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7/25/2019 International Human Resource Management.ppt
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International Human
Resource Management
A presentation by
Mr. Indranil Mutsuddi
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What is IHRM?
IHRM is the process of employing and developing people
in the international organizations.
It involves managing human resources woring acrossnational boundaries
It involves formulating ! implementing activities
concerned with the Resourcing" #evelopment " $areermanagement and Remuneration strategies" policies and
practices which can be applied to an international
worforce.
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%ome Important &erms used in IHRM
'$(s or 'arent $ountry (ationals
H$(s or Host $ountry (ationals
&$(s or &hird $ountry (ationals)*patriates
Repatriates
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Figure : International assignments create expatriates
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Figure: Expatriation includes repatriation
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Figure The repatriation process
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#ifferences between domestic and
international HRM
More HR activities&he need for a broader perspective
More involvement in employees, personallives$hanges in emphasis as the worforce
mi* of e*patriates and locals varies
Ris e*posureroader e*ternal influences
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More HR activities
International ta*ation
International relocation and orientation
Administrative services for e*patriatesHost/government relations
0anguage translation service
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&he need for a broader perspective
1ace problems of designing and
administering programs for more than one
national group of employees" need to tae
a broader view of issues.
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Figure 1: Inter-relationships between approaches in the field
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Figure : A model of IHR
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$hallenges of IHRM
Managing the comple*ity involving 2Worforce Mi*3
Managing #iversity
Managing people globally ! maintaining effective
communications at the organizational level. Resourcing International 4perations with people with the
right caliber ! talent.
'reparing e*ecutives for foreign assignments
%upport ! training for e*patriates. More involvement with the personal lives ! the well
being of the employees.
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International HR activities
Human resource planning at International 0evel
International Resourcing activity5
Recruitment %election 'lacement
International &raining and development
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International HR activities
International
$ompensation
6remuneration7
and benefits
Industrial
relations at the
International
level
Figure : !tages of
internationali"ation
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Figure : #in$ing operation mode and HR
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Figure : %ariables that moderate differences between domestic and
international HR
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Figure : Factors influencing the global wor$ en&ironment
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Impacts on multinational
management in HR activities
(eed for fle*ibility
0ocal responsiveness
8nowledge sharing&ransfer of competence
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Managerial responses
#eveloping a global +mindset,
More weighting on informal control
mechanisms
1ostering horizontal communication
9sing cross/border and virtual teams
9sing international assignments
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&ypes of IHR %taffing 'olicy
Ethnocentric
Key management
positions filled byparent-countrynationals
Polycentric
Host-countrynationals manage
subsidiaries,parent companynationals hold key
Headquarterpositions
Geocentric
Seek best
people, regardlessof nationality
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)thnocentric Approach
%trategic decisions are made at
head:uarters
0imited subsidiary autonomy
8ey positions in domestic and foreign
operations are held by head:uarters,
personnel; '$(s manage subsidiaries
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'olycentric Approach
)ach subsidiary is a distinct national entity
with some decision/maing autonomy
H$(s manage subsidiaries who are
seldom promoted to H- positions
'$(s rarely transferred to subsidiary
positions
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<eocentric Approach
A global approach / worldwide integration
=iew that each part of the organization
maes a uni:ue contribution
(ationality ignored in favour of ability5 est person for the >ob
$olour of passport does not matter when it
comes to rewards" promotion and development
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Regiocentric Approach
Reflects a regional strategy and structure
Regional autonomy in decision maing
%taff move within the designated region"rather than globally %taff transfers between regions are rare
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Figure: 'eterminants of IHR approaches and acti&ities
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Figure: The phases of cultural ad(ustment
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Retaining local staff
&he parado* +e*pense of cheap labour,
'oaching of ey subsidiary staff
Access to silled labour as important asunit cost 6eg. attraction of India for the I&
industry7
&he amount and :uality of training is animportant consideration
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#eveloping staff
Investing in human capital
'roviding training and career development
can assist in retaining good local staff
A fair environment and good management
practices play an important role in
countries such as $hina
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Retrenching staff
&he reverse of the employment +coin,
%trategic decisions regarding foreign
operations have HR implications" including
retrenchment
(ot confined to subsidiary operations but
may affect home base / eg. transferring
call centres from 98 and 9% to India
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HR implications of language
standardization
Adopting a common corporate language
puts pressure on employees to become
competent in the corporate language
Affects 'romotion
Ability to attend corporate programs and
meetings Availability for international assignments
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HR,s role
#rawing up and reviewing codes of conduct$onducting a cost/benefit analysis to >ustify an
e*patriate as a monitor $hampioning local operators as monitorseing a member of the team who conducts
periodic +checing, visits4verseeing e*ternal monitors and auditors where
used$hecing rewards and performance systems tae
compliance into consideration
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