When organizations operate globally, their employees are very likely to be citizens of more than one country. Employees may come from the employer’s parent country, a host country, or a third country
Current issues in hrm module vi
CURRENT ISSUES IN HRM
Increased Concern For HRM
Sound Industrial Relations.
Dual career couples.
Work from home facility.
International HRM-Managing intercountry differences
Process of employing and developing people in international organisations which
Applying HRM policy familiar in domestic markets to international workforce, for
– employee development (ED)
– recruitment and selection
– reward and remuneration
– policies and practices.
Means working across national borders.
Includes any type of worker, for example:
– own country national working as expatriate
– own country national working overseas for short time for specific project/s
– individual of one nationality working for organisation based in another country but
who is actually working in yet another country.
IHRM primarily exists in multinational corporations with HRM having a wider contextual
Employees in an International Workforce
• Parent-country national – employee who was born
and works in the country in which an organization’s
headquarters is located.
• Host-country national – employee who is a citizen of
the country (other than parent country) in which an
organization operates a facility.
• Third-country national – employee who is a citizen
of a country that is neither the parent country nor
the host country of the employer.
International HR Strategies
– Centralized HR
– Managed by Parent Country Nationals (PCNs)
– Pay based on local market for employees; home country
– Training aimed at KSAs to perform the job
Managed by Home Country Nationals (HCNs)
Pay based on local market
Training given added importance
International HR Strategies
– Global workforce deployed throughout the world
– Positions filled by most qualified regardless of
nationality: HCNs, PCNs, or TCNs,
– Compensation based on value-added
– Training and development emphasized
Why Do International Managers Fail?
Does it change the essence of HR?
Cultural arrogance (Parochialism)
The Key success factor?
– Cultural adaptability
What is SHRM?
• “All those activities affecting the behaviour of individuals in their
efforts to formulate and implement the strategic needs of the
business”: (Schuler, 1992).
• “Formulating and executing human resources policies and practices
that produce the employee competencies and behaviors the company
needs to achieve its strategic aims” (Dessler, 2011)
• FIVE Ps---Philosophy, policies, programmes,practices and
• Strategic HRM is an outcome as organizational systems designed
to achieve sustainable competitive advantage through people.
SHRM is a process of linking HR practices to Business strategy.
• Talent management implies that companies are strategic and
deliberate in how they source, attract, select, train, develop,
retain, promote, and move employees through the