INTERNATIONAL

HUMAN RESOURCE
MANAGEMENT

Present By -
Roodee Ghugroo
Arshad Badal
Shilpa
What is IHRM?
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 at
national and international level.
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.
OBJECTIVES OF IHRM
Create a local appeal without compromising upon the
global identity.
Generating awareness of cross cultural sensitivities
among managers globally and hiring of staff across
geographic boundaries.
Training upon cultures and sensitivities of the host
country.
NEED FOR IHRM
Managing expatriates
Globalization has forced HRM to have international
orientation
Effectively utilise services of people at both the
corporate office and at the foreign plants
FUNCTIONS OF IHRM
RECRUITMENT
SELECTION
EXPATRIATES
PERFORMANCE APPRAISAL
TRAINING AND DEVELOPMENT
COMPENSATION
WOMEN IN INTERNATIONAL BUSINESS
DUAL CAREER GROUPS
INTERNATIONAL INDUSTRIAL RELATIONS

TRADE UNIOUNS

PARTICIPATIVE MANAGEMENT
Characteristics of IHRM
More HR activities

Need for a broader perspective

More involvement in employee personal lives

Changes in emphasis as the workforce mix of expatriates and locals vary

Risk exposure

More external influences

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More Human Resource
Human Activities
Difficulty in implementing
●
HR in host
countries
Resource ●
Developmental opportunities for
Planning international managers.

Employe Ability to mix with organisation’s culture

●

●
Ethnocentric, polycentric or geocentric staffing
approach

e Hiring Selection of expatriates

●

●
Managing repatriation process

●
Emphasis on cultural training
Training & ●
Language training
Development ●
Training in manners & mannerisms
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Compen ●

●
Devising an appropriate strategy to compensate expatriates
Minimising difference in pay between parent, host & third
country nationals
Issues relating to the re-entry of expatriates into the home
sation
●

country

●
Constraints while operating in host
Performance countries need to be considered.
●
Physical distance, time differences & cost of
Management reporting system add to the complexity.

Industrial Handling industrial relations problems in a

●

subsidiary.
●
Attitude of parent company towards unions
Relations in a subsidiary

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Need for Broader Perspective
Pay issues

●
Different countries, different currencies
●
Gender based pay in Korea, Japan, Indonesia

Health insurance for employees & their families

Overtime working – Korean & Japanese firms

Promotions based on seniority or merit

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 More ●
More involvement for both parent-country &
Involvement third-country nationals
●
Housing arrangements
in Employee’s ●
Health care
Personal ●

●
Remuneration packages
Assist children left behind in boarding schools
Lives

Changes in ●
Need for parent-country & third-
emphasis as the country nationals decrease as more
workforce mix trained locals become available.
of expatriates
●
Resources reallocated to selection,
training & management development
and locals vary
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 Risk ●
Physical safety of the employees.
●
Failure of expatriates to perform
Exposu well  financial losses to the
firm
re

External ●
Dealing with ministers, political figures,
economic & social interest groups
Influenc ●

●
Hiring procedures dictated by host country.
Catch up with local ways of doing business.
e
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Reasons for Growing Interest inHRM
Effective IHRM 
Globalisation determinant of
success in
of Business international business

Movement to network Significant role in

organisations from
traditional
implementation &
hierarchical structures control of strategies

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Ethnocentric: Here the Key management positions
STAFFING POLICIES IN IHRM
are filled by the parent country individuals.
Polycentric: In polycentric staffing policy the host
country nationals manage subsidiaries whereas the
headquarter positions are held by the parent company
nationals.
Geocentric: In this staffing policy the best and the
most competent individuals hold key positions
irrespective of the nationalities.
Recruitment & Selection
Ethnocen Polycentr Geocentri Regiocent
tric ic c ric
Approach Approach Approach Approach
●
● Variation
Variation of
of staffing
staffing
●
● Key ●
● Host-country ●
● Seeks best policy
policy to
to suit
suit
management nationals hired people for key particular
particular geographic
geographic
positions held by to manage jobs, irrespective areas
areas
●
Provides
Provides aa 'stepping
'stepping
parent-country subsidiaries of nationality ●

stone'
stone' for a firm
for a firm
nationals ●
● Parent-country ●
● Underlying wishing
wishing to move from
to move from
●
● Appropriate nationals occupy principle of a an ethnocentric
an ethnocentric or or
during early key positions at global polycentric
polycentric approach
approach
to a geocentric
to a geocentric
phases. corporate HQ. corporation approach
approach

categories of employees can be hired – parent country nationals (PCNs), host

country nationals (HCNs) & third country nationals (TCNs)

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IHRM MODEL
How It Is Different from
Domestic HRM
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)
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.
ACTIVITIES INVOLVED IN IHRM
ISSUES IN IHRM
Managing International Assignments
Employee and Family Adjustments
Selecting the right person for foreign assignments
Culture and Gauge
Language and Communication
EFFECTIVE IHRM IMPLEMENTATION
The following checklist identifies some of the critical
decisions/actions required in the formulation and
implementation of an effective IHR strategy.
1. As certain the current and intended nature of international
operations in the organisation (multi-domestic,
international, global or transnational?)
2. Determine the extent to which HR policies and practices
should be standardised or localised in accordance with
overall organisational strategy.
3. Assess the extent to which local cultural, social, political,
economic and legal factors will impinge on any attempts to
apply standard HR policies if integration is a key factor in
organisational strategy.
4. Ensure a computerised database of global human
resources is used if integration is desired.
5. Work with the senior management team to identify
the competencies required to achieve global
organisational objectives.
6. Work with national HR and line managers to
formulate IHR policies and practices in the key areas
of sourcing, development and reward which will
embed a transnational mindset in the organisation.
 Expatriate Assignment Life Cycle
Determining the
Crisis & Reassignment
need for an
Adjustment Abroad
expatriate

Repatriation &
Post-arrival
Adjustment
Departure Orientation &
Training

Selection Pre-assignment Crisis &

Process training Failure

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Expatriate Failure
Premature return of expatriates to their home country

Reasons

●
Inability to adjust to host country culture  leads to culture shock
●
Personal & emotional problems
●
Difficulties with the environment
●
Inability to cope with larger international responsibilities
●
Other family reasons

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THANK YOU