international human resource management

G.L. Bajaj Institute of Management and Research

Human Resource Management

Presented by:Shailendra SinghShadab AlamSubhadeep MajumdarShyam Sunder SahSmita SharmaShiv Shanker

Human Resource Management

It refers to the activities an organization carries out to use its human resources effectively.

How different is Global HRM?

i. Different labour markets

ii. Cultural barriers

iii. Different management styles

iv. Varied compensation practices

v. Labour laws.

International comparison of Indian labour laws

Practice required by law India China United State

Minimum Wage (US$/month) 45 182.5 1242.6

Standard work day 8 hours 8 hours 8 hours

Minimum rest while at work

30 minutes per 5 hour None None

Maximum overtime limit 200 hours per year 432 hours per year None

Premium pay for overtime 100% 50% 50%

What is the role of global manager?

The global manager has to play multidimensional role by combining his technical skill, people skill and soft skill. the manager must have combination of hard as well as soft skills. He must be able to organize, analyze and motivate people at international level.

1. IN THE CAPACITY OF COUNTRY MANAGER. The global manager has to deal with clients, legal bodies, immigration authorities on behalf of his office. 2. IN THE CAPACITY OF FUNCTIONAL MANAGER. The global manager has to select right technique, right resources, software projects to compete at international level. 3. IN THE CAPACITY OF BUSINESS LEADER. The global manager has to make changes in the organization keeping in mind the trend of World and requirement of outsourcing.

GLOBAL MANAGER HAS FOLLOWING ROLES :

Staffing Policy

Staffing policy is concerned with the selection of employees for particular jobs.

i. Selecting individuals who have the skill to do a particular job.

ii. Tool for developing and promoting the desired corporate culture (norms & value system) of the firm.

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Types of staffing policies

There are three types of staffing policies in IB:

Ethnocentric approach

Polycentric approach Geocentric approach

Ethnocentric approach

• Ethnocentric is a staffing policy that is used in companies that has primarily international strategic orientation. This policy is generally adopted by headquarters by sending employees from the home or parent countries to the host country. This approach is used best in some situations such as, a team is sent from the home country to help setting up a new plant as well as train subsidiary personnel to use new system

Advantages of Ethnocentric

Effective communicationEffective coordinationMay gain experiences worldwide in

order to become higher level in management of their headquarters

Direct control of foreign operation

Disadvantages of Ethnocentric

Adaption of expatriates uncertainHigh costInability to utilize fully the talents of

non-home country nationalsGovernment restrictionLimits the promotion opportunities of

Host Company Nationals,leading to reduce productivity

Polycentric Approach

• Polycentric is the policy involved hiring and promoting employees who are citizens of the host countries that the subsidiary is operated. This policy is best used when companies want to keep hiring cost low. Moreover, employees who are hired at subsidiary level would not have any problem adapting to the culture. Communication is smooth within the operation. 

Advantages of the Polycentric Approach

• If managers of subsidiaries are host-country nationals, they will understand the culture and political situation.

• They will not face a language barrier when they communicate with their employees

• Local appointments are more cost-effective for a global organization than paying the expenses associated with expatriate contracts, which may be required if parent-country nationals are required to live abroad in order to manage subsidiaries. Plus, the availability of management positions within the subsidiary provides career advancement opportunities for lower-level employees.

Disadvantages of the Polycentric Approach

• Managers of subsidiaries may become frustrated by the lack of career advancement opportunities offered by a polycentric approach to staffing, as they will be unable to progress in to head office positions.

• Lack of staff transfers between subsidiaries and head office can lead to isolation. Also, a gap can develop between head office and subsidiaries due to cultural differences, language barriers and national loyalties.

• The result can be a loose federation of business units rather than a company with consistent competencies and values

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Geocentric ApproachThe company that applies the global

integrated business strategy manages and staffs employees on a global basis.

EX:- Electrolux (the vacuum cleaner company) has for many years attempted to recruit and develop a group of international managers from diverse countries. These people constitute a mobile base of managers who are used in a variety of facilities as the need arises. 

Geocentric Approach

Advantages:• Ability of the firm

to develop an international executive team

• Overcomes the federation drawback of the polycentric approach

• Support cooperation and resource sharing across units

Disadvantage:• Host government may

use immigration controls in order to increase HCNs employment

• Expensive to implement due to increased training and relocation costs

• Reduced independence of subsidiary management

CONCLUSIONS 

International human resource management focuses on the management of human resources on a global basis. An organization’s strategy on globalization strongly affects the approach it takes to international human resource management. The approach to international human resource management in turn influences the implementation of the major international human resource management functions of recruitment and selection, development and training, performance evaluation, remuneration and benefits, and labor relations. Companies taking an ethnocentric approach attempt to impose their home country methods on their subsidiaries. The polycentric approach follows local practices. Finally, a geocentric or global approach develops practices for world-wide use.