International Strategies in HR

Prepared By: Ajit Dhawale Nishu Chugh Rahul Kothari Rahul Ransure Renu Makhijani Swati Nikalje

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International Imperative
‡ Why organizations expand internationally ± Market opportunities ± Economies of scale by expansion ± Keep up with industry leaders. ± Acquire ownership of foreign-based organization or subsidiary

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Chris Chan your name 3 .Major differences between domestic HRM and IHRM ‡ Business activities ‡ Increased complexities ‡ Increased involvement in employee¶s personal life ‡ Complex employee mix ‡ Increased risks Copyright 2003-2006.

but production facilities remain in Canada (e. Lapierre your name 4 .g.g. McCain Foods). law firms) ‡ Stage 2: Export Operations ± Products and services are opened up to markets in other countries. 2005 Prof.. Winter.. ± HRM: Provides sales force with skills and motivation to succeed in these foreign markets.Stages of Internationalization ‡ Stage 1: Domestic Operations ± Firms offer products or services that are designed to primarily serve consumers in the domestic market (e.

parts assembly) are physically moved to other countries. 2005 Prof. ‡ Corporate headquarters in home country has high control over foreign operations.Stages of Internationalization Stage 3: Subsidiaries or Joint Ventures ‡ Some operational facilities (e. Lapierre your name 5 . Winter.g. ‡ HRM: Provides expatriates and local employees with knowledge and skills to succeed in the foreign country..

‡ Decentralization of decision-making more prevalent.Stages of Internationalization Stage 4: Multinational Operations ‡ Much more prevalent international dispersion of production and service provision facilities. ‡ Expatriates still primarily manage foreign facilities. Winter. 2005 Prof. Lapierre your name 6 . but ³major´ personnel decisions still made within home country.

‡ Dominant role of expatriates is removed. Winter.Stages of Internationalization Stage 5: Transnational Operations ‡ Little allegiance to the firm¶s country of origin. 2005 Prof. Lapierre your name 7 . ‡ Each business unit across the globe has the freedom to make and implement its own HRM policies and practices. ‡ Large-scale decentralization of decision-making.

Four Approaches to IHRM Make strategic decision as to level of standardization desired across locations ± Ethnocentric approach ‡ Exporting organization¶s home country practices and policies to foreign locations ± Polycentric approach ‡ Allowing each location to develop own practices and policies your name Copyright © 2005 South-Western. All rights reserved. 1±8 .

All rights reserved.Four Approaches to IHRM ± Regiocentric approach ‡ Developing standardized practices and policies by geographic region ± Geocentric approach ‡ Developing one set of global practices and policies applied at all locations your name Copyright © 2005 South-Western. 1±9 .

4 Basic Tasks Staffing policy Management training & development Performance appraisal Compensation policy your name .

Staffing Policy ‡ Selection of employees for particular jobs ‡ Tool for developing and promoting corporate culture (norms & value system) to attain higher performance ‡ Expatriate Managers your name .

Training & Development ‡ ‡ ‡ ‡ ‡ Training for specific job & management development Job transfers Training expatriate manager & spouse Repatriation of Expats Management development as a strategic tool ± especially transnational your name .

Performance Appraisal ‡ Two groups usually evaluate the performance of expats ± host nation & home office managers. off-site should be consulted before it is complete to balance your name . Both are subject to bias ± More weight should be given to on-site manager appraisal than off-site (soft variables) ± Former expat who served in country could be involved in the appraisal ± When on-site prepares.

Compensation ‡ How should compensation be adjusted to reflect national differences ± according to prevailing country standards or equalize pay on a global basis ‡ How should expatriate managers be paid ? your name .

not technicians Copyright 2003-2006. Chris Chan 15 your name .Strategies for managing a global workforce (1) Implement the aspatial career strategy ± Get people from everywhere (geocentric approach) ± Expats work in multiple countries during the course of their career ± Gain a lot of knowledge about different cultures & operations ± Develops in-depth knowledge ± Use previous knowledge for new assignment ± Extremely high cost ± Mainly managers.

Chris Chan 16 your name .Strategies for managing a global workforce (2) Implement the awareness-building assignment strategy ± Expose a candidate to cultural training exercises ± Usually for short term (3 months to one year) ± Family members usually not required to relocate ± Usually used to train candidates for future assignments ± Learn from foreign assignment and bring experience back to HQ Copyright 2003-2006.

technical troubleshooters Copyright 2003-2006. Chris Chan 17 your name .g.Strategies for managing a global workforce (3) Implement the SWAT team strategy ± Highly mobile teams for short term assignments ± Deployed throughout the organization to different parts of the world ± No development agenda. plain troubleshooting ± Transfer technical knowledge to locals as they fix problems ± E.

internet. intranet. electronic databases. videoconferencing.Strategies for managing a global workforce (4) Implement the virtual solutions strategy ± Collection of practices that exploit electronic communication ± E. electronic expert systems ± Low cost and very fast in terms of disseminating knowledge ± Used by Xerox and Ford Copyright 2003-2006. email. Chris Chan 18 your name .g.

Main challenges in IHRM ‡ High failure rates of expatriation and repatriation ‡ Deployment ± getting the right mix of skills in the organization regardless of geographical location ‡ Knowledge and innovation dissemination ± managing critical knowledge and speed of information flow ‡ Talent identification and development ± identify capable people who are able to function effectively ‡ Barriers to women in IHRM ‡ International ethics ‡ Language (e. Chris Chan 19 your name .g. body) Copyright 2003-2006. spoken. written.

Thank You !! Prepared By: ‡ Ajit Dhawale ‡ Nishu Chugh ‡ Rahul Kothari ‡ Rahul Ransure ‡ Renu Makhijani ‡ Swati Nikalje your name .

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