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International Human Resource Managment

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International Human Resource Managment

  1. 1. International Human Resource Managment<br />Bino Joseph<br />
  2. 2. 2<br />
  3. 3. Model of IHRM<br />3<br />
  4. 4. Characteristics of IHRM<br />4<br />
  5. 5. More Human Resource Activities<br />5<br />
  6. 6. 6<br />
  7. 7. Need for Broader Perspective<br />7<br />
  8. 8. More Involvement in Employee’s Personal Lives<br />Changes in Emphasis<br />More involvement for both parent-country & third-country nationals<br />Housing arrangements<br />Health care<br />Remuneration packages<br />Assist children left behind in boarding schools<br />Need for parent-country & third-country nationals decrease as more trained locals become available<br />Resources reallocated to selection, training & management development<br />8<br />
  9. 9. 9<br />
  10. 10. Reasons for Growing Interest in IHRM<br />10<br />
  11. 11. Basic Steps in IHRM<br />11<br />
  12. 12. HR Planning<br />12<br />
  13. 13. Recruitment & Selection<br />13<br />3 categories of employees can be hired – parent country nationals (PCNs), host country nationals (HCNs) & third country nationals (TCNs)<br />
  14. 14. Advantages & Disadvantages of Using PCNs<br />Advantages<br />Disadvantages<br />Familiarity with home office, goals, practices<br />Easy organisational control & coordination<br />International exposure to promising managers<br />PCNs  special skills & experiences<br />Difficulty in adapting to foreign country<br />Excessive cost of selecting, training & maintaining expatriates<br />Promotional opportunities limited for HCNs<br />May try to impose inappropriate HQ style<br />Compensation differences for HCNs & PCNs<br />Family adjustment problems<br />14<br />
  15. 15. Advantages & Disadvantages of Using HCNs<br />Advantages<br />Disadvantages<br />Familiarity with the situation in host-country <br />Lower hiring costs<br />Locals motivated due to promotional opportunities<br />Responds well to localisation of subsidiary’s operations<br />No language barrier<br />HCNs stay longer in positions<br />Difficulty in exercising effective control over the subsidiary’s operations<br />Communication problems with home office personnel<br />No opportunity for home country’s nationals to gain international experience<br />Limited career opportunity outside the subsidiary<br />15<br />
  16. 16. Advantages & Disadvantages of Using TCNs<br />Advantages<br />Disadvantages<br />Salary & benefit requirements lower than that of PCNs<br />May be better informed about host country environment<br />Truly international managers<br />Host country govt. may resent hiring TCNs<br />May not return to their country after assignment<br />Host country’s sensitivity w.r.t nationals of specific countries<br />16<br />
  17. 17. Expatriate Assignment Life Cycle<br />Determining the need for an expatriate<br />Crisis & Adjustment<br />Reassignment Abroad<br />Repatriation & Adjustment<br />Departure<br />Post-arrival Orientation & Training<br />Selection Process<br />Crisis & Failure<br />Pre-assignment training<br />17<br />
  18. 18. Expatriate Failure<br />18<br />
  19. 19. Culture Shock Cycle<br />19<br />
  20. 20. Individual Situation<br />20<br />
  21. 21. Training & Development<br />21<br />
  22. 22. HCN Training<br />22<br />
  23. 23. Expatriate Performance Management<br />23<br />
  24. 24. 24<br />
  25. 25. Paying Expatriates<br />25<br />
  26. 26. Components of Remuneration Package<br />Factors Influencing Compensation<br />Base salary<br />Benefits<br />Allowances<br />Incentives<br />Taxes<br />Tax equalisation<br />Tax protection<br />Internal Environment<br />Goal Orientation<br />Capacity to pay<br />Competitive strategy<br />Organisational culture<br />Internal workforce composition<br />Labour relations<br />Subsidiary role<br />External Environment<br />Parent nationality<br />Labour market characteristics<br />Local culture<br />Home & host country govts’ role<br />Industry type<br />Competitors’ strategies<br />26<br />
  27. 27. Balance-sheet approach<br />Going-rate approach<br />Lumpsum method<br />Cafeteria approach<br />Regional approach<br />Approaches to Designing the Pay Package<br />27<br />
  28. 28. Repatriation<br />The activity of bringing the expat back to the home country<br />Can cause re-entry shock or reverse culture shock<br />Reasons<br />Posting period over<br />Children’s education<br />Not happy with overseas assignment<br />Failure to do a good job<br />28<br />Repatriation Process<br />
  29. 29. 29<br />Types of Assignments<br />Short term assignments<br />
  30. 30. 30<br />Commuter assignments<br />Long term assignments<br />
  31. 31. International Labour Relations<br />31<br />
  32. 32. Culture – customs, beliefs, norms & values that guide behaviour of people in a society or passed on from one generation to the next<br />Multiculturalism – people from many cultures (countries) interact regularly<br />Benefits<br />Greater creativity & innovation<br />Sensitivity in dealing with foreign customers<br />Possibilities of hiring best talent<br />‘Superorganisational culture’<br />Universally acceptable HR policies & practices<br />Functions of IHR manager<br />Possess strong personal identity<br />Have knowledge of beliefs & values of different cultures<br />Display sensitivity<br />Communicate clearly according to the cultural group<br />Cultivate cosmopolitan outlook & attitudes<br />Multiculturalism<br />32<br />
  33. 33. 33<br />
  34. 34. 34<br />

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