ihrm
DESCRIPTION
TRANSCRIPT
INTERNATIONALHUMAN RESOURCE
MANAGEMENT
Submitted By- Manisha Gupta MBA-4A 02614803912
What is IHRM?• IHRM can be defined as set of activities aimed
managing organizational human resources at international level to achieve organizational objectives and achieve competitive advantage over competitors at national and international level.
• IHRM includes typical HRM functions such as recruitment, selection, training and development, performance appraisal and dismissal done at international level and additional activities such as global skills management, expatriate management and so on.
OBJECTIVES OF IHRM
• Create a local appeal without compromising upon the global identity.
• Generating awareness of cross cultural sensitivities among managers globally and hiring of staff across geographic boundaries.
• Training upon cultures and sensitivities of the host country.
NEED FOR IHRM
• Managing expatriates• Globalization has forced HRM to have
international orientation• Effectively utilise services of people at both
the corporate office and at the foreign plants
FUNCTIONS OF IHRMRECRUITMENT
SELECTION
EXPATRIATES
PERFORMANCE APPRAISAL
TRAINING AND DEVELOPMENT
COMPENSATION
WOMEN IN INTERNATIONAL BUSINESS
DUAL CAREER GROUPS
INTERNATIONAL INDUSTRIAL RELATIONS
TRADE UNIOUNS
PARTICIPATIVE MANAGEMENT
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More HR activities
Need for a broader perspective
More involvement in employee personal lives
Changes in emphasis as the workforce mix of expatriates and locals vary
Risk exposure
More external influences
Characteristics of IHRM
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More Human Resource Activities• Difficulty in implementing HR in host
countries• Developmental opportunities for
international managers.
Human Resource Planning
• Ability to mix with organisation’s culture• Ethnocentric, polycentric or geocentric
staffing approach• Selection of expatriates• Managing repatriation process
Employee Hiring
• Emphasis on cultural training• Language training• Training in manners & mannerisms
Training & Developme
nt
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• Devising an appropriate strategy to compensate expatriates
• Minimising difference in pay between parent, host & third country nationals
• Issues relating to the re-entry of expatriates into the home country
Compensation
• Constraints while operating in host countries need to be considered.
• Physical distance, time differences & cost of reporting system add to the complexity.
Performance Managemen
t
• Handling industrial relations problems in a subsidiary.
• Attitude of parent company towards unions in a subsidiary
Industrial Relations
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Pay issues
• Different countries, different currencies• Gender based pay in Korea, Japan, Indonesia
Health insurance for employees & their families
Overtime working – Korean & Japanese firms
Promotions based on seniority or merit
Need for Broader Perspective
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•More involvement for both parent-country & third-country nationals•Housing arrangements•Health care•Remuneration packages•Assist children left behind in boarding schools
More Involvement
in Employee’s Personal Lives
•Need for parent-country & third-country nationals decrease as more trained locals become available.•Resources reallocated to selection, training & management development
Changes in emphasis as the workforce mix of expatriates and locals vary
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•Physical safety of the employees.•Failure of expatriates to perform well financial losses to the firm
Risk Exposur
e
•Dealing with ministers, political figures, economic & social interest groups•Hiring procedures dictated by host country.•Catch up with local ways of doing business.
External Influenc
e
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Reasons for Growing Interest in IHRM
Globalisation of Business
Effective HRM determinant of
success in international business
Movement to network organisations
from traditional hierarchical structures
Significant role in implementation &
control of strategies
STAFFING POLICIES IN IHRM• Ethnocentric: Here the Key management positions are
filled by the parent country individuals. • Polycentric: In polycentric staffing policy the host
country nationals manage subsidiaries whereas the headquarter positions are held by the parent company nationals.
• Geocentric: In this staffing policy the best and the most competent individuals hold key positions irrespective of the nationalities.
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Recruitment & SelectionEthnocentric
Approach
• Key management positions held by parent-country nationals
• Appropriate during early phases.
Polycentric Approach
• Host-country nationals hired to manage subsidiaries
• Parent-country nationals occupy key positions at corporate HQ.
Geocentric Approach
• Seeks best people for key jobs, irrespective of nationality
• Underlying principle of a global corporation
Regiocentric Approach
• Variation of staffing policy to suit particular geographic areas
• Provides a 'stepping stone' for a firm wishing to move from an ethnocentric or polycentric approach to a geocentric approach
categories of employees can be hired – parent country nationals (PCNs), host country nationals (HCNs) & third country nationals (TCNs)
IHRM MODEL
How It Is Different from Domestic HRM
• Domestic HRM is done at national level and IHRM is done at international level.
• Domestic HRM is concerned with managing employees belonging to one nation and IHRM is concerned with managing employees belonging to many nations (Home country, host country and third country employees)
• Domestic HRM is concerned with managing limited number of HRM activities at national level and IHRM has concerned with managing additional activities such as expatriate management.
• Domestic HRM is less complicated due to less influence from the external environment. IHRM is very complicated as it is affected heavily by external factors such as cultural distance and institutional factors.
ACTIVITIES INVOLVED IN IHRM
ISSUES IN IHRM
• Managing International Assignments• Employee and Family Adjustments• Selecting the right person for foreign
assignments• Culture and Gauge• Language and Communication
EFFECTIVE IHRM IMPLEMENTATION
The following checklist identifies some of the critical decisions/actions required in the formulation and implementation of an effective IHR strategy.
1. As certain the current and intended nature of international operations in the organisation (multi-domestic, international, global or transnational?)
2. Determine the extent to which HR policies and practices should be standardised or localised in accordance with overall organisational strategy.
3. Assess the extent to which local cultural, social, political, economic and legal factors will impinge on any attempts to apply standard HR policies if integration is a key factor in organisational strategy.
4. Ensure a computerised database of global human resources is used if integration is desired.
5. Work with the senior management team to identify the competencies required to achieve global organisational objectives.
6. Work with national HR and line managers to formulate IHR policies and practices in the key areas of sourcing, development and reward which will embed a transnational mindset in the organisation.
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Expatriate Assignment Life CycleDetermining the
need for an expatriate
Selection Process
Pre-assignment training
DeparturePost-arrival
Orientation & Training
Crisis & Adjustment
Crisis & Failure
Repatriation & Adjustment
Reassignment Abroad
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Expatriate Failure
Premature return of expatriates to their home country
Reasons
• Inability to adjust to host country culture leads to culture shock• Personal & emotional problems• Difficulties with the environment• Inability to cope with larger international responsibilities• Other family reasons
THANK YOU