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Introduction to

International Human
Resource Management

Pre se n te d b y: A sh ish Pa n d e y
( GNITCM , Roll No . 09 )
Definition of Human Resource
Management

 Human Resource Management (HRM)


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

“Human Resources” the people who work


for the organization.
organization

Human Resource Management
 Human Resource Management (HRM)
refers to those activities undertaken by
an organization to utilize its human
resources effectively.
§
§ Major Functions and Activities
 Human resource planning
 Staffing
 Recruitment
Selection
Placement
 Performance appraisal
 Training and development
 Compensation and benefits
 Industrial relations

Why International Human
Resource Management?
üIncreasing globalization, firms and
employees in them moving all over
the world.
üMajor problems in international
operations because of human
resource management blunders
üHence need to understand human
resource management in a global
perspective

Why International Human
Resource Management?
üThe role of HR in International

Operations

üManaging a Multicultural Workforce

üDeveloping Managerial Talent in a Global

Business Environment

Three Approaches to IHRM
 Cross-cultural management
Ø Examine human behavior within organizations
from an international perspective
 Comparative HRM and Industrial
Relations
Ø Seeks to describe, compare and analyze HRM
systems and IR in different countries
 HRM in multinational firms
Ø Explore how HRM is practiced in
multinationals
Basic Terms in IHRM
 National or Country Categories
 Host Country where subsidiary is located

 Home Country where the firm headquartered

 ‘Other’ Country


 Employees of an International Firm
 Host Country Nationals (HCN)

 Parent Country Nationals (PCN)

 Third Country Nationals (TCN)

 Expatriates
A Model of IHRM
Differences between

HRM & IHRM


DOMESTIC HRM INTERNATIONAL HRM

Employees are within one national boundary. Employees are from different countries.

Employees may be grouped on region or zone-wise for Employees are categorized as HCN, PCN and TCN for
convenience of regional language and food habits. convenience of language, socio-cultural and food habits.

Routine work pattern. Needs constant attention on adjustment matters in living


conditions and work ethics.

Not much variation or differences in compensation. The compensation package need to be re-designed based
on taxation matters and parity of emoluments with
equivalents in the organization.
Communication is normal. Language translator may be required for better
communication.
No administrative support required. Administrative support required for visa, driving license,
currency transfer, banking services, etc.
Organizations do not normally care about children HR department needs to bother about housing,
schooling, arranging medical facilities. entertainment, communication of foreign nationals.
Locals can take care of themselves in unusual and HR department to be extra careful of foreign nationals in
difficult situations. case of terrorism, natural calamities, epidemics and
ethnic agitations
Public relations work taken care by employees Administrative support felt necessary to get school
themselves. admissions for employee’s children. Similarly the
medical services to be provided.
VARIABLES THAT MODERATE
DIFFERENCES BETWEEN
DOMESTIC HR
AND
INTERNATIONAL HRM
Enduring Context of
IHRM
Conclusion
As in present scenario the
globalization is on top of its level and
world has became a global village.
So managing such a diverse
workforce is a big deal for the
organizations that’s why the MNCs
have focused on the IHRM and
studying this concept is very
important for the Management
Students.
Feel free for any
query
&
Thank You!