International HRM

By:-
Isha Narula
MBA(PT)- 5th
0331914308
What Is International HRM?
HRM involves a wide range of activities right from
identifying the manpower requirements, identifying the
most appropriate sources, attracting the best talent
available from the most cost effective places, nurturing
and enhancing their skills to suit the organizational
needs, motivating them through an effective system of
compensation to perform optimally, and continuously
monitoring their performance with suitable reward-
rebuke mechanism.
The application of these principles and practices to
manage People in more than one country is termed as
IHRM.
Domestic Vs International HRM
Increased Functional Activities
Functional Heterogeneity
Increased Involvement in Employees
personal lives
Enhanced Risks
Increased Influence of External
Environment
Managing International Human
Resource Activities
Staffing
Recruitment and Selection
Expatriate Management
Training and Development
Performance Management
Compensation
Regulatory Framework
Staffing
Staffing refers to the process of determining the
organizations current and future human Resource
requirements to meet the organizational goals and taking
appropriate steps so as to fulfill those requirements.
Human Resource planning refers to the process of
forecasting supply and demand of the organization and
the action plan to meet Human Resource requirements.
International Companies need to assess their human
Resource requirements, assess availability of right type
of manpower, decide upon the right type of international
assignments.
Sources of Human Resource
Host Country Nationals
Parent country Nationals
Third Country Nationals
Expatriates
Inpatriates
Off-Shoring
Recruitment and Selection
Recruitment refers to the process by
which an organization attracts the most
competent people to apply for its job
opening.
Selection refers to the process by which
organizations fill their vacant positions.
Selection Criteria for International
Assignments
Technical and Managerial Competence
Ability to Perform under Cross Culture
Environments
Family Attitude towards International
assignments
Regulatory framework in host Country
Language
Selection Approaches
Ethnocentric Approach
Polycentric Approach
Geocentric Approach
Managing Expatriates
People working out of their home countries, also
known as Expatriates, form an integral part of a
firms international staffing strategies, especially
for higher management positions.
Besides identifying and recruiting right men for
international assignments, it is also very
important to provide them with a conducive
environment to get their optimum output.
Expatriate adjustment Process
Initial Euphoria
Cultural Shock
Adjustment
Re-entry
Training and Development
Training refers to process by which
employees acquire skills, knowledge and
abilities to perform both their current and
future assignments in the organization.
Training aims at altering behavior, attitude,
knowledge, and skills of personnel so as to
increase the performance of employees.
Types of the Training
Cultural Sensitization Programme
Preliminary Visit
Language Training
Practical Training
Performance Management
It refers to a process that enables the firm to evaluate the
performance of its personnel against pre-determined parameters for
their consistent improvements so as to achieve organizational goals.
It is important to facilitate administrative decisions related to
compensation, promotion or transfer etc.
In international context performance evaluation of Expatriates is a
great challenge.
Performance Appraisal become more complex due to possible
conflict between objective of MNEs headquarter and its subsidiary.
The volatility in international market also make it more complex.
Compensation
Compensation refers to the financial remuneration that employees receive
in exchange of their services rendered to organization. In international
context it includes:-
Basic Salary
Foreign Service Premium
Allowance
Hardship Allowance
Cost of living Allowance
Housing Allowance
Home Leave Allowance
Education Allowance
Relocation Allowance
Assistance for Tax Equalization
Other Benefits
Strategic Approaches to
international Compensation
Home Country Based Compensation
System
Host Country Based Compensation
System
Hybrid Compensation System
Regulatory Framework & Industrial
Relation
Regulatory Framework is to manage human
resource varies substantially across countries.
MNEs required to adhere various legislative
provisions under labour Law, Compensation and
Benefit Law, Individual Rights related to Civil
Rights, Immigration, Discrimination, and Sexual
Harassment at work place.