UNIT-1

Green Human Resource Management (Green HRM) is an approach to human resource

management that focuses on integrating environmental sustainability principles into HR
practices and policies within an organization. It recognizes the crucial role of HR in
promoting sustainability and aligning it with business objectives.
Traditional HRM primarily focuses on managing people and their skills, but Green HRM
expands this role by considering the environmental impact of HR activities and promoting
environmentally friendly practices. It aims to foster sustainability consciousness among
employees and encourage them to adopt eco-friendly behaviors both at work and in their
personal lives.
The concept of Green HRM encompasses various aspects, including recruitment and
selection, training and development, performance management, compensation and
benefits, employee engagement, and employee well-being.
Here are some key areas of focus in Green HRM:
Recruitment and Selection: Green HRM involves integrating sustainability criteria into the
recruitment process. This can include seeking candidates with a background or interest in
sustainability, or evaluating their alignment with the organization's environmental goals.
Training and Development: Green HRM emphasizes providing training programs to enhance
employees' environmental knowledge and skills. This can involve workshops on energy
conservation, waste management, and sustainable practices in the workplace.
Performance Management: Green HRM incorporates environmental targets and indicators
into performance appraisal systems. This encourages employees to contribute to
environmental goals and measures their impact on sustainability initiatives.
Compensation and Benefits: Green HRM can incentivize employees to engage in sustainable
practices by offering rewards and recognition for environmentally friendly behavior. This can
include benefits such as flexible work arrangements, eco-friendly commuting options, or
bonuses tied to sustainability achievements.
Employee Engagement: Green HRM fosters employee engagement through
communication, involvement, and participation in sustainability initiatives. It encourages
employees to contribute ideas and suggestions for improving the organization's
environmental performance.
Employee Well-being: Green HRM recognizes the link between a healthy environment and
employee well-being. It promotes initiatives that enhance the workplace environment, such
as improving indoor air quality, reducing exposure to harmful substances, and providing
access to green spaces.
By adopting Green HRM practices, organizations can reduce their ecological footprint,
enhance their reputation as socially responsible entities, and attract and retain
environmentally conscious employees. It aligns the organization's sustainability goals with
HR strategies, creating a culture of environmental responsibility and driving positive change.

GHRM is a new concept and is becoming popular all over the world. It has got different
meanings to different people. There is no comprehensive definition of GHRM.
It refers to making efforts to improve energy efficiency or reduce the pollution produced by
our home, business, and general living habits.
The main purpose of going green is to reduce the potential negative impact that energy
consumption and pollution can have on the environment.
What is Green HRM?
Ramachandran defines Green HRM as the integration of environmental management into
human resources management.
The term green HRM is mostly used to refer to the contribution of HRM policies and
practices towards the broader corporate environmental agenda.
It refers to using every employee to support sustainable practices and increase employee
awareness and commitments on the issue of sustainability.
Anjana Nath defines Green HR as environment-friendly HR initiatives leading to better
efficiencies, less cost, and heightened employee engagement levels.
Typical green activities are performed to travel requirements through video recruiting or the
use of online and video interviews.
It involves undertaking environment-friendly HR initiatives resulting in greater efficiencies,
lower costs and better employee engagement and retention, which in turn, help
organizations to reduce employee carbon footprints by the likes of electronic filing, car-
sharing, job-sharing, teleconferencing, and virtual interviews, recycling, telecommuting,
online training, energy-efficient office spaces, etc.
Green HR initiatives help companies find alternative ways to cut costs without losing their
top talent. Focus on Green HRM as a strategic initiative promotes sustainable business
practices.
Therefore, developing a new organizational culture through GHRM practices becomes a
manager’s concern.
Developing a green culture can affect employee behavior and introduce certain values that
build an internal culture.
Green behavior is assumed to be instrumental in the implementation of the green HRM
culture and adopting formal environmental strategies.
According to Mandip, the practice of green HR should be translated into the HR processes,
such as recruitment, training, compensation, etc.
From the definitions stated above, it can be concluded that Green HRM needs the
participation of all the organization’s members to create and keep the organization green.
Benefits/Advantages of Green HRM
Green HRM involves undertaking environment-friendly HR initiatives resulting in greater
efficiency, lower costs and better employee engagement and retention, which in turn, help
organizations to reduce employee carbon footprints by electronic filing, car sharing, job
sharing, teleconferencing, and virtual interviews, recycling, telecommuting, online
recruitment and training, energy-efficient office spaces, etc.
The Green Human Resource Management plays an important role in the industry to
promote the environment-related issues.
Organizations must formulate HR policies and practices, train people to increase awareness
about the environment, and implement laws related to environmental protection.
The Green HRM may also help the employers, manufacturers in building brand image and
reputation.

