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.

Why International Human Resource Management?

 Increasing globalization, firms and employees in them moving all over the world.

 Major problems in international operations because of human resource management blunders

 Hence need to understand human resource management in a global perspective

Three Approaches to IHRM

 Cross-cultural management

 Examine human behavior within organizations from an international perspective

 Comparative HRM and Industrial Relations

 Seeks to describe, compare and analyze HRM systems and IR in different countries

 HRM in multinational firms

 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
 Differences between
HRM & IHRM

INTERNATIONAL HRM

thin one national boundary. Employees are from different countries.

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

ttern. Needs constant attention on adjustment matters in living conditions and work ethics

on 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.

s normal. Language translator may be required for better communication.

e support required. Administrative support required for visa, driving license, currency transfer,
banking services, etc.

not normally care about children schooling, HR department needs to bother about housing, entertainment, communication
l facilities. of foreign nationals.

are of themselves in unusual and difficult situations. HR department to be extra careful of foreign nationals in case of terrorism,
natural calamities, epidemics and ethnic agitations

work taken care by employees themselves. Administrative support felt necessary to get school admissions for employee’s
children. Similarly the medical services to be provided.