International Human Resource Management.ppt

7/25/2019 International Human Resource Management.ppt

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International Human

Resource Management

A presentation by

Mr. Indranil Mutsuddi



What is IHRM?

IHRM is the process of employing and developing people

in the international organizations.

It involves managing human resources woring acrossnational boundaries

It involves formulating ! implementing activities

concerned with the Resourcing" #evelopment " $areermanagement and Remuneration strategies" policies and

practices which can be applied to an international

worforce.



%ome Important &erms used in IHRM

'$(s or 'arent $ountry (ationals

H$(s or Host $ountry (ationals

&$(s or &hird $ountry (ationals)*patriates

Repatriates





Figure : International assignments create expatriates



Figure: Expatriation includes repatriation



Figure The repatriation process



#ifferences between domestic and

international HRM

More HR activities&he need for a broader perspective

More involvement in employees, personallives$hanges in emphasis as the worforce

mi* of e*patriates and locals varies

Ris e*posureroader e*ternal influences



More HR activities

International ta*ation

International relocation and orientation

Administrative services for e*patriatesHost/government relations

0anguage translation service



&he need for a broader perspective

1ace problems of designing and

administering programs for more than one

national group of employees" need to tae

a broader view of issues.



Figure 1: Inter-relationships between approaches in the field



Figure : A model of IHR



$hallenges of IHRM

Managing the comple*ity involving 2Worforce Mi*3

Managing #iversity

Managing people globally ! maintaining effective

communications at the organizational level. Resourcing International 4perations with people with the

right caliber ! talent.

'reparing e*ecutives for foreign assignments

%upport ! training for e*patriates. More involvement with the personal lives ! the well

being of the employees.



International HR activities

Human resource planning at International 0evel

International Resourcing activity5

Recruitment %election 'lacement

International &raining and development



International HR activities

International

$ompensation

6remuneration7

and benefits

Industrial

relations at the

International

level

Figure : !tages of

internationali"ation



Figure : #in$ing operation mode and HR



Figure : %ariables that moderate differences between domestic and

international HR



Figure : Factors influencing the global wor$ en&ironment



Impacts on multinational

management in HR activities

(eed for fle*ibility

0ocal responsiveness

8nowledge sharing&ransfer of competence



Managerial responses

#eveloping a global +mindset,

More weighting on informal control

mechanisms

1ostering horizontal communication

9sing cross/border and virtual teams

9sing international assignments



&ypes of IHR %taffing 'olicy

Ethnocentric

Key management

positions filled byparent-countrynationals

Polycentric

Host-countrynationals manage

subsidiaries,parent companynationals hold key

Headquarterpositions

Geocentric

Seek best

people, regardlessof nationality



)thnocentric Approach

%trategic decisions are made at

head:uarters

0imited subsidiary autonomy

8ey positions in domestic and foreign

operations are held by head:uarters,

personnel; '$(s manage subsidiaries



'olycentric Approach

)ach subsidiary is a distinct national entity

with some decision/maing autonomy

H$(s manage subsidiaries who are

seldom promoted to H- positions

'$(s rarely transferred to subsidiary

positions



<eocentric Approach

A global approach / worldwide integration

=iew that each part of the organization

maes a uni:ue contribution

(ationality ignored in favour of ability5 est person for the >ob

$olour of passport does not matter when it

comes to rewards" promotion and development



Regiocentric Approach

Reflects a regional strategy and structure

Regional autonomy in decision maing

%taff move within the designated region"rather than globally %taff transfers between regions are rare



Figure: 'eterminants of IHR approaches and acti&ities





Figure: The phases of cultural ad(ustment



Retaining local staff

&he parado* +e*pense of cheap labour,

'oaching of ey subsidiary staff

Access to silled labour as important asunit cost 6eg. attraction of India for the I&

industry7

&he amount and :uality of training is animportant consideration



#eveloping staff

Investing in human capital

'roviding training and career development

can assist in retaining good local staff

A fair environment and good management

practices play an important role in

countries such as $hina



Retrenching staff

&he reverse of the employment +coin,

%trategic decisions regarding foreign

operations have HR implications" including

retrenchment

(ot confined to subsidiary operations but

may affect home base / eg. transferring

call centres from 98 and 9% to India



HR implications of language

standardization

Adopting a common corporate language

puts pressure on employees to become

competent in the corporate language

Affects 'romotion

Ability to attend corporate programs and

meetings Availability for international assignments



HR,s role

#rawing up and reviewing codes of conduct$onducting a cost/benefit analysis to >ustify an

e*patriate as a monitor $hampioning local operators as monitorseing a member of the team who conducts

periodic +checing, visits4verseeing e*ternal monitors and auditors where

used$hecing rewards and performance systems tae

compliance into consideration



Figure: A model of strategic HR in multinational enterprises

International Human Resource Management.ppt

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