HRM Versus International Human Resource Management Distinction between HRM & IHRM

Dr. Shekhar 9868729476

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?

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 Societal objectives Organizational objectives Functional objectives Personal objectives

Recap
Environment is an important variable in HRM model Forces having bearing on HR department are:
External forces Internal forces

Objectives of the session

To understand the evolution of HRM To know the difference between personnel mgt. & human resource management To understand the concept of International human resource mgt. To learn about the approaches and models To know difference between human resource mgt. & international human resource mgt.

Evolution of HRM 1920s to 1930s

Development Status Beginning Outlook Emphasis Status pragmatism capitalists Statutory, welfare Clerical

1940s to 1960s
Development Status Struggling for recognition Outlook Technical, legalistic Emphasis Status Introduction of techniques Administrative

1970s to 1980s
Development Status Outlook Emphasis Achieving sophistication Professional, legalistic, impersonal Regulatory, conforming, imposition of standards on other functions Managerial

Status

1990s
Development Status Promising Outlook Emphasis Philosophical Human values productivity through people Executives

Status

Personnel Versus HRM

HRM is a broad concept. Personnel and human resource development are part of HRM PM has limited scope and an inverted orientation in comparison to HRM PM viewed labour as a tool where as HRM views people as an asset

International Human Resource Management International Human resource management is the management of the human resource of an organization in the context of international business Complexity of managing people increases as company spreads its wings and becomes global

International Human Resource Management.. Contd

Three Approaches to IHRM

Cross-cultural management Examine human behavior within organizations from an international perspective Comparative HRM and Industrial Relations Seeks to describe, compare and analyze HRM systems and IR in different countries HRM in multinational firms Explore how HRM is practiced in multinationals

Interrelationships between Approaches

What does IHRM add into the Traditional Framework of HRM?

Types of employees
Within and cross-cultural workforce diversity Coordination Communication

Human resource activities

Procurement Allocation Utilization of human resources

Nation/country categories where firms expand and operate

Host country Parent country Third country

Figure 1-2

A Model of IHRM

What is an expatriate?
An employee who is working and temporarily residing in a foreign country
Some firms prefer to use the term international assignees Expatriates are PCNs from the parent country operations, TCNs transferred to either HQ or another subsidiary, and HCNs transferred into the parent country

Global flow of human resources

Figure 1-3

International Assignments Create Expatriates:

Differences between Domestic HRM and IHRM

Domestic HRM is done at national level and IHRM is done at international level. Domestic HRM is concerned with managing employees belonging to one nation and IHRM is concerned with managing employees belonging to many nations (Home country, host country and third country employees) Domestic HRM is concerned with managing limited number of HRM activities at national level and IHRM has concerned with managing additional activities such as expatriate management. Domestic HRM is less complicated due to less influence from the external environment. IHRM is very complicated as it is affected heavily by external factors such as cultural distance and institutional factors.

Differences between Domestic HRM and IHRM.. Contd

More HR activities The need for a broader perspective More involvement in employees personal lives Changes in emphasis as the workforce mix of expatriates and locals varies Risk exposure Broader external influences

Figure 1-4

Variables that Moderate Differences between Domestic HR and IHRM

Summary
Described evolution of HRM Discussed the difference between HRM and Personnel management Talked about the concept of international human resource management Described the difference between International human resource management and HRM Shown advantages and disadvantages of having HCNs, PCNs and TCNs Types of international staffing policies

 THANKS