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International 
human resource management 
Submitted To - 
Mrs. Palak Mam 
Submitted By - 
Somitra Upadhyay 
MBA 1st Year
What is IHRM? 
• IHRM can be defined as set of activities aimed managing 
organizational human resources at international ...
OBJECTIVES OF IHRM 
• Create a local appeal without compromising upon 
the global identity. 
• Generating awareness of cro...
NEED FOR IHRM 
• Managing expatriates 
• Globalization has forced HRM to have international 
orientation 
• Effectively ut...
FUNCTIONS OF IHRM 
RECRUITMENT 
SELECTION 
EXPATRIATES 
PERFORMANCE APPRAISAL 
TRAINING AND DEVELOPMENT 
COMPENSATION 
WOM...
Characteristics of IHRM 
More HR activities 
Need for a broader perspective 
More involvement in employee personal lives 
...
Need for Broader Perspective 
Pay issues 
• Different countries, different currencies 
• Gender based pay in Korea, Japan,...
Reasons for Growing Interest in IHRM 
8 
Globalisation of 
Business 
Effective HRM  
determinant of 
success in 
internat...
STAFFING POLICIES IN IHRM 
• Ethnocentric: Here the Key management positions are 
filled by the parent country individuals...
Recruitment & Selection 
10 
Ethnocentric 
Approach 
• Key 
management 
positions held 
by parent-country 
nationals 
• Ap...
How It Is Different from 
Domestic HRM 
• Domestic HRM is done at national level and IHRM is 
done at international level....
ISSUES IN IHRM 
• Managing International Assignments 
• Employee and Family Adjustments 
• Selecting the right person for ...
EFFECTIVE IHRM 
IMPLEMENTATION 
The following checklist identifies some of the critical 
decisions/actions required in the...
4. Ensure a computerised database of global human 
resources is used if integration is desired. 
5. Work with the senior m...
Expatriate Failure 
15 
Premature return of expatriates to their home country 
Reasons 
• Inability to adjust to host coun...
THANK YOU
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International HRM

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International HRM

  1. 1. International human resource management Submitted To - Mrs. Palak Mam Submitted By - Somitra Upadhyay MBA 1st Year
  2. 2. What is IHRM? • 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. • IHRM includes typical HRM functions such as recruitment, selection, training and development, performance appraisal and dismissal done at international level and additional activities such as global skills management, expatriate management and so on.
  3. 3. OBJECTIVES OF IHRM • Create a local appeal without compromising upon the global identity. • Generating awareness of cross cultural sensitivities among managers globally and hiring of staff across geographic boundaries. • Training upon cultures and sensitivities of the host country.
  4. 4. 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
  5. 5. FUNCTIONS OF IHRM RECRUITMENT SELECTION EXPATRIATES PERFORMANCE APPRAISAL TRAINING AND DEVELOPMENT COMPENSATION WOMEN IN INTERNATIONAL BUSINESS DUAL CAREER GROUPS INTERNATIONAL INDUSTRIAL RELATIONS TRADE UNIOUNS PARTICIPATIVE MANAGEMENT
  6. 6. 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 6
  7. 7. Need for Broader Perspective Pay issues • Different countries, different currencies • Gender based pay in Korea, Japan, Indonesia Health insurance for employees & their families Overtime working – Korean & Japanese firms Promotions based on seniority or merit 7
  8. 8. Reasons for Growing Interest in IHRM 8 Globalisation of Business Effective HRM  determinant of success in international business Movement to network organisations from traditional hierarchical structures Significant role in implementation & control of strategies
  9. 9. STAFFING POLICIES IN IHRM • Ethnocentric: Here the Key management positions are filled by the parent country individuals. • Polycentric: In polycentric staffing policy the host country nationals manage subsidiaries whereas the headquarter positions are held by the parent company nationals. • Geocentric: In this staffing policy the best and the most competent individuals hold key positions irrespective of the nationalities.
  10. 10. Recruitment & Selection 10 Ethnocentric Approach • Key management positions held by parent-country nationals • Appropriate during early phases. Polycentric Approach • Host-country nationals hired to manage subsidiaries • Parent-country nationals occupy key positions at corporate HQ. Geocentric Approach • Seeks best people for key jobs, irrespective of nationality • Underlying principle of a global corporation Regiocentric Approach • Variation of staffing policy to suit particular geographic areas • Provides a 'stepping stone' for a firm wishing to move from an ethnocentric or polycentric approach to a geocentric approach categories of employees can be hired – parent country nationals (PCNs), host country nationals (HCNs) & third country nationals (TCNs)
  11. 11. How It Is Different from Domestic HRM • Domestic HRM is done at national level and IHRM is done at international level. • Domestic HRM is concerned with managing employees belonging to one nation and IHRM is concerned with managing employees belonging to many nations (Home country, host country and third country employees) • Domestic HRM is concerned with managing limited number of HRM activities at national level and IHRM has concerned with managing additional activities such as expatriate management. • Domestic HRM is less complicated due to less influence from the external environment. IHRM is very complicated as it is affected heavily by external factors such as cultural distance and institutional factors.
  12. 12. ISSUES IN IHRM • Managing International Assignments • Employee and Family Adjustments • Selecting the right person for foreign assignments • Culture and Gauge • Language and Communication
  13. 13. EFFECTIVE IHRM IMPLEMENTATION The following checklist identifies some of the critical decisions/actions required in the formulation and implementation of an effective IHR strategy. 1. As certain the current and intended nature of international operations in the organisation (multi-domestic, international, global or transnational?) 2. Determine the extent to which HR policies and practices should be standardised or localised in accordance with overall organisational strategy. 3. Assess the extent to which local cultural, social, political, economic and legal factors will impinge on any attempts to apply standard HR policies if integration is a key factor in organisational strategy.
  14. 14. 4. Ensure a computerised database of global human resources is used if integration is desired. 5. Work with the senior management team to identify the competencies required to achieve global organisational objectives. 6. Work with national HR and line managers to formulate IHR policies and practices in the key areas of sourcing, development and reward which will embed a transnational mindset in the organisation.
  15. 15. Expatriate Failure 15 Premature return of expatriates to their home country Reasons • 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
  16. 16. THANK YOU

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