Ihrm[1].pptx

Global Study of IHRM Presented By: Akansha Mishra (05) Tushar Gunda (62) Tanushree Mandal (60) Renuka Pandey (52)

IHRM • IHRM can be defined as set of activities aimed managing organizational human resources at international level to achieve organizational objectives and achieve competitive advantage over competitors at national and international level. • IHRM includes typical HRM functions such as recruitment, selection, training and development, performance appraisal and dismissal done at international level and additional activities such as global skills management, expatriate management and soon.

OBJECTIVES OF IHRM • Create a local appeal without compromising upon the global identity.

• Generating awareness of cross cultural sensitivities among managers globally and hiring of staff across geographic boundaries. • Training upon cultures and sensitivities of the host country.

NEED FOR IHRM • Managing expatriates • Globalization has forced HRM to have international orientation • Effectively utilise services of people at both the corporate office and at theforeign plants

CHARACTERISTICS OF IHRM More HR activities Need for a broader perspective More involvement in employee personallives Changes in emphasis as the workforce mix of expatriates and localsvary • Riskexposure • More externalinfluences

• • • •

REASONS FOR GROWING INTEREST IN IHRM Globalisation of Business

Effective HRM determinant of success in international business

Movement tonetwork organisations from traditional hierarchical structures

Significant role in implementation & control ofstrategies

IHRM PRACTICES • • • •

International staffing Pre-departure training for international assignments Repatriation Performance management in international assignments • Compensation issues in international assignments

INTERNATIONAL STAFFING refers to the process of selecting employees for staffing international operations of an MNC MNCs can be staffed using three different sources a. Home country or Parent Country National (PCN)- Employees of an organization who are citizens of the country in which the headquarters of the company is located

Movement tonetwork Significant role in b. Host Country Nationals of an organization who are the citizens of the organisations from (HCN) - Employees & country in which the foreign subsidiary is locatedimplementation traditional hierarchical controlofofstrategies c. Third Country Nationals (TCN) -Employees an organization who are the citizens of the country structures other than the country where the organization is headquarterd and the country that is hosting the subsidiary

Approaches to staffing subsidiaries •

Ethnocentric foreign subsidiary has little autonomy. All strategic decisions are made at the headquarters. PCNs staff key positions at quarters as well as the foreign subsidiary • Polycentric staff foreign subsidiaries of the firm with HCNs and headquarters consist of PCNs • Geocentric staff my be PCNs, HCNs or TCNs ability and not nationality is the key to staffing

Pre-departure Training for International Assignments • To make it easier for the employee to assume job responsibilities and be effective in the foreign country as soon as possible • To facilitate cultural adaptation as quickly and as effectively as possible

3 elements of T&D programme 1.

Language training

2.

Cultural training

3.

Managing personal and family life

REPATRIATION It is the process of bringing an expatriate home after he/she has completed the international assignment. Organizations can follow 3 practices

1. Create knowledge and develop global leadership skills 2. Ensure that candidates have cross-cultural skills to match their technical abilities 3. Prepare people to make the transition back to their home offices

Performance Management in International Assignments Performance is the combination of several factors     

Compensation Package Task Assigned to the Expatriate Headquarter’s Support Environment Cultural Adjustment

Compensating Managers in International Assignments Components of expatriate compensation •

Home leave and travel allowances

•

Children’s education allowance

•

Currency differential payments

•

Relocation allowance

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Housing allowance

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Cost of living adjustment

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Payments to protect from negative tax consequences

THANK YOU