International human resource management.2 (1)

INTERNATIONAL HUMAN RESOURCE MANAGEMENT

Presented by..

PREETI RAWAT

POOJA BHARTI

OBJECTIVES

• To understand the meaning of international HRM.

• To discuss the importance of HRM in international business.

• To know the strategic functions of IHRM.

IntroductionIf you are planning for a year, plant a grain. If you

are planning for a decade, plant trees. If you are planning for a century, plant people.

-Chinese proverb

“A good global company” is “a global people company”.

-Jeffrey ImmeltCEO and Chairman, GE

“The single most important issue for us has been, and will continue to be, organization and people.”

Former Chairman, Unilever

Agenda

• Definition of HRM• Definition of IHRM• Importance of HRM in international

business• Strategic functions of IHRM• Factors influencing HRM in international

business• Global HRM as competitive advantage• Conclusion

HUMAN RESOURCE MANAGEMENT

Determine HR needs Hire people Motivate them

Upgrade their skills Retain them

INTERNATIONAL HUMAN RESOURCE MANAGEMENT

• International HRM (IHRM) is the process of:– Procuring, – Allocating, and– Effectively utilizing human resources – In a multinational corporation, while– Balancing the integration and

differentiation of HR activities in foreign locations

Countries involves in IHRM

HOME COUNTRY

HOST COUNTRY

THIRD COUNTRY

FACTORS INFLUENCING IHRM

SOCIAL

LEGAL

ECONOMIC

POLITICAL

TECHNOLOGICAL

Importance of IHRM

Sustain high productivity

Competitive advantage Value creation

Firm’s financial position

Functions of IHRM

RECRUITMENT

SELECTION

MANAGE EXPATRIATES

PERFORMANCE APPRAISAL

TRAINING AND DEVELOPMENT

COMPENSATION

GENDER EQULITY IN INTERNATIONAL BUSINESS

INTERNATIONAL INDUSTRIAL RELATIONS

TRADE UNIONS

RETAIN EMPLOYEES

STRATEGIC FUNCTIONS

• RIGHT-

• STRATEGIES-

• EXPATRIATES

STRATEGIZING HRM

PERSON JOB PLACE TIME SALARY

INTERNATIONALMULTI

DOMESTICGLOBAL TRANSNATIONAL

STRATEGIZING HRM

• Leverage core competency by expanding into foreign markets,

• Eg. McDonalds, Google, Wal Mart.

INTERNATIONAL STRATEGY

• Foreign country operations independently handled

• Eg. Johnson & Johnson

MULTI-DOMESTIC STARTEGY

• Maximize integration

• World as one marketGLOBAL STRATEGY

TRANSNATIONAL STRATEGY

• Integrates creative ideas, financial resources, people, technology.

• Maximize global integration and local response, leverage core competency.

DEVELOPING STAFFING POLICIES

ETHNOCENTRIC

POLYCENTRICGEOCENTRIC