International Human Resources Management- introduction-l1

INTERNATIONAL HUMAN
RESOURCES
MANAGEMENT(IHRM)
Aparrajitha Ariyadasa
( B.Sc (J’pura), B.Sc. (OUSL), Post. Grad. Dip. In IP Law(wales), LLM (Colombo)
Lecturer in University of Plymouth (UK), Lymkokwin (Malaysia), SLIIT, ICBT
Attorney-at-Law, Senior Partner ATD Legal Associates (www.atdlegalassociates.com),
atdlegalassociates@gmail.com

SYLLABUS OF IHRM
 INTRODUCTION
 ISSUES IN COMPARATIVE STUDIES
 MODELS THEORIES AND CONCEPTS OF IHRM
 CULTURAL AND IDEOLOGICAL INFLUENCES AND THE ROLE OF THE
STATE IN NATIONAL CONTEXT
 THEORIES OF LABOUR MARKETS
 RECRUITMENT AND SELECTION IN INTERNATIONAL CONTEXT
 MANAGEMENT STYLES AND STRATERGIES
 REWARD SYSTEMS AND PERFORMANCE MANAGEMENT
 MANAGING DIVERSITY
12/7/2021
APARRAJITHA ARIYADASA 2

WHAT IS HUMAN RESOURCE
MANAGEMENT (HRM) ?
Human Resources
 Human capital
 Manpower
 Talent
 Labour
 Personnel
 People
 work force of a
 business organization
 Sector
 Economy
12/7/2021

Human Resources Management
 Set of organizational activities aimed at effectively utilizing
human resources to achieve organizational goals.
 Recruitment
 Selection
 Training and development
 Performance appraisals
 Dismissal
12/7/2021

INTERNATIONAL HUMAN
RESOURCES MANAGEMENT
12/7/2021

WHAT IS INTERNATIONAL
BUSINESS?
12/7/2021

INTERNATIONAL BRANDS- DO YOU
KNOW WHERE THEY WERE
PRODUCED?
 DESPITE THE ORIGINATOR, WE USE THE BRANDED PRODUCTS
 ARMANI - ITALIAN
 TOMMY HILL FIGURE- US
 COCACOLA-US
 CADBERRY-UK
 BOUNDRIES HAVE BLURRED PRACTICALLY AND DRAMETICALLY
 VARIESTIES ARE POSSIBLE BECAUSE OF INTERNATIONAL
 WE DON’T UNDERSTAND
 THIS IS BEVAUSE
 INTYERNATIONAL BUSINESS
 THESE BRANDS COME FROM DIFFERENT COUNTRIES
12/7/2021

TYPES OF COMPANIES
GLOBAL COMPANIES
TRANSNATIONAL COMPANIES
MULTINATIOANL COMPANIES
INTERNATIONAL COMPANIES
12/7/2021

GLOBAL EFFICIENCY Vs. LOCAL
RESPONSIVENESS
12/7/2021

12/7/2021

LOW GLOBAL EFFICIENCY & LOW
LOCAL RESPONSIVENESS -
INTERNATIONAL COMPANIES
 Domestic firms use existing capabilities to expand in to foreign markets
12/7/2021

GLOBAL EFFICIENCY AND LOCAL
RESPONSIVENESS BOTH ARE HIGH-
TNC
 TWEEKING TO THE COUNTRY NEEDS
 COCACOLA COMPOSITION AND TASTE IN SRI LANKA, INDIA, US
AND AUSTRALIA
12/7/2021

HIGH GLOBAL EFFICIENCY AND LOW
LOCAL RESPONSIVENESS-GLOBAL
COMPANIES
 Views the world as a single market; operations are
controlled centrally from the corporate office.
12/7/2021

IHRM TRADING BLOCKS
HELPING COUNTRIES
12/7/2021

IHRM
DIFFERENT COUNTRIES
DIFFERENT PEOPLE
DIFFERENT LANGUAGES
12/7/2021

THREE KEY POINTS OF IHRM
HR PROBLEMS AND ISSUES
INTERNATIONALISATION OF
BUSINESS
POLICIES AND STRATERGIES IN
RESPONSE
12/7/2021

