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P.Morgan defines international human resource management (IHRM) as the interplay among
three dimensions- Human Resource attitude, types of employees and lastly the country of
operation. Broadly defined IHRM is the process of procuring, allocating, and effectively utilizing
human resources in a multinational corporation. If the MNC is simply exporting its products, with
only a few small offices in foreign locations, then the task of the international HR manager is
relatively simple. However, in global firms human resource managers must achieve two
somewhat conflicting strategic objectives. First, they must integrate human resource policies
and practices across a number of subsidiaries in different countries so that overall corporate
objectives can be achieved. At the same time, the approach to HRM must be sufficiently flexible
to allow for significant differences in the type of HR policies and practices that are most effective
in different business and cultural settings.
Specifically compared with domestic HRM, IHRM is more important as it (I)
encompasses more functions, (2) has more heterogeneous functions, 3) involves constantly
changing perspectives, (4) requires more involvement in employees¶ personal lives, (5) is
influenced by more external sources (6) involves a greater level of risk than typical domestic
HRM.
When compared with domestic human resource management, IHRM requires a much broader
perspective on even the most common HR activities because manpower moves across the
political borders and work globally. Generally global employees are known as 
   . There are various complexities of operating in different countries and employing
different national categories of employees. And such complexities can differentiate domestic
HRM from IHRM. Dowling argues that the complexity of IHRM can be attributed to many of
factors such as more HR attitude, the need for broader perspective, more involvement of
employee¶s personal lives, mixing of work force of various countries, risk exposure and broader
external factor influences.
To operate in Global environment , HR Department must engage in number of activities that
would not be necessary in domestic environ i.e. international taxation issues, international
relocation and orientation, administrative services of expatriates , host government relations and
language translation services etc. Host government relations represent a phenomenal activity
for IHRM particularly in third world nations where work permits and other important certificates
are easy to acquire with comparison to developed nations.
Training and development issues of IHRM are more complex than domestic HRM. It is difficult
to plan a training programme and schedule for the workforce of multinationals. People carry
various attitudes and values for training and development issues. In the present era, it is one of
the major challenges before IHRM.
A greater degree of involvement in employee¶s personal lives is also an important concern for
IHRM. It needs to ensure that expatriate understand housing arrangements, schooling facilities ,
health care, cost of living , compensation package, local tax system etc. of the nation where
they are going to take up an global assignment. Here the involvement and onus of IHRM
becomes much broader than domestic HRM.
As the foreign operations mature, the emphasis put on various human resource activities also
gets change. As the need for PCNs and TCNs declines, the more locally trained manpower
appear on the scene. And resources previously allocated for global staffing are transferred to
the activities of local staffing. Such change also poses challenge before IHRM to maintain
balance between mixed workforces in a MNC.
The human and financial consequences of failure in international arena are more severe than
domestic activities. The amount of risk involved in global ventures is much higher and complex
than domestic employment. The direct and indirect cost of maintaining global workforce is very
high. And the long presence of global terrorism also leaves impact over global staffing issues.
After 11 Sep 2001, many MNCs started allocating 1-2 % of their budget for the safety and
security of their global workforce. People are indisposed to work in disturbed areas even though
many avenues are available.
Some major external factors such as the type of government, the state of economy, political
stability, cultural and ethical issues, industrial relation and labour laws, unionism, working
culture, food, taxation, health and safety issues, amusement etc. of a nation is also an
important concern for IHRM. The workforce in developed nations is facilitated with more laurels
and comforts than in developing and third world nations. It also poses challenge before IRHM.
Global HR Manager must develop HR systems that are not only acceptable to the host country
but also compatible with company-wide systems being developed by his or her HQ-based
counterpart.

The competition is in cut throat phase all over the globe as the domestic business organs
started operating at international fronts. On the other hand mergers and acquisitions are hot
buns for the developing business houses. The acquisition of CORUS by TATA was a burning
topic for Indian business houses operating globally. Due to MoUs, M &As and strategic alliances
etc. business organs keep on changing their organizational structure. On the other hand
advances in technology and telecommunications also helping to create a global business milieu.
In such scenario, managing men at global front is definitely a significant issue.
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 April23, 2008 : October05, 2010
More About :Prbolems and Issues of International HrMgt-Challege Before Indian Mnc

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