This presentation provides an overview of international human resource management (IHRM). IHRM aims to manage organizational human resources at an international level to achieve objectives and competitive advantage globally. The presentation defines IHRM and its objectives, functions, importance, characteristics, factors that affect it, challenges, and models involving types of employees and countries.

1. WELCOME
TO
THE PRESENTATION

2. Presented by
Rabeya Bosri-1832049
Laxmy Rani Bosue-1832050
Mathia Mim Oishi-1832051
Suraya Jahan-1832064
Tania Sultana-1832065
Farjana Sabnur-1832068
Tanjila Akter-1832070
Joyeta Bosu-1832071

3. IHRM can be defined as set of activities aimed managing organizational
human resources at international level to achieve organizational objectives
& achieve competitive advantage over competitors at national and
international level.
IHRM

4.  Create a local appeal without compromising upon the global identity
 Generating awareness cross-cultural sensitivities among managers
globally and hiring of staff across geographic boundaries.
 Training upon cultures and sensitivities of the host country.
OBJECTIVES

5. Functions of international human resource
management:
1.Procurement: HR planning, Staffing (recruitment, selection, placement)
2. Allocation: Compensation (remuneration) and benefits.
3. Utilization: Performance Management ,Training and development,
Industrial Relations.

6.  Business activities e.g. taxation, international relocation expatriate remuneration
,performance appraisal ,cross-culture training and repatriation.
 Increased complexities e.g. currency fluctuations, foreign HR policies and practices,
different labor laws.
 Increased involvement in employee’s personal life e.g. Personal taxation ,voter
registration,housing,children’s education ,health ,recreation n and spouse employment.
 Complex employee mix- Culture,Political,Religious, Ethical,educational and legal
background .
 Increased risks e.g. emergency exists for serious illness, personal security, kidnapping and
terrorism.
Major differences between Domestic HRM and IHRM

7.  Emphasis on core competency to generate competitive advantage.
 Reorganization as flat structure due to the essential additional skills that can be met by
appointing new managerial talents or by developing the existing human resources.
 Competition for human resources in various sectors such as consultancy, merchant banking etc.
for acquiring managerial talents.
 Technological changes can remove restrictions on technology import and acquisition. Through
these can be obtained newer technology.
 Different skills and mindsets involved in workforce can be changed due to workforce
empowerment.
Importance of IHRM

8. Characteristics of IHRM
 More involvement in employee personal lives
 More HR activities
 Need for a broader perspective
 Changes in emphasis as the work force mix of expatriates and local
vary.
 Risk exposure
 More external influences.

9. More HR Activities
Human
Resource
Planning
Employee
Hiring
Training &
Development
 Difficulty in implementing HR in host countries.
 Aligning strategic business planning to HRO & vice –versa.
 Developmental opportunities for international managers.
 Ability to mix with organization’s culture
 Ethnocentric, polycentric or geocentric staffing approach.
 Selection of expatriates
 Coping with expatriate failure
 Emphasis on cultural training
 Language training
 Training in manners & mannerism
compensation
 Devising an appropriate strategy to compensate expatriate
 Minimizing discrepancies in pay between parent ,host& third country
nationals
 Issues relating to the re-entry of expatriates into the home country

10. Pay issues
Health insurance for employees & their families
Overtime working – Korean & Japanese firms
Need for Broader Perspectives
Promotions based on seniority or merit
 Different countries ,different currencies.
 Gender based pay in Korea,Japan,Indonesia.

11. Globalizations of business
Effective HRM
Determination of success in
international business.
Movement to network
organizations from
traditional hierarchical
structures
Significant role in
implementation & control of
Strategies
Reasons for Growing interest in IHRM

12. Cultural factors Economic Systems
International
Human Resource
Management
Legal & Industrial
Relations Factors
Major factors Affect IHRM

13. Hiring PCNs
Advantages
 Familiarity with home
Office,goals,practices.
 Easy organizational control&
coordination
 International exposure to
promising managers
 PCNs special skills & experiences
Disadvantages
 Difficulty in adapting to foreign
country
 Excessive cost of selecting
training & maintaining
expatriates
 Promotional opportunities
limited for HCNs
 May try to impose inappropriate
HQ style
 Compensation differences for
HCNs& PCNs
 Family adjustment problems

14. Hiring HCNs
Advantages
 Familiarity with the situation in
host-country
 Lower hiring costs
 Locals motivated due to
promotional opportunities
 Responds well to localizations of
subsidiary's operations
 No language barrier
 HCNs stay longer in positions
Disadvantages
 Difficulty in exercising effective
control over the subsidiary’s
operations
 Communication problems with
home office personnel
 No opportunity for home
country’s nationals to gain
international experience
 Limited career opportunity
outside the subsidiary

15. Hiring TCNs
Advantages
 Salary & benefit requirements
lower than that of PCNs
 May be better informed about host
country environment
 Truly international managers
Disadvantages
 Host country govt. may resent
hiring TCNs
 May not return to their country
after assignment.
 Host country’s sensitivity w.r.t
nationals of specific countries.

16.  High failure rates- expatriation and repatriation
 Deployment-getting the right mix of skills in the organization regardless of
geographical location.
 Knowledge and innovation dissemination- managing critical knowledge
and speed of information flow.
 Talent identification and development –identifying capable people who are
able to function effectively
 Barriers to women in IHRM
 International ethics
 Language (e.g. spoken, written ,body)
Main challenges in IHRM

17. IHRM
 Procure
 Utilize
 Allocate
 Home country nationals
 Host country nationals
 Third-country nationals
 Home country
 Host country
 Third country
HR
Activities
Types of
Employees
Countries
Models of IHRM