IHRM MEANS;
ISSUES AND PROBLEMS ARISING FROM
THE INTERNATIONALIZATION OF
BUSINESS, AND THE HUMAN RESOURCE
MANAGEMENT STRATERGIES, POLICIES
AND PRACTICES WHICH FIRMS PURSUE
IN RESPONSE TO THE
INTERNATIONALIZATION PROCESS.
12/7/2021

PROCESS OF IHRM
PROCURING
ALLOCATING
UTILIZING
12/7/2021

OBJECTIVES OF IHRM
12/7/2021

INTERNATIONAL HRM
(Augmented with the word
INTERNATIONAL)
 Set of organizational activities aimed at effectively utilizing human resources to
achieve organizational goals in INTERNATIONAL SETTINGS.
 Recruitment
 Selection
 Training and development
 Performance appraisals
 Dismissal
 Global Skill Management
 Expatriate Management
 Multiculturalism Management
12/7/2021

DEFINITIONS OF IHRM
 Scyllion (1995)
The HRM issues and problems arising from the internationalization
of business and the HRM strategies, policies and practices which
firms pursue in response to the internationalization process”
 Tylor , Beechler(1996)
The set of distinct activities, functions and processors that are
directed in attracting, developing and maintaining an MNC’s human
resources. It is the aggregate of the various Human Resources
Systems used to manage people in the MNC, both at home and
overseas.
12/7/2021

IHRM
BUSINESS OPERATIONS AT
LEAST IN TWO NATIONS
12/7/2021

BROAD DEFENITION
The field of IHRM id the study and the
application of all human resource
management activities as they impact
the process of managing human
resources in enterprises in the global
environment.
12/7/2021

ACTIVITIES INVOLVED IN IHRM
 Human Resource Planning
 Staffing (recruitment, selection, out-placement)
 Performance Management by supervising the work
 Training and development (ensure high performance)
 Compensation (remuneration ) and benefits: manage employees pay roll, benefits and
compensation, ensure equal opportunities)
 Manage employee relations, unions and collective bargaining
 Prepare employee records and personnel policies
 Ensure that the human resources practices confirm to various regulations
 Expatriate management
 Global skill management
 Employing different categories of employment from different countries
12/7/2021

ACTIVITIES INVOLVED IN IHRM-
ROLE OF A HUMAN RESOURCES
MANAGER IN AN INTERNATIONAL
ORGANIZATION
 Process of
 Procuring
 Allocating
 Effectively Utilizing human resources in a multinational corporation
 While
 Integrating the human resource policies
 Through out the corporation
 Across its subsidiaries
 Allowing these policies to be flexible to allow significant differences in these policies
in different countries
12/7/2021

PV MORGANS THEORY
12/7/2021

WHAT IS HCN,PCN &
TCN-GOLDEN
CONCEPTS
 PARENT COUNTRY
NATIONAL- PERSON WHO
BELONG TO THE COUNTRY
WHERE COUNTRTY IS
ORIGINATED – INDIAN
COMPANY –INDIAN
WORKING IN US
 HOST COUNTRY NATIONAL-
SRI LANKAN COMPANY
SITUATED IN US- A US
NATIONAL
 THIRD COUNTRY NATIONAL -
SRI LANBKAN COMPANY
SITUATED IN US CHINESE
PERSON WORKING
12/7/2021

IHRM as the interplay among 3D
IHR Activities
Types of countries
Types of employees
12/7/2021

MODELS OF IHRM
12/7/2021

HR ACTIVITIES
 Human Resource Planning
 Staffing (recruitment, selection, out-placement)
 Performance Management by supervising the work
 Training and development (ensure high performance)
 Compensation (remuneration ) and benefits: manage
employees pay roll, benefits and compensation, ensure
equal opportunities)
12/7/2021

 Manage employee relations, unions and collective bargaining
 Prepare employee records and personnel policies
 Ensure that the human resources practices confirm to various
regulations
 Expatriate management
 Global skill management
 Employing different categories of employment from different
countries
12/7/2021

TYPES OF COUNTRIES
Host country
Parent country
Other third country
12/7/2021

Host country
Subsidiary of MNC located
12/7/2021

Parent country
Head quarters of MNC located
12/7/2021

Third countries
Other countries that are the source
of labour, finance, and other inputs.
12/7/2021

Types of employees in IHRM
PARENT country national
(PCN)
Host country national (HCN)
Third country national (TCN)
12/7/2021

