You are on page 1of 17

“MANAGEMENT SEMINAR-07”

(Related to Finance, Marketing & Human Resources)

(ORGANIZED BY MANAGEMENT DEPARTMENT)

Subject :- Human Resource


Topic :- International Human Resource
Management
SUBMITTED BY:-

Mr. Amit Khan


BBA II YEAR
DTMCB
Contents
1. Meaning
2. Domestic Human Resource Management and
International Human Resource Management
Compared
3. Process of Management of International Human
Resource Management.
4. Model of International Human Resource
Management.
5. Features of Global Manager.
6. Different Human Resource Activities
7. 7 C's of International Human Resource
Management.
8. Example (COCA-COLA)
9. Conclusion
10. Thanks
Meaning
International Human resource management is the
management of human resources in an organization in
the context of international business.
Globalization of business has probably touched the
human resource management more severely than any
other functional department in an organization. A
human resource manager needs to give international
orientation to whatever activity he or she does;
 Employee hiring
 Training and development
 Remuneration
 Motivation
 Welfare
 Industrial relations etc.
Domestic Human Resource Management and
International Human Resource Management
Compared:

1. More Human Resources Activities

2. Need For Broader Perspective

3. More Involvement in Employee's Personal Lives

4. Changes in Emphasis

5. Risk Exposure

6. External Influence
Process of Management of International Human
Resource Management:

Remun- Repat- Employee


HRP R. & S. T & D P. M. eration riation Relations

ORGANIZATIONAL EFFECTIVENESS
HR PLANNING:
Six key issues in international HRP as follows:
1. Identifying top-management potential early.
2. Identifying critical success factors for future international managers.
3. Providing development opportunities.
4. Tracking and maintaining commitment to individuals in international career
paths.
5. Tying strategic business planning to and vice-versa.
6. Dealing with multiple business units while attempting to achieve globally and
regionally focused (example Europe or Asian) strategies.
RECRUITMENT AND SELECTION:- HUMAN RESOURCE PLANNING
having been done, the international Human resource manager must not
only select people with skills, but also employee’s who can mix with the
organization’s culture.
TRAINING AND DEVELOPMENT: After selection, the next step in
International Human Resource Management is to train and develop new
hires, particularly for those who are expected to be posted overseas.
an expatriate needs culture, training, language
training, and practical training.
Culture Training:
Host country’s culture
History
Politics
Economy
Religion
Social and Business practices.
Language Training: English is the primary language of international
businesses, and most expatriates from all the countries can converse in
English. Hence language is important.
Practical training: Practical training seeks to help the expatriate
manager and family feel “at home”. Training expatriates before their
departure to overseas assignment cannot be over emphasized.
PERFORMANCE MANAGEMENT: International Human Resource
Management is managing the performance of a firm’s various
international facilities. While recruitment, selection, and training and
development tend to focus on pre-assignment issues, performance
management looks at post assignment performance related issues.
REMUNERATION: Yet another activity that receives
considerable attention of the international Human
Resource manager is designing of attractive remuneration
packages for the expatriates.
REPATRIATION: Repatriation needs careful handling,
which has been realized lately. It has been the knowledge
pf practitioners and academics that re-entry into the home
country presets new challenge as the repatriate copes with
what has been termed re-entry shocked, or reverse culture
shock.
EMPLOYEE REALTIONS: The last component of
International Human Resource Management is labour or
employee relations is the degree to which organized labour
can limit the choices to integrate and consolidate its global
operations.
Model of International Human Resource Management:

Countries
Host Country

Co untry Natio
h ird na
ls
T
Procure

Hom
te
a
c
lo
A
IHRM

e C oun tr
onals

ilsU
e
t

yrt
n
T
H
A

C
ird
o
n h
R

ty
u

u
tive
s c

oC
t
Na

emo
yN

H
ry

a
nt

t
on

i
o u als
C
Host

Types of Employees
FEATURES OF GLOBAL MANAGER:

Listening & Coaching


Language Skills
Skills

A Successful Global Manager

Conflict Management
Flexibility
Skills
DIFFERENT HUMAN RESOURCE ACTIVITIES:

