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Understanding International HRM Concepts

International human resource management (IHRM) involves procuring, allocating, and utilizing human resources in a multinational corporation. IHRM managers must balance integration of HR policies across subsidiaries to achieve corporate objectives, while allowing flexibility for local differences. This balancing of integration and differentiation presents a common dilemma for IHRM managers. Compared to domestic HRM, IHRM encompasses more functions and heterogeneous functions, involves constantly changing perspectives, requires more involvement in employees' personal lives, is influenced by more external sources, and involves a greater level of risk.
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0% found this document useful (0 votes)
2K views3 pages

Understanding International HRM Concepts

International human resource management (IHRM) involves procuring, allocating, and utilizing human resources in a multinational corporation. IHRM managers must balance integration of HR policies across subsidiaries to achieve corporate objectives, while allowing flexibility for local differences. This balancing of integration and differentiation presents a common dilemma for IHRM managers. Compared to domestic HRM, IHRM encompasses more functions and heterogeneous functions, involves constantly changing perspectives, requires more involvement in employees' personal lives, is influenced by more external sources, and involves a greater level of risk.
Copyright
© Attribution Non-Commercial (BY-NC)
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CONCEPT OF IHRM

What is IHRM

It is not easy to provide a precise definition of international human resource management


(IHRM). What an HR manager does in a multinational corporation varies from firm to
firm. It also depends on whether the manager is located in a global corporation’s
headquarters or onsite in a foreign subsidiary.

Broadly defined, international human resource management (IHRM) is the process of


procuring, allocating, and effectively utilising human resources in a multinational
corporation. If the MNC is simply exporting its products, with only a few small offices in
foreign locations, then the task of the international HR manager is relatively simple.
However, in global firms human resource managers must achieve two somewhat conflicting
strategic objectives. First, they must integrate human resource policies and practices across
a number of subsidiaries in different countries so that overall corporate objectives can be
achieved. At the same time, the approach to HRM must be sufficiently flexible to allow for
significant differences in the type of HR policies and practices that are most effective in
different business and cultural settings.

This problem of balancing integration (control and coordination from HQ) and
differentiation (flexibility in policies and practices at the local subsidiary level) have long
been acknowledged as common dilemmas facing HR and other functional managers in
global corporations. Although some argue that IHRM is not unlike HRM in a domestic
setting, others point out that there are significant differences. Specifically compared with
domestic HRM, IHRM
(1) encompasses more functions,
(2) has more heterogeneous functions,
(3) involves constantly changing perspectives,
(4) requires more involvement in employees’ personal lives,
(5) is influenced by more external sources, and
(6) involves a greater level of risk than typical domestic HRM.
Scope of IHRM
Course Description and Scope
The globalization of business is having a significant impact on human resource management. It
is
more imperative than ever for organizations to engage in human resource management on an
international scale. Today's managers and business leaders confront decision problems in various
functional areas of HRM while working in different national and cultural environment. Also,
managers working in the corporate headquarters of MNEs have to deal with human resource
issues
relating to PCNs, HCNs, and TCNs. The objectives of this course are to explore the challenges
posed by rapid globalization of business, understand and analyze human resource issues for
making
effective decisions in the contemporary business environment.
The course will review the theories, models and concepts developed in the areas of international
management, international organizational behavior, cross-cultural management, and other
emerging
disciplines, and study their implications on international HRM practices. Application of the
theories
and concepts would be explored through lectures, discussions and case analyses. This course will
cover the management issues which have implications on international HRM decisions
including;
cross-cultural negotiations, international dimensions of leadership, motivation, team work, and
communicating with people of different cultural environment. A major focus of the course will
be
on international human resource management & development issues of recruitment and
selection,
compensation and reward systems, training and development, performance appraisal,
expatriation,
repatriation and career development. Special emphasis would be provided on Singapore's
globalization/regionalization drive through identifying and analyzing critical issues confronting
the
management of emerging Asian MNEs. Finally, future directions, challenges and developments
in
the field of inteCourse Description and Scope
The globalization of business is having a significant impact on human resource management. It
is
more imperative than ever for organizations to engage in human resource management on an
international scale. Today's managers and business leaders confront decision problems in various
functional areas of HRM while working in different national and cultural environment. Also,
managers working in the corporate headquarters of MNEs have to deal with human resource
issues
relating to PCNs, HCNs, and TCNs. The objectives of this course are to explore the challenges
posed by rapid globalization of business, understand and analyze human resource issues for
making
effective decisions in the contemporary business environment.
The course will review the theories, models and concepts developed in the areas of international
management, international organizational behavior, cross-cultural management, and other
emerging
disciplines, and study their implications on international HRM practices. Application of the
theories
and concepts would be explored through lectures, discussions and case analyses. This course will
cover the management issues which have implications on international HRM decisions
including;
cross-cultural negotiations, international dimensions of leadership, motivation, team work, and
communicating with people of different cultural environment. A major focus of the course will
be
on international human resource management & development issues of recruitment and
selection,
compensation and reward systems, training and development, performance appraisal,
expatriation,
repatriation and career development. Special emphasis would be provided on Singapore's
globalization/regionalization drive through identifying and analyzing critical issues confronting
the
management of emerging Asian MNEs. Finally, future directions, challenges and developments
in
the field of international HR management would be explored.

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