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GLOBAL HUMAN RESOURCE

MANAGEMENT

Instructor
Mr. Shyamasundar Tripathy
Definition of Global Human
Resource Management/IHRM

 IHRM is the process of procuring, allocating and


effectively utilizing human resources in multinational
corporation.
What is Global Human Resource
Management

As a field it is about: the understanding, researching,


applying and revising all human resource activities in
their internal and external contexts as they impact
the process of managing human resources in
enterprises throughout the global environment to
enhance the experience of multiple stakeholders,
including investors, customers, employees, partners,
suppliers, environment, and society.
Forms of International HRM
 Operation of parent-country firms
 Operation of foreign firms in the home country
 Operation of Third party nationals
 Employment of foreign citizens (or recent immigrants
and/or their families
Strategic objective of GHRM/IHRM
 Problem of integration.(HQ to Subsidiary)
 Problem of differentiation.(Flexibility in policies and
practices)
 Involves constantly changing perspectives
 Requires more involvement in employees personal
lives
 Is influenced by more external sources.
 Involves a greater level of risk than typical domestic
HRM
DIFFERENCES BETWEEN DOMESTIC AND
INTERNATIONAL HRM
 Responsibility for greater number of activities
 Need for greater level of expertise
 e.g. employment laws
 Necessity for closer involvement with employees (e.g.
expatriate families
 Greatly expanded and different mix of employees
 Having to deal with more external influences
 Having to face greater exposure to problems and difficulties
Approaches to GHRM/IHRM
 Ethnocentric.
The MNC simply exports HR practices and policies
from home contrary to Subsidiaries in foreign
location.
 Polycentric
HR policies are adapted to meet the circumstances in
each foreign country. The subsidiaries are basically
independent from headquarters.
 Regiocentric
HR policies are coordination within the region to as
great extent as possible.
 Geocentric.
HR policies are developed to meet the goals of global
network of home country locations and foreign
subsidiaries.
Global Human resource management (GHRM) refers
to the activities an organization carries out to utilize
effectively its human resources in internationally.
These activities include:
 determining the firm's human resource strategy
 staffing
 performance evaluation
 management development
 compensation
 labor relations
Factors affecting GHRM/IHRM
 Cultural Factors
 Economic Risk
 Economic Systems
 Legal environment and Industrial Relation
 Multi-National Employer
 Multicultural workforces
 Expatriate work assignment
THE STRATEGIC ROLE OF INTERNATIONAL HRM

Success in international business requires that HRM


policies be congruent with the firm’s strategy
STAFFING POLICY

Staffing policy is concerned with the selection of


employees who have the skills required to perform a
particular job.

 Types of Staffing Policy

 Expatriate Managers
TRAINING AND MANAGEMENT DEVELOPMENT

 Training begins where selection ends and it focuses


upon preparing the manager for a specific job

 Management development is concerned with


developing the skills of the manager over his or her
career with the firm
 Training for Expatriate Managers

 Repatriation of Expatriates

 Management Development and Strategy


PERFORMANCE APPRAISAL

How should the performance of expatriate managers be


evaluated?

 Performance Appraisal Problems

 Guidelines for Performance Appraisal


COMPENSATION

How should compensation packages be structured for


expatriates?

 National Differences in Compensation

 Expatriate Pay
INTERNATIONAL LABOR RELATIONS

 A key issue in international labor relations is the


degree to which organized labor is able to limit the
choices available to an international business

 A firm's ability to pursue a transnational or global


strategy can be significantly constrained by the actions
of labor unions
 The Concerns of Organized Labor

 The Strategy of Organized Labor

 Approaches to Labor Relations


Thank you