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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