Organizations need to conduct an environmental audit, thus changing the organizational

culture, thinking about waste management, pollution, and helping the society and its
people, those are getting affected by pollution.

It will also make employees and society members aware of the utilization of natural
resources more economically and encourage eco-friendly products.

Experts have identified the benefits of GHRM, which are mentioned below:

1. Helping companies to bring down costs without losing their talent.

2. Organizations have huge growth opportunities by being green and creating a new
friendly environment, which helps in enormous operational savings by reducing their
carbon footprint.
3. It helps in achieving higher employee job satisfaction and commitment, which leads to
higher productivity and sustainability.
4. Create a culture of having concern for the wellbeing and health of fellow workers.
5. Improvement in the retention rate of the employee.
6. Improved public image. Any time a firm adds a green initiative to its workplace, it can
use the event to generate positive public relations. Organizations can promote
environmental contributions to the media through press releases to earn the attention
of potential customers and possible new sales.
7. Promote employee morale.
8. Improvement in attracting better employees. Dolan’s (1997) study of USA MBA students
found that most of the graduates would take a lower salary to work for environmentally
responsible organizations.
9. Reduction in the environmental impact of the company.
10. Improved competitiveness and increased overall performance.
11. Reduction of utility costs significantly. Even small businesses can significantly reduce
their utility costs by using technologies that are energy-efficient and less wasteful.
12. Rebates and Tax Benefits. Going green is easier with the assistance of governments,
local municipalities, Water supply authority, and electric companies that offer tax
incentives and rebates.
13. Increased business opportunities. Some government agencies, commercial businesses,
and nonprofit institutions mandate that only businesses that meet specific green
standards can bid on their contracts. Some also mandate that their purchasing
departments only buy green products or use products and services sold by companies
that meet certain green standards.
14. Reduction of environmental damage. Encouraging employees, through training and
compensation, to find ways to reduce the use of environmentally damaging materials.

Difference between IHRM and DHRM

Domestic Human Resource Management (DHRM)

 Domestic Human Resource Management (DHRM) is involved with the management of

employees in only one or single country.
 Simply it can be said as DHRM is done at national level. So, staffs are placed and work
within the national boundaries.
 It deals with few and limited external factors so it is less complicated as compared to
IHRM due to less influence from external factors.
 It is relatively easy to handle the employees as they belong to same country and all
employees works inside the national boundary.

International Human Resource Management (IHRM)

 International Human Resource Management (IHRM) is involved with the management of

employees in the three nation categories i.e. parent/home country, host country and
third country.
 Simply it can be said as IHRM is done at international level. So, staffs are placed and
work outside national boundaries.
 It deals with several external factors such as government regulations of foreign country.
 There is greater complexity involved in handling different people from different
countries as they work outside the national boundaries.
1. International HRM is responsible for a greater number of functions and activities such
as the selection, training and management of international assignees.
Domestic HRM deals with such functions only in the domestic context.
2. International HRM has to address issues like international taxation, foreign country
employment laws, international orientation of the employees, etc.
These issues are not applicable to domestic HRM.
3. HR managers working in an international environment have to deal with a highly diverse
workforce as people belonging to various countries and multiple cultures work in the
same office.
Domestic HR managers deal with a less diverse workforce.
4. International HR managers have to get closely involved in the employees’ personal life
when posting them to foreign locations. Issues like relocation of the employee’s family,
ability of the employee to adjust to new environment, cost of relocation, etc. have to
be dealt with.
Problems regarding relocation of families are less severe in case of domestic HRM.
5. International HRM functions are impacted by foreign cultures and laws.
Only the parent nation’s culture and laws have to be considered in case of domestic
HRM.
6. There are more risks involved in international HRM as compared to domestic HRM.
These risks include health and safety of employees, protection of intellectual property
rights, threats of terrorism, etc.
7. Compensation planning is more complicated in International HRM as compared to
domestic HRM because a variety of allowances and adjustments have to be taken into
account while fixing remuneration of international employees.
8. Training in International HRM includes aspects of pre-departure and post-departure
cultural training, imparting knowledge of international taxation, currency fluctuations,
diversity management, etc. which are not a part of domestic HR training.
Approaches of IHRM
International Human Resource Management (IHRM) involves managing human resources in
a global context. It includes various approaches to effectively manage employees across
different countries and cultures. Here are some common approaches in IHRM:
1. Ethnocentric Approach: In this approach, key positions in the international subsidiaries
are filled with employees from the parent company's home country. The emphasis is on
maintaining uniformity and control, and there may be limited opportunities for local
employees to advance to higher-level positions.
2. Polycentric Approach: This approach focuses on decentralization and allows subsidiaries
in different countries to have a high degree of autonomy. Key positions are filled by
host-country nationals, and the management and HR practices are adapted to suit local
cultures and practices.
3. Geocentric Approach: The geocentric approach seeks to integrate the best talent from
around the world. It places emphasis on competence rather than nationality, and key
positions are filled based on merit. This approach promotes a global perspective and
encourages the transfer of knowledge and skills across different locations.
4. Regiocentric Approach: The regiocentric approach is a variation of the geocentric
approach but with a regional focus. It emphasizes the integration and coordination of HR
practices within specific regions. Key positions may be filled by individuals from the
region, promoting regional knowledge and expertise.
5. Global Approach: This approach seeks to develop global policies and practices that are
uniformly applied across all subsidiaries. It aims for consistency and standardization in
HR practices, such as recruitment, selection, and performance management, regardless
of the country or culture.
6. Transnational Approach: The transnational approach combines elements of the
geocentric and global approaches. It aims to achieve a balance between global
integration and local responsiveness. This approach recognizes the need for a common
corporate culture while adapting to local practices and leveraging the advantages of
global integration.
It's important to note that organizations may adopt a combination of these approaches
depending on their specific circumstances, business strategy, and the level of
internationalization. Additionally, cultural sensitivity, knowledge of local labor laws, and
effective communication across borders are essential in implementing any of these
approaches successfully.

