International

Human resource
management
International HRM=meaning
The human resource management issues and
problems arising from the internationalanalizetion
of business and human resource management
strategies, policies and practices which firms peruse
in response to the internationalalization process
International HRM- process

 Procuring:

 Allocating :

 Utilization of Human resource management:

P. Morgan IHRM
COUNTRIES OF OPERATION:

 a) Parent/ Home country where the firm is head quartered.

 b) Host country where the firm’s subsidiaries are located.

 c) Third country where the firm is neither headquartered nor subsidiaries are
located. May be used as a source of labor.
1.Home country employees- Employees belonging to
home country of the firm where the corporate head
quarter is situated.
2. Host country employees- Employees belonging to
the nation in which the subsidiary is situated.
3. Third country employees- These are the employees
who are not from home country/host country but are
employed at subsidiary or corporate head quarters.
 Need For IHRM

 Culture diversity

 Workforce diversity

 Language diversity

 Economic diversity
 International HRM can be define
 IHRM can be defined as set of activities aimed managing
organizational human resources at international level to achieve
organizational objectives and achieve competitive advantage over
competitors.

 IHRM includes typical HRM functions such as recruitment,

selection, training and development, performance appraisal and
dismissal done at international level and additional activities such as
global skills management, expatriate management and so on.
IHRM is concerned with HRM issues that cross national
boundaries or are conducted in locations other than the
home country headquarters.

IHRM includes comparative HRM studies; e.g. differences

in how companies in Japan, Thailand, Austria and
Switzerland plan for upgrading of employee skills and so on.
Difference between domestic and international

 Domestic HRM is done at national level and IHRM is

done at international level.
• Domestic HRM is concerned with managing employees
belonging to one nation and IHRM is concerned with
managing employees belonging to many nations(Home
country, host country and third country employees)
 Difference between domestic and international

• Domestic HRM is concerned with managing limited number of HRM

activities at national level and IHRM has concerned with managing
additional activities such as expatriate management.

• Domestic HRM is less complicated due to less influence from the

external environment. IHRM is very complicated as it is affected heavily
by external factors such as cultural distance and institutional factors.
 DIFFERENCES B/W DOMESTIC &
IHRM
 Differences can be attributed to 6 factors:
1. More HR activities
2. Need for a broader perspective
3. More involvement in employees’ personal lives
4. Changes in emphasis as the workforce mix of expatriates and locals
varies.
5. Risk exposure
6. More external influences
MORE HR ACTIVITIES

 International Taxation
 International Relocation and orientation
 Administrative services for expatriates
 Host government relationships
 Language services
NEED FOR BROADER PERSPECTIVE

IHR managers have to design and administer

programs for more than one national group of
employees. So they have to take broader view of
issues.
MORE INVOLVEMENT IN
EMPLOYEES’ PERSONAL LIVES
 Helping expatriates and their families in:
 Housing arrangements
 Adjusting with new culture
 Health care
 Cost of living
 Compensation details
 Schooling arrangements, etc.
RISK EXPOSURE

More risk involved in IHRM.

Human and financial failure
Expatriate failure
Terrorism
MORE EXTERNAL INFLUENCES

Type of government
state of economy
General practices of doing business of the
host country
What IHRM is not!
 What IHRM is not!

IHRM does not include studies that are focused on issues

outside the traditional activities inherent in the HRM
function.
What IHRM is not!

IHRM does not include studies of HRM activities in single

countries.
 ISSUES IN IHRM

 Managing International Assignments

 Employee and Family Adjustments
 Selecting the right person for foreign assignments
 Culture
 Language and Communication
International HRM Functions

Requirement and selection

Training and development
Compensation and performance
Management of expatriate