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8/2/2019 Session2-Hrm vs Ihrm
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HRM Versus International Human Resource
Management
Distinction between HRM & IHRM
Dr. Shekhar
9868729476
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Questions for discussion
What is Human resource management?
Why it is important for all managers?
What are the objectives of HRM? What is the impact of environment forces on
functioning of HR department?
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Recap
Human resource (HR) management refers to the practices and policies
you need to carry out the personnel aspects of your management job,
specifically, acquiring, training, appraising, rewarding, and providing a safe
and fair environment for your companys employees
HRM objectives are four fold
Organizational objectives
Functional objectives
Personal objectives
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Recap
Environment is an important variable in HRM
model
Forces having bearing on HR department are: x erna orces
Internal forces
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Objectives of the session
To understand the evolution of HRM
To know the difference between personnel mgt. &
human resource management
human resource mgt.
To learn about the approaches and models
To know difference between human resourcemgt. & international human resource mgt.
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Evolution of HRM 1920s to 1930s
Development Status Beginning
Outlook pragmatism
ca italists
Emphasis Statutory, welfare
Status Clerical
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1940s to 1960s
Development Status Struggling for
recognition
Outlook Technical, le alistic
Emphasis Introduction of
techniques
Status Administrative
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1970s to 1980s
Development Status Achieving sophistication
Outlook Professional, legalistic,
impersonal
Emphasis Regulatory, conforming,
imposition of standards
on other functions
Status Managerial
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1990s
Development Status Promising
Outlook Philosophicalmp as s uman va ues
productivity through
people
Status Executives
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Personnel Versus HRM
HRM is a broad concept. Personnel and
human resource development are part of
HRM
orientation in comparison to HRM
PM viewed labour as a tool where as HRM
views people as an asset
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International Human Resource Management
International Human resource management is
the management of the human resource of an
organization in the context of international
Complexity of managing people increases as
company spreads its wings and becomes
global
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International Human Resource Management.. Contd
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Three Approaches to IHRM
Cross-cultural management
Examine human behavior within organizations from aninternational perspective
Comparative HRM and Industrial Relations
Seeks to describe, compare and analyze HRM systems and
HRM in multinational firms
Explore how HRM is practiced in multinationals
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Interrelationships between Approaches
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What does IHRM add into the Traditional
Framework of HRM?
Types of employeesWithin and cross-cultural workforce diversity
Coordination
Communication
Human resource activitiesProcurement
Allocation
Utilization of human resources
Nation/country categories where firms expandand operateHost country
Parent country
Third country
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A Model of IHRMFigure
1-2
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What is an expatriate?
An employee who is working and
temporarily residing in a foreign country
Some firms prefer to use the termn erna ona ass gnees
Expatriates are PCNs from the parent country
operations, TCNs transferred to either HQ or
another subsidiary, and HCNs transferred intothe parent country
Global flow of human resources
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International Assignments Create
Expatriates:
Figure
1-3
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Domestic HRM is done at national level and IHRM is done atinternational level.
Domestic HRM is concerned with managingemployees belonging to one nation and IHRM is concerned withmanaging employees belonging to many nations (Homecountry, host country and third country employees)
Differences between Domestic HRM and IHRM
Domestic HRM is concerned with managing limited number ofHRM activities at national level and IHRM has concerned withmanaging additional activities such as expatriate management.
Domestic HRM is less complicated due to less influence fromthe external environment. IHRM is very complicated as it isaffected heavily by external factors such as cultural distance andinstitutional factors.
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Differences between Domestic HRM and IHRM.. Contd
More HR activities
The need for a broader perspective
More involvement in employees personalves
Changes in emphasis as the workforce mixof expatriates and locals varies
Risk exposure
Broader external influences
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Variables that Moderate Differences
between Domestic HR and IHRMFigure
1-4
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Summary
Described evolution of HRM
Discussed the difference between HRM andPersonnel management
Talked about the concept of international human
Described the difference between Internationalhuman resource management and HRM
Shown advantages and disadvantages of havingHCNs, PCNs and TCNs
Types of international staffing policies
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THANKS