IHRM
International human resource management is the process of employing, training and
developing and compensating the employees in international and global organizations.
An international company is one which has subsidiaries outside the home-county which rely
on the business expertise or manufacturing capabilities of the parent company. Generally,
an MNC is considered to have a number of businesses in different countries but managed as
a whole from the headquarters, located in one country.
International HRM deals with the typical HRM functions like recruitment, selection, training
and development, performance appraisal, etc., at the international level.
DEFINITIONS
According to Hugh Scullion, International HRM (IHRM) involves the HRM issues and
problems arising from the internationalisation of business, and the HRM strategies, policies
and practices which firms pursue in response to the internationalisation of business.
International Human Resource Management (IHRM) is “the process of procuring, allocating,
and effectively utilizing human resources in a multinational corporation”.
In the words of Edwin B. Flippo, “International or domestic HRM involves the planning,
organizing, directing and controlling of the procurement, development, compensation,
integration and maintenance of people for the purpose of contributing to organizational,
individual and social goals.”
International HRM Approaches
There are mainly four IHRM approaches. These include ethnocentric approach, polycentric
approach, geocentric approach, and regiocentric approach. The suitability of the type of
staffing policy adopted by MNEs depends on the strategy used by the company.

a) Ethnocentric approach
In the ethnocentric approach, all key positions in the host country subsidiary are filled by
nationals of the parent company. The policy makes most sense for firms pursuing an
international strategy.
Advantages of ethnocentric staffing policy:

 The firm believes there is a lack of qualified individuals in the host country to fill senior
management positions;
 The firm sees an ethnocentric staffing policy as the best way to maintain a unified
corporate culture; and
 When the firm wants to transfer knowledge of core competencies to the foreign
operation.
The disadvantages of ethnocentric approach are:
It limits the advancement of host country nationals. This can lead to resentment, lower
productivity, and increased turnover and it can lead to cultural myopia (the firm’s failure to
understand host-country cultural differences that require different approaches to marketing
and management).

b) Polycentric approach
Polycentric approaches to staffing policy emphasis on recruiting host country nationals to
manage the subsidiaries in their own country. This means that host country nationals are
recruited to manage subsidiaries in their own country, while parent country nationals
occupy the key positions at corporate headquarters. This allows the MNE to take lower
profile in sensitive economic and political situations and helps to avoid intercultural
management problems. This approach minimizes the dangers of cultural myopia, but it also
helps create a gap between home and host country operations. The polycentric policy is
best suited to firms pursuing a localization strategy.
The advantages of the polycentric policy are that the firm is less likely to suffer from cultural
myopia and it may be less expensive to implement.
The disadvantages of the polycentric policy are that host country nationals have few
opportunities to gain foreign experience and so cannot progress beyond senior positions in
their own subsidiaries as well as a gap can form between host country managers and parent
country managers

c) Geocentric approach
This approach utilizes the best people for all key jobs throughout the organization, whatever
their nationality or whatever the geographical location of the post to be filled. In this way an
international executive team can be developed. This approach is consistent with building a
strong unifying culture and informal management network. It makes sense for firms
pursuing either a global or transnational strategy to adopt geocentric staffing policies.
However immigration policies of national governments may limit the ability of a firm to
pursue geocentric staffing policy.
The advantages of a geocentric approach to staffing are that it:

