Welcome to the Presentation

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IUBAT- FRIENDS CAFE

NAME IDMD. Saidur Rahman Said 12102053

Pial Mahmud Rupu 12102051

Abu Bakar Siddique Hasan 12102019

Asma Hossain 12102015

Aleya Ferdousi 12102005

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OUR TOPIC

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Introduction

Before we can begin to explore International Human Resource Management (IHRM), we have to begin with HRM.

The purpose of human resource management (HRM) is to enable appropriate deployment of human resource so that the quality culture can maintain and satisfy the customers not only in national level but to in global level.

Definition

In one word we can say, IHRM the managing and requiting people in an organization internationally.

In details, IHRM is the process of managing people across international boundaries by Multinational Corporation. It involves the worldwide management of people not just the management of expatriates

The IHRM issue and problems arising from the internationalization of business, and the IHRM strategies, policies and practices which firms pursue in response to the internationalization of business.

Dimension Model of IHRM

HR activities• -procurement, • -allocation and • -utilization

Types of Countries• -Home Country• -Host Country• -Other Countries

Types of employee

• Parent Country Nationals(PCNs)• Host Country Nationals(HCNs)• Third Country Nationals(TCNs)

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Expatriate vs Immigrant

The word expatriate comes from the Latin terms ex ("out of") and patria ("country, fatherland").

The term is often used in the context of professionals or skilled workers sent abroad by their companies.

Skilled professionals working in another country are described as expatriates, whereas a manual laborer who has moved to another country to earn money might be labeled an 'immigrant' or 'migrant worker'.

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Major Issues in International Human Resource Management

There are three main Issues in IHRM. These are:

1. The management and development of : Selection of expatriatesSince most expatriates work under minimal supervision in a distant

location, mistakes in selection are likely to go unnoticed until it is too late. To choose the best employee for the job, management should:

emphasize cultural sensitivity as a selection criterion establish a selection board of expatriates required previous international experience screen candidates’ spouses and families

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Expatriate training  Expatriates are more successful when their organizations train them to prepare

for their life and work abroad. Lack of training is a major cause of expatriate failure.

 The most important aspect of expatriate training is cross-cultural training (CCT). Such training prepares an expatriate to live and work in a different culture.

Expatriate failurecareer blockage, culture shock, lack of cross-cultural training, an overemphasis on

technical qualifications, a tendency to use international assignments as a way to get rid of problem employees, and family problems.

2. The internationalization of management throughout the organization (host country, parent country and other third countries).

3. The need to internationalize the whole organization by creating a new corporate culture reflecting the need for greater international experiences across the whole organization.

Types of Staffing Policy

1. The Ethnocentric Approach

• An ethnocentric approach to staffing policy is one in which key management positions in an international business are filled by parent-country nationals.

• Headquarters from the home country makes key decisions, employees from the home country hold important jobs, and the subsidiaries follow the home country resource management practice.

• This is good strategy at early stage of new start up/operations in host country

Ethnocentric staffing policy

• An ethnocentric staffing policy is attractive when

– Lack of qualified individuals in the host country .– Best way to maintain a unified corporate culture– Transfer knowledge of core competencies to the foreign

operation– Familiarity with headquarters goals and objectives– More organizational control and coordination– Competent managers are giving expatriate opportunity

• This policy is falling out of favor because– Difficulty in adjustment– It can lead to cultural myopia – Higher cost

2. The Polycentric Approach

• A polycentric staffing policy is one in which host country nationals are recruited to manage subsidiaries in their own country, while parent country nationals occupy the key positions at corporate headquarters.

• Each subsidiary manages on a local basis.

• Some countries have made regulation or exert pressure to hire host country nationals for top position in subsidiary

Types of Staffing Policy

The Polycentric Approach

• The advantages of the polycentric policy are that– the firm is less likely to suffer from cultural myopia– it may be less expensive to implement

• The disadvantages of the polycentric policy are that – host country nationals have few opportunities to gain

foreign experience and so cannot progress beyond senior positions in their own subsidiaries

– Isolate headquarters from foreign subsidiaries

3. The Geocentric Approach• A geocentric staffing policy is one in which the

best people are sought for key jobs throughout the organization, regardless of their nationality.

• The geocentric firm combines global corporate strategy

• Interdependence between centre and subsidiaries.

Types of Staffing Policy

Geocentric approach

• The advantages of a geocentric approach to staffing are that it– enables the firm to make the best use of its human

resources– builds a cadre of international executives who feel at

home working in a number of different cultures

• The disadvantages of geocentric approach include– difficulties with immigration laws – costs associated with implementing the strategy

Pial Mahmud RupuID: 12102051

How expatriate are created?

Availability of useful human resources

Economic Justification / cost effectiveness

Employee motivation and performance

Global exposure for need of the organization

Development of Cross cultural Management

Purpose of IHRM

Efficient

Locally Responsive

Flexible and adaptive

Capable to transforming learning across their globally

dispersed units

Significance of (IHRM) in International

Business

CHALLENGE

COMMITMENT

COST EFFECIVENESS

COMPETENCE

CONGRUENCE

Abu Bakar Siddik Hasan

ID: 12102019

Role of International Human Resource Management

IHRM department deals with heterogeneous

functions and has to give additional focus on

various aspects, such as:

Deals with different Groups of employees

Manage external influences

Provide guidance

Difference Between IHRM and Domestic HRM

IHRM operates beyond national borders while domestic HRMs

operate within the borders.

In an IHRM, there’s constant change for a broader set of

perspectives.

There are more risks involved in IHRM than in the domestic HRM.

More Hr Activities

Asma Hossain

ID: 12102015

Limitations in International Human Resource Management

(IHRM)

Management is basically the principle based on local

cultures, traditions, practices and needs of the

organizational growth.

HRM methods and systems developed by one society

HRM and industrial relations practices differ across

countries as these have their historic origin in

countries.

Personnel management and industrial relations

Conclusion

In above decision, we can say that international human resource management play an important role in Multinational Corporation (MNCs) . International human resource management is a contested field of study with many competing model.

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