INTERNATIONAL HRM & LABOR RELATIONS

Presented bySimran KaurMBA 2nd year

IGICM

INTERNATIONAL HRM

• Ascertains the corporate strategy of the company and assessing the corresponding human resource needs• Determines recruitment, staffing and organizational strategy;

recruiting, training and developing and motivating the personnel; putting in place the performance appraisal and compensation plans and industrial relations strategy

FACTORS AFFECTING INTERNATIONAL HRM

• Differences in labor market relations• Cultural differences• Differences in regulatory environment• Attitude towards employment• Differences in conditions of employment

STAFFING POLICY

• Strategic role of HRM is complex, where staffing, management development, performance evaluation, and compensation activities are complicated by profound differences between countries in labor markets, culture, legal systems, economic systems, and the like: Charles W.L.Hill

STAFFING POLICY DETERMINANTS

• Cultural dimension• Subsidiary characteristics• Parent company characteristics• Host country characteristics• Costs

ETHOCENTRIC APPROACH

• All key management positions are filled by home country nationals• Appropriate where organization mode is international• Widespread among American and European countries• Today, it is adopted by companies such as Toyota, Matsushita

and Samsung

MERITS OF ETHOCENTRIC APPROACH

• Helps maintain unified corporate culture throughout the organization• Appropriate when competent people are not available in host

country• Preferred where internationalization of exclusive resources or

close control over core competencies required

DEMERITS OF ETHOCENTRIC APPROACH

• Ignores local capabilities• Limits career advancement opportunities• HRM cost tends to be high• May lead to cultural myopia• Company may be looked at as an alien by nationals

POLYCENTRIC APPROACH

• Recruits host country nationals• Managing subsidiaries• Key positions at headquarters occupied by parent country

nationals• Appropriate for multinational corporations

MERITS OF POLYCENTRIC APPROACH

• Local people know conditions better• Helps reduce HRM cost• Alleviates cultural myopia• Helps to get local support for the company• Growth opportunities contribute to morale

DEMERITS OF POLYCENTRIC APPROACH

• Lack of availability of nationals with skill and communication capabilities could be a problem• Cultural integration may be challenging• Limited career advancement opportunities• Emotional bondages are not effective

GEOCENTRIC APPROACH

• Seeking best people from anywhere in the world• Appropriate for global and transnational corporations

MERITS OF GEOCENTRIC APPROACH

• Globally best talents• Global mindset of managers• Career opportunities• Helps easy to transfer competencies across the organization

DEMERITS OF GEOCENTRIC APPROACH

• Cultural integration• HRM costs tend to be high

LABOUR RELATIONS

• Process through which management and workers identify and determine job relations that will be in at the effect of workplace• Specific approaches to labour relations varies from one

country to other

FACTORS AFFECTING LABOUR RELATIONS

• Industrial democracy• Social policy• Globalization• Demographic challenges• Culture• Educational attainment • Legal challenges

TRADE UNIONS• Membership-based organization• Continuous association of wage earners for the purpose of

maintaining or improving the conditions of their employment• Australian Bureau of Statistics states that a trade union is "an

organization consisting predominantly of employees, the principal activities of which include the negotiation of rates of pay and conditions of employment for its members.”

REASONS OF WORKERS JOINING TRADE UNIONS

• Economic needs• Social needs• Social welfare• Political reasons

OBJECTIVES OF TRADE UNIONS

• Equitable wage benefits• Ensure healthy and safe environment• Promote job security• Provide legal and other support to its members• Provide political assistance

THANK YOU!!!