Expatriates
Person who left the home land
In IHRM, the expatriate means the one
who is working and residing in a foreign
country during his/her tenure of foreign
employment.
12/7/2021

expatriates
 TCN work in home country sat company
head quarters
 TCN work in host country – subsidiary
 PCN working in host country at company's
subsidiary
 SCN in home country at company s head
quarters
12/7/2021

Expatriates (international
assignees)
 An expatriate is a person temporarily or
permanently residing in a country other than
their native country
 In international firms staff is moved across
international boundaries into various
operations within the international firms
foreign operations.
12/7/2021

Types of expatriates
expatriate
TCN
working in
the home
country
TCN
Working in
the host
country
PCN
working in
host
country
SCN
working in
the home
country
12/7/2021

expatriates
 https://youtu.be/h-HZINQ_I9E
12/7/2021

Types of expatriates
National border
National border 12/7/2021

Impatriates
 The workers of a foreign branch are
imported (Impatriates) and professionals
from international companies are temporarily
posted to a foreign branch.
12/7/2021

DIFFERENC
ES
BETWEEN
HRM
AND
IHRM
12/7/2021

DIFFERENCES BETWEEN IHRM AND HRM
12/7/2021

ISSUES INVOLVED IN IHRM
 DIFFERENT LABOUR LAWS
 DIFFERENT POLITICAL CLIMATE
 DIFFERENT STAGE OF TECHNOLOGICAL ADVANCEMENTSD
 DIFFERENT VALUES AND ATTITUDES (TIME, ACHIEVEMENT,
RISK TAKING)
 ROLES OF RELEGIONS (PRAYERS, TABOOS, HOLIDAYS,)
 EDUCATIONAL LEVEL ATTAINED
 CULTURE
12/7/2021

GLOBAL HRM- LATEST RECRUITMENT
STATERGIES NEEDED
 The internationalization of business has proceeded at a
rapid pace as the world has become a global economy.
 Many U.S. firms receive a substantial portion of their
profits and sales from outside the United States, and
estimates are that the largest 100 U.S.
 Multinational firms have foreign sales of more than
$500 billion in one year.
12/7/2021

 For firms such as Colgate and Coca-Cola, foreign sales and profits
account for over 60% of total sales and profits. Other U.S. firms
have substantial operations in other countries as well.
 Globalization has had a major impact on HR management, and has
raised a number of issues.
How should a company staff plants around the world with a mix of
parent country nationals, host-country nationals, or third-country
nationals?
 ?
12/7/2021

How will these employees be recruited,
selected, trained, compensated, and managed?
What characteristics of the countries being
considered affect the HR decisions that must be
made
12/7/2021

TOP 10 GLOBAL PREFERENCES
 Employees top 10 global preferences
* Good relationship with colleagues
* Good work-life balance
* Good relationship with superiors
* Learning & training opportunities
* Career development
* Financial stability of employer
* Job security
* Financial compensation
* Work being appreciated
* Interesting work

12/7/2021

2012 WORLD BANK REPORT
 Year 2012: World Bank report at New York
Due to internationalization of business some countries have
experienced very large increases in their labour force -- nearly 8 million
new entrants a year in China since the mid-1990s and 7 million in India
-- while others face a shrinking population. the report said. Moreover,
jobs agendas at the country level are connected by the migration of
people and the migration of jobs. Policies for jobs in one country can
thus have spillovers on other countries - both positive and negative.
At the turn of the 21st century, there were more than 200 million
international migrants worldwide, nearly 90 million of them workers,
the report said.source: economic times.com
12/7/2021

RECRUITMENT
 Two emerging human resources specialties include
international human resources managers, who handle
human resources issues related to a company’s foreign
operations; and human resources information system
specialists, who develop and apply computer programs
to process human resources information, match job
seekers with job openings, and handle other human
resources matters.
12/7/2021

TOP 10 DESTINATIONS
12/7/2021

INTERNATIONAL RECRUITMENT
 While recruiting people for international operations, the international HR
managers must identify the global competitiveness of the potential
applicants at the time of the recruiting process.
 It is essential that the workforce of an international organization is aware of
the nuances of international business. Understandably, the company must
keep international knowledge and experience as criteria in the recruitment
and selection process.
 Besides, the international HR department must have a fairly good idea
about the skills and availability of human resources in different labour
markets in the world.
12/7/2021

