2. • In Strategic International Human Resource
Management (SIHRM), the human resource
function is actively involved in the strategic
activities of the firm.
3. • Strategic HRM Model
Firm
Strategy
HRM
practices
HR capital
pool (Skill,
Abilities)
Resource
based view
of the firm
HR
behaviour
Firm level outcome
(Performance
satisfaction, absenteeism
etc)
Institutional
political force
Cyberne
tic
agency
Resource
dependence
institutional
Behavioural
Approach
4. Strategic IHRM Model Variables
• The resource based perspective
• A behavioral view
• Cybernetics system
• Agency / transaction cost
• The institutional/political force
• Resource dependence and power variable
5. Dimensions of Strategic IHRM
• SIHR initiatives could be driven by parent
company/ headquarters and commonly
implemented globally across all business
units.
• SIHR is that which is localized and deployed at
the business level unit.
6. SIHR initiatives could be driven by parent company/
headquarters and commonly implemented globally
across all business units.
• Creating global vision and committing to a set of values for
the organization whereby ensuring that the desired MNC
culture is retained
• Assisting with establishing the HR framework for a new
subsidiary
• Managing HR challenges during Global M & A
• Supporting business decisions to increasing the size of a
particular business unit
• Constantly realign HR practices to meet the changing external
environment
7. SIHR is that which is localized and deployed at
the business level unit.
• Local hiring norms
• Salary structure, titles, perks and benefits linked to a satisfied
workforce
• Work practices that are locally prevalent
• Constantly realign HR to meet the needs of the changing
external environment
8. Strategic HR activities can be globalized or localized to
perfectly match with MNCs strategies
• Defenders(Low cost producers)
• Prospectors (Product differetiators and
innovators)
• Analyzers (Imitators of successful prospectors
and focused operations)
• Reactors (Companies with dysfunctional
strategies)Decision to globalise is driven by
the market condition
9. Linking IHRM to Business Strategy
• The 4 Stages
Interpretation: HR and other functions are advised to consider
the functional implications after the business strategy is crafted
Inspection: The draft business strategy is considered by
functions such as HR before it is finalized
Insertion: Initial functional inputs are made in the business
planning process also leading to inspection
Integration: Now the HR manager is an integral and respected
member of the senior management team and all management
team members are sensitive to HR aspects of implementation
10. Proficient Strategic HR choices
• Staffing the organization
• Building core competencies and competitive abilities
• Structuring the organization and work effort
11. Common Strategic HR Application For Gaining
Competitive Advantage
• Encouragement of proactive
• Explicit communication goals
• Stimulating critical thinking
• Productivity as an HR based Strategy
• Quality and service are HR based strategies
12. HR Preparedness
• Be techno professional and acquire business knowledge about
the company
• Keep general information on the economy in various countries
• Subscribe to international magazines
• Begin to connect with those outside the organization
• Seek to be involved in strategic decisions
• Acquire international HR certification
