IHRM

International human resource management is all about the world wide management of human
resources Process of sourcing, allocating, and effectively utilising their skill, knowledge, ideas,
plan and perspective in responding to TQM.

2.EXPERTIATION
IHRM Department is purely heterogeneous in nature because it deals the diverse cultures i.e.
amalgamation of Global Workforce. (PCN, HCN and TCN). What types of people required
where or which unit it is depends on the following points:
Availability of useful human resources
Economic Justification / cost effectiveness
Employee motivation and performance
Global exposure for need of the organization
Development of Cross cultural Management
Brand Loyalty or International fame.

3. CALTURAL DIG

4.RESON FOR FILURE EXP

Expatriate failure and causes
Spouse dissatisfaction
Inability to adapt
Difficulties with family adjustment in the new location
Difficulties associated with different management styles
Culture and language difficulties
Issues associated with the accompanying partners career development

5.
Employees of soft assets mismatch: Policy areas
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Staffing policy : Internal manpower based vs external manpower based

Developmental system
Organization structure
Pay scale and compensation system
Benefits package
Job allocation policy
Performance appraisal system
Union management relations and agreement

Repatriation
Repatriation means return to ones home country from an overseas management assignment. Few
expatriates remain overseas for the duration of their stay with the firm. Typically, on completion
of the foreign assignment, the multinational brings the expatriate back to the home country,
although it should be noted that not all international assignments end with a transfer home:
rather, the expatriate is reassigned to another international post.
Re-entry and career issues
Re-entry Reverse cultural shock or re-entry shock
Outsourcing
Outsourcing indicates sourcing of work from third party service providers or manufacturers for
support services or components with a view to focus on core competency or to reduce the cost.
HR outsorcing indicates the sourcing of HR activities like the recruitment, training and other
routine administrative activities process to the outside management consultants so as to make the
HR executives of the organisation concentrate and engage more in the strategic participation.

Principles for building multicultural organizations

1. Heterogeneity
2.People as individuals and as group members
3. Shared responsibility
4. Problem definition
5. Problem analysis
6. Self-interest
7. Accountability

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1.International HRM approaches

There are mainly four IHRM approaches. These include ethnocentric approach,
polycentric approach, geocentric approach, and regiocentric approach (Wall et al,
2010).
The suitability of the type of staffing policy adopted by MNEs depends on the
strategy used by the company.

Ethnocentric approach
In the ethnocentric approach, all key positions in the host country subsidiary are filled by
nationals of the parent company. The policy makes most sense for firms pursuing an
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international strategy.
An ethnocentric staffing policy is attractive when

the firm believes there is a lack of qualified individuals in the host country to fill
senior management positions
the firm sees an ethnocentric staffing policy as the best way to maintain a
unified corporate culture
the firm wants to transfer knowledge of core competencies to the foreign
operation

The ethnocentric approach to staffing is falling out of favor because

1

it limits the advancement of host country nationals. This can lead to

resentment, lower productivity, and increased turnover
2
it can lead to cultural myopia (the firms failure to understand host-country
cultural differences that require different approaches to marketing and
management)
Polycentric approach
Polycentric approaches to staffing policy emphasis on recruiting host country
nationals to manage the subsidiaries in their own country. This means that host
country nationals are recruited to manage subsidiaries in their own country, while
parent country nationals occupy the key positions at corporate headquarters. This
allows the MNE to take lower profile in sensitive economic and political situations
and helps to avoid intercultural management problems.
This approach minimizes the dangers of cultural myopia, but it also helps create a gap
between home and host country operations. The polycentric policy is best suited to firms
pursuing a localization strategy.
The advantages of the polycentric policy are that
1
2

the firm is less likely to suffer from cultural myopia

it may be less expensive to implement

The disadvantages of the polycentric policy are that

host country nationals have few opportunities to gain foreign experience and so cannot
progress beyond senior positions in their own subsidiaries
a gap can form between host country managers and parent country managers
Geocentric approach
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This approach utilizes the best people for all key jobs throughout the organization,
whatever their nationality or whatever the geographical location of the post to be
filled. In this way an international executive team can be developed.
This approach is consistent with building a strong unifying culture and informal
management network. It makes sense for firms pursuing either a global or transnational
strategy to adopt geocentric staffing policies. However immigration policies of national
governments may limit the ability of a firm to pursue geocentric staffing policy.
The advantages of a geocentric approach to staffing are that it

enables the firm to make the best use of its human resources
builds a cadre of international executives who feel at home working in a
number of different cultures

The disadvantages of geocentric approach include

1
2

difficulties with immigration laws

costs associated with implementing the strategy

Regiocentric approach
Here the MNE divides its operations into geographic regions and moves staff within a
particular region. Examples include Europe, America, Asia rather than between regions.

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