2. The field of International Human Resource Management (IHRM) includes three
main areas:-
1.The management of human resources in global corporations
2.The management of expatriate employees
3.The comparison of human resource management (HRM)
practices in a variety of different countries
3. Moreover, HRM laws, regulations & practices may influence a company’s
decision on where to locate a subsidiary.
Prevailing wage rates, employee benefits required by law, & ease of dismissing
employees can make one country more attractive than another
For example:
In Netherlands, companies must pay employees who lose their jobs
unemployment benefits equal to 70% of their salaries for up to two & one-half
years.
In France, the legal workweek is 35 hours & workers are limited to nine hours of
overtime per week.
In contrast, Middle Eastern countries generally allow a workweek of 42 to 48
hours
Such differences require companies to think carefully about how legal
requirements will influence their operation & potential profitability
4. APPROACHES TO MANAGING & STAFFING
SUBSIDIARIES
1.Ethnocentric (Home country approach prevails)
2.Polycentric (subsidiary management)
3.Regiocentric (Region approach)
4.Geocentric or Global (Worldwide approach)
5. FACTORS INFLUENCING IHRM
Political & legal concerns
Level of development in foreign locations
Technology & the nature of the product
Organizational Life-Cycle
Age & History of the subsidiary
Organizational & National Cultural Differences
6. Major IHRM Functions
Recruitment & Selection
Training & Development
Performance Evaluation
Compensation & Benefits
Labor Relations
8. The complexities of operating in different countries & employing different
national categories of workers is a key variable that differentiates Domestic &
International HRM
1.Major HR activities
2.Broader Perspective
3.More involvement in Employees Personal Lives
4.Changes in emphasis as the workforce mix of PCNs &
TCNs varies
5.Risk Exposure
6.Broader External Influences
