International Companies

It transports its business outside

home country.

Each of its operations is a replication

of the company's domestic
experience.

Structured geographically.

It involves subsidiary general

managers .
International human resource management is
concerned with the human resource problems of
multi-national firms in foreign subsidiaries with the
unfolding of HR issues that are associated with the
various stages of the internationalization process
-Boxall 1995

International HRM
 Objectives of IHRM

To reduce the risk of

international human
resource

To
manage To avoid
diversifies cultural
human risks
capital

To avoid regional
disparities
 Features of IHRM

IHRM involves employment of right people at

right job at right time, irrespective of geographic
locations.

It requires the development of long-term HR plan

to make sure of effective alignment of HR
strategies with corporate objectives.

Requires the development of a diversified range

of skills.
Differences between Domestic HR and IHRM
Cont…
Main challenges in IHRM
High failure rates
of expatriation
and repatriation
Language (e.g.
spoken, written, Deployment
body)

Knowledge and
International
innovation
ethics
dissemination

Talent
Barriers to
identification and
women
development
Cont…
Different
stage(s) of
technological
advancement

Different
political
climate

Different labor laws

 Key Issues in International HRM
Worldwide Human
Compensation
Resources Planning
• Recruiting and • Dealing with
Selection inflation and
• Expatriate unexpected changes
orientation and in exchange rates
training • Providing sufficient
• Repatriation pay to keep
• Performance individuals
appraisal • Should company pay
hardship allowance?
• Dissatisfaction with
cost of living
allowances
Key Issues in International HRM
Communication of HR
Benefits Planning Policies and Programs
Worldwide
• Developing equity • Treat communication
among employees as a continuous
• Several plans process
necessary for • Face-to-Face contact
different categories frequently
of personnel • Make policy manuals
brief and simple
• Be sensitive to needs
of receiver
• Send regular written
explanations of policy
changes
THANK YOU