Prepared By: Aashi Noor

Muhammad
 HRM and IHRM

Human resource management (HRM) is the practice of managing

people within an organization in order to achieve maximum
productivity and success. Domestic HRM refers to the practice of
managing employees based in a single country, while international
HRM focuses on managing people from diverse countries and
cultures.
International Human Resources
Management
As companies expand across regions and countries, their human capital becomes
diversified. With that, the responsibilities of the international HRM (IHRM) have also
increased.
“The primary responsibility of an IHRM is to ensure that employees can cooperate in the
workplace despite their cultural differences and work towards the common company
goals”
▶ Unlike domestic HRM that is mainly concerned with local/national compliance, IHRM
largely focuses on monitoring international taxation laws, employment protocols,
language, work visas & permits, etc., for a global workforce. This is one of the crucial
differences between global vs. local HRM.
IHRM
Activities
▶ HR Planning
▶ International Recruitment and Selection Policy
▶ Training & Development
▶ Expatriate Remuneration
▶ Performance Appraisal of an Expatriate
▶ Repatriation
IHRM, The Three-Nation Model.

IHRM has to manage three tiers of employees

- Parent Country Nationals-PCN
- Host Country Nationals – HCN
- Third Country Nationals (TCN).
PCN (Parent-Country Nationals)

PCN (Parent-country nationals) are employees whose nationality is the same as that of the firm headquarters —
for example, a Pakistan employee of a Pakistan company who is working at a Chinese subsidiary.

Also known as expatriates, these employees might have to stay in the foreign country for projects or
assignments for a long time, approximately 4-5 years. In such cases of prolonged stay, the downside is that
employees might be considered “de-facto” workers in that country, meaning that its labor laws will apply to
them.
HCN & TCN (The Host Country)

▶ HCN: The host country has the subsidiary organization of the main firm. Employees of
the firm who are citizens of and work in the host country are called Host Country
Nationals.
▶ TCN: Sometimes, the company may get their labor force, finance, or research inputs
from countries other than the parent or the host countries. Such countries are known
as third countries. Often employees are recruited from these countries by a
government or a government-summoned private contractor.