INTERNATIONAL HUMAN RESOURCE MANAGEMENT

• NTA UGC NET MANAGEMENT
  INTERNATIONAL HUMAN RESOURCE MANAGEMENT
• INTRODUCTION AND MEANING

• WITH THE GLOBALIZATION OF THE BUSINESS,NATIONAL LABOUR MARKETS ARE BECOMING INCREASINGLY INTERDEPENDENT. MAINTAINING OR IMPROVING ON EMPLOYMENT AND QUALITY IS A PARTICULAR REQUIRES THAT ITS HR MARKETS MUST BE RESPONSIVE NOT ONLY TO CHANGES RELATE TO DEVELOPMENT AND GROWTH WITH IN THE COUNTRY BUT ALSO TO CHANGING CONDITIONS WORLDWIDE.
• INTERNATIONAL BUSINESS MUST PROCURE,MOTIVATE,RETAIN AND EFFECTIVELY UTILIZE SERVICES OF PEOPLE BOTH AT THE CORPORATE OFFICE IN THE HOME COUNTRY AND PLANTS IN THE HOST COUNTRIES. THIS PROCESS OF PROCUREMENT,ALLOCATION,THE EFFECTIVE UTILIZATION OF HUMAN RESOURCES IN AN INTERNATIONAL BUSINESS IS CALLED INTERNATIONAL HUMAN RESOURCE MANAGEMENT.
• MODEL OF IHRM
• MORGAN HAS DEVELOPED A MODEL OF IHRM
• HE PRESENTED HR ON THREE DIMENSIONS
• THE BROAD HUMAN RESOURCES ACTIVITIES OF PROCUREMENT,ALLOCATION AND UTILIZATION
• THE NATIONAL OR CATEGORIES INVOLVED IN IHRM ACTIVITIES:-

1. THE HOST COUNTY WHERE A SUBSIDIARY MAY BE LOCATED
2. THE HOME COUNTRY WHERE THE FIRM IS HEAD QUARTERED
3. OTHER COUNTRIES THAT MAY BE THE SOURCE OF LABOUR,FINANCE AND OTHER INPUTS

• THE TRADE COUNTRIES OF THE EMPLOYEES OF AN INTERNATIONAL FIRM:-

1. HOST COUNTRY NATIONALS
2. PARENT COUNTRY NATIONALS
3. THIRD COUNTRY NATIONAL

• DEFINITION OF IHRM
• MORGAN DEFINED IHRM AS THE INTERPLAY AMONG THESE THREE DIMENSIONS HUMAN RESOURCES ACTIVITIES,TYPE OF EMPLOYEES AND COUNTRIES OF OPERATIONS.
• DEFINITION BY SCHULER AND HIS COLLEAGUES
• ACCORDING TO THEM STRATEGIC IHRM IS HUMAN RESOURCE MANAGEMENT ISSUES,FUNCTIONS,POLICIES AND PRACTICES THAT RESULT FROM THE STRATEGIC ACTIVITIES OF MULTINATIONAL ENTERPRISE AND THEIR IMPACT ON THE INTERNATIONAL CONCERNS AND GOALS OF THE ENTERPRISE.
• NEED OF IHRM

1. DUE TO GLOBALIZATION AND INCREASING NUMBER OF MNC AND THEIR INFLUENCE. MAJOR STRATEGIC COMPONENTS OF MNC HAVE A SIGNIFICANT EFFECT ON INTERNATIONAL MANAGEMENT ISSUES,FUNCTIONAL POLICES AND PRACTICES
2. INTERNATIONAL BUSINESS’S SUCCESS OR FAILURE DEPENDS ON THE EFFECTIVE UTILIZATION OF THE HUMAN RESOURCES
3. SHORTAGE OF INTERNATIONAL MANAGERS
4. SUCCESSFUL IMPLEMENTATION OF GLOBAL STRATEGIES REQUIRE ADEQUATE SUPPLY OF MANY INTERNATIONAL FIRMS

• DIFFERENCE BETWEEN DOMESTIC AND INTERNATIONAL HRM
• IHRM

1. SCOPE IS BROADER AND IT HAS TO ALSO CONSIDER HOST COUNTRIES LAW AND REGULATIONS.LANUGAES,INTERNATIONAL TAXATION,INTERNATIONAL ORIENTATION AND RELOCATION AND ADMINSTRATIVES FOR EXPATRIATES
2. BROADER PERSPECTIVE. HR ACTIVITIES HAS TO BE HANDLED FROM INTERNATIONAL ANGLE
3. HR DEPARTMENT NEEDS TO ENSURE THAT THE EXPARIATE EMPLOYEES UNDERSTAND ALL THE ARRANGEMENTS TO THEIR FOREIGN ASSIGNMENT
4. MORE EXPOSURE TO RISK

