International Human Resource Management

1. WELCOME
TO
THE PRESENTATION

2. Presented by
Rabeya Bosri-1832049
Laxmy Rani Bosue-1832050
Mathia Mim Oishi-1832051
Suraya Jahan-1832064
Tania Sultana-1832065
Farjana Sabnur-1832068
Tanjila Akter-1832070
Joyeta Bosu-1832071

3. IHRM can be defined as set of activities aimed managing organizational
human resources at international level to achieve organizational objectives
& achieve competitive advantage over competitors at national and
international level.
IHRM

4.  Create a local appeal without compromising upon the global identity
 Generating awareness cross-cultural sensitivities among managers
globally and hiring of staff across geographic boundaries.
 Training upon cultures and sensitivities of the host country.
OBJECTIVES

5. Functions of international human resource
management:
1.Procurement: HR planning, Staffing (recruitment, selection, placement)
2. Allocation: Compensation (remuneration) and benefits.
3. Utilization: Performance Management ,Training and development,
Industrial Relations.

6.  Business activities e.g. taxation, international relocation expatriate remuneration
,performance appraisal ,cross-culture training and repatriation.
 Increased complexities e.g. currency fluctuations, foreign HR policies and practices,
different labor laws.
 Increased involvement in employee’s personal life e.g. Personal taxation ,voter
registration,housing,children’s education ,health ,recreation n and spouse employment.
 Complex employee mix- Culture,Political,Religious, Ethical,educational and legal
background .
 Increased risks e.g. emergency exists for serious illness, personal security, kidnapping and
terrorism.
Major differences between Domestic HRM and IHRM

7.  Emphasis on core competency to generate competitive advantage.
 Reorganization as flat structure due to the essential additional skills that can be met by
appointing new managerial talents or by developing the existing human resources.
 Competition for human resources in various sectors such as consultancy, merchant banking etc.
for acquiring managerial talents.
 Technological changes can remove restrictions on technology import and acquisition. Through
these can be obtained newer technology.
 Different skills and mindsets involved in workforce can be changed due to workforce
empowerment.
Importance of IHRM

8. Characteristics of IHRM
 More involvement in employee personal lives
 More HR activities
 Need for a broader perspective
 Changes in emphasis as the work force mix of expatriates and local
vary.
 Risk exposure
 More external influences.

9. More HR Activities
Human
Resource
Planning
Employee
Hiring
Training &
Development
 Difficulty in implementing HR in host countries.
 Aligning strategic business planning to HRO & vice –versa.
 Developmental opportunities for international managers.
 Ability to mix with organization’s culture
 Ethnocentric, polycentric or geocentric staffing approach.
 Selection of expatriates
 Coping with expatriate failure
 Emphasis on cultural training
 Language training
 Training in manners & mannerism
compensation
 Devising an appropriate strategy to compensate expatriate
 Minimizing discrepancies in pay between parent ,host& third country
nationals
 Issues relating to the re-entry of expatriates into the home country

10. Pay issues
Health insurance for employees & their families
Overtime working – Korean & Japanese firms
Need for Broader Perspectives
Promotions based on seniority or merit
 Different countries ,different currencies.
 Gender based pay in Korea,Japan,Indonesia.

11. Globalizations of business
Effective HRM
Determination of success in
international business.
Movement to network
organizations from
traditional hierarchical
structures
Significant role in
implementation & control of
Strategies
Reasons for Growing interest in IHRM

12. Cultural factors Economic Systems
International
Human Resource
Management
Legal & Industrial
Relations Factors
Major factors Affect IHRM

13. Hiring PCNs
Advantages
 Familiarity with home
Office,goals,practices.
 Easy organizational control&
coordination
 International exposure to
promising managers
 PCNs special skills & experiences
Disadvantages
 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
 Family adjustment problems

14. Hiring HCNs
Advantages
 Familiarity with the situation in
host-country
 Lower hiring costs
 Locals motivated due to
promotional opportunities
 Responds well to localizations of
subsidiary's operations
 No language barrier
 HCNs stay longer in positions
Disadvantages
 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. Hiring TCNs
Advantages
 Salary & benefit requirements
lower than that of PCNs
 May be better informed about host
country environment
 Truly international managers
Disadvantages
 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.  High failure rates- 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 –identifying 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

17. IHRM
 Procure
 Utilize
 Allocate
 Home country nationals
 Host country nationals
 Third-country nationals
 Home country
 Host country
 Third country
HR
Activities
Types of
Employees
Countries
Models of IHRM