Name :- Saloni Shravan Pandit

Sunny Ankush Pawar

Roll no :- 21-8822
21-8824
Div :- A
Std :- TY BMS [HR]
CONCEPT OF IHRM
(international human resources
management)
International human resources management
(IHRM) is the term used for organizations that
manage their human resources activities at an
international level. IHRM is concerned with
HRM issues that cross national boundaries or
are conducted in locations other than the hom
country headquarters.
IHRM is concerned with the relationships
between the HRM activities of organization
and the foreign environment in which the
organization operate.
 Definition - Boxall, P. (1992) defined
international human resources management
(IHRM) as ‘concerned with the human
resources problems of multinational firms in
foreign subsidiaries (such as expatriate
management) or more broadly, with the
unfolding HRM issues that are associated with
the various stages of the internationalization
process.
 IHRM function
1. Recruitment
Recruitment is the process by which
organizations locate and attract to fill job
vacancies through discovering manpower

2. Selection
The selection process can be defined as the
process of selection and short listing of the
right candidates with the necessary
qualifications and skill set to fill the vacancies
in an organization. The selection process varies
from industry to industry, company to
company and even amongst departments of
the same company
 3. Expatriates
An expatriate (often shorted to expat) is a
person temporarily or permanently residing,
as an immigrant, in a country other than that
of citizenship.

4. Performance appraisal
The term performance appraisal refers to the
regular review of an employee’s job
performance and overall contribution to a
company. Also known as annual review,
performance review or evaluation, or
employee appraisal, a performance
appraisal evaluates an employee’s skills,
achievement, and growth, or lack thereof.
5. Training and development
Training and management development are
important strategies that relate to the
successful management of the organization.
There are many important benefits of
international training and development.

6. Compensation
International compensation can be defined
as the provision of monetary and non –
monetary rewards, including base salary,
benefits, perquisites, long and short term
incentives, values by employees in
accordance with their relative contribution
to MNC performance
7. International industrial relations
International industrial resources handles
the complicated associations between
employers employing foreign nationals,
employees of various nationalities, home
and host country governing bodies and trade
unions of the organizations functioning in
different nations around the world in
addition to their national and international
federations.
8. Trade union
A labour union, or trade union, is an
organization of workers who have together
to achieve goals in areas such as wages and
working conditions. The primary purpose of
a trade union is collective bargaining. In
india trade unions can be formed only the
persons engaged in trade or business can
from trade unions
9. Participative management
Participative management refers to as an
open from of management where employees
are actively involved in organization’s
decision making process. The concept is
applied by the managers who understand
the importance to human intellect and seek
a strong relationship with their employees.
Cross cultural studies in IHRM
Culture as well as economy are interacting and
in reciprocal influencing relationship. The
same is the case or organizational and
national culture. Companies that plan to
operate in more countries have to decide to
what extend to order to fit in context of host
country and country on which markets they
should strive for setting of unified standards.
Some systems (such as technology) have
technical or economic character and therefore
they are not connected to home country of the
company and influenced by it
Cross - cultural management describes
organizational behavior within countries and
cultures ; compares organizational behavior
across countries and cultures; and seeks to
understand how to improve the interaction of
 co – workers, managers, executive, clients,
suppliers, and alliance partners from around
the world.
HRM approaches are cultural artifacts
reflecting the basic assumptions and values of
the national culture in which organizations are
imbedded, international HRM becomes one of
the most challenging corporate tasks in
multinational organizations.
A cross culture in an international operation
and to consider the issue of transferability of
people management styles and techniques
across cultures. In order to do this it is
necessary to consider the current cross –
cultural management literature.
The first lesson for IHRM research on
expatriate – client interactions learned from
our IHRM as being affected by exogenous and
 endogenous factors, we propose that the
culture of the client |customer associated with
organizational tasks is a crucial exogenous
factor in IHRM.
 Cultural diversity
Cultural diversity is the existence of a variety
of cultural groups within a society. Cultural
groups can share many different
characteristics. Culture, religion, ethnicity,
language, nationality, class, gender, age,
disability, health differences, geographic
location and lots of other things.
Cultural diversity is a debatable, open – ended.
Term, which generally refers to a reality of
coex – istence of diverse knowledge, beliefs,
arts, morals, laws, customs, religions,
languages, abilities.
Cultural diversity is when population
differences are well represented within a
community. These include race, ethnicity, age,
ability, language, nationality, socioeconomic
status, gender, religion etc.
Cultural diversity supports the idea that every
person can make a unique and positive
contribution to the larger society because of,
rather than in spite of their differences.
Model’s of IHRM organizational
1. Stakeholders interests
A shareholder’s is an individual or
organization that owns shares in a
corporation or project. The main interest of a
shareholder is the profitability of the project
or business. In a public corporation,
shareholders want the business to make
huge revenues so they can get higher share
prices and dividends.
A) Management
It involves handling and reporting all the
ownerships changes, updating the
documents, consulting the board of
directors, communicating with the
shareholders, and staying compliant.
Shareholders management is crucial as it
helps the owners keep track of all the
shares in the company.
B) Employee groups
Employee ownerships is when all
employee together own a substantial
stake and have a meaningful voice in the
company (or group) that employee them.
A number of countries have introduced
tax advantaged share or share option
plans to encourage employee share
ownership.
C) Government
Government ownerships has a positive
impact on a firm’s leverage when the
government is its largest shareholder.
Government ownership includes
shareholding by government agencies
and SOEs.
 D) community
The shareholders are the owners of the
company. However for a community
company this means that they own their
shares on behalf of and in trust for the
community. They have to act and make
decisions in a way which reflects the
community’s interest.
2) Situational factors
Situational Factors (also known as External
Factors) are influences that do not occur
from within the individual but from
elsewhere like the environment and others
around you. Examples of situational
factors are your environment, work and
school, and the people around you.
a) Workforce diversity
Situational factors are job demands and
resources that can affect the way that an
individual responds to work
responsibilities that can become work
overload and lead to unhealthy mental
well – being

