CONCERNS IN INTERNATIONAL HRM

Presented By:Vijendra Singh Ramesh Kishan

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WHAT IHRM IS?

IHRM can be defined as set of activities aimed managing organizational human resources at international level to achieve organizational objectives and achieve competitive advantage over competitors at national and international level.
IHRM includes typical HRM functions such as recruitment, selection, training and development, performance appraisal and dismissal done at international level and additional activities such as global skills management, expatriate management and so on.
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MODUS OPERANDI

It revolves around creation and effective management of multicultural work teams that represent diversity in competencies, levels of experience and cultural and language backgrounds

WHY IHRM?
Global Competition. Growth in Mergers, Acquisitions and Alliances. Organization Restructuring. Advances in Technology and Telecommunication

DIMENSIONS
The three broad human resource activities of procurement, allocation, and utilization. The three national or country categories involved in international HRM activities: (1) the host-country where a subsidiary may be located, (2) the home-country where the firm is headquartered, and (3) "other" countries that may be the source of labor or finance.

The three types of employees of an international firm: (1) host-country nationals (HCNs), (2) parent-country nationals (PCNs), and (3) third-country nationals (TCNs).

MORGANS MODEL OF IHRM

Utilize

HR Activities

procure Home Country Allocate

IHRM

Types of Employees

Home Country

Home Country Home Country Countries of operation Host Country 6

Third Country

IHRM vs. HRM

INTERNATIONAL HRM
Operates at International level. Managing Employees belonging to many nations. Additional Activities including Expatriate Management etc. It is very complicated due to heavy influence of external factors. More involvement in employees personal lives. Special Training for expatriates so that they might not face unnecessary hassles in the alien socio cultural environment.

DOMESTIC HRM
Operates at National level. Managing employees belonging to one nation. Limited number of activities at national level. Less Complicated due to less influence of external environment. Not much involvement in employees personal lives. Special Training is not required for Socio Cultural adaptation.

ISSUES OF IHRM

Labour Migration Cultural Differences Global Staffing Expatriate Management International Recruitment Policy Compensation Lack of Key Skills etc.
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CULTURAL DIFFERENCES (HODGETTS & LUTHANS)

Language Dress and Appearance Food, Eating Habits and Perceptual Problems Time Consciousness Relationships Values and Norms Beliefs and Attitudes Mental processes and learning Work Habits and Practices
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COMPETITIVE ADVANTAGES

Advancement in the level of proficiency and knowledge. Improved Decision Making. Initiation and Evaluation. Company gains HR related Consultancy.

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