 Enables the firm to make the best use of its human resources;
 Builds a cadre of international executives who feel at home working in a number of
different cultures.
The disadvantages of geocentric approach include difficulties with immigration laws and
high costs associated with implementing the strategy.

d) Regino-Centric Approach
In Regino-Centric approach, MNCs believe that though there is a difference in various
aspects of culture from country to country yet there are similarities in a particular region.
For example, there may be differences in the cultures of India, Sri Lanka, Japan yet there are
lot of similarities hence it may be appropriate that one Region is managed by one regional
office. Thus MNCs set up regional offices to manage entire region consisting of all countries
in this region.
They may classify Regions according to their business and presence in particular regions.
Some companies may have Asia as a region while some other MNC may have the Asia Pacific
as one region. There are various MNCs who now prefer to have a Regional Office of the Asia
Pacific region or Asia region in India.
Such organisations are strong in innovation and creativity due to diversity in their
workforce. Simultaneously such MNCs are able to channelise innovative practices across the
globe in a significant manner. Inter region transfers and managing expatriate becomes the
quite critical activity of Human Resource Management.
CHALLENGES IN GLOBAL LABOR MARKET
The global labor market poses several challenges for International Human Resource
Management (IHRM). Here are some key challenges:
1. Cultural and Diversity Management: With an increasingly diverse workforce across
different countries and regions, managing cultural differences becomes crucial. IHRM
needs to address issues related to language barriers, communication styles, work values,
and cultural norms to ensure effective collaboration and minimize conflicts.

2. Talent Acquisition and Retention: Identifying and attracting top talent globally is a
significant challenge. IHRM needs to develop effective recruitment strategies that align
with local labor markets, considering factors such as skill shortages, labor regulations,
and competition for talent. Additionally, retaining talented employees in the face of
global mobility opportunities and increased job mobility can be a challenge.

3. Legal and Regulatory Compliance: Labor laws and regulations vary significantly across
countries, making it challenging for IHRM to ensure compliance with local laws while
maintaining consistency with global policies. Adhering to diverse employment standards,
worker protection laws, and immigration regulations requires a comprehensive
understanding of the legal frameworks in different countries.

4. Compensation and Benefits: Establishing fair and competitive compensation structures

across multiple countries can be complex due to variations in labor costs, cost-of-living
differences, taxation systems, and benefit expectations. IHRM needs to balance global
consistency with local market conditions to attract and motivate employees effectively.

5. Training and Development: Developing global competency and providing consistent

training and development opportunities to employees across different locations is a
significant challenge. IHRM must design training programs that address cultural
differences, language barriers, and diverse learning styles to ensure that employees
have the necessary skills to excel in global assignments.

6. Workforce Mobility and Expatriation: Managing the mobility of employees across

borders, including expatriate assignments, comes with its own set of challenges. IHRM
needs to address issues related to visa and work permit requirements, relocation
support, cross-cultural adjustment, and repatriation to ensure the success of global
assignments.

7. Labor Market Trends: Keeping up with evolving labor market trends, such as the gig
economy, remote work, and the increasing use of technology, is crucial for IHRM.
Adapting to these trends requires flexibility in policies and practices, as well as the ability
to leverage technology for effective talent management.
Addressing these challenges requires IHRM professionals to have a deep understanding of
local labor markets, cultural dynamics, and global business strategies. They need to develop
effective strategies, policies, and practices that balance global consistency with local
adaptation to successfully navigate the complexities of the global labor market.

LINKING HR STRATEGIES TO INTERNATIONAL EXPANSION

Linking HR strategies to international expansion strategies is crucial for the success of a
company's global growth. HR plays a pivotal role in managing and aligning human capital
with the organization's expansion objectives. Here are several ways HR strategies can be
linked to international expansion strategies:

1. Workforce Planning: HR should conduct a comprehensive analysis of the company's

current and future workforce requirements in the target markets. This includes assessing
the need for new hires, identifying skills gaps, and determining if local talent can be
leveraged or if expatriate assignments are necessary.