b) Business strategy and condition

A business strategy is a future-oriented
plan for creating and maximizing
competitive advantages to accomplish
the organization’s mission.

c) Management philosophy
Human resources management (HRM)
philosophy explains how senior
managers intend for the workforce to be
managed. The nation of HRM philosophy
relates to the concept of a strategic fit to
enhance HRM effectiveness.
d) Labour market
A labour market is the place where
workers and employees interact with
each other. In this market, labour
demand is the firm’s demand for labour
and supply is the worker’s supply of
labour. The supply and demand of labour
in the market is influenced by changes in
the bargaining power.
 e) Unions
A trade union is a continuing long term
association of employees, formed and
maintained for the international human
resource management .
f) Tasks technology
Task technology theory provides a
means of quantifying the effectiveness of
technology in a system by assessing the
relationship between the technology and
the tasks the technology aims to support
g) Law and societal values
The study of law and society rests on the
belief that legal rules and decisions must
be understood in context.

INTERNATIONAL HRM AND

SUSTAINABLE BUSINESS
 Due to increased globalization and easy
mobility and communication between
countries, companies operate at
international level. Major tasks for
organizations which operate across
international boundaries is to manage
the dissimilar stresses of the drive for
integration an differentiation. In broader
sense, international human resources
management process has same activities
as in domestics HRM such as planning
and staffing however domestics HRM is
operate in one nation and IHRM
activities are involved in different
countries. International human resources
management is a branch of management
studies that examines the design ad
effects of organizational human
 resources practices in cross – cultural
context.
It occupies an exciting position in the
interstices of international business
human resources management and
organizational behavior, scholarships,
theoretical studies explained that
international HRM is the interplay
between three dimensions; HR activities
the types of people being employed in
the organization and the different
countries that an organizations is
operating in (dowling, 1999).
Complexities caused by these last two
variables, are what differentiates
international HRM from domestic HRM,
as the HR activities themselves are
relatively similar
 HR has the potential to be the moral
compass of the organization, promoting
policies and practices that are the
sustainable for humans and the
environment. The strategic role of HR
links ethical principles, corporate social
responsibility and HR functions, creating
a map to sustainability.

TRANSLATIONAL
ORGANIZATION EXPLANATION
 Transnational organization is a term used in
scholarly literature. It refers to international
organizations. (usually, international
nongovernmental organizations) that
“transcend” the idea of a nation – state.
The distinction between an international and a
transnational organization is unclear and has
been criticized by some scholars (ex. Cola’s,
2002).
Transnational relation have been defined as
“contacts, coalitions, and interactions across
state boundaries that are not controlled by the
central foreign policy organs of governments,
“for example of transnational entities are
“multinational business enterprises and
revolutionary movements; trade unions and
scientific networks; international air transport
cartels and communication activities in outer
space.
Examples
1. shell. shellpetrol station in the UK.
2. McDonald’s. McDonalds in kazan,
Russia.
3. Vodafone. Vodafone advert in kumily,
india.
4. Coca cola. Coca cola advert in Kabul,
Afghanistan.
5. Advert for three in Hong Kong.