This document discusses international human resource management. It defines IHRM and differentiates it from domestic HRM. It also describes different types of international organizations like multinational corporations, global corporations, and transnational corporations. The document outlines key IHRM practices such as international staffing, pre-departure training, repatriation, performance management, and compensation for international assignments. Managing cultural differences and a diverse workforce is important for organizations to succeed globally.

2.  Reasons that encouraged global organizations
to develop international HR strategies
• Global competition and differences in
organizational environment across nations.

3. TYPES OF INTERNATIONAL ORGANIZATIONS

4. International companies have no
foreign direct investments (FDI)
and make their product or service
only in their home country. In
other words, they're exporters and
importers. They have no staff,
warehouses, or sales offices in
foreign countries. The best
examples of international
companies, in the strict sense, are
exotic retail shops that sell
imported products, or small local
manufacturers that export to
neighbouring countries.
Example : Honda, General
Electric, P&G
International Corporations

5. MULTINATIONAL
CORPORATION
Multinational companies cross the FDI
threshold. They invest directly in foreign
assets, whether it's a lease contract on a
building to house service operations, a
plant on foreign soil, or a foreign
marketing campaign. Generally, though.
Multinational companies, however, have
FDI only in a limited number of countries,
and they do not attempt to homogenize
their product offering throughout the
countries they operate in -- they focus
much more on being responsive to local
preferences than a global company
would.
Examples: APPLE,GOOGLE ,KONAMI,

6. GLOBAL CORPORATIONS
Global companies have investments
in dozens of countries but maintain a
strong headquarters in one, usually
their home country. Their mantra
is economies of scale, and they'll
homogenize products as much as
the market will allow in order to
keep costs low. Their marketing
campaigns often span the globe with
one message (albeit in different
languages) in an attempt to smooth
out differences in local tastes and
preferences.
Examples: Mcdonalds ,KFC ,Dominos

7. Transnational companies are often very
complex and extremely difficult to
manage. They invest directly in dozens of
countries and experience strong pressures
both for cost reduction and local
responsiveness. These companies may
have a global headquarters, but they also
distribute decision-making power to
various national headquarters, and they
have dedicated R&D activities for different
national markets.
Transnational Corporations

8. INTERNATIONAL HUMAN
RESOURCE MANAGEMENT
 Simple definition is ‘the process of managing people in
international settings’
 Scullion (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

9. DIFFERENCES BETWEEN
IHRM & DOMESTIC HRM
IHRM
 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
 Greater exposure to risks in
International assignments
Has to manage several external
factors such as government
regulations of foreign country
 Address a narrow range of
HRM activitiesHR issues
relate to employees
belonging to single
nationality.
 Limited involvement of HR
manager in the personal life
of employees
 Limited risks in domestic
assignments Limited
external factors to deal with.
Domestic HRM

10. IHRM Practices
 International staffing
 Pre-departure training for international
assignments
 Repatriation
 Performance management in international
assignments
 Compensation issues in international assignments

11. 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)

12.  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

13. 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

14. 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

15. 3 elements of T&D programme
1.Language training
2.Cultural training
3.Managing personal and family
life

16. Repatriation
• It is the process of bringing an expatriate home after he/she
has completed the international assignment.
Organizations can follow 3 practices
1. Create knowledge and develop global leadership skills
2. Ensure that candidates have cross-cultural skills to match their
technical abilities
3. Prepare people to make the transition back to their home
offices

17. Performance is the combination of several
factors
Compensation Package
Task Assigned to the Expatriate
Headquarter’s Support
Environment
Cultural Adjustment
Performance Management in
International Assignments

18. 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

19. As organizations have gone global in their
operations, the impact of cultural differences as
well as workforce issues have caught the attention
of the HR managers. As the world becomes
boundary less, the ability to work in a cross
cultural environment becomes a valuable asset for
any executive.
Understanding, managing, and even exploiting
these cultural differences could well spell the
difference between success and failure in several
business situations.