International

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International

  1. 1. INTERNATIONALHRM
  2. 2. DEFINING IHRM
  3. 3.  The IHRM may be defined as the interplay between the three important dimensions of human resource management- types of employees, human resource activities and the country of operation. IHRM is the process of procuring, allocating and effectively utilizing human resources in a multinational corporations
  4. 4. UNDERSTANDING A FEW TERMS Type of Employees in Multi National Companies HCN, PCN, and TCN HCN (Host Country National) IBM employs Indian Citizens in Indian Operations PCN (Parent Country National) IBM sends US citizen to India on assignment TCN (Third Country National) IBM sends Singaporean employee on assignment to
  5. 5. IHRM STRATEGIESEthnocentric Approach Staffing the key positions with PCNs Generally common at the initial stage of internationalization Lack of qualified HCNs Limits the opportunities for HCNs and hence more turn over Compensation variation between PCN and HCN and hence low morale of HCNsPolycentric Approach HCNs are recruited to manage subsidiaries in their own countries and PCN in corporate HQs Avoids adjustment problems of expatriate Employment of HCN is less expensive Some of the disadvantages of Ethnocentric are overcome
  6. 6. Geocentric Approach Utilisation of best people for the key jobs throughout the organisation regardless of nationality Availability of competent persons throughout the organisation Organisations able to deliver high performanceRegiocentric Approach Modification of Geocentric approach Staffing is on regional approach It helps the organisations to move from ethno/polycentric to geocentric Opportunities are limited to regional level only
  7. 7. Stages of Moving TowardsGlobal Business Network Subsidiary Foreign Production Sale SubsidiaryExporting Licensing Subcontracting
  8. 8. Path to Global StatusExporting Exporting is Initial stage. Generally handled by intermediary. Appointing for a export manager-A PCN. Could be marketing department function. HR functions are similar to domestic HRM.Sales Subsidiary Direct sales with establishment with branch offices in foreign market. Development of expertise, agents and distributors in foreign market. Strategy option PCN versus HCN HR activities depends on PCN or HCN
  9. 9. Path to Global StatusInternational Division Transition stage before establishing foreign production facility / JV with local firm / Acquisition of local firm. Establishing Subsidiary in foreign country. Shift from PCN to HCN. Separate HR manager from HR function to look after expat management for the same.Global Production Firm’s growth leads to foreign production. Global competition , flow of information, technology. Adaptation of HRM activities for host countries. Results in balanced control/ Decentralization of strategic planning/formulating / Implementing HR strategies.

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