2. Talent Acquisition and Recruitment: HR should develop strategies to attract and recruit
talent globally. This involves understanding the local labor markets, implementing
effective recruitment processes, leveraging local recruitment agencies, and utilizing
digital platforms for broader reach.

3. Cultural Adaptation: HR should facilitate cultural integration and adaptability within the
organization. This includes developing training programs and resources to enhance
cross-cultural understanding, fostering an inclusive work environment, and addressing
potential cultural challenges that may arise during the expansion process.

4. Compensation and Benefits: HR needs to review and align compensation and benefits
packages with local market practices and legal requirements. This involves considering
factors such as cost of living, currency fluctuations, and local regulations to ensure
competitiveness and employee satisfaction.

5. Global Mobility and Expatriate Management: HR should establish policies and

procedures for managing global mobility, including expatriate assignments and
international transfers. This includes addressing immigration and work permit
requirements, tax implications, housing, healthcare, and support services for expatriate
employees and their families.
6. Training and Development: HR should design and implement training and development
programs to equip employees with the skills and knowledge required for international
operations. This includes language training, cross-cultural awareness, global leadership
development, and other relevant areas.

7. Employee Engagement and Retention: HR should focus on employee engagement and

retention strategies to ensure the commitment and motivation of employees during the
expansion process. This can include implementing effective communication channels,
recognition programs, career development opportunities, and employee feedback
mechanisms.

8. Compliance and Employment Law: HR needs to navigate the complexities of local labor
laws, regulations, and compliance requirements in each target market. This involves
partnering with legal counsel to ensure the company's HR practices align with local
employment regulations, including employment contracts, working hours, leave policies,
and employee rights.

9. HR Technology and Systems: HR should evaluate and implement appropriate HR

technology systems to streamline global HR processes, such as payroll, benefits
administration, performance management, and talent acquisition. These systems should
support standardized practices while accommodating local variations.

10. Knowledge Sharing and Collaboration: HR should facilitate knowledge sharing and
collaboration across the organization's global locations. This includes implementing
communication platforms, promoting virtual collaboration tools, and fostering a culture
of knowledge exchange to leverage the diverse expertise within the expanded
workforce.

By linking HR strategies to international expansion strategies, organizations can ensure

effective talent management, cultural integration, compliance, and employee engagement,
thereby maximizing the success of their global expansion endeavors.

MULTICULTURALISM
Multiculturalism is defined as the coexistence of several cultures in the same geographical,
physical or social space, encompassing all the differences that exist (religious, linguistic,
racial, ethnic and gender). It is the principle that recognizes diversity and promotes the right
to it.
According to HARRISON
Multiculturalism is a theory about the foundations of a culture rather than a practice which
subsumes cultural ideas.
Multiculturalism refers to the coexistence and interaction of diverse cultures within a
society or community. It is a concept that recognizes and respects the cultural differences of
various ethnic, religious, and social groups, promoting inclusivity, equality, and mutual
understanding. In a multicultural society, different cultural traditions, beliefs, languages, and
practices are acknowledged and valued, allowing individuals from various backgrounds to
express their identities and contribute to the overall cultural tapestry of the community.
Multiculturalism emphasizes the idea that cultural diversity enriches a society by fostering
creativity, innovation, and a broader perspective. It recognizes that no single culture should
dominate or be considered superior to others. Instead, it encourages dialogue, tolerance,
and respect among different cultural groups, fostering social cohesion and harmony.
The implementation of multiculturalism can take various forms depending on the country or
context. Some countries have adopted official policies to support and accommodate cultural
diversity, including the recognition of minority rights, protection of indigenous cultures, and
the provision of services and resources to assist cultural integration. Multiculturalism can be
observed in areas such as education, where curricula may include the study of diverse
cultures and histories, or in public spaces, where festivals and celebrations from various
cultures are encouraged.
Critics of multiculturalism argue that it can lead to social fragmentation, cultural relativism,
or the creation of parallel societies that hinder social integration. They claim that
multicultural policies may prioritize group rights over individual rights and foster divisions
based on cultural or religious differences. However, proponents of multiculturalism argue
that by recognizing and embracing diversity, societies can promote social harmony, reduce
discrimination, and strengthen social bonds by allowing individuals to maintain their cultural
identities while participating in the broader society.
Multiculturalism remains a topic of ongoing debate and discussion in many countries, as
societies strive to find a balance between cultural diversity and social cohesion, while
addressing the challenges and opportunities presented by an increasingly interconnected
world.
Culture – refers to the attitudes, values, customs, and behavior patterns that characterize a
social group – the ways in which a particular group of people lives, including their shared
knowledge, values, customs and physical objects.