An Introduction
to International
Human
Resource
Management
Why International Human Resource
Management?
Increasing globalization, firms and
employees in them moving all over the
world.
Major problems in international operations
because of human resource management
blunders
Hence need to understand human
resource management in a global
perspective
1–2
Why International Human Resource
Management? (cont’d)
The role of HR in International Operations
Managing a Multicultural Workforce
Developing Managerial Talent in a Global
Business Environment
1–3
Three Approaches to IHRM
• Cross-cultural management
Examine human behavior within organizations
from an international perspective
• Comparative HRM and Industrial Relations
Seeks to describe, compare and analyze HRM
systems and IR in different countries
• HRM in multinational firms
Explore how HRM is practiced in multinationals
1–4
Interrelationships between
Approaches of IHRM
1–5
A Definition of Human Resource
Management
• Human Resource Management (HRM)
involves all management decisions and
practices that directly affect the people who
work for the organization.
• “Human Resources” the people who work
for the organization.
organization
1–6
The General Field of HR
Major Functions and Activities
– Human resource planning
– Staffing
• Recruitment
• Selection
• Placement
– Performance appraisal
– Training and development
– Compensation and benefits
– Industrial relations
1–7
Human Resource
Management Functions
• Planning for Organizations, Jobs, and
People
– The Strategic Management of Human
Resources
– Human Resource Planning
• Acquiring Human Resources
– Selection
– Recruitment
– Integration
1–8
Human Resource Management
Functions (cont’d)
• Building and Motivating Performance
– HR Development
– Performance Appraisal
– Compensation Systems
1–9
Human Resource Management
Functions (cont’d)
• Maintaining Human Resources
– Benefits
– Safety & Health
– Collective Bargaining
– Organizational Exit
– Employment transitions
• Multinational Human Resource
Management
1–10
Strategic Decisions and Their Implications
for Human Resource Management
1–11
Strategic Decisions and Their Implications for
Human Resource Management (cont’d)
1–12
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
– Allocation
– Utilization of human resources
• Nation/country categories where firms expand
and operate
– Host country
– Parent country
– Third country
1–13
A Model of IHRM
1–14
Some Terms Defined
• Host Country National (HCN): Belongs to
the Country where the subsidiary is located
• Parent Country National (PCN): Belongs to
the Country where the firm has its
headquarters
• Third Country Nationals (TCN): Belongs to
any other country and is employed by the
firm
1–15
Differences between Domestic HRM and IHRM
More HR activities: taxation, culture
orientation, administrative services
The need for a broader perspective : cater to
multiple needs
More involvement in employees’ personal
lives: adjustment, spouses, children
Changes in emphasis as the workforce mix of
expatriates and locals varies : fairness
Risk exposure: expatriate failure, terrorism
Broader external influences : government
regulations, ways of conduct
1–16
Differences between Domestic HRM
and IHRM: variables
• Complexity involved in operating in different
countries, varied nationalities of employees
• The different Cultural Environment
• The industry or industries with which the
MNC is involved
• Attitudes of Senior Management
• Extent of reliance of MNC on home country
domestic market
1–17
Factors that Influence the Global Work Environment
1–18
Approaches To International Human
Resource Management
• Ethnocentric: Highly centralized. HQ controls
PCNs dominate.
• Polycentric: Decentralized. Each subsidiary
has some degree of decision making
autonomy. HCNs manage subsidiaries.
• Geocentric: Ignores nationality in favor of
ability and competence needs in a worldwide
integrated business strategy.
1–19
Thank You
1–20
