This Contain all information about international human resource management.

1. International
human resource management
Submitted To -
Mrs. Palak Mam
Submitted By -
Somitra Upadhyay
MBA 1st Year

2. What is IHRM?
• IHRM can be defined as set of activities aimed managing
organizational human resources at international level to
achieve organizational objectives and achieve competitive
advantage over competitors at national and international
level.
• IHRM includes typical HRM functions such as recruitment,
selection, training and development, performance appraisal
and dismissal done at international level and additional
activities such as global skills management, expatriate
management and so on.

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

4. NEED FOR IHRM
• Managing expatriates
• Globalization has forced HRM to have international
orientation
• Effectively utilise services of people at both the
corporate office and at the foreign plants

5. FUNCTIONS OF IHRM
RECRUITMENT
SELECTION
EXPATRIATES
PERFORMANCE APPRAISAL
TRAINING AND DEVELOPMENT
COMPENSATION
WOMEN IN INTERNATIONAL BUSINESS
DUAL CAREER GROUPS
INTERNATIONAL INDUSTRIAL RELATIONS
TRADE UNIOUNS
PARTICIPATIVE MANAGEMENT

6. Characteristics of IHRM
More HR activities
Need for a broader perspective
More involvement in employee personal lives
Changes in emphasis as the workforce mix of
expatriates and locals vary
Risk exposure
More external influences
6

7. Need for Broader Perspective
Pay issues
• Different countries, different currencies
• Gender based pay in Korea, Japan, Indonesia
Health insurance for employees & their families
Overtime working – Korean & Japanese firms
Promotions based on seniority or merit
7

8. Reasons for Growing Interest in IHRM
8
Globalisation of
Business
Effective HRM 
determinant of
success in
international business
Movement to network
organisations from
traditional hierarchical
structures
Significant role in
implementation &
control of strategies

9. STAFFING POLICIES IN IHRM
• Ethnocentric: Here the Key management positions are
filled by the parent country individuals.
• Polycentric: In polycentric staffing policy the host
country nationals manage subsidiaries whereas the
headquarter positions are held by the parent company
nationals.
• Geocentric: In this staffing policy the best and the most
competent individuals hold key positions irrespective of
the nationalities.

10. Recruitment & Selection
10
Ethnocentric
Approach
• Key
management
positions held
by parent-country
nationals
• Appropriate
during early
phases.
Polycentric
Approach
• Host-country
nationals hired
to manage
subsidiaries
• Parent-country
nationals
occupy key
positions at
corporate HQ.
Geocentric
Approach
• Seeks best
people for key
jobs,
irrespective
of nationality
• Underlying
principle of a
global
corporation
Regiocentric
Approach
• Variation of
staffing policy to
suit particular
geographic areas
• Provides a
'stepping stone'
for a firm wishing
to move from an
ethnocentric or
polycentric
approach to a
geocentric
approach
categories of employees can be hired – parent country nationals (PCNs), host country
nationals (HCNs) & third country nationals (TCNs)

11. How It Is Different from
Domestic HRM
• Domestic HRM is done at national level and IHRM is
done at international level.
• Domestic HRM is concerned with managing
employees belonging to one nation and IHRM is
concerned with managing employees belonging to many
nations (Home country, host country and
third country employees)
• Domestic HRM is concerned with managing limited
number of HRM activities at national level and IHRM has
concerned with managing additional activities such as
expatriate management.
• Domestic HRM is less complicated due to less influence
from the external environment. IHRM is very complicated
as it is affected heavily by external factors such as cultural
distance and institutional factors.

12. ISSUES IN IHRM
• Managing International Assignments
• Employee and Family Adjustments
• Selecting the right person for foreign
assignments
• Culture and Gauge
• Language and Communication

13. EFFECTIVE IHRM
IMPLEMENTATION
The following checklist identifies some of the critical
decisions/actions required in the formulation and
implementation of an effective IHR strategy.
1. As certain the current and intended nature of
international operations in the organisation (multi-domestic,
international, global or transnational?)
2. Determine the extent to which HR policies and
practices should be standardised or localised in
accordance with overall organisational strategy.
3. Assess the extent to which local cultural, social,
political, economic and legal factors will impinge on
any attempts to apply standard HR policies if
integration is a key factor in organisational strategy.

14. 4. Ensure a computerised database of global human
resources is used if integration is desired.
5. Work with the senior management team to identify the
competencies required to achieve global
organisational objectives.
6. Work with national HR and line managers to
formulate IHR policies and practices in the key areas
of sourcing, development and reward which will
embed a transnational mindset in the organisation.

15. Expatriate Failure
15
Premature return of expatriates to their home country
Reasons
• Inability to adjust to host country culture  leads to culture shock
• Personal & emotional problems
• Difficulties with the environment
• Inability to cope with larger international responsibilities
• Other family reasons

16. THANK YOU