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TRANSCRIPT
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Presentation on International HRM
Special thanks toDr. Harish Shukla
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What is IHRM
International HRM is the process of
procuring, allocating and utilizing
human resource in an MNC or a
global firm.
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Why International Human ResourceManagement?
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
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Why International Human Resource
Management?(contd)
The role of HR in International Operations
Managing a Multicultural Workforce Developing Managerial Talent in a Global
Business Environment
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What does IHRM add into the
Traditional Framework of HRM?
Types of employees Within and cross-cultural workforce diversity
Coordination
Communication
Human resource activities Procurement
Allocation
Utilization of human resources
Nation/country categories where firmsexpand and operate Host country
Parent country Third country
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Diversity asanOrganizational and HRChallenge inMNE
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Forces for Change
Global competition: Growth in mergers, acquisitions and alliances:
Organization restructuring:
Advances in technology and telecommunication:
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Impacts on Multinational Management
Need for flexibility:
Local responsiveness:
Knowledge sharing:
Transfer of competence:
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Reasons for Expatriate Failure
1. Inability of spouse to adjust
2. Managers inability to adjust
3. Other family problems
4. Managers personal or emotional maturity
5. Inability to cope with larger overseasresponsibility
6. Lack of technical competence
7. Difficulties with new environment
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Major differences between domestic RM
and I RM
Business activities e.g. taxation, international relocation,
expatriate remuneration, performance appraisals, cross-cultural training and repatriation
Increased complexities e.g. currency fluctuations, foreignHR policies and practices, different labor laws
Increased involvement in employees personal life e.g.personal taxation, voter registration, housing, childrenseducation, health, recreation and spouse employment
Complex employee mix cultural, political, religious,ethical, educational and legal background
Increased risks e.g. emergency exits for serious illness,
personal security, kidnapping and terrorism
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Example from Japanese MNCs
1. Borderless structure and bottom up decision making processesthat encouragecommunication and information flow among all components of the company
and extend the network to its key suppliers, distributors, and other businesspartners.
2. Custodial leadershipthat emphasizes values and vision and is skillfullyunassertive, while energizing and challenging middle managers with
demanding targets.
3. Human resource management, including socialization, training, andpromotion via a hierarchy of ranks, job rotation, and appraisal systems thatpromote hard work, commitment, and competition among peers.
4. Incremental planning and controlthat help a company expand little by little,focusing on new products and the relentless pursuit of operatingimprovements, rather than "grand designs" for competitive advantage.
5. An extended family modelthat encourages and rewards commitment.
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IHRM - a shift in thinkingLaurent (1986)
Explicit recognition by parent org of the
existence of assumptions and values ofhome & host cultures
Explicit recognition by parent org
ethnocentrism is neither good/bad, has
strengths and weaknesses Explicit recognition of subsidiaries
preferenceswhich may be different
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IHRM - a shift in thinkingLaurent (1986)
Willingness to acknowledge culturaldifference discuss and learn
Genuine belief in creative andeffective ways of managing peoplethrough cross-culturaltraining/learning
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Main challenges in IHRM
High failure rates of expatriation and repatriation
Deployment getting the right mix of skills in theorganization regardless of geographical location
Knowledge and innovation dissemination managingcritical knowledge and speed of information flow
Talent identification and development identify capablepeople who are able to function effectively
Barriers to women in IHRM
International ethics
Language e.g. spoken, written, body)
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Main challenges in IHRM
Different labor laws
Different political climate
Different stage(s) of technological advancement
Different values and attitudes e.g. time, achievement,
risk taking Roles of religion e.g. sacred objects, prayer, taboos,
holidays, etc
Educational level attained
Social organizations e.g. social institutions, authority
structures, interest groups, status systems
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Presented by:
Ajita thakur
Amita Joshi