Human Resources

Based on Chapter 17: Human Resource Management in the Global Firm

Team Members
Group China

Pooja Praseed Prateek Sharma

(GM21CMM017) (GM21GL032)

Ayush Sheopuri  Kanika Chitnavis

(GM21CMM025) (GM21CM034)

Sachit Swroop  Sreekar Bharadwaj

(GM21CMM015) (GM21CMM024)
The Strategic Role of
Human Resources
in International Business

 International human resource management

(IHRM) refers to the planning, selection,
training, employment, and evaluation of
employees for international operations.

 In a firm with multi-country operations,

there are generally three types of managers
as shown.
Key Tasks in International Human Resource Management-
International Staffing Policy

•Recruiting, Selecting, and Developing Talent-  •Cultural Intelligence- Cultural intelligence is 

Recruitment - Finding potential candidates an employee’s ability to function effectively

Selection – Evaluation and decision with those from  different

Developing talent - Collaboration between cultural backgrounds 

HR managers and executive management

•Expatriate Assignment Failure and 

Culture Shock - Expatriate assignment 

•Cultivating Global Mind-Sets failure describes the employee’s premature

 Employees with a global mind-set return from an international assignment

 strive to understand organizational and  Culture shock is the confusion and anxiety 

group dynamics to create consensus in a team experienced by a person who lives in a 

foreign culture for an extended period

 Preparation and Training of International Employees

 Preparation is crucial to help

employees better understand,
adapt, and perform well in foreign
environments. International
human resource managers must
assist subsidiary management in
assessing the needs of host–
country workers and devise
training programs that enable
them to achieve their work
responsibilities.
 Charting Global Careers for Employees
 Many firms create career development
programs that provide high-potential
employees with opportunities to gain
experience both at headquarters and in the
firm’s operations around the world. They do
this because, as the firm generates an
increasing proportion of sales and earnings
from abroad, it needs globally experienced
employees capable of managing company
operations worldwide.

  This approach broadens the pool of global

talent for managerial positions and visibly
demonstrates top management’s commitment
to its global strategy.
Performance Appraisal & Compensation
Performance appraisal is a formal process for assessing how
effectively employees perform at their jobs.

 Performance evaluations Factors in International context

1. Problem of noncomparable outcomes
2. Incomplete flow of information
3. Affected by the maturity of foreign operations

Compensation is the combination of money and other

benefits (= rewards) that an employee receives for doing
their job.
 Four elements when developing compensation packages

1. Base remuneration or wages.

Cost of Living Index in
2. Benefits Various Cities, 2015
(Index scale: Vancouver,
3. Allowances
Canada = 100)
4. Incentives.
Benefits of a Diverse International Assignee Workforce

Easier Recruitment

Increased Profitability

Talent Retention

Improved Assignment
Success
Source: ECA International
Success Strategies for Women Managers in International
Business
How HR trains employees to be more inclusive in a global
environment