Introduction to

International Human
Resource Management

Pre se n te d b y: A sh ish Pa n d e y
( GNITCM , Roll No . 09 )
 Definition of Human Resource
Management

 Human Resource Management (HRM)

involves all management decisions and
practices that directly affect the people
who work for the organization.


“Human Resources” the people who work

for the organization.
organization

Human Resource Management
 Human Resource Management (HRM)
refers to those activities undertaken by
an organization to utilize its human
resources effectively.
§
§ Major Functions and Activities
 Human resource planning
 Staffing
 Recruitment
Selection
Placement
 Performance appraisal
 Training and development
 Compensation and benefits
 Industrial relations

 Why International Human
Resource Management?
üIncreasing globalization, firms and
employees in them moving all over
the world.
üMajor problems in international
operations because of human
resource management blunders
üHence need to understand human
resource management in a global
perspective

 Why International Human
Resource Management?
üThe role of HR in International

Operations

üManaging a Multicultural Workforce

üDeveloping Managerial Talent in a Global

Business Environment

 Three Approaches to IHRM
 Cross-cultural management
Ø Examine human behavior within organizations
from an international perspective
 Comparative HRM and Industrial
Relations
Ø Seeks to describe, compare and analyze HRM
systems and IR in different countries
 HRM in multinational firms
Ø Explore how HRM is practiced in
multinationals
 Basic Terms in IHRM
 National or Country Categories
 Host Country where subsidiary is located

 Home Country where the firm headquartered

 ‘Other’ Country

•
 Employees of an International Firm
 Host Country Nationals (HCN)

 Parent Country Nationals (PCN)

 Third Country Nationals (TCN)

 Expatriates
A Model of IHRM
Differences between

HRM & IHRM

DOMESTIC HRM
Employees are within one national boundary.
Employees may be grouped on region or zone-wise for Employees are categorized as HCN, PCN and TCN for
convenience of regional language and food habits.
Routine work pattern.
Not much variation or differences in compensation.
Communication is normal.
No administrative support required.
Organizations do not normally care about children
schooling, arranging medical facilities.
Locals can take care of themselves in unusual and
difficult situations.
Public relations work taken care by employees
themselves.
INTERNATIONAL HRM
Employees are from different countries.
convenience of language, socio-cultural and food habits.
Needs constant attention on adjustment matters in living
conditions and work ethics.
The compensation package need to be re-designed based
on taxation matters and parity of emoluments with
equivalents in the organization.
Language translator may be required for better
communication.
Administrative support required for visa, driving license,
currency transfer, banking services, etc.
HR department needs to bother about housing,
entertainment, communication of foreign nationals.
HR department to be extra careful of foreign nationals in
case of terrorism, natural calamities, epidemics and
ethnic agitations
Administrative support felt necessary to get school
admissions for employee’s children. Similarly the
medical services to be provided.
VARIABLES THAT MODERATE
DIFFERENCES BETWEEN
DOMESTIC HR
AND
INTERNATIONAL HRM
Enduring Context of
IHRM
 Conclusion
As in present scenario the
globalization is on top of its level and
world has became a global village.
So managing such a diverse
workforce is a big deal for the
organizations that’s why the MNCs
have focused on the IHRM and
studying this concept is very
important for the Management
Students.
Feel free for any
query
&
Thank You!