Introduction to International Human Resource Management

Introduction to International Human Resource Management

Presented by: Ashish Pandey(GNITCM, Roll No. 09)

Definition of Human Resource Management

Human Resource Management (HRM) involves all management decisions and practices that directly affect the people who work for the organization.

“Human Resources” the people who work for the organization.

Human Resource Management

Human Resource Management (HRM) refers to those activities undertaken by an organization to utilize its human resources effectively.

Major Functions and Activities• Human resource planning• Staffing

Recruitment Selection Placement

• Performance appraisal• Training and development• Compensation and benefits• Industrial relations

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

Why International Human Resource Management?

The role of HR in International

Operations

Managing a Multicultural Workforce

Developing Managerial Talent in a

Global Business Environment

Three Approaches to IHRM

Cross-cultural management Examine human behavior within organizations from

an international perspective

Comparative HRM and Industrial Relations Seeks to describe, compare and analyze HRM

systems and IR in different countries

HRM in multinational firms Explore how HRM is practiced in multinationals

Basic Terms in IHRM

National or Country Categories

• Host Country where subsidiary is located

• Home Country where the firm headquartered

• ‘Other’ Country

Employees of an International Firm

• Host Country Nationals (HCN)

• Parent Country Nationals (PCN)

• Third Country Nationals (TCN)

• Expatriates

A Model of IHRM

Differences between

HRM & IHRM

DOMESTIC HRM INTERNATIONAL HRM

Employees are within one national boundary.

Employees are from different countries.

Employees may be grouped on region or zone-wise for convenience of regional language and food habits.

Employees are categorized as HCN, PCN and TCN for convenience of language, socio-cultural and food habits.

Routine work pattern. Needs constant attention on adjustment matters in living conditions and work ethics.

Not much variation or differences in compensation.

The compensation package need to be re-designed based on taxation matters and parity of emoluments with equivalents in the organization.

Communication is normal. Language translator may be required for better communication.

No administrative support required. Administrative support required for visa, driving license, currency transfer, banking services, etc.

Organizations do not normally care about children schooling, arranging medical facilities.

HR department needs to bother about housing, entertainment, communication of foreign nationals.

Locals can take care of themselves in unusual and difficult situations.

HR department to be extra careful of foreign nationals in case of terrorism, natural calamities, epidemics and ethnic agitations

Public relations work taken care by employees themselves.

Administrative support felt necessary to get school admissions for employee’s children. Similarly the medical services to be provided.

VARIABLES THAT MODERATEDIFFERENCES BETWEEN

DOMESTIC HRAND

INTERNATIONAL HRM

Enduring Context of IHRM

Conclusion As in present scenario the

globalization is on top of its level and world has became a global village. So managing such a diverse workforce is a big deal for the organizations that’s why the MNCs have focused on the IHRM and studying this concept is very important for the Management Students.

Feel free for any query

& Thank You!