INTERNATIONAL HRM
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International HRM It is a process of employing and
developing people in international organization It means working
across national
boundaries to formulate and implement strategic, polices and
practices which can be applied to an international workplace2
Interrelationships between Approaches to the Field
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Three Approaches to IHRM Cross-cultural management
Examine human behavior within organizations from an
international perspective Seeks to describe, compare and analyze
HRM systems and IR in different countries
Comparative HRM and Industrial Relations
HRM in multinational firms Explore how HRM is practiced in
multinationals4
The General Field of HR Major Functions and Activities Human
resource planning Staffing
Recruitment Selection Placement
Performance management Training and development Compensation
(remuneration) and benefits Industrial relations5
What does IHRM add into the Traditional Framework of HRM? Types
of employees
Within and cross-cultural workforce diversity Coordination
Communication Procurement Allocation Utilization of human
resources
Human resource activities
Nation/country categories where firms expand and
operate
Host country Parent country Third country6
IHRM
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Expatriate An employee who is working and temporarily
residing in a foreign country
Some firms prefer to use the term international assignees
Expatriates are PCNs from the parent country operations, TCNs
transferred to either HQ or another subsidiary, and HCNs
transferred into the parent country
Global flow of HR
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International Assignments Create Expatriates:
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Differences between Domestic HRM and IHRM More HR activities The
need for a broader perspective More involvement in employees
personal
lives Changes in emphasis as the workforce mix of expatriates
and locals varies Risk exposure Broader external influences10
More HR Activities International taxation International
relocation and orientation per-departure
training providing immigration and travel details providing
housing, shopping, medical care and schooling information Detail of
salary overseas Determination of various overseas allowances
More HR Activities How work permit can be obtained Compliance
criteria for documentation How they deal with the Govt. official
as
payment or payment in kind as dinner Language translation
services for internal and
external correspondence is an additional international activity
for HR department
The Need for Border Perspective HR manager working in a
International environment
domestic environment face the problem of generally administer
designing and programs for single administering program for
national group of more than one national employees who are Base
salary, Allowance, covered by uniform benefits ,pension plan
compensation policy and and going rate approach taxed by one
national Govt.
More Involvement in Employees Personal Life Domestic setting the
In IHRM HR department
HR departments involvement within an employee's family is
limited Firm provide employee insurance program or if a domestic
transfer is involved
much more involved in order to provide the level of support
required housing arrangement, healthcare and all aspects of the
compensation package Marriage certificate
Change in emphasis as workforce mix of PCNs and HCNS Expatriate
taxation, relocation and orientation
are transferred to activities such as local staff selection,
training and management development
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Risk Exposure Expatriate failure : the premature return of
an
expatriate from international assignment Political climate
Terrorism
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Variables that Moderate Differences between Domestic HR and
IHRM
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Factors that Influence the Global Work Environment
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Forces for Change Global competition Growth in mergers,
acquisitions and
alliances Organization restructuring Advances in technology and
telecommunication
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Impacts on Multinational Management Need for flexibility (think
global and act local) Local responsiveness Knowledge sharing
Transfer of competence
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Managerial Responses Developing a global mindset More weighting
on informal control
mechanisms Fostering horizontal communication Using cross-border
and virtual teams Using international assignments
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ConclusionIHRM means working across national boundaries to
formulate and implement strategic, polices and practices which can
be applied to an international workplace IHRM focus on the current
global work environment, looking at forces for change, requirement
for MNE and managerial responses that have implications for the way
in which people are being managed in multinationals22
Conclusion Differences between domestic HRM and IHRM
looking at six factors: More HR activities Need for a broader
perspective More involvement in employees personal lives Changes in
emphasis as the workforce mix of expatriates and locals varies,
Risk exposure and More external influences
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