This document provides an overview of international human resource management (IHRM) submitted by a group of MBA students. It defines IHRM and discusses its objectives, importance, challenges and key aspects like managing expatriates. IHRM involves managing human resources across borders and cultures, with the goals of reducing cultural risk, managing diverse skills, and responding to factors like global competition and mergers. Managing expatriates effectively requires considerations around cultural adaptation, family needs, job skills, and relationship building across cultures.

1. INTERNATIONAL
HUMAN RESOURCE
MANAGEMENT(IHRM)
SUBMITTED BY GROUP(3)
EVA KRISHNA(MBA/10015/16)
MONIKA SINGH(MBA/10013/16)
SHALINI SINGH(MBA/10003/16)
MOHIT BHAGERIA(MBA/10008/16)
SHASHI SINGH(MBA/10001/16)
YUGESH KUMAR(MBA/10012/16)
AMAN JHA(MBA/10031/16)

2. IHRM?
 IHRM CAN BE EXPLAINED AS “The set of distinct activities, functions and processes that are
directed at attracting, developing and maintaining and MNC’S human resources.”
 It is the aggregate of the various HRM systems used to manage people in the MNC, both at
home and overseas.
 IHRM is study and application of all human resource management activities as they impact the
process of managing human resources in enterprises in the global environment.
 HR managers cannot afford to ignore the international influences on their work.
 IHRM play significant role in providing solution to global business issues.
 It is extension of HR that relates to having people working abroad. These can be either
expatriate staff or even third country.

3. OBJECTIVES
1. To reduce risk of international human resource create a local appeal
without compromising upon the global identity.
2. To avoid cultural risk generating awareness of cross cultural
sensitivities among managers globally and hiring of staff across
geographical boundaries.
3. Training upon cultures and sensitivities of the host country and avoid
regional disparities.
4. To manage diversified human skill.

4. IMPORTANCE OF IHRM
1.Global
competition
2.Market Access
Opportunities
4.International
Mergers and
acquisitions.
3.Foreign Human
resources
Importance of IHRM

6. Cultural and communication barriers.
Issues while managing international assignments.
Issues faced by the management while selecting right
person for the assignment.
Problems faced by the employees family members to
adjust in foreign countries.
Cost of living
Currency differential payments

7. Cultural and Communication
Barriers
Misunderstanding of words or actions.
Difference in values and behavior.
Language barriers (learning new language).
Issues while managing international assignment.
-Proper understanding of the project .
-Problems related to allocation of resources.

8. Issues related to the choice of right person for the foreign
assignment
•Whom to send for the assignment
•How many to send for the assignment.
Problems faced by the employees family
•Adjusting along with the people of the city.
•Problems faced by the children at school.

9. Cost of living
•Foreign palaces are much costlier( food ,clothing ,shelter).
•Standard of living has to be maintained.
Currency differentiation
•Difference in the currency which could be a major concern of the
employees and therefore could become a serious issue.

11. • A process by which regional economies, societies
and culture become integrated through a global
network of communication, transportation and
trade.
• Tendency of firms to extend their sales,
ownership and/ or manufacturing to new
markets abroad.
CONCEPT:

12. • EXPAND BUSINESS:
Globalization leads to increase the business across the borders and to capture enhanced market
opportunities that foreign countries may consist.
• FORMING PARTNERS:
Helps to enter joint venture with foreign partner and licensing production of certain goods and
services to foreign partner.
• STRENGTHENING ECONOMY:
To achieve or strengthen economies of scale in production and administration by expanding
scope and volume of operations to international market.
• ACQUIRING OWNERSHIP:
Acquiring ownership of foreign- based organization or subsidiary.

13. Due to globalization, more and more firms are
moving outside their domestic borders into the
dynamic world of international business.
DEFINITION:

14. IHRM
Challenge
Commitment
Cost
effectivenessCompetence
Cross culture

15. • CHALLENGE:
Rapid growth of internationalization and global competition has increased the number and significance of
MNC’s resulting in the increased mobility of human resource.
• COMMITMENT:
World wide recognition of management of human resources in international businesses and cross cultural
management.
• COST EFFECTIVENESS:
The performance of expatriates. (poor performance of expatriates may affect the market share and damage to
foreign relations).
Growing importance of expatriates in international business.
• COMPETENCE:
Global strategy implementation. Success or failure of international business based on effectiveness of
management of HR.
• CROSS CULTURE:
Cross culture is the recent trend in IHRM, HR manager come across diversified culture, language, norms,
perception, attitude etc.

24. HUMAN RESOURCE MANAGEMENT
MANAGING EXPATRIATES

25. EXPATRIATE MEANING
 An Expatriate (expat) is a person temporarily or permanently
residing in a country other than that of their citizenship.
Business expatriates:
Many multinational corporations send employees to foreign
countries to work in branch offices, client offices or subsidiaries.
i. Expatriate employees allow a parent company to more closely
control its foreign subsidiaries.
ii. Expatriate employees can also improve global coordination.

26. CLASSIFICATION OF EXPATRIATE
 Expatriates can be broadly classified under following types as per recent trends:
Type Description
Short-term
assignments
Duration - Short; Ex: Problem Solving Task,
Specific Project.
Self-initiated
expatriation
Duration – Longer; Ex: Contract to work
overseas; Start-up at Foreign Nation.
Commuter
assignments
Duration – Very short, however foreign visits are
very frequent.
Flexpatriates Duration – Short, Irregular Nature and frequent
visit. Ex- Meetings, Negotiations.
Scholarship and
Research
Duration – Longer, Ex: Assignment for
accomplishing research work and studies.

27. Expatriate
ProblemWith the expanding global competition and the growing number of
international assignees, managing expatriates has been a major problem
that relates to the success or failure of an organization’s implementation of
international strategies.
Factors determining success or failure of expatriated employees:
1. Cultural intelligence (CQ) : Ability to adapt across cultures.
2. Family situation: Ability to keep in touch with families collaboratively.
3. Flexibility and adaptability: Ability to fit changed circumstance
4. Job knowledge and motivation: Ability to transfer knowledge smoothly and transfer
international assignment into career advancement.
5. Relational skills: Ability to build up relationships more actively.
6. Extra cultural openness: Ability to communicate with others more openly .

28. Managing Expatriates
MNCs are continuously striving to improve their capability in managing human
resources internationally. Important features of these initiatives include:

29. • Domestic HRM is done at national level.
• There are less or no risks involved in the
Domestic HRM.
• Domestic HRM is concerned with managing
employees belonging to one nation.
• Domestic HRM is concerned with managing
limited number of HRM activities at national
level.
• Domestic HRM is less complicated due to
less influence from the external environment.
• IHRM is done at international level.
• There are more risks involved in IHRM like
terrorism, crisis etc.
• IHRM is concerned with managing
employees belonging to many nations
(Home country, host country and third
country employees).
• IHRM is concerned with managing
additional activities such as expatriate
management.
• IHRM is very complicated as it is affected
heavily by external factors such as cultural
distance.
Difference between DOMESTIC HRM and iHRM

30. CONCLUSION
1.An IHRM operates beyond national borders while domestic HRMs operate within
the borders.
2.IHRMs have more functions and are subject to more stringent international rules
and are more exposed to a wider array of activities as opposed to domestic HRMs.
3.In an IHRM, there’s constant change for a broader set of perspectives.
4.In an IHRM, there’s more attention given to the associate or expatriate
employee’s personal well-being.
5.There are more risks involved in IHRM than in the domestic HRM.