 The HR department must have the capacity to foresee the
changes in these markets and exploit those changes
productively.
 A truly international HR department would insist on hiring
people from all over the world and place them throughout
the international business operations of the organization.
 Approaches to Recruitment in IHRM Though the general aim
of any recruitment policy is to select the right people for the
right task at the right time, the HR department of
international companies may adopt one of the following
three specific approaches available for recruiting employees
for global operations.
12/7/2021

LAWS FOR RECRUIMENTS
 The Immigration Reform and Control Act of 1986 (IRCA)
bars employers from hiring individuals who are not
legally entitled to work in the U.S. Employers must verify
work eligibility by completing Form I-9 along with
required supporting documents. IRCA also prohibits
employers from discriminating in hiring, firing,
recruiting, or referring on the basis of national origin or
citizenship status.
 SRI LANKA
12/7/2021

LAW CONT----
 H-1B workers may be employed temporarily in a specialty
occupation or as a fashion model of distinguished ability. A
specialty occupation requires theoretical and practical
application of a body of specialized knowledge along with at
least a bachelor’s degree or its equivalent.
 An H-1B alien may work for any petitioning U.S. employer for a
maximum period of six years.
12/7/2021

MOST ATTRACTIVE DESTINATIONS
12/7/2021

International recruitment methods
 1. Ethnocentric approach
Countries with branches in foreign countries have
to decide how to select management level
employees. Ethnocentric staffing means to hire
management that is of same nationality of parent
company.
12/7/2021

ETHNO CENTRIC APPROACH
 When a company follows the strategy of choosing only from the
citizens of the parent country to work in host nations, it is called
an ethnocentric approach.
 Normally, higher-level foreign positions are filled with expatriate
employees from the parent country. The general rationale behind
the ethnocentric approach is that the staff from the parent
country would represent the interests of the headquarters
effectively and link well with the parent country.
 .
12/7/2021

RECRUITMENT PROCESS
 The recruitment process in this method involves four stages:
 self-selection,
 creating a candidate pool,
 technical skills assessment, and
 making a mutual decision.
12/7/2021

SELF SELECTION
EMPLOYEE SELECTS
EMPLOYEE DATA BASE
ANALYSIS OF THE DATA BASE
BEST SELECTED FOR THE
FORIGN ASSIGNMENT
12/7/2021

SELF SELECTION
 Self-selection involves the decision by the employee about his future course of
action in the international arena.
 In the next stage, the employee database is prepared according to the
manpower requirement of the company for international operations.
 Then the database is analysed for choosing the best and most suitable persons
for global assignments and this process is called technical skills assessment.
 Finally, the best candidate is identified for foreign assignment and sent abroad
with his consent
 The ethnocentric approach places natives of the home country of a business in
key positions at home and abroad. In this example, the U.S. parent company
places natives from the United States in key positions in both the United States
and Mexico.
12/7/2021

2. Polycentric approach

When a company adopts the strategy of limiting recruitment to
the nationals of the host country (local people), it is called a
polycentric approach.
 The purpose of adopting this approach is to reduce the cost of
foreign operations gradually.
 Even those organizations which initially adopt the ethnocentric
approach may eventually switch over lo the polycentric
approach.
12/7/2021

 The primary purpose of handing over the management to
the local people is to ensure that the company
understands the local market conditions, political
scenario, cultural and legal requirements better.
 The companies that adopt this method normally have a
localized HR department, which manages the human
resources of the company in that country. Many
international companies operating their branches in
advanced countries like Britain and Japan predominantly
adopt this approach for recruiting executives lo manage
the branches."
12/7/2021

POLYCENTRIC APPROACH
 The polycenlric approach uses natives of the host country to
manage operations in their country and natives of the parent
country to manage in the home office.
 In this example, the Australian parent company uses natives of
India to manage operations at the Indian subsidiary.
 Natives of Australia manage the home office.
12/7/2021

Indians popular choice for senior roles at
Asian companies
ET Bureau| Jul 10, 2018
 Nikon and Sony have appointed Indians to lead their local operations,
which were earlier managed by the Japanese.
 Asian consumer electronics makers are increasingly placing their trust
on Indian executives, especially at a time when several of them are
struggling in their home turf, or finding the going tough in the largest
markets, and are expecting India to play a bigger role when they are
expanding to emerging markets.
12/7/2021