•  
• DHRM

1. NARROW
2. NARROE PERSPECTIVE. DOMESTIC ENVIRONMENT
3. DIFFERENCE BETWEEN DOMESTIC AND INTERNATIONAL HRM
4. INVOLVEMENT OF HR DEPARTMENT IN THE PERSONAL LIVES IS VERY LIMITED

5. IS LESS EXPOSED TO THE RISK

• EXPOSURE TO RISK

1. HIRING PRACTICES SHOULD BE CONSISTENT WITH HOST COUNTRY’S LAWS
2. RISK OF STRIKES AND LABOUR UNREST
3. UNIQUE RISK:

1. PHYSICAL SAFETY OF THE EMPLOYEE
2. EMERGENCY EVACUATION PROCEDURE IN VOLATILE ASSIGNMENT
3. RISK ASSOCIATED WITH WRONG SELECTIONS
4. SEIZURE OF MNC’S ASSETS IN A FOREIGN COUNTRY

• FACTORS MODERATING THE DIFFERENCE BETWEEN DOMESTIC AND INTERNATIONAL HRM

1. THE CULTURAL ENVIRONMENT
2. THE INDUSTRY WITH WHICH THE MNC SI PRIMARILY INVOLVED
3. THE EXTENT OF RELIANCE OF THE MULTINATIONAL ON ITS HOME COUNTRY DOMESTIC MARKET

• THE CULTURAL ENVIRONMENT
• A NATION’S CULTURE IS SHAPED BY HISTORICAL,GEOGRAPHICAL AND PHILOSOPHICAL FACTORS.IN MANAGEMENT STUDIES THE MANAGEMENT OF THE CULTURAL DIFFERENCE IS VERY IMPORTANT AS IT HELPS IN UNDERSTANDING THE MOTIVES AND BEHAVIORS OF THE THOSE WITH WHOM WE INTERACT
• AWARENESS OF CULTURAL DIFFERENCE IS VERY IMPORTANT FOR HR MANAGERS
• BROAD EMPLOYEE MANAGEMENT ISSUES

1. MANAGEMENT STYLE
2. AUTHORITY STRUCTURE
3. ORGANIZATION STRUCTURE
4. LEADERSHIP STYLE
5. EMPLOYEE RELATIONSHIP WITH THE COMPANY

• SPECIFIC HRM ISSUES

1. STAFFING POLICIES
2. RECRUITMENT AND SELECTION PROCESS
3. REMUNERATION
4. MOTIVATION
5. JOB EXPECTATION
6. TRAINING AND DEVELOPMENT
7. PERFORMANCE APPRAISAL
8. PROMOTION
9. RETIREMENT
10. INDUSTRY RELATION
11. FOREIGN ASSIGNMENT

• CULTURAL DIFFERENCE
• COPING WITH CULTURE DIFFERENCE AND RECOGNIZING HOW THESE DIFFERENCES ARE RELEVANT ARE A CONSTANT CHALLENGE FOR THE INTERNATIONAL FIRMS
• INDUSTRY TYPE
• WHAT IS THE NATURE OF THE ORGANIZATION
• ON ONE CONTINUUM IS GLOBAL INDUSTRY AND ON THE OTHER SIDE IS MULTI DOMESTIC INDUSTRY
• IF THE FIRM IS IN MULTI DOMESTIC INDUSTRY: THE ROLE OF HR DEPARTMENT WILL MOST LIKELY BE MORE DOMESTIC IN STRUCTURE AND ORIENTATION
• THE MAIN ROLE WOULD BE PROVIDE SUPPORTIVE TO PRIMARY ACTIVITIES
• BUT IS THE FIRM IS GLOBAL INDUSTRY THE HRM FUNCTION WILL BE STRUCTURES TO DELIVER THE INTERNATIONAL SUPPORT REQUIRED BY THE PRIMARY ACTIVITIES OF THE MULTINATIONAL
• FACTORS INFLUENCING THE IHRM
• FORCES FOR CHANGE:-

1. GLOBAL COMPETITION
2. GROWTH IN MERGERS AND ACQUISITIONS AND ALLIANCES
3. ORGANIZATIONAL RESTRUCTURING
4. ADVANCES IN TECHNOLOGY AND TELECOMMUNICATION

• REQUIREMENT FOR MULTINATIONAL MANAGEMENT:-

1. FLEXIBILITY
2. KNOWLEDGE SHARING
3. TRANSFER OF COMPETENCE
4. FACTORS INFLUENCING THE IHRM

• MANAGERIAL RESPONSES:

1. DEVELOPING GLOBAL MINDSET
2. INFORMAL CONTROL MECHANISM
3. HORIZONTAL COMMUNICATION
4. CROSS BORDER AND VIRTUAL TEAMS
5. INTERNATIONAL ASSIGNMENTS