International Human Resource

Management

Presented By: Nilam Sawant

 What is IHRM?
 International HRM (IHRM) is the process of procuring, allocating,
and effectively utilizing human resources in a multinational
corporation, while balancing the integration and differentiation of HR
activities in foreign locations.

 OBJECTIVES of IHRM
 To reduce the risk of international human Resource
 To avoid cultural risks
 To avoid regional disparities
 To manage diversifies human capital
Why have Human Resource considerations become
so important in International Business Management?

The technological environment - technology supremacy is fleeting and

since it does not last long.
The economic environment - uncontrollable factors which means a
stable economic situation is less certain. 
The political environment responds to the socio - cultural
environment - which in many countries, is undergoing the stresses of
large immigration movements and cultural and religious frictions.
The geographic environment - long affected by rampant pollution,
deforestation which has negatively effected business and agricultural
productivity.
The one area in which companies can become more competitive is having
the best people and having those people serve their customers in the best
way.
Global HR Challenges
     o Compensation varies 
     o Labour Laws 
     o Social-Cultural Environment
Examples:
Compensation varies :Software development in India costs $15-$20/ hour
including the cost of the hardware, software and a satellite link. Compare this
with $60-$80/ hour in the US - still true in 2011?
Labour Laws : Minimum wage in Mexico is $0.50/ hour. In one US auto plant
in Mexico, the workers went on strike. The Mexican police shot several and put
the strikers back to work-and cut their wages 45%.Nobody has ever been shot
by police for being on strike in Canada !!! 
Social-Cultural Environment:   o Language issues o Religious practices
o Gender issues  o Vacations and holidays
About Google in USA..
HR Making Google Better
 Small Teams enhancing speed and creativity.
 Every Googlers idea is considered for betterment of company.
 Provides resources to turn great ideas into reality.
 Flexible working environment with perks (car wash, onsite doctors, dry-
cleaning, massages )
 Top 5 Reasons to Work at Google
 Lend a helping hand.
 Life is beautiful.
 Appreciation is the best motivation.
 There is such a thing as a free lunch after all.
 Love employees, and want them to know it.
 Corporates get dramatic
in INDIA
15 top management exec of Raymond office including the VP’s were selected
to perform on Neil Simons story “The GOOD Doctor”, these employees who
had no exposure to theatre were mouthing dialogues during lunch breaks,
over the phone etc.

‘The Good Doctor’ book has short comedy stories.

This is a common trend in West now and this phenomenon is gaining

momentum in India.
How this Helps?
 Most companies require more than competence, they seek
real engagement.

 The need to connect with employees, customers and other

stakeholders using soft skills are developed.

 It facilitates self awareness, presentation skills and teamwork.

 It helps dealing with difficult clients and promotes lateral

thinking.
Employers Struggling To Find And Keep
Employees in Canada
 A survey by Hewitt Associates, a global HR services company, has found that
big and small organizations in all industries throughout Canada are finding it
challenging to attract and retain workers.
 Problems Faced:
 Flexibility
 Attracting & retaining employees
 Diverse age group
 How have they overcome the challenge:
 Job sharing
 Flexible hours
 Compressed work schedules
 Vacation buying and selling
 Working from home
 Elder care support
 Unpaid time off for charitable work
 Assistance with home technology purchases
Global HR in Coca-Cola
 One of the most successful multinational enterprises, with operations in close
to 200 countries and more than 80% of the income derived from business
outside USA.
 Coca-Cola likes to call itself as a Multi-local company.
 Philosophy is best summarized by the phrase “think globally, act locally”,
which captures its cross-border management mentality.
 HR Role:
 The corporate Hr management function is charged by providing the glue that
binds these various divisions and groups in Coca-Cola family.
 The 2 main ways are:
 By propagating a common Hr philosophy within the company.
 By developing a group of internationally minded middle level executives for
future senior management responsibility.
Cont’d…
Example:
Rather than have a standard salary policy for all its national operations, Coca Cola
has common salary philosophy the total compensation package should be
competitive with the best companies in the local market.
Coca-Cola also has also found that information sharing is one of the great benefits
of bringing HR professionals together.

Example:
Tools developed in Brazil to deal with specific HRM problem might also be useful
in Australia
Coca-Cola also conducts twice a year Hr sessions which provides medium to
communicate with each other and learn ,which facilitates rapid transfer of
innovative and valuable HRM tools from region to region.
Biblography & Références: IHRM Text and Cases Book, by Aswathappa & Sadhna
Dash ,Mumbai Mirror & Google

Thankyou…