This presentation will give you an overview of what IHRM is and what difficulties and policies are involved in IHRM.

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INTERNATIONAL
HUMAN RESOURCE
MANAGEMENT
Presented by:
JITESH KUMAR ROUT (92)
SYED WUSKA (75)
BISAKHA DAS (74)
EPSA (57)
SHILPI BANERJEE (56)

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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

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TOPICS TO BE COVERED
 Meaning-concept, objective and need
 Issues
 Impact of Globalisation
 International Environment and Cultural
difference
 Global HR policies
 Managing Expatriates

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CONCEPT
 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.
 The process of procuring, allocation, effectively
utilizing human resources in an international
business is called International Human Resources
Management.

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OBJECTIVE
 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.

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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.

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FUNCTIONS OF IHRM

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MODEL OF IHRM

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ISSUES IN IHRM
 Compliance with International laws
 Cultural Diversity
 Benefits and compensation
 Training and Development

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Compliance
with
International
Laws
 Laws tend to be complex and sometimes
difficult to implement.
 A business may have to adapt to new
labour laws and tax liabilities.

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Cultural
Diversity
Working with people from different
locations or from different cultural
backgrounds means adapting the
business's work style to new ideas, new
ways of communicating and unfamiliar
social practices.

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Benefits and
Compensation
In international HR, benefits and
compensation are even more important
in focusing on the work-life balance of
employees. The idea behind work-life
balance is to provide employees with
programs and initiatives that improve
both their personal and professional
lives. This is considered part of
international HR.

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Training
and
Development
 Training programs typically
encompass in-house seminars
and meetings designed to give
employees on-the-job
knowledge of skills that are
important to doing business
globally.
 Professional development
helps employees to hone their
skills in global marketing,
international business
development and finance
trends.

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IMPACT OF GLOBALISATION
“Globalisation is a term in business that refers to the
integration of an organisation’s operations, processes
and strategies into diverse cultures, products, services
and ideas.”
 Today HR managers can recruit the employees from
around the world (online recruitment).
 Effective database is used globally which makes HRM
a simple and effective task( use of IT software).
 Globalisation influences organisations that compete
for customers with high expectations for
performance, quality and cost.

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HR PAST AND PRESENT
Traditional HR function
1. Administrative focus
2. Reactive
3. Separate from company’s
mission
4. Production focus
5. People as expense
6. Vertical line of authority
Emerging HR Practice
1. Strategic focus
2. Proactive
3. Key part of company
mission
4. Service focus
5. People as investment
6. Process based
organisation with
horizontal
responsibility.

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INTERNATIONAL ENVIRONMENT AND
CULTURAL DIFFERENCE
 Language (e.g. spoken, written, body).
 Different labour laws.
 Different political climate.
 Different stage(s) of technological advancement.
 Different values and attitudes e.g. time,
achievement, risk taking.
 Roles of religion e.g. sacred objects,
prayer, taboos, holidays, etc.
 Educational level attained.
 Social organizations e.g. social
institutions, authority structures, interest
groups, status systems.

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MULTICULTURAL
MANAGEMENT
Multiculturalism means that people from many
cultures interact regularly . Global firms are the
repositories of multiculturalism.

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BENEFITS OF
MULTICULTURALISM
 Greater creativity and innovation.
 Awareness about the need to maintain
sensitivity in dealing with foreign
customers.
 Possibilities of hiring the best talent.
 Creating a “superorganisational
culture” using the best of all the
cultures.
 Evolving universally acceptable HR
policies and practices.

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GLOBAL HR POLICIES
Ethnocentric
Approach
• Key
management
positions held
by parent-
country
nationals
• Appropriate
during early
phases
• P&G, Philips
Polycentric
Approach
• Host-country
nationals
hired to
manage
subsidiaries
• Parent-
country
nationals
occupy key
positions at
corporate HQ
• HUL
Geocentric
Approach
• Seeks best
people for key
jobs,
irrespective of
nationality
• Underlying
principle of a
global
corporation
• Colgate-
Palmolive
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

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3 categories of employees can be hired –
 Parent Country Nationals (PCNs)
 Host Country Nationals (HCNs)
 Third Country Nationals (TCNs)

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MANAGING
EXPATRIATES
If an
employee
from Brazil
was sent to
the U.S. they
would be
expatriates.

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SIX IMPORTANT
CHARACTERISTICS OF
EXPATRIATE MANAGERS
 Cultural Intelligence
 Flexibility and adaptability
 Job knowledge and motivation
 Relational skills
 Extra cultural openness

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CHALLENGES OF EXPATRIATE
MANAGEMENT
 Loneliness
 Cultural differences
 Cost of living
 Healthcare

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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
Domestic HRM
 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
 Limited risks in domestic
assignments
 Limited external factors to
deal with.

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SUMMARY
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.

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Thank You