) has transferred the world around us. It has brought to centre stage the importance of human resources, more than ever before.
CONTD…• The pressures it poses on IHRM include: Remaining competitive throughout the world Efficient Locally Responsive Flexible and adaptive Capable to transforming learning across their globally dispersed units.
Companies Adopting IHRM Approach • AVON • General Electrics • Wipro • Reebok • Coco Cola • Honda • Toyota
AVON• The company adopted the use of the internet so as to make its sales. This strategy enabled the company to venture into the international markets with ease.• The IHRM, having noted the increasing international markets, increased its workforce to integrate diverse cultures.• This has earned the company a reputation for hiring employees from minority groups and cultures.• . Training was also enhanced so as to ensure that the sales people have the right sales know how and sales knowledge to foster profits. IHRM has also adopted on job training sessions as well a regular leadership program aimed at ensuring that the company has the best and well trained workforce.• The IRHM has also focused on hiring female executives to run the company. This assures the female consumers that the company does in deed have an understanding of their needs.