 The number of expats in senior roles in the Indian
arms of Sony, Panasonic, Hitachi and Daikin too have
come down, while Samsung too now has Indian
executives in their global think tank.
 At Daikin India, Indian executives have replaced
expats in seven critical functions like deputy plant
head, senior vicepresident (tech support) and general
managers for service, HR (factory) and R&D. In
Panasonic, expats in mid-tosenior roles are now 20%,
compared with 40% three years ago
12/7/2021

 Hitachi Air Conditioning India said overseas entities have begun
to realise that business is best understood by locals and have
started handing over major roles to them. The overseas entities
send in their representatives from various departments to share
best practices being followed by various entities all over the
globe.
 The process is laid down between local entity and global teams
and then those processes are monitored and administered.
 Empowering domestic leaders helps companies to understand the
pulse of the market, aids in faster decision making to facilitate
growth, gets the best of local knowledge to promote R&D and
deliver customised products for local customers.
12/7/2021

 012, July: Indian Information Technology companies supported nearly
2.8 lakh jobs in America in the year 2011 by way of foreign direct
investment through acquisitions of IT companies. India invested
nearly $ 5 billion in foreign direct investment. Top Indian IT
companies like TATA, HCL technologies India's fourth largest
software export, Infosys and Wipro stepped in United States to set
up their subsidiaries and recruited American nationals from
colleges and experienced professionals who had the local
knowledge and domain expertise. local employees have the
requisite knowledge and understanding of culture, people and
were in a particular region.
12/7/2021

3.GEOCENTRIC APPROACH
 3. Geocentric approach
When a company adopts the strategy of recruiting the
most suitable persons for the positions available in it,
irrespective of their nationalities, it is called a geocentric
approach. Companies that are truly global in nature adopt
this approach since it utilizes a globally integrated
business strategy.
12/7/2021

HR OPERATIONS
 Since the HR operations are constrained by several factors like political and ethnical
factors and government laws, it is difficult to adopt this approach. However, large
international companies generally adopt the geocentric strategy with considerable
success.
For international recruitment, especially on foreign soil, organizations generally use
manpower agencies or consultants with international connections and repute to source
candidates, in addition to the conventional sources. For an effective utilization of the
internal source of recruitment, global companies need to develop an internal database
of employees and an effective tracking system to identify the most suitable persons for
global postings. The geocentric approach uses Ihe best available managers for a
business without regard for their country of origin. In this example, the UK parent
company uses natives of many countries at company headquarters and at the U.S.
subsidiary.
12/7/2021

REGIO CENTRIC APPROACH
 4. Regiocentric Approach
The Geocentric Approach is one of the methods of international recruitment
where the Multi National Companies recruit the most suitable employee for
the job irrespective of their Nationality.
 The regiocentric approach uses managers from various countries within the
geographic regions of business. Although the managers operate relatively
independently in the region, they are not normally moved to the company
headquarters.
The regiocentric approach is adaptable to the company and product strategies.
When regional expertise is needed, natives of the region are hired. If product
knowledge is crucial, then parent-country nationals, who have ready access to
corporate sources of information, can be brought in.
 .
12/7/2021

SHORTCOMINGS OF REGIOCENTRIC
APPROACH
 One shortcoming of the regiocentric approach is that managers from the
region may not understand the view of the managers at headquarters.
Also, corporate headquarters may not employ enough managers with
international experience. The regiocentric approach places managers from
various countries within geographic regions of a business. In this example,
the U.S. parent company uses natives of the United States at company
headquarters. Natives of European countries are used to manage the
Italian subsidiary
12/7/2021

Top 7 destinations for women expats
12/7/2021
Singapore, Hong Kong, South Korea, Japan, China and Malaysia are the other countries most
preferred by expat working women ahead of India, according to an HSBC survey.
The survey was done among 27,587 expats from 159 countries and territories, including India,
through an online questionnaire in March-April 2017.
•However, when it comes to better career progression, China topped the list with 73 per cent women
expats choosing the country,
•followed by Hong Kong at 64 per cent, India at 62 per cent, Singapore at 60 per cent and Indonesia
at 52 per cent, the survey revealed.
•Hong Kong was found to be the best country in Asia to acquire new skills with 62 per cent
women expats opting for it,
•closely followed by Singapore at 61 per cent, China at 47 per cent, Taiwan at 44 per cent and
Vietnam at 43 per cent.

