IHRM ASSIGNMENT Q1. What are the similarities and differences between domestic & international HRM….? Ans: IHRM is all about acquiring, allocating & effectively utilizing human resources in multinational organizations. DIFFERENCE BETWEEN DOMESTIC & INTERNATIONAL HRM DOMESTIC HRM INTERNATIONAL HRM Staffs are placed within the national boundaries. Staffs work outside their national boundaries. Less number of Rule and Regulations to be managed.- mostly employment and taxation rules of the home country. Very high number of rules and regulations which are related to taxation, employment rules, language translating services, work permit etc. There is uniform policy in administration Broader Perspective- Management has to be done according HCNS, PCNS and TCNS. No special attention into the personal life. Confined to crèche and cultural interactions. Special attention to personal life of expatriate employees- cultural training, schooling of children, employment opportunity for spouse. Challenges are confined to the situation of a particular country. IHRM management has to be ready to face challenges like underperformance of expatriate employees, diplomatic relationships between host country and parent country, currency exchange rates which are variable and may impact the benefits of TCNS and PCNS. Special Training is not required for Socio Cultural adaptation. Special Training for expatriates so that they might not face unnecessary hassles in the alien socio cultural environment.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
IHRM ASSIGNMENT
Q1. What are the similarities and differences between domestic &
international HRM….?
Ans: IHRM is all about acquiring, allocating & effectively utilizing human
resources in multinational organizations.
DIFFERENCE BETWEEN DOMESTIC & INTERNATIONAL HRM
DOMESTIC HRM INTERNATIONAL HRM
Staffs are placed within the national boundaries. Staffs work outside their national boundaries.
Less number of Rule and Regulations to be
managed.- mostly employment and taxation rules
of the home country.
Very high number of rules and regulations which
are related to taxation, employment rules,
language translating services, work permit etc.
There is uniform policy in administration Broader Perspective- Management has to be done
according HCNS, PCNS and TCNS.
No special attention into the personal life.
Confined to crèche and cultural interactions.
Special attention to personal life of expatriate
employees- cultural training, schooling of
children, employment opportunity for spouse.
Challenges are confined to the situation of a
particular country.
IHRM management has to be ready to face
challenges like underperformance of expatriate
employees, diplomatic relationships between host
country and parent country, currency exchange
rates which are variable and may impact the
benefits of TCNS and PCNS.
Special Training is not required for Socio
Cultural adaptation.
Special Training for expatriates so that they
might not face unnecessary hassles in the alien
socio cultural environment.
SIMILARITIES BETWEEN DOMESTIC & INTERNATIONAL HRM
The basic functions of domestic HRM 7 IHRM are common but the way of
operating it is a bit different. Those functions include:
HUMAN RESOURCE PLANNING
STAFFING
(RECRUITMENT, SELECTION & PLACEMENT)
PERFORMANCE MANAGEMENT
TRAINING & DEVELOPMENT
COMPENSATION & BENEFITS
Q2. Which topics are covered by Re-patriation process?
Ans. Expatriation process also includes repatriation: the activity of bringing the
expatriate back to the home country.
“Expatriation includes repatriation”
The Repatriation Process
RECRUITMENT & SELECTION
PRE-DEPARTURE TRAINING
ON ASSIGNMENT
RE-ENTRY OR RE-
ASSIGNMENT
REPATRIATION
PROCESS
PREPARATION
PHYSICAL
RELOCATION
TRANSITION
READJUSTMENT
1) PREPARATION involves developing plans for the future and gathering
information about the new position. The firm may provide a checklist of items
to be considered before home or a thorough preparation of employee and
family for the transfer to home. There may be some inclusion of repatriation
issues in pre-departure training provided to the expatriate.
2) PHYSICAL RELOCATION refers to removing personal effects, breaking
ties with colleagues and friends and travelling to the next posting, usually the
home country. Most multinationals use removal firms or relocation consultants
to handle the relocation, for both the movement out and the return home of the
employee and family, and this may be formalized in their HR policies.
3) TRANSITION means settling into temporary accommodation where
necessary, making arrangements for housing and schooling and carrying out
other administrative tasks. Some companies hire relocation consultants to
assist in this phase also.
4) READJUSTMENT involves coping with such aspects as company changes,
reverse culture shock and career demands. It is the one that seems to be the
least understood and most poorly handled.
Q3. Explain multinational performance management?
Ans. The most challenging aspects for a firm operating internationally is how to
manage the performance of its various overseas facilities. Performance
management is a process that enables the multinational to evaluate and
continuously improve individual, subsidiary unit and corporate performance,
against clearly defined, set goals and targets.
COMPONENTS OF PERFORMANCE APPRAISAL
MULTINATIONAL PERFORMANCE MANAGEMENT
The multinational has specific expectation for each of its foreign
subsidiaries, in terms of market performance and contribution to total profit
and competitiveness. When evaluating multinational performance following
should be considered…………..
1. Whole Versus Part
A multinational is a single entity that faces a global environment, which means
that it simultaneously confronts differing national environments. Integration
and control imperatives often place the multinational in the position where it
decide that the good of the whole is more important than one subsidiary’s short
term profitability.
2. Non-Comparable Data
Frequently, the data obtained from subsidiaries may be neither interpretable
nor reliable. Physical measures of performance may be easier to interpret.
3. Volatility Of the Global Environment
The turbulence of the global environment requires that long term goals be
flexible in order to respond to potential market contingencies. An inflexible
approach may mean that subsidiaries could be pursuing strategies that no
longer fit the new environment.
4. Separation By Time & Distance
Judgments concerning the congruence between the multinational and local
subsidiary activities are further complicated by the physical distances involved,
time zone differences, the frequency of contact between the corporate head
office staff and subsidiary management and the cost of the reporting system. It
is often necessary to meet managers personally to understand the problem
fully.
5. Variable Levels Of Maturity
Without the supporting infrastructure of the parent, market development in the
foreign subsidiaries is generally slower and more difficult to achieve than at
home, where established brands can support new products and new business
areas can be cross-subsidized by other divisions.
6. Control & Performance Management
Performance management is the part of multinational’s control system.
Through formal control mechanism and communication the feedback and
appraisal aspect, performance management also contributes to shaping
corporate culture both formally and informally.
CONCLUSION
Thus by adopting a performance management approach, multinationals are
drawing on a number of human resource management functions to realize
performance goals set during the performance appraisal process.
3 APPROACHES TO STAFFING
ETHNOCENTRIC
Fills management positions by Home Country nationals
POLYCENTRIC
Uses Host Country Nationals to manage local subsidiaries
GEOCENTRIC
Seeks best people for key jobs
throughout the organization,
regardless of their nationality
REGEOCENTRIC
Reflects the geographic strategy & structure of MNE
Q4. How various staffing approaches help to sustain business operation?
Ans. The IHRM literature uses four terms to describe MNE approaches to managing
and staffing there subsidiaries. These terms are taken from seminal work of
Perlmutter, who claimed that it was possible to identify among international