Morgan’s IHRMMorgan’s IHRM

Host Country Nationals (HCNs)Host Country Nationals (HCNs)

Parent-Country Nationals (PCNs)Parent-Country Nationals (PCNs)

Third Country Nationals ( TCNs)Third Country Nationals ( TCNs)

Procure Allocate Utilize

Type of Employees

Host

Home

Other

Human Resource Activities

3 Dimensions3 Dimensions

1.1. HR Activities – ProcurmentHR Activities – Procurment AllocationAllocation UtilizationUtilization2.2. Country Classifications: HomeCountry Classifications: Home HostHost OtherOther3.3. Employees in Global Company: HCNsEmployees in Global Company: HCNs PCNsPCNs TCNsTCNs

Approaches to IHRMApproaches to IHRM

Ethnocentric Approach – Ethnocentric Approach – StandardizationStandardization

Polycentric Approach – Polycentric Approach – CustomizationCustomization

Geocentric Approach - OptimizationGeocentric Approach - Optimization

Features of IHRMFeatures of IHRM

Increased complexity of HR activitiesIncreased complexity of HR activitiesCultural Awareness and tolerenceCultural Awareness and tolerenceStronger relationship with employees Stronger relationship with employees

and their familiesand their familiesDifferent expectations and Different expectations and

requirements of employees across requirements of employees across culturescultures

Diluted risk on the business front and Diluted risk on the business front and increased risk on people frontincreased risk on people front

Features of a Global ManagerFeatures of a Global Manager

Listening & Coaching Skills

Conflict Management Skills

Language Skills

SensitivityCross Cultural Awareness

Social Intelligence

Emotional Stability

Flwexibility

A Successful Global Manager

Importance of IHRMImportance of IHRMFortune 500 requires Global leadersFortune 500 requires Global leaders Indian Companies competing with Indian Companies competing with

MNCsMNCs India in cutting edge in competitionIndia in cutting edge in competition Increase in FDI in IndiaIncrease in FDI in India Increased business means increasing Increased business means increasing

manpower especially in overseas basemanpower especially in overseas baseQualified persons in short fallQualified persons in short fallExpatriate executives facing problemsExpatriate executives facing problems

Forces affecting

IHRM National Culture

Economic Forces

Technology Changes

Labor ForcesCorporat

e Culture

Legal Forces

Market Forces

Political Forces

HR Policies Recruitment/Selection Compensation

Appraisal /T&D Motivation/Retentio

an

Different IHRM ActivitiesDifferent IHRM Activities

Job Analysis & HR PlanningJob Analysis & HR PlanningRecruitment & SelectionRecruitment & SelectionTraining & DevelopmentTraining & DevelopmentPerformance Appraisal ManagementPerformance Appraisal ManagementCompensation ManagementCompensation ManagementCareer Management & DevelopmentCareer Management & DevelopmentUnionism & IRUnionism & IRManaging Cross Cultural IssuesManaging Cross Cultural Issues

7 Cs of IHRM7 Cs of IHRM

1.1. Cosmopolitans – Cosmopolitans – Truly cosmopolitans Truly cosmopolitans ExpatriatesExpatriates Occasional parachutistsOccasional parachutists

2.2. CulturalCultural3.3. CompensationCompensation4.4. CommunicationCommunication5.5. ConsultancyConsultancy6.6. CompetencyCompetency7.7. CoordinationCoordination