A

PRESENTATION
ON

INTERNATIONAL HUMAN
RESOURCE MANAGEMENT

Presented by :
Anjali Nair
Manish Singh
Prateek Shrivastava
Devendra Prasad
Rounit Roy
Human Resource Management :

Human Resource Management (HRM) involves all management

decisions and practices that directly affect the people who work for
the organization.

INTERNATIONAL HUMAN RESOURCE MANAGEMENT :

INTERNATIONAL HUMAN RESOURCE MANAGEMENT(IHRM) is a

process of procuring, allocating, and effectively
utilizing human resources in a multinational
corporation , while balancing the integration and
differentiation of Human Resource activities in
foreign locations.
OBJECTIVES OF I - HRM :

ØTo reduce the risk of international human resource.

ØTo avoid cultural risks.
ØTo manage diversifies human capital.
P . Morgan ’ s Model of IHRM
Human resource activities

ØProcurement
ØAllocation
ØUtilization of human resources
Nations categories where firms expand and operate

ØHost country
A country in which the MNE seeks to locate or has
already located a facility.

ØParent country
The country in which a company’s
corporate headquarters is located.
ØThird country
Countries other than the one in which the MNC is
headquartered or the one in which it is assigned to work by
the MNC.
 Categories of employees in an MNE
Host-country nationals (HCNs)
Employees born and raised in a host country.
Advantages
§No problems with language and
culture.
§Reduced hiring costs.
§No work permits required.
Disadvantages
§Head Quarters may have less control
over operations.
§HCNs may still have limited career
opportunities outside the
subsidiary.
 Parent-country nationals (PCNs)
Employees who were born and live in a parent country.

Advantages Disadvantages
vControl and co-ordination by vHCNs promotion opportunities
HQ is maintained. are limited .

vPromising managers get vPCNs may impose an

international experience. inappropriate HQ style .

vAssurance that the subsidiary vCompensation differences

will comply with company between PCNs and HCNs may
cause problems .
objectives policies etc.
Third-country nationals (TCNs)
Employees born in a country other than a parent or host country.

Advantages Disadvantages

§Salary and compensation may §Transfers must consider national

be lower than for PCNs. animosities.

§May be more familiar with host §TCNs may not want to return after
country than the PCNs. assignment.
 International Recruitment and Selection

Recruitment

It is defined as searching for and obtaining potential job candidates in

sufficient numbers for and quality so that the organization can select the most
appropriate persons for its job needs.

Selection

It is defined as the process of gathering information for the purposes

of evaluating and deciding whom should be employed in particular jobs.
Criteria for Selecting Staff for
International Assignments
Difference between IHRM and Domestic HRM

· Responsible for a greater number of functions and

activities
· Broader knowledge of foreign county employment
law
· Closely involved with employees lives
· Cope with more external influences
· Exposure to problems and liabilities
· Management of differential compensation
· Diversity management
· More coordination and travel
· More risk management
Variables that moderate difference between
Domestic HRM and IHRM
Main Challenges in IHRM :

ØTalent identification and development – identify capable people who

are able to function effectively
ØLanguage (e.g. spoken, written, body)
ØDifferent labor laws
ØDifferent political climate
ØDifferent stage(s) of technological advancement
ØEducational level attained
Ø
THANK — YOU …