Session2-Hrm vs Ihrm

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    HRM Versus International Human Resource

    Management

    Distinction between HRM & IHRM

    Dr. Shekhar

    9868729476

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    Questions for discussion

    What is Human resource management?

    Why it is important for all managers?

    What are the objectives of HRM? What is the impact of environment forces on

    functioning of HR department?

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    Recap

    Human resource (HR) management refers to the practices and policies

    you need to carry out the personnel aspects of your management job,

    specifically, acquiring, training, appraising, rewarding, and providing a safe

    and fair environment for your companys employees

    HRM objectives are four fold

    Organizational objectives

    Functional objectives

    Personal objectives

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    Recap

    Environment is an important variable in HRM

    model

    Forces having bearing on HR department are: x erna orces

    Internal forces

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    Objectives of the session

    To understand the evolution of HRM

    To know the difference between personnel mgt. &

    human resource management

    human resource mgt.

    To learn about the approaches and models

    To know difference between human resourcemgt. & international human resource mgt.

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    Evolution of HRM 1920s to 1930s

    Development Status Beginning

    Outlook pragmatism

    ca italists

    Emphasis Statutory, welfare

    Status Clerical

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    1940s to 1960s

    Development Status Struggling for

    recognition

    Outlook Technical, le alistic

    Emphasis Introduction of

    techniques

    Status Administrative

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    1970s to 1980s

    Development Status Achieving sophistication

    Outlook Professional, legalistic,

    impersonal

    Emphasis Regulatory, conforming,

    imposition of standards

    on other functions

    Status Managerial

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    1990s

    Development Status Promising

    Outlook Philosophicalmp as s uman va ues

    productivity through

    people

    Status Executives

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    Personnel Versus HRM

    HRM is a broad concept. Personnel and

    human resource development are part of

    HRM

    orientation in comparison to HRM

    PM viewed labour as a tool where as HRM

    views people as an asset

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    International Human Resource Management

    International Human resource management is

    the management of the human resource of an

    organization in the context of international

    Complexity of managing people increases as

    company spreads its wings and becomes

    global

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    International Human Resource Management.. Contd

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    Three Approaches to IHRM

    Cross-cultural management

    Examine human behavior within organizations from aninternational perspective

    Comparative HRM and Industrial Relations

    Seeks to describe, compare and analyze HRM systems and

    HRM in multinational firms

    Explore how HRM is practiced in multinationals

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    Interrelationships between Approaches

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    What does IHRM add into the Traditional

    Framework of HRM?

    Types of employeesWithin and cross-cultural workforce diversity

    Coordination

    Communication

    Human resource activitiesProcurement

    Allocation

    Utilization of human resources

    Nation/country categories where firms expandand operateHost country

    Parent country

    Third country

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    A Model of IHRMFigure

    1-2

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    What is an expatriate?

    An employee who is working and

    temporarily residing in a foreign country

    Some firms prefer to use the termn erna ona ass gnees

    Expatriates are PCNs from the parent country

    operations, TCNs transferred to either HQ or

    another subsidiary, and HCNs transferred intothe parent country

    Global flow of human resources

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    International Assignments Create

    Expatriates:

    Figure

    1-3

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    Domestic HRM is done at national level and IHRM is done atinternational level.

    Domestic HRM is concerned with managingemployees belonging to one nation and IHRM is concerned withmanaging employees belonging to many nations (Homecountry, host country and third country employees)

    Differences between Domestic HRM and IHRM

    Domestic HRM is concerned with managing limited number ofHRM activities at national level and IHRM has concerned withmanaging additional activities such as expatriate management.

    Domestic HRM is less complicated due to less influence fromthe external environment. IHRM is very complicated as it isaffected heavily by external factors such as cultural distance andinstitutional factors.

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    Differences between Domestic HRM and IHRM.. Contd

    More HR activities

    The need for a broader perspective

    More involvement in employees personalves

    Changes in emphasis as the workforce mixof expatriates and locals varies

    Risk exposure

    Broader external influences

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    Variables that Moderate Differences

    between Domestic HR and IHRMFigure

    1-4

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    Summary

    Described evolution of HRM

    Discussed the difference between HRM andPersonnel management

    Talked about the concept of international human

    Described the difference between Internationalhuman resource management and HRM

    Shown advantages and disadvantages of havingHCNs, PCNs and TCNs

    Types of international staffing policies

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    THANKS