1. JOB ANALYSIS AND HUMAN RESOURCE PLANNING: Job analysis


should include the special responsibilities and competencies of an expatriate
and a global manager. Human resource planning becomes more complex as it
includes the additional dimension of cross country transfers.
2. PERFORMANCE APPRAISAL MANAGEMENT: The performance appraisal
system of an organization operating in different countries needs to be
designed and implemented with outmost care.
3. COMPENSATION MANAGEMENT: Currencies and their valuation are
different for different countries. How do we compensate employees who
work in different countries while abiding by the principle of equity? How do
we ensure that they all derive maximum tax benefits? What happens to an
employee’s pay when he or she goes to work in another country?
4. CAREER MANAGEMENT: Employees in a MNC desire more from the
company than those in a local firm in terms of career advancement. They
except better career development opportunities and better prospects
worldwide. It is the responsibility of the HUMAN RESOURCE department to
ensure that the career needs and expectations of the employee’s are
satisfied.
THE SEVEN C’S OF International Human Resource
Management:
1.Cosmopolitans: Human Resource Management in international
companies involves the employment of people who spend their
part of their time in another country.
2. Culture: The differences in cultural background across the
global and the problems of adapting management and
employment initiatives to avoid misunderstanding and
inefficiency should be understood.
3. Compensation: People expect to be paid and to have their
expenses reimbursed. Once their employment takes them
away from their national home base and out of their home
income tax situation, a whole range of issues have to be
addressed.
4. Communication: Writers on management can seldom resist
including a chapter on communication and personnel
specialists in international companies, who have to employ
methods that will overcome problems of culture, geography
Consultancy: A more unpredictable chapter is on the use
of consultancy, both as a bought- in service and as a
personal managerial role.
Competence: An international business has to be
developing the competence of a wider variety of people
and include skills that become necessary only when an
organization works across, cultural, political and
geographical boundaries.
Co-ordination – Through co-ordination, not different
types of divisional structure, but the formal and
informal methods whereby the different parts of the
business work together to create synergy.
EXAMPLE:
With the help of an example I am trying to explain the practical
approach of INTERNATIONAL HUMAN RESOURCE
MANAGEMENT.
COCA-COLA is one of the most successful multinational
enterprises. Its operations are running in about 200 countries and
80% of the income is derived from business that is outside of
parent country i.e. USA coca-cola has a global face but it has its
headquarters anywhere where the brand is present to give it local
advantage. Its philosophy can be best understood by the phrase
“think globally and act locally”.
COCA-COLA manages global operations through 25 operating
divisions that are organized under 6 regional groups i.e.
India
North America
Africa
Europe union
Middle east group
Pacific region
Due to this global image the corporate HUMAN RESOURCE
MANAGEMENT function is changed that form a bridge between various
divisions and groups into the coca-cola family. This change can be achieved
through different ways:-
Propagating the common human resource philosophy within the company.
By developing a group of internationally minded middle level executives for
future senior management responsibility.
The corporate HUMAN RESOURCE MANAGEMENT functions sets it
mission as a developing one & providing a underlying philosophy around local
business. The main philosophies were:
A common salary plan for its national operations
Compensation packages should be competitive with the best of local
companies
Adopt innovative and valuable HUMAN RESOURCE MANAGEMENT tools
from regions to regions to region.
Recruiting local people for operations
So coca-cola in human resource department had 500 high level
mangers involving in its global service programmed. These mangers are the
ones who have knowledge of their particular field plus knowledge of the
company. Coca-cola forms its stars for the operation by adding local personnel
to its. To quote one senior executive of coca-cola “we strive to have a limited
number of international people in the field because generally local people are
better equipped to do business at their home location”.
CONCLUSION:
INTERNATIONAL HUMAN RESOURCE
MANAGEMENT is the procedure of effectively utilizing
human resource, procuring them by allocating them.
According to their skills and region in an international
business. International Human Resource Management
concentrates the core human resource activities with
different types of employees in related countries for
operation. The emergence of International Human resource
management was the need of business because many
companies are expanding their business across the border.
People are required to manage an organization but there
people are need to be maintained for the better growth of
the company or organization.