International Personnel Management

7/30/2019 International Personnel Management

1/16

International Personnel ManagementMHRDM V 2011-14

Session 1

Facilitated by

Prof Tanvi Lathia

K J Somaiya Institute of Management Studies and Research


2/16

Contents

Introduction and Overview

Present International Context

Concept of International HRM

Challenges for IHRM

Why Study IHRM

Difference between IHRM and HRM

Case Study Discussion


3/16

Introduction

International assignments expected to increase in

2013

Global induction

Glocalization

Obstacles to working overseas

Companies fail to train managers for overseas

assignments

Outsourcing and leasing


4/16

Present Context

Globalization

The trend toward opening up foreign markets to international trade andinvestment.

Impact of Globalization

Partnerships with foreign firms

Communication and connectivity have made the world smaller

There is a better understanding of foreign opportunities leading toincreased trade and businesses operating across national borders

Lower trade and tariff barriers (economies around the world are betterintegrated)

NAFTA, EU, APEC trade agreements

WTO and GATT Anything, anywhere, anytime markets


5/16

Present ContextContaining Costs

Downsizing

The planned elimination of jobs (head count).

Outsourcing

Contracting outside the organization to have work done that

formerly was done by internal employees.

Employee Leasing

The process of dismissing employees who are then hired by

a leasing company (which handles all HR-related activities)

and contracting with that company to lease back the

employees.


6/16

Present ContextConvergence and Divergence

Convergence

MNCs, food habits, fashion, travel, media

Divergence

Customer preferences, cultural orientation, religion,language


7/16

Going Global - Impact on HRM

Different cultures, laws, and business practices

Issues:

Identifying capable expatriate managers.

training programs suited for working in foreign culture and

work practice. Adjusting compensation plans for overseas work.


8/16

Going Global - Impact on HRM

Attitudes Toward Work and Family

Day care

Flextime

Job sharing

Alternative work schedules Elder care

Job rotation

Parental leave

Telecommuting


9/16

Functions of HRM

Based on a notion that people are a key resource, competitive

advantage.

Deals with personnel functions

Has now assumed a strategic role


10/16

Concept of International HRM (IHRM)

IHRM is HRM issues, functions, policies, and practices that

result from the strategic activities of multinational enterprises

and that impact on the international concerns and goals of those

enterprises

(Schuler et al.,1993)

Covers the entire gamut of HR operations in the international

context


11/16

Concept of International HRM (IHRM)

Includes

Global careers

Global communication

Global business leadership

Global compensation and benefits

Global diversityGlobal training and development

Global industrial relations

Global safety and security

Global talent management

Global hiring

Global induction

Global ethics and sustainability


12/16

Challenges for IHRM

Coordinating various functions (planning, marketing,

accounting, HR ) with the parent company and enabling the

companys overall strategy

Building a global culture to encourage global mindsets and

attitudes to cope with global customers and global transactions

Developing the managerial leadership and structure to support

global strategies and operations

Gaining management interest and involvement in HRM

processes


13/16

Challenges for IHRM

Developing technical and managerial skills (talent) to work

effectively at the global level

Ensuring global and local approaches to T&D, succession

planning, and improved performance

Ensuring quality professionals to serve global customers


14/16

Why study IHRM?

To understand how to make HR effective in the MNCs

Effective management of HRM internationally is increasingly being

recognized as a major determinant of success or failure in international

business

Shortage of good international HR managers

Business failure in the international arena may often be linked to poor

management of HR (Expatriate failure)

Work force multicultural and geographically dispersed

HR should support the rapid pace of internationalization of companies and

enhance and maintain their competitiveness in the market place.


15/16

Difference between HRM and IHRM

More involvement in employees personal lives

Types of employees

Cross cultural sensitivity

Labor relations and employment laws of different countries

Compensation and taxation norms High risk exposure (medical, health, terrorism)

Different government policies and norms


16/16

Host Country Nationals (HCNs)

Parent Country Nationals (PCNs)

Third Country Nationals (TCNs)

Procure Allocate Utilize

Type of employees

HR ActivitiesA Model of IHRM

International Personnel Management

Documents

Transcript of International Personnel Management