International

Human Resource Management

BIMS,
Rawalpindi
Discussion # 1
 Human Resource Management

Managerial function that tries to match an

organization’s needs to the skills and abilities of
its employees.

Or

HRM is involved with the management of

employees only in one country.
 Resource

Human Management
HRM
 Why HRM
• Helps you get results - through others.
• Helps you avoid common personnel mistakes
• Helps you to gain Competitive Advantage
 CHALLENGES OF HRM
• Job and Family Roles
• Lack of Skills
• Globalization
• Legislation
• Rapid Change
• Brain Drain
• Job insecurity
 Successful HRM

Good for…
• Organization
• Employee
• Society
 Managing Human Resources
Challenges?
• To attract
• To Develop
• To Motivate and
• To Keep talented people
HRM Practices
 Responsibilities of HR Departments
1. Employment and Recruiting
2. Training and Development
3. Compensation
4. Benefits
5. Employee Services
6. Employee and Community Relations
7. Personnel Records
8. Health and Safety
9. Strategic Planning

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 HRM can help manage…
• Productivity (increasing performance)
• Operations (cohesive linking)
• Relationships (between diff. levels of mgt / dept)
• Conflict (help handling conflict)
• Stress (managing stress)
• Reward systems (help motivate people)
Effective Effective
HRM Organization
 WHAT IS IHRM
Ihrm involves the management of employees in
the three nations i.e. the parent country, the
host country and third country.
or
Set of activities aimed managing organizational
human Resource at international level to
achieve organizational objectives and achieve
competitive advantage.
 DIFFERENCE BETWEEN HRM AND
IHRM
HRM IHRM
Does not deal with cultural differences as Deals to overcome multi cultural
majority of the employees belong to the differences.
same community.
The Perspective is narrow. Broader range of perspective.
Only affected by internal factors Affected by both internal and external
factors.
It consider the laws prevailing in the It consider the global laws prevailing
country. across the world.
People from same culture works together. People from different cultures work
together.
Minimum risk is involved. High Risk involved eg Crises, Terrorism
 Types of Employees related to
IHRM
 PARENT COUNTRY NATIONAL: A parent-
country national is an employee working in a
country which is not the country where
his/her origin is based also known as
expatriate.
 HOST COUNTRY NATIONAL: These employees
of an organization are the citizen of the
country in which the foreign subsidiary is
located.
THIRD COUNTRY NATIONAL: These are the
citizen of a country other than the country
where the organization is headquartered.

Nationality is the major factor to determine the

person category.
For example IBM US multinational employs
Australian citizen in its Australian operations
(HCN’s) often send US citizens (PCN’s) to Asia-
Pacific countries on assignment and may send
some of its Singaporian employees on an
assignment to its Japanese operations as (TCN’s)
A Framework Model of
IHRM

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 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 (activities to fill present and
future vacancies of organization)
– Allocation
– Utilization of human resources

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 NATIONAL OR COUNTRY
CATEGORIES INVOLVED IN IHRM
• HOST COUNTRY: where a subsidiary may be
located.

• HOME COUNTRY: where the firm is

headquartered

• OTHER COUNTRIES: that might be the source

of labour, finance and other inputs.