Introduction International Human Resource Management

What is HRM?
Human resource management (HRM) is the strategic and coherent management of an organizations most valued assets the people working there who individually and collectively contribute to the achievement of the objectives of the business. Activities like :
Human Resource Planning Staffing(recruitment ,selection , placement) Performance Management Training and Development Compensation Industrial relations

Model of IHRM

IHRM
International HRM is the process of
Procuring Allocating Effectively utilizing human resources in multinational corporation , while balancing the integration and differentiation of HR activities in foreign location.

Countries

Types Of Employees
Parent country nationals (PCNs) are residents of the
international businesss home country who are transferred to one of its foreign operations Host country nationals (HCNs) are residents of the host country, and are the most common choice for midlevel and lower-level jobs. Employing HCNs is popular because they are already familiar with local laws, culture, and economic conditions Third country nationals (TCNs) are citizens of neither the firms home country nor of the host country. TCNs are most likely to employed in upper-level or technical positions

Difference Between Domestic and International HRM

An IHRM operates beyond national borders while domestic HRMs operate within the borders. IHRMs have more functions and are subject to more stringent international rules and are more exposed to a wider array of activities as opposed to domestic HRMs. In an IHRM, theres constant change for a broader set of perspectives. In an IHRM, theres more attention given to the associate or expatriate employees personal well-being. There are more risks involved in IHRM than in the domestic HRM.

Why International HRM

Mergers and Acquisitions

Mergers and acquisitions (abbreviated M&A) is an aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or new location, without creating a subsidiary, other child entity or using a joint venture. When one company takes over another and clearly established itself as the new owner, the purchase is called an acquisition. A merger happens when two firms, often of about the same size, agree to go forward as a single new company rather than remain separately owned and operated. This kind of action is more precisely referred to as a "merger of equals.

Joint venture
A contractual agreement joining together two or more parties for the purpose of executing a particular business undertaking. All parties agree to share in the profits and losses of the enterprise.

Wal-Mart
Wal-Mart Stores Inc. has been successful using its strategy of everyday low prices to attract customers. The idea of everyday low prices is to offer products at a cheaper rate than competitors on a consistent basis, rather than relying on sales. Wal-Mart is able to achieve this due to its large scale and efficient supply chain. They source products from cheap domestic suppliers and from low-wage foreign markets. This allows the company to sell their items at low prices and to profit off thin margins at a high volume.

Stages of Organization
Stage I: (Fire-Fighting Mentality) short-term focus Lack of clear direction and goals Shifting priorities Unclear policies and procedures Us vs. them attitude Blame and lack of ownership

Contd..
Stage II: Stability (Back to the Basics) Clarity of goals and direction Consistency in priorities Well-defined policies and procedures (technical and personnel) Agreement on roles and responsibilities Basic management processes rewarded and practiced (goal-setting, performance reviews, etc.)

Contd..
Stage III: High Performance (Outstanding, sustainable results) Clear statement of mission Well defined values which result in distinctive culture Respect for people that is a deeply ingrained part of culture Good communication and information sharing systems High involvement and empowerment of people Design (work flow, structure, systems) that supports mission and values

What is a Mission Statement?

A Mission statement: Defines the present state or purpose of an organization; Answers three questions about why an organization exists WHAT it does; WHO it does it for; and HOW it does what it does.

Vision Statement
A vision statement is sometimes called a picture of your company in the future but its so much more than that. Your vision statement is your inspiration, the framework for all your strategic planning. A vision statement may apply to an entire company or to a single division of that company. Whether for all or part of an organization, the vision statement answers the question, "Where do we want to go?"

Questions