IHRM AND HRIS

By Dr. Teena Bharti

Assistant professor
SOM, BU
IHRM: Introduction
◦ IHRM can be explained as "The set of distinct activities, functions and processes that are
directed at attracting, developing and maintaining an MNC's human resources. It is the
aggregate of the various HRM systems used to manage people in the MNC, both at home and
overseas" (Taylor, Beechler et al. 1996). 
◦ International Human Resource Management (IHRM) can be defined as a set of activities
targeting human resource management at the international level. It strives to meet
organizational objectives and achieve competitive advantage over competitors at national and
international level.
◦ IHRM comprises of typical HRM functions such as recruitment, selection, training and
development, performance appraisal and dismissal done at the international level and
additional exercises such as global skills management, expatriate management and so on.
In short, IHRM is concerned with handling the human
resources at Multinational Companies (MNCs) and it
includes managing three types of employees −
◦ Parent/Home country employees (PCN) − Employees
residing in the home country of the company where the
corporate head quarter is situated, for example, an Indian
working in India for some company whose headquarters
are in India itself. IHRM and types
◦ Host country employees(HCN) − Employees residing in
the nation in which the subsidiary is located, for example,
of Employees
an Indian working as an NRI in some foreign country.
◦ Third country employees(TCN) − These are the
employees who are not from home country or host
country but are employed at the additional or corporate
headquarters.
ADVANTAGES AND
DISADVANTAGES OF PCN, HCN AND
TCN
 Staffing Approaches
In international human resource management, the types of
staffing policy approaches are as follows: • GEOCENTRIC: The geocentric
◦ ETHNOCENTRIC Approach: The ethnocentric policy policy approach to staffing assigns
approach to staffing designates home country nationals as job positions to any person best
top ranking employees in global operations. For instance, suited for the position, regardless
executive positions are given to Americans in an office of an of the employee’s background,
American company located in Indonesia.  culture or country of origin. The
◦ POLYCENTRIC: The polycentric policy approach to main advantage of this staffing
staffing assigns home country workers to top positions in policy approach is that it is highly
the central offices or headquarters, and overseas local flexible. It can increase the firm’s
workers to other positions. The main advantage of this policy cultural knowledge about the
approach is that it facilitates organizational learning on local different markets and countries. 
markets. This staffing policy approach also provides better
opportunities for locals to improve their careers through
promotion. 
Repatriation
• It is the process of bringing an expatriate home after he/she has completed the
international assignment.

Organizations can follow 3 practices

1. Create knowledge and develop global leadership skills
2. Ensure that candidates have cross-cultural skills to match their technical
abilities
3. Prepare people to make the transition back to their home offices
HRIS
HRIS: INTRODUCTION
◦ A HRIS, which is also known as a human resource information system or human resource
management system (HRMS), is basically an intersection of human resources and
information technology through HR software.

◦ An HRIS stores, processes and manages employee data, such as names, addresses, national
IDs or Social Security numbers, visa or work permit information, and information about
dependents. It typically also provides HR functions such as recruiting, applicant tracking, time
and attendance management, performance appraisals and benefits administration. It may also
feature employee self-service functions, and perhaps even accounting functions. 
 What Are the Advantages of an HRIS?
◦ One-stop shopping. One of the most frequently mentioned advantages of an HRIS is that you enter information only
once for many HR-related employee tasks. And, similarly, you need to update only one place when employee
information changes.
◦ Integration of data. Furthermore, different parts of the system can “talk to each other” allowing more meaningful
reporting and analysis capabilities, including internal evaluations and audits and preparation of data for outsiders.
◦ Accuracy. Improved accuracy is likely assuming data are entered and manipulated correctly.
◦ Self service. This feature can be a great timesaver for HR. Employees may enter the system to change data (for
example, change their own addresses) and managers and supervisors may enter the system to enter data (for example,
performance reviews) or to retrieve data without bothering HR.
◦ Automated reminders. Systems can schedule events, such as performance appraisals and benefit deadlines,
automatically notifying and nudging if actions have not been performed.
◦ Hosting of company-related documents. The system can host such materials as employee handbooks, procedures,
and safety guidelines. The materials are easily updated in one place.
◦ Benefits administration. This could include enrollment, notices, changes, and reporting.
◦ Recruiting management. This may include applicant tracking, management, and reporting.
What Are the Disadvantages?
◦ There are, of course, some disadvantages to using an HRIS.
◦ Security. Security is one of the biggest worries. Systems must be designed to prevent
unauthorized access to sensitive and confidential data and also the unintended publication of
such information. This typically required many “compartments” and many levels of authority
for access, all of which have to be monitored and maintained.
◦ Cost. Then there is the cost factor. Especially for smaller companies, this can pose a problem.
With any system, there are acquisition costs and maintenance costs. SaaS (software as a
service) systems are somewhat easier to handle from a cost standpoint since they are cloud-
based and don’t require as much initial outlay.
◦ Staffing. With larger installations, there’s probably the cost of hiring an IT specialist to
manage the system.
Thank You