1. International HRM
• Why organizations expand internationally
– To capture enhanced market opportunities that
foreign countries may present
– To achieve economies of scale in production and
administration by expanding scope and volume of
operations to international markets
– Keeping up with industry leaders may require
organization to enter foreign markets
– Acquiring ownership of foreign-based organization
or subsidiary

2. How International & Domestic
HRM Differ
• International HRM requires
– Managing broader range of functional areas
– Becoming more involved in employees’ personal
lives
– Setting up several different HRM systems for
different geographic locations
– Dealing with more complex external constituencies
– Participating in international assignments that
have heightened exposure to personal risk

3. International Expansion
• Strategies for expanding internationally
– Exporting locally produced goods to host
country
– Subcontracting or licensing production of
certain goods or services to foreign partner
– Entering into joint venture with foreign
partner
– Setting up operations (making a direct
investment) in form of foreign branch or
subsidiary

4. Strategic HR Issues in Global
Assignments
• Approaches to sending employees abroad
– Administrative approach
• Assisting employee destined for international assignment
with paperwork and minor logistics
– Tactical approach
• Managing “risk or failure” factor of overseas assignment
by providing paperwork assistance and modest amount of
training
– Strategic approach
• Extensive support and coordination of international
assignment, and strategized repatriation program at the
end of the assignment

5. Strategic HR Issues in Global
Assignments
Strategic management of global assignments
1. Establish specific purpose for assignment
2. Select appropriate employee for assignment
3. Organizational and individual purposes for assignment must be
identified and matched
4. Assess adaptability to host culture of both employee and any
family members who will be accompanying employee
5. Provide appropriate training for employee and family members
6. Simultaneous training should be conducted for headquarters
staff

6. Four Approaches to IHRM
Make strategic decision as to level of
standardization desired across locations
– Ethnocentric approach
• Exporting organization’s home country practices and policies to
foreign locations
– Polycentric approach
• Allowing each location to develop own practices and policies
– Regiocentric approach
• Developing standardized practices and policies by geographic
region
– Geocentric approach
• Developing one set of global practices and policies applied at all
locations

7. STRATEGIC PLANNING IN
SBU’s
• Strategic HRM can play an important role at SBU’s level.
• E.g. SBU’s marketing group may identify an opportunity during its planning
process. Marketing planners then develop alternate strategies for exploiting
the opportunities.
• Representatives from other functional areas make inputs on resource
requirements, strengths and weaknesses
• HR depts. would be expected to provide an analysis of staffing implications
of each and Inputs from all are submitted to corporate top management for
approval and funding.
• Suitable HR strategies ( Policies & Practices ) in line with business
strategies are developed and implemented

8. STRATEGIC PLANNING IN
MNCs
INTERNATONAL STRATEGY: for companies that operate in countries chosen for
their individual profit potential. All activities related to design, production and marketing
are then performed in each of these countries. These are called value chain activities.
MULTI DOMESTIC STRATEGIES customize the product and its marketing to the unique
preferences of each country.
Multinational or Multi domestic companies provide power advantage in dealing with unionized workers
but do not produce economies of scale of Global companies
GLOBAL STRATEGIES: Produce standardized products with different activities such bas
design and production being located indifferent countries, depending on labor, cost,
skills or other strategic advantages.
With Global strategies, economies of scales are obtained by maintaining only few different product
models as a result lower cost and higher quality are obtained. Greater coordination is required . It is
important to locate each of the value chain activities where there is world class labor in terms of
cost or skills.
TRANSNATIONAL STRATEGIES: Companies compete in global market place through the
use of networks and strategic alliances

9. IHRM Vs DOMESTIC HRM
IHRM DOMESTIC HRM
• Addresses a broad range of HRM activities Addresses to Narrow range of HRM
activities
• HR issues relate to employee belonging Relate to employees belonging to
to more than one nationality single nationality
• Greater involvement of HR managers Limited involvement
in the personal life of employee.
• Greater exposure to risks, in International Limited risk
assignments ( Such as wrong selection
of manager to be posted abroad .
• Has to manage several external factors Limited external factors to deal with.