Discussion about IHRM and type of organization

1. Human Resource
Management (KMB202)
International Human
Resource Management
Dr. Pooja Tiwari
ABES EC, Gzb
AKTU Lucknow
3/28/2020Dr. Pooja Tiwari, ABES EC , AKTU, Lucknow

2. 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
3/28/2020Dr. Pooja Tiwari, ABES EC , AKTU, Lucknow

3. 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.
3/28/2020Dr. Pooja Tiwari, ABES EC , AKTU, Lucknow

4. Why International Human Resource
Management?
 Increasing globalization, firms and employees in them moving all over the world.
 Major problems in international operations because of human resource
management blunders
 Hence need to understand human resource management in a global perspective
 The role of HR in International Operations
 Managing a Multicultural Workforce
 Developing Managerial Talent in a Global Business Environment

5. TYPES OF INTERNATIONAL
ORGANIZATIONS
1. International Corporations
2. Multinational Corporations
3. Global Corporations
4. Transnational Corporations
3/28/2020Dr. Pooja Tiwari, ABES EC , AKTU, Lucknow

6. International Corporations
 Domestic firms that builds on its existing capabilities to penetrate overseas market.
Example : Honda, General Electric, P&G
3/28/2020Dr. Pooja Tiwari, ABES EC , AKTU, Lucknow

7. Multinational Corporations
 MNCs have operating units (subsidiaries) located in foreign countries
 Subsidiaries function as autonomous units
Examples : Shell, Philips, Xerox
3/28/2020Dr. Pooja Tiwari, ABES EC , AKTU, Lucknow

8. Global Corporations
 Maintains control over its worldwide operations (subsidiaries) through a centralized home
office.
 They treat the entire world as a single market
Examples : Matsushita
3/28/2020Dr. Pooja Tiwari, ABES EC , AKTU, Lucknow

9. Transnational Corporations
 Provides autonomy to independent country operations but bring these operations together
into an integrated whole through networked structure
 They combines the local responsiveness of an MNC and the efficiency of a global
corporation
Examples : Ford & Unilever
3/28/2020Dr. Pooja Tiwari, ABES EC , AKTU, Lucknow

10. Objectives of IHRM
 To reduce the risk of international human resource
 To avoid cultural risks
 To avoid regional disparities
 To manage diversifies human capital
3/28/2020Dr. Pooja Tiwari, ABES EC , AKTU, Lucknow
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11. Thank You