International Human resource management and issues

INTERNATIONAL HUMAN RESOURCE MANAGEMENT AND ISSUES

DEFINITION

It is defined as world-wide management of human resources with the purpose of enabling the multinational enterprise to perform successfully.

OBJECTIVES

1. Understand what constitutes IHRM and how it is different from domestic HRM

2. Understand the basic activities in IHRM and the issues in IHRM.

3. Understand the factors affecting Global HR management

IHRM contains three dimensions

• Three broad human resource activities1. Procurement2. Allocation3. Utilization

The three categories of employees in international firm1. Host country nationals

2. Parent country nationals

3. Third country nationals

IHRM COMPARED WITH DOMESTIC HRM

However the differences between IHRM and DHRM are more striking than their similarities. The main difference stems from the complexity of operating countries, having different employees.

THE COMPLEXITY OF HRM CAN BE ATTRIBUTED TO SIX FACTORS

•More HR functions and activities•Need for broder perspective•More involvement in employees personal lives

•Changes in emphasis as the work force mix of PCNs and HCNs

•Risk exposure•Broader external influences

MORE HR ACTIVITIES

•Human resource planning•Employee hiring•Training and development•Compensation•Performance management•Industrial relations•Risk exposure•External influences

HUMAN RESOURCE PLANNING

1. Difficulty in implanting HR procedures in host countries.

2. Difficulty in tying strategic business planning to HR planning and vice versa.

3. Providing developmental opportunities for international managers.

EMPLOYEE HIRING1. Ascertain cultural-fit with that of the

global organization.2. Ethnocentric, polycentric or

geocentric approaches to staffing.3. Selection of expatriates.4. Coping with expatriate failure.5. Managing repatriation processes.6. Managing female expatriates.

TRAINING AND DEVELOPMENT

1. Emphasis on cultural training2. Language training.3. Training in global etiquette and

the nuances of the virtual workplace culture.

COMPENSATION

1. Devising an appropriate strategy to compensate expatriates.

2. Minimizing discrepancies in pay between parent, host and third country nationals.

PERFORMANCE MANAGEMENT

1. Constraints while operating in host countries need to be considered.

2. Physical distance, time differences and cost of reporting system add to the complexity.

3. Identification of raters to evaluate subsidiary performance.

In IHRM there are many risks that are terrorism, kidnapping and murders.

• There is the risk of expatriate failure.

•The failure of an expatriate can have disastrous results.

•There are also personal setbacks for employees who fail even though they had been viewed as competent managers within the domestic organizations.

RISK EXPOSURE

EXTERNAL INFLUENCES

• Policy actions of national governments, such as expropriation and changes in exchange rated.

•Responses of competitors in the host market, and

•Host country stipulations on staff selection.

FACTORS AFFECTING GLOBAL HR

MANAGEMENT1. Legal and political factors2. Economical factors3. Cultural factors4. Individualism5. Masculinity/femininity6. Uncertainty avoidance

STAFFING GLOBAL ASSIGNMENTS

Staffing global assignments involves selecting, placing, and locating employees on other countries. When staffing global assignments, cost is a major factor to be considered. The cost of establishing a manager or professional in another country can run as high as $1 million for a three year old assignment.

SELECTION FOR GLOBAL ASSIGNMENTS

1. Cultural adjustment2. Organizational requirement3. Personal characteristics4. Communication skills5. Personal/ family factors6. Legal issues in selecting global

employees

INTERNATIONAL COMPENSATION

•Balance sheet approach•Global market approach•Tax concerns•Global benefits

GLOBAL LABOUR MANAGEMENT

RELATIONS• Global labour management relations•Sexual harassment regulations globally•Worker consultation regulations•Global healthy, safety, and security• International Emergency Health services• International security and terrorism•Kidnapping and terrorism concerns

HR POLICIES

WIPRO

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•“people are our greatest asset” is much more than an adage for us.

•“people comes fast” as an emotion experienced by every wiproite.

CULTURE22

INTERNAL PEOPLE MANAGEMENT

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ANNUAL LEAVES Every employee will get an annual leave of 30days and if more than thirty days is taken than leave will be deducted from the next year.

ANNUAL SICK DAYSIn a year 5 days are given as leave for sick days, if more than five days are taken a certain amount will be deducted from the salary.

CURRENT HR POLICIES

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•A Person who join Wipro with less than one year experience works as developer for a couple of project to learn and develop the various developing software program.

•Training is provided as per required.

TRAINING AND DEVLOPMENT

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•Medical assistance program.

•Interest free loan is also provided.•It provides Wipro Employee Stock Option Plan( WESO)allows wipro to make employee share with them and reward the success.

•It provide credit cards for the employee as per the policy.

Benefits Offered

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•Right balance between work and fun.

•Formals and casuals dresses are allowed.

•Feedback are converted to action.

WIPRO AS AN ENJOYABLE EXPERIENCE

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•Employment is based solely on qualification and competencies.

•It ensures that there is no discrimination on religion, caste, race, color, national origin, marital status etc.

Equal employment opportunity policy

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EXTERNAL PEOPLE MANAGEMENT

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Wipro believes that the HR processes and systems and the policies and procedures which support them are an integral part of HR strategies and are vital to the success of any organization. Wipro offers an enduring partnership aimed at providing an enriching experience for all key customers.

•Wipro BPO aim to provide a delightful employee experience by cutting edge know-how HR, communication practice and technology.

•Wipro BPO aims at a client centric delivery model to provide the most suitable solution for each of the client

Wipro BPO Human Resource Services

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CONCLUSION

• In recent years International Business has grown rapidly. The HRM activities differ from Domestic to International. The various issues like culture, language, communication, compensation, Social and political factors have major role for successful IHRM and to achieve organizational Objectives and Goals