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I was asked by the Director of the Academy of HRD, Ahmedabad to design a course on International HR Management for the Academy\'s Fellow students, and invite your feedback and suggestions for enriching the course.
Birdseye view of International HRM, its moderating variables, factors for selection of Expatriate, Role of an expatriate, expatriate failure, Cultural conflicts and adjustments, IHRM practices, approaches to staffing subsidiaries, Performance management in IHRM and challenges
I was asked by the Director of the Academy of HRD, Ahmedabad to design a course on International HR Management for the Academy\'s Fellow students, and invite your feedback and suggestions for enriching the course.
Birdseye view of International HRM, its moderating variables, factors for selection of Expatriate, Role of an expatriate, expatriate failure, Cultural conflicts and adjustments, IHRM practices, approaches to staffing subsidiaries, Performance management in IHRM and challenges
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2. INTERNATIONAL HUMAN RESOURCE
MANAGEMENT
• Simple definition is ‘the process of managing people in
international settings’
• Scyllion (1995) defined IHRM as ‘the HRM issues and
problems arising from the internationalization of business, and
the HRM strategies, policies and practices which firms pursue
in response to the internationalization process
• IHRM is the management of HR in business operations in
atleast two nations
3. DIFFERENCES BETWEEN IHRM & DOMESTIC HRM
IHRM Domestic HRM
• Address a broad range of
HRM activities
• HR issues relate to
employees belonging to more
than one nationality
• Greater involvement of HR
manager in the personal life of
employees
• Address a narrow range of
HRM activities
• HR issues relate to employees
belonging to single nationality
• Limited involvement of HR
manager in the personal life of
employees
4. IHRM Practices
• International staffing
• Pre-departure training for international assignments
• Repatriation
• Performance management in international assignments
• Compensation issues in international assignments
5. International staffing
• refers to the process of selecting employees for staffing
international operations of an MNC
MNCs can be staffed using three different sources
a. Home country or Parent Country National (PCN)
b. Host Country Nationals (HCN)
c. Third Country Nationals (TCN)
6. • PCN
Employees of an organization who are citizens of the country in
which the headquarters of the company is located
• HCN
Employees of an organization who are the citizens of the country
in which the foreign subsidiary is located
• TCN
Employees of an organization who are the citizens of the country
other than the country where the organization is headquarterd and
the country that is hosting the subsidiary
7. Approaches to staffing subsidiaries
• Ethnocentric
foreign subsidiary has little autonomy. All strategic decisions are made at the
headquarters. PCNs staff key positions at quarters as well as the foreign
subsidiary
• Polycentric
staff foreign subsidiaries of the firm with HCNs and headquarters consist of
PCNs
• Geocentric
staff my be PCNs, HCNs or TCNs ability and not nationality is the key to
staffing
8. Pre-departure Training for International Assignments
•To make it easier for the employee to assume job responsibilities
and be effective in the foreign country as soon as possible
• To facilitate cultural adaptation as quickly and as effectively as
possible
9. 3 elements of T&D programme
1.Language training
2.Cultural training
3.Managing personal and family life
10. Performance Management in International
Assignments
Performance is the combination of several factors
Compensation Package
Task Assigned to the Expatriate
Headquarter’s Support
Environment
Cultural Adjustment
11. Compensating Managers in International
Assignments
Components of expatriate compensation
• Home leave and travel allowances
• Children’s education allowance
• Currency differential payments
• Relocation allowance
• Housing allowance
• Cost of living adjustment
• Payments to protect from negative tax consequences