BEST PLACES FOR WOMEN EXPATRIATS
•The survey found Singapore to be the best place to improve earning prospects with 71 per cent
women expats choosing the country,
• followed by Hong Kong at 55 per cent, China at 45 per cent, South Korea at 44 per cent and Vietnam
at 42 per cent.
•Top five countries for women expats to experience good work or life balance in Asia are Thailand
(62 per cent),
•Vietnam (58 per cent), Singapore and Taiwan (49 per cent each), Indonesia (44 per cent) and Malaysia
(42 per cent).
•In terms of job security, the survey said, Japan and Taiwan were rated as the best places for
women expats (50 per cent),
• closely followed by Singapore (49 per cent), Hong Kong (47 per cent), India (45 per cent) and China
(41 per cent).
•The top five countries in terms of work culture for women expats were Singapore (51 per cent),
Hong Kong (44 per cent),
•Vietnam (43 per cent), Indonesia (39 per cent) and China (36 per cent).
•For women expats looking to find personal fulfilment at work, the best places in Asia were
Singapore (56 per cent),
•China (48 per cent), India (48 per cent), Hong Kong (47 per cent) and Indonesia (41 per cent).
12/7/2021

2. INTERNATIONAL SELECTION
 Even though cultural differences influence the selection procedure to some extent, organizations tend
to follow similar criteria and methods worldwide.
 This is due to the fact that the end objective of any selection process is to choose the most capable
persons for the job. The selection criteria for international jobs usually revolve around the five core
areas of
 behaviour,
 attitudes,
 skills,
 motivation and
 personality.
12/7/2021

FOCUS ON SELECTION
 More specifically, the focus of selection for international operations normally
includes
 cultural adaptability,
 strong communication skills,
 technical competence,
 professional or technical expertise,
 global experience, country-specific experience,
 interpersonal skills, language skills, and
 family flexibility.
12/7/2021

SELECTION CONT---
 Employers around the world usually rank personal interviews,
technical competency and work experience in similar jobs as
important criteria for selection.
 International firms, while choosing employees for overseas
operations, usually prefer people with
highly developed technical skills
12/7/2021

SKILLS
 good language and communication skills
 tolerance towards other culture, race, creed, colour, habits, and
values
 high level of motivation
 stress resistance
 goal-oriented behaviour
 Finally, at the time of selection for international assignments, an
organization should consider the previous overseas experience,
family circumstances and cultural-adaptability level of the
candidates aspiring for the global jobs.
12/7/2021

28% employees In India willing to relocate
overseas: Survey
 NEW DELHI: More than a quarter (28%) of employees in India are willing to
take up a full-time job opportunity overseas for two to three years with at
least a 10% increase in pay increase, said a study conducted by research
company Ipsos.
 Asked about their willingness to relocate within India, about three in ten
Indian employees expressed that they are 'very likely' to relocate to
another city in India if they were offered a full-time job opportunity in the
near future, for a minimum of two years with at least a 10% pay raise and
all moving expenses covered, while another 48% said they are 'somewhat
likely' to consider the option.
12/7/2021

 Globally, two in ten (19%) employees across 24 countries said
they are 'very likely' to take a full-time job in another country
for two to three years with a minimum 10% pay rise. Those
most likely to say they would relocate internationally were
from Mexico (34%), Brazil (32%), Russia (31%), Turkey (31%)
and India (28%).
12/7/2021

DEVELOPING NATIONS
 "Employees from developing economies like Mexico, Brazil,
Russia, Turkey and India are willing to relocate to developed
countries," said Biswarup Banerjee, head of marketing
communications, Ipsos in India. On the other hand, employees
from developed countries like Sweden (6%), USA (9%), Australia
(10%), Canada (10%), Belgium (11%), Germany (11%) and Japan
(11%) are less likely to relocate overseas.
12/7/2021

Most common mistakes when hiring
international employees
-Rilind Elezaj
 Whether you are looking for international employees who can
take on roles that your local job market is unable to handle
sufficiently or you just want to diversify your workforce, you will
need to avoid the common, costly mistakes that recruiters make
when hiring internationally. Or maybe you have opened an
international shop and you are now looking for local employees to
help you with business localization. To simplify things for you, we
have provided you with 5 of the most common hiring mistakes
that you cannot afford to make. Be our guest.
12/7/2021

