INTERNATIONAL HUMAN RESOURCE MANAGEMENT

An introduction

An Introduction….• Societies and economies around the world are becoming more

integrated. This integration has been the result of reduced costs of

transport, lower trade barriers, faster communication of ideas,

rising capital flows and intensifying pressure for migration.

• A few years ago, going global was considered to be a big

achievement, today it is part of a company’s survival kit, ever so

essential to de risk the organisation from a single country shock.

Contd…..

• Globalization in turn has revolutionized the way human

resource policies have evolved and have been implemented.

• Policies relating to employees hiring, training, training

compensating or maintaining are formulated keeping global

needs in mind.

• The international human resource manager needs to have a

global perspective of business so that he or she will; be effective

in formulating and implementing HR policies and practices.

• IHRM refers to the HR policies and practices applied by an international firm across all its subsidiaries located in different countries.

• IHRM is the process of procuring, allocating And effectively utilizing human resources in a multinational ORGANISATIONS.

Defining IHRM

THREE MAIN DIMENSIONS OF IHRM

1. Three broad human resource activities i.e. procurement, allocation and utilization .

2. Three national or country categories involved in IHRM activities:a) Host country: where subsidiary may be locatedb) Home country: where the head office is locatedc) ‘Other’: countries that may be suppliers of labour, finance and

other resources.3. Three categories of employment of an international firm:a) Host country nationals (HCN)b) Parent country nationals (PCN)c) Third country nationals (TCN)

Few examples………

• US multinational employs Australian citizens in its

Australian operations (HCN), often sends US citizens

to Asia Pacific countries (PCN) and may send some

of its Singaporean employees on an assignment to its

Japanese operations (TCN)

Growing interest in IHRM

• Globalisation of businesses has added to the number of MNC’s resulting in greater mobilization of resources.

• HRM has become a major determinant of success and failure in international business.

• Underperformance or failure in overseas assignments is costly both in human and financial costs.

• HR plays a significant role in the implementation and control of strategies in an internatiuonal business.

Significant IHRM activities and issues

• HRP

• Recruitment and selection

• Performance management

• Training and development

• Knowledge transfer

• Leadership

• Team building

• Salary and benefits

• Global labour laws standards and ethics

• Trade unions and negotiations

• Women in HRM

• Strategic issues

• Industrial relations

• Cultural contexts

• Organizational structural issues

• Managing diverse HR

External Influences

Risk Exposure

Change in emphasis

Involvement in Employee lives

Broader Perspective

More HR activities

IHRM

WHO IS AN EXPATRIATE??

• An expatriate is an employee who is working and temporarily residing in a foreign country

Expatriate Failure

• Means premature return of an expatriate manager before the

completion of his/her international assignment due to person’s

failure to attain to the expected performance levels and due to

person’s continuing inability to adjust to the new work and

cultural environment

• Parent country

HQ operation

• Subsidiary

operations

Country A

• Subsidiary

operations

country B

• A simple puzzle for you all…..