INTERNATIONAL HRM

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 International HRM
 It is a process of employing and
developing people in international
organization

 It means working across national

boundaries to formulate and implement
strategic, polices and practices which can
be applied to an international workplace

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Interrelationships between
Approaches to the Field

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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

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The General Field of HR
 Major Functions and Activities
 Human resource planning
 Staffing
 Recruitment
 Selection
 Placement
 Performance management
 Training and development
 Compensation (remuneration) and benefits
 Industrial relations
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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
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IHRM

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Expatriate
 An employee who is working and temporarily
residing in a foreign country
 Some firms prefer to use the term “international
assignees”
 Expatriates are PCNs from the parent country
operations, TCNs transferred to either HQ or
another subsidiary, and HCNs transferred into
the parent country
 Global flow of HR

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International Assignments Create
Expatriates:

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Differences between Domestic HRM
and IHRM
 More HR activities
 The need for a broader perspective
 More involvement in employees’ personal
lives
 Changes in emphasis as the workforce mix of
expatriates and locals varies
 Risk exposure
 Broader external influences

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More HR Activities
 International taxation

 International relocation and orientation per-departure

training providing immigration and travel details
providing housing, shopping, medical care and
schooling information

 Detail of salary overseas

 Determination of various overseas allowances

More HR Activities
 How work permit can be obtained

 Compliance criteria for documentation

 How they deal with the Govt. official as

payment or payment in kind as dinner

 Language translation services for internal and

external correspondence is an additional
international activity for HR department
 The Need for Border Perspective
 HR manager working in a  International environment
domestic environment face the problem of
generally administer designing and
programs for single administering program for
national group of more than one national
employees who are  Base salary, Allowance,
covered by uniform benefits ,pension plan
compensation policy and and going rate approach
taxed by one national
Govt.
More Involvement in Employee’s
Personal Life
 Domestic setting the  In IHRM HR department
HR department’s much more involved in
involvement within an order to provide the
employee's family is level of support required
limited housing arrangement,
 Firm provide employee healthcare and all
insurance program or if aspects of the
a domestic transfer is compensation package
involved  Marriage certificate
Change in emphasis as workforce
mix of PCNs and HCNS
 Expatriate taxation, relocation and orientation
are transferred to activities such as local staff
selection, training and management
development

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Risk Exposure
 Expatriate failure : the premature return of an
expatriate from international assignment

 Political climate

 Terrorism

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Variables that Moderate Differences between
Domestic HR and IHRM

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Factors that Influence the Global
Work Environment

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Forces for Change
 Global competition
 Growth in mergers, acquisitions and
alliances
 Organization restructuring
 Advances in technology and
telecommunication

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Impacts on Multinational
Management
 Need for flexibility (think global and act local)
 Local responsiveness
 Knowledge sharing
 Transfer of competence

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Managerial Responses
 Developing a global “mindset”
 More weighting on informal control
mechanisms
 Fostering horizontal communication
 Using cross-border and virtual teams
 Using international assignments

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Conclusion
IHRM means working across national boundaries
to formulate and implement strategic, polices and
practices which can be applied to an international
workplace

IHRM focus on the current global work

environment, looking at forces for change,
requirement for MNE and managerial responses
that have implications for the way in which people
are being managed in multinationals

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Conclusion

 Differences between domestic HRM and IHRM –

looking at six factors:
 More HR activities
 Need for a broader perspective
 More involvement in employees’ personal lives
 Changes in emphasis as the workforce mix of
expatriates and locals varies,
 Risk exposure and
 More external influences

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