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INTERNATIONAL HUMAN

RESOURCE
MANAGEMENT

TOPIC:
INTRODUCTION TO
HUMAN RESOURCE
MANAGEMENT
AND
INTERNATIONAL HUMAN
RESOURCE MANAGEMENT

Group Members

Mandeep Kaur (44)


Shefali (26)
Mani (69)

Introduction of HRM
Human resource management is
concerned with the human being in
an organization.
Human resource is the total
knowledge ,abilities ,skill , talents
and aptitudes of an organization's
workforce.

Definition

HRM is the process of management which


develops and manages the human
elements of an enterprise.

According to Flippo , Human Resource


Management is the planning , organizing ,
directing and controlling of the personal
function of an enterprise.

International Staffing:
Refers to the process of selecting
employees for staffing international
operations of an MNCs.
MNCs can be staffed using three different
sources.
(A) Home country or Parent Country
National(PCN)
(B) Host Country Nationals (HCN)
(C) Third Country Nationals (TCN)

Introduction of IHRM

Simple definition is the process of


managing people in international settings.
Scyllion (1995) defines IHRM as the HRM
issues and problems arising from the
internationalization of business and HRM
strategies ,policies and practices which
firms pursue in response to the
internationalization process.
IHRM is the management of HR in business
operations at least two nations.

Reasons

In recent years have seen a rapid


increase in global activity and global
competition. As the MNCs increase in
number and influence ,so, the role of
International HRM in those companies
grows in significance.
The effective management of human
resource internationally recognised as a
major determinant of success or failure
in international buisness.

Contd

Research evidence shows that:


Shortage of international managers is
becoming an increasing problem for
international firms.
Business failure in the international
arena may often be linked to poor
management of human resource end
Expatriate failure continue be a main
problem.

Types of international
organization

International corporations
Multinational corporations
Global corporations
Transnational corporations

International corporations

Domestic firms that builds on its


existing capabilities to penetrate
overseas market.

Example: Honda , general electric, P&G

Multinational corporations

MNCs have operating


units(subsidiaries) located in foreign
countries.
Subsidiaries functions as autonomous
units.
Example : shell, philips, xerox

Global corporations

Maintain control over its worldwide


operations(subsidiaries) through a
centralized office.
They treat the entire world as a single
market.
Example: Matushita

Transnational corporations

Provide autonomy to independent


country operation but bring this
operation together into an integrated
whole through networked structure.
They combines the local
responsiveness of an MNC and the
efficiency of a global corporation.
Example: ford& unilever.

Factors moderating the differences b/w domestic and


MNCs:

o
o

Legal and economic structure:


Domestic same laws
MNCs different laws
Custom and cultural differences.
Exchange Rate Risks:
Domestic No impact of currency rate
MNCs Currency, interest rate, taxation,
etc have impact on trade.
Workforce diversities.

IHRM activities

Ethocentric:
Foreign subsidiary has little autonomy.
All strategic decisions are made at the
head quarters.PCN staff key positions
at quarters as well as the foreign
subsidiary.
Polycentric:
Staffing foreign subsidiary of the firm
with HCN and headquarters consists of
PCN.

CONTD..

Geocentric:
Staff may be PCNs, HCNs or TCNs
ability and not nationality is the key to
staffing.
Regiocentric :
It allows interaction b/w executives
transferred to regional headquarter
from subsidiary in the regional.

Training and Development


of International HR:

When expatriates are unfamiliar with the


customs, culture and habits of the local
people, they often make critical mistake
which can be avoided by providing them
with proper training.

Training can be given in 3 ways:

CONTD..
PreDeparture
Training

Foreign
Assignment/
International
Assignment

Post
Departure
Training

Mainly in MNCs Pre- departure Training is the most important.

CONTD..

Pre- Departure Training:


Provided in parent country. It may be
of following types:
Sensitivity Training
Cultural Awareness Training
Language Training
Cross Cultural Training
Field Experience

CONTD..

Post Departure Training:


Repatriation Training is the most
important part in the post Departure
Training.
Repatriation Training is the process of
bringing an expatriate home after he/
she has completed the foreign
assignment.

Conclusion:
IHRM provides an organised
framework for developing and
managing people who are comfortable
with the strategic and operational
paradoxes embedded in international
organisation and who are capable of
managing cultural diversity.