1. Prioritizing language skills over core skills
 It is common practice for recruiters to hire staff members who are
experts in the language of their target market. While this is perfectly in
order, it is extremely dangerous to put unnecessarily huge emphasis on a
candidate’s language skills to the point of overlooking some more
fundamental skills.
 Let’s say you are opening shop in China. Your business will stand a great
chance to prosper if you can hire competent Chinese professionals to run
the business for you. But in the event that you don’t get qualified locals
to hire, avoid panic hiring. The best thing to do is to hire foreign talents
with a fairly good grasp of the local language and then help them develop
their language skills through a specially-designed management
development program.
12/7/2021

2. Failure to comply fully with set
employment/termination laws
 Multinational companies are in most cases subjected to more
scrutiny than local companies when it comes to their
adherence to employment laws. Foreign businesses in China,
for example, have to follow stricter reporting structures and
administration protocols than their local competitors. If your
employees understand the regulatory aspects of running an
international office in China, they will use that knowledge
against you in case of future employment disputes. The best
thing is to understand and comply with all regulations before,
during, and after the recruitment process.
12/7/2021

3. Avoiding uncomfortable conversations
with new employees
 Because taking a local business to the international stage
can sometimes be intimidating, some employers opt to
play safe with their new staff by avoiding direct,
uncomfortable confrontations. That way, they conceal
their dissatisfaction with some workers’ performance,
making problem-solving processes slow and in most cases
unfruitful.
12/7/2021

 According to experts from Globalization Pedia “the only
way of getting the most out of your workforce is through
having those candid, uncomfortable discussions with
them regarding their competency and dedication to their
assigned roles. If an employee is too incompetent for
your preferences, don’t shy away from firing them. Just
remember to follow the right termination laws.
12/7/2021

4. Ignoring mandatory employee
benefits
 In most of Europe and the US, employment laws do not obligate
employers to give their employees mandatory annual paid
vacations. The decision to or not to grant such benefits rest with an
individual employer. However, employment laws in Asia specify sick
leaves, paid vacations, and many other mandatory benefits that
you have to grant your staff members on an annual basis. There are
some limitations to these benefits, which basically attempt to
provide checks and balances so that neither the employer nor
employee can take undue advantage over the other.
12/7/2021

 The mistake some employers make is to assume that their
international employees will conform to the employment laws as
applied to the US or Europe, for example. To avoid future
friction with authorities, it is imperative that you familiarize
with the employee benefits in the international market from
which you are hiring, and then fully comply with each one of
them. Be sure to understand how leaves are administered, how
the compensation during the leave should be done, the
definitions and expectations of a “sick day”, and any other
relevant benefits.
12/7/2021

5.HASTY HIRING
Hiring processes are known to be tedious, lengthy, and sometimes inconveniencing.
Everything gets worse when it comes to international hiring.
If you are interviewing candidates who don’t speak your language, then you already
have a major stumbling block in your way.
On the other hand, you can get the best talent for the job but then due to travel
hurdles, the process gets more sophisticated and exhausting.
Then there is the issue of paperwork and other legal formalities that you have to
comply with, most of which are new to you.
Lastly, you may not have enough prior information about universities and colleges in
the country from which you are hiring, so you may have a hard time authenticating
the academic papers that candidates present to you.
12/7/2021

 In the midst of all these hiring challenges, many
employers opt to trust their gut and hire people
without following the due process. But because you
don’t want to keep hiring and firing even before your
business gains enough momentum, the best thing to do
is to take your time to understand the process,
internalize the hiring laws, and learn everything there
is to learn regarding local universities and colleges.
Take all the time that you need to find the best talent
for the job.
12/7/2021

“
”
THANK YOU!
APARRAJITHA ARIYADASA
( B.Sc (J’pura), B.Sc. (OUSL), Post. Grad. Dip. In IP Law(wales), LLM (Colombo)
Lecturer in University of Plymouth (UK), LImkokwin (Malaysia), SLIIT, ICBT
Attorney-at-Law, Senior Partner ATD Legal Associates
(www.atdlegalassociates.com), atdlegalassociates@gmail.com
12/7/2021

International Human Resources Management- introduction-l1

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to International Human Resources Management- introduction-l1

Similar to International Human Resources Management- introduction-l1 (20)

Recently uploaded

Recently uploaded (20)

International Human Resources Management- introduction-l1