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HUMAN RESOURCE
MANAGEMENT
&
CHALLENGES TO HRM
Presented by:-
Nishant
Priyanka
Ankit
Hitesh
Kanishka
Sachin
HUMAN RESOURCE
MANAGEMENT
HRM is the process of acquiring, training,
appraising and compensating employees as well as
WHAT IS IHRM?
IHRM can be referred as set of activities aimed managing
organizational human resources at international level to
achieve organizational aims and to accomplish competitive
advantage over competitors at national and international
level.
According to Dessler IHRM is The human resource
management concepts and techniques employers use to
manage the human resource challenges of their international
operations.
OBJECTIVES OF IHRM
1. Create a local appeal without
compromising upon the global identity.
WHY IHRM???
Increasing globalization firms and employees in them moving all
over the world.
Major problems in international operations because of human
resource management.
The role of HR in International Operations.
Managing a Multicultural Workforce,
Developing Managerial Talent in a Global Business Environment.
FUNCTIONS OF IHRM
Recruitment
Dual Career
Groups
International
Industrial
Relations
Selection
Women in
International
Business
Trade Unions
Expatriates
Compensation
Participative
Management
Performance
Appraisal
Training and
Development
i.
ii.
iii.
iv.
v.
vi.
HR Strategy
Staffing
Performance Evaluation
Management Development
Compensation
Labour Relations, etc.
1. Ethnocentric Approach
2. Polycentric Approach
3. Geocentric Approach
Decentralized control.
Business Units in different countries have autonomy from home office,
like a local Co.
No standard forms or procedures.
Recruits host country nationals to manage subsidiaries, while parent
country nationals occupy key positions at corporate HQ.
Firm is less likely to suffer from cultural myopia.
Less expensive to implement.
Host country nationals have limited opportunities to gain experience
outside their own countries.
Gap due to language barriers, cultural differences may isolate corporate
HQ from foreign subsidiaries.
It seeks the best people for key jobs, throughout the organization,
regardless of nationality.
Hybrid of Ethnocentric and Polycentric approach.
Based on informed knowledge of home and host countries.
Enables firms to make best use of its HR.
Helps the firm to build a cadre of international executives, who feel at
home working in no. of countries.
Helps building a strong unifying corporate culture and informal
management network.
Reduces cultural myopia.
Enhance local responsiveness.
o
o
Inability of Spouse
to Adjust
Personality
Personal
Intentions
Family
Pressures
Why Expatriate
Assignments Fail
Inability to Cope
with Overseas
Responsibilities
Lack of
Cultural Skills
Realistic Previews
Careful Screening
Helping Expatriate
Assignments Succeed
Improved Orientation
HR activities
Types of employees
Country of operation
i.
ii.
iii.
a)
b)
c)
d)
iv.
v.
Base Salary in same range as base salary for similar position in home
country.
Foreign Services Premium extra pay to work outside country of
origin; offered as inducements to accept foreign postings;
compensates for living in an unfamiliar country.
Allowances
Hardship allowance difficult location, where basic amenities like
health care, schools, etc. are deficient.
Housing allowance to afford same quality of housing
Cost of living allowance to maintain std. of living
Education Allowance expatriates children receive same std. of
education as in home country
Taxation
Benefits medical, pension, etc.
Home-Based Pay
Pay based on an expatriates home countrys compensation practices
Balance-Sheet Approach
A compensation system designed to match the purchasing power in a
persons home country
Calculate base pay
Figure cost-of-living allowance (COLA)
Add incentive premiums
Add assistance programs
More HR activities.
The need for a broader perspective.
More involvement in employees' personal lives.
Changes in emphasis with variable mix of expatriates and
locals in workforce.
Risk exposure
More external influences.