IHRM Module 1ppt

8/2/2019 IHRM Module 1ppt

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IHRM- Module 1

*Introduction

*Difference between DHRM IHRM


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Introduction

Flat Globe- Govt liberalization, FDI invitationacross many countries in many sectors

Difficulty to survive in global competition.

Need to compete in the global playing field To understand how to compete globally

with global competitive advantage.

A Major portion on these firm being its ownemployees, the HR and HRM in the internationalsense has become a necessity


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3 (c) 2009 by Nelson Education Limited.

Defining HRMA Firm said to have a global competitive advantage

means having a effective HRM in the internationalcontext and quality HRM in the international sense

An organizations HRM refers to all those activitiesthat the firms HR does to effectively utilize its HR.

These activities include human resource planning

staffing (recruitment, selections, placement)

performance management

training and development compensation (remuneration) and benefits

industrial relations


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So what activities changes when HRM

goes International?

Lets Define IHRM.

In general IHRM is all about worldwide managementof Human Resources.(Brewster and Suutari)

Schuler and Tarique In the field of IHRM it isabout understanding, researching, applying n andrevising all HR activities in their internal and externalcontext- as they impact the process of managing HR

in Organization through out the global environmentto enhance the experience of the multiplestakeholders


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Simple words Definition

The purpose of IHRM is

to enable the firm to beglobally successful at a

global level.


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Morgons Word

According to P.V. Morgan: IHRM is the interplay between

1) All HR activities that are done2)The country /national categories involved (eg.

various host countries where subsidiary are located)

3)3 categories of employees of an internationalfirm(host country, parent country and third country)

Inter-relation among 3 dimensions:

HR Activities

Types of employees

Types of Countries of operations


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Nature of IHRM

HR ACTIVTIES DEVELOPMENTSTAFFING COMPENSTATION

TYPES OF NATIONALS

PARENT

HOST

THIRD

TYPES OF COUNTRY

PARENT

COUNTRY

HOST

COUNTRY

THIRD

COUNTRY


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A Typical model of IHRM


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Expatriates

Any International Assignments Create Expatriates.

Who/What are Expatriates?

An employee who is working and temporarilyresiding in a foreign country .some refer them as

international assignees. They are

PCNs transferred from parent country operations

HCNs transferred into parent country operations

TCNs transferred from other subsidiaries.


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Expatriates


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Differences Between Domestic HRM

and IHRM

It can be attributed to six factors1. More HR activities :

International

1. taxation2. relocation and orientation

3. expatriate administrative services

4. host government relations

5. language translation services

2. The need for a broader perspective:1. administering programs that are equitable for more than

one group.


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3. More involvement in employees personallives:

Ensure expatriates understand

1. housing arrangements2. Healthcare programmes

3. compensation (cost-of-living allowances, premiums, taxes)

4. visa requirements

5. Schooling

4. Changes in emphasis as the workforce mix

of expatriates and locals varies


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5. Risk exposure:

1. expatriate failure2. direct costs

3. indirect costs

4. militant activities

5. emergency evacuation

6. Broader external influences:1. government

2. economy

3. labour standards and costs

4. taxation

5. health and safety

6. laws, compliance regulations, codes of conduct


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IBUS 618 Dr. Yang 16

Forces for Change

Global competition

Growth in mergers, acquisitions and

alliances Organization restructuring

Advances in technology and

telecommunication


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Forces of Changes: What Impacts

it does on the firm?

It creates a need for increased flexibility ofoperations- domestically and internationally ina global view

Increased Local responsiveness in host ,parentand third countries respectively.

Create a platform of knowledge sharing andknowledge repositories-keeping technological

advantages in the host, third countries Transfer of competence for mutual benefit in

global as well as multi-domestic industry


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As a HR Manager what are Managerial

Responses/changes sought from you?

Developing a global mindset

More weighting on informal control

mechanisms in a multi-domestic industry Encouraging horizontal communication

Start Using cross-border and virtual teams

Using international assignments


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To survive and grow in global level


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New Terms

MNE

culture shock

HCN

PCN

TCN

NAFTA

UNCTAD

expatriateinpatriate

HRM

IHRM


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Multinational Enterprise (MNE)

a firm which owns or controls business

activities in more than one foreign country


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IHRM Module 1ppt

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Transcript of IHRM Module 1ppt