INTERNATIONAL HUMAN RESOURSE MANAGEMENT

INTERNATIONAL HUMAN RESOURCE MANAGEMENT

GROUP - 1

MEANING AND DEFINATION

• International Business must procure, motivate, retain and effectively utilize services of people both at the corporate office and at the foreign plant. The process of procuring, allocation, effectively utilizing human resources in an international business is called International Human Resources Management.

• IHRM can be defined as set of activities aimed managing organizational human resources at international level to achieve organizational objectives and achieve competitive advantage over competitors at national and international level.

Model of IHRM

Countries

Types of Employees

HR Activities

Host Country

Third Country Nationals

Procure

IHRM

Utilize

Alloca

te

Host C

ountry Nationals

Hom

e C

ount

ry

Nat

iona

ls

Third Country

Home

Count

ry

Characteristics of IHRM that differentiate IHRM from Domestic HRM

• More HR activities.• Need for a broader perspective.• More involvement In employee personal lives.• Changes in emphasis as the work force mix of expatriates

and locals vary.• Risk exposure.• More external influences.

Reasons for growing interest in IHRM

• Globalization of business leading to mobilization of resources.

• Effective management of human resources.• To minimize the risk of underperformance or failure in

overseas assignments.• Implementation of international strategies by competent

managerial personnel to man overseas assignments.• Movement from traditional hierarchical organizational

structures towards the network organization.• Plays significant role in implementing and control of

strategies in an international business.

Steps in IHRMHRP

Recruitment and selection

Training and Development

Performance Management

Remuneration

Repatriation

Employee Relations

Multi-Cultural Management

Cultural Differences in IHRM

• Language (e.g. spoken, written, body)• Different labour laws• Different political climate• Different stage(s) of technological advancement• Different values and attitudes e.g. time, achievement,

risk taking• Roles of religion e.g. sacred objects, prayer, taboos,

holidays, etc• Educational level attained• Social organizations e.g. social institutions, authority

structures, interest groups, status systems

Multicultural Management

Multiculturalism means that people from many cultures

interact regularly . Global firms are the repositories of

multiculturalism.

Multicultural management offers the following benefits:• Greater creativity and innovation.• Awareness about the need to maintain sensitivity in

dealing with foreign customers.• Possibilities of hiring the best talent.• Creating a ‘superorganisational culture’, using the best of

all cultures.• Evolving universally acceptable HR policies and

practices.

Benefits of Multiculturalism

• Greater creativity and innovation.• Awareness about the need to maintain sensitivity in

dealing with foreign customers.• Possibilities of hiring the best talent. • Creating a “superorganisational culture” using the best

of all the cultures.• Evolving universally acceptable HR policies and

practices.

Pressures of globalization

• Globalization is the system of interaction among the countries of the world in order to develop the global economy.

• Globalization involves technological, economic, political, and cultural exchanges made possible largely by advances in communication, transportation, and infrastructure.

• The advent of the era of globalization along with the advancements in information technology (IT) has transferred the world around us. It has brought to centre stage the importance of human resources, more than ever before.

CONTD…

• The pressures it poses on IHRM include: Remaining competitive throughout the world Efficient Locally Responsive Flexible and adaptive Capable to transforming learning across their globally

dispersed units.

Companies Adopting IHRM Approach

• AVON• General Electrics• Wipro• Reebok• Coco Cola• Honda• Toyota

AVON

• The company adopted the use of the internet so as to make its sales. This strategy enabled the company to venture into the international markets with ease.

• The IHRM, having noted the increasing international markets, increased its workforce to integrate diverse cultures. 

• This has earned the company a reputation for hiring employees from minority groups and cultures.

• . Training was also enhanced so as to ensure that the sales people have the right sales know how and sales knowledge to foster profits. IHRM has also adopted on job training sessions as well a regular leadership program aimed at ensuring that the company has the best and well trained workforce.

• The IRHM has also focused on hiring female executives to run the company. This assures the female consumers that the company does in deed have an understanding of their needs.