Introduction:

The Enduring Context of

IHRM
Md. Awal Al Kabir
Associate Professor 1

Jahangirnagar University
Three Approaches to IHRM
 Cross-cultural management
 Examine human behavior within organizations
from an international perspective
 Comparative HRM and Industrial Relations
 Seeks to describe, compare and analyze HRM
systems and IR in different countries
 HRM in multinational firms
 Explore how HRM is practiced in
multinationals
Interrelationships between
Approaches to the Field

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The General Field of HR
 Major Functions and Activities
 Human resource planning
 Staffing
 Recruitment
 Selection
 Placement
 Performance management
 Training and development
 Compensation (remuneration) and benefits
 Industrial relations
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What does IHRM add into the
Traditional Framework of HRM?
 Types of employees
 Host Country nationals (HCNs)
 Parent Country nationals (PCNs)
 Third Country nationals (TCNs)
 Human resource activities
 Procurement
 Allocation
 Utilization of human resources
 Nation/country categories where firms expand and
operate
 Host country
 Parent country
 Third country
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A Model of IHRM

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What is an expatriate?
 An employee who is working and temporarily
residing in a foreign country
 Some firms prefer to use the term “international
assignees”
 Expatriates are PCNs from the parent country
operations, TCNs transferred to either HQ or
another subsidiary, and HCNs transferred into the
parent country
 Global flow of HR

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International Assignments Create
Expatriates:

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Differences between Domestic HRM
and IHRM
 More HR activities
 The need for a broader perspective
 More involvement in employees’ personal
lives
 Changes in emphasis as the workforce mix of
expatriates and locals varies
 Risk exposure
 Broader external influences

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Variables that Moderate Differences
between Domestic HR and IHRM

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Forces for Change
 Global competition
 Growth in mergers, acquisitions and
alliances
 Organization restructuring
 Advances in technology and
telecommunication

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Impacts on Multinational
Management
 Need for flexibility
 Local responsiveness
 Knowledge sharing
 Transfer of competence

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Managerial Responses
 Developing a global “mindset”
 More weighting on informal control
mechanisms
 Fostering horizontal communication
 Using cross-border and virtual teams
 Using international assignments

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Factors that Influence the Global
Work Environment

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