Professional Documents
Culture Documents
CONTENTS
Introduction to IHRM Challenges to IHRM Equal employee opportunity Network organizations
What is IHRM?
International HRM (IHRM) is the process of:
procuring, allocating, and effectively utilizing human resources in a multinational corporation, while balancing the integration and differentiation of HR activities in foreign locations.
OBJECTIVES of IHRM
To reduce the risk of international human resource To aviod cultural risks To aviod regional disparities To manage diversifies human capital
Host country: a country in which the MNE seeks to locate or has already located a facility.
What is an expatriate?
An employee who is working and temporarily residing in a foreign country
Some firms prefer to use the term international assignees Expatriates are PCNs from the parent country operations, TCNs transferred to either HQ or another subsidiary, and HCNs transferred into the parent country
Global flow of HR: more complexity in activities and more involvement in employees' lives
Why IHRM
Managerial Responses
Developing a global mindset More weighting on informal control mechanisms Fostering horizontal communication Using cross-border and virtual teams Using international assignments
OBJECTIVES
To promote recognition and acceptance of everyone's right to equality of opportunity TO eliminate, as far as possible, discrimination against people by prohibiting discrimination on the basis of various attributes TO eliminate, as far as possible, sexual harassment TO provide redress for people who have been discriminated against or sexually harassed.
Diversity in workforce
Differences among people in age, gender, race, ethnicity, religion, sexual orientation, socioeconomic background, capabilities/disabilities and in the thought process.
management system which incorporates the differences found in a multicultural workforce in a manner which results in the highest level of productivity for both the organization and the individual.
Diversity Wheel
Diversity is the mixture of people in business, with their variety of backgrounds, experiences, styles, cultures, skills and competencies.
NETWORK ORGANISATIONS
International Division Structure Global Product Division Global Area Division Global Functional Division Structure Multinational Matrix Structure
Global product divisions operate as profit centers Helps manage product, technology, customer diversity Ability to cater to local needs Marketing, production and finance coordinated on product-by-product global basis Duplication of facilities and staff personnel within divisions Division manager may pursue currently attractive geographic prospects and neglect others with long-term potential Division managers may spend too much time tapping local rather than international markets
Approach not used except by extractive companies such as oil and mining Favored only by firms needing tight, centralized coordination and control of integrated production processes and firms involved in transporting products and raw materials between geographic areas Emphasizes functional expertise, centralized control, relatively lean managerial staff Coordination of manufacturing and marketing often difficult Managing multiple product lines can be very challenging because of separation of production and marketing into different deparments.
Allows organization to create specific type of design that best meets its needs As matrix designs complexity increases, coordinating personnel and getting everyone to work toward common goals often become difficult Too many groups to their own way
Control Mechanisms