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Meaning:

• IHRM is the process of sourcing, allocating and


effectively utilising human resources in a MN
organisations.
• IHRM is often about studying various HR-activities in
MNCs, and how the relationship between the parent
company and its subsidiaries affects how HR-
policies and practices are managed across
countries.
International HRM
• International HRM (IHRM) is the process of:
– Procuring,
– Allocating, and
– Effectively utilizing human resources
– In a multinational corporation, while
– Balancing the integration and differentiation of HR
activities in foreign locations
International HRM
• Complexity –
– Operation of the multinational enterprise units
across diverse national contexts
– The employment of workers with different national
characteristics
Objectives of IHRM

• To reduce the risk of international human


resource
• To avoid cultural risks
• To avoid regional disparities
• To manage diversifies human capital
Dimensions/ Model of IHRM
• Human Resource Activities
– Procurement
– Allocate
– Utilize
• Types of employees
– HCN
– PCN
– TCN
• Types of Countries

Model of IHRM
Activities of IHRM
• Recruitment / selection
• Training and development (cross-cultural)
• Performance appraisal
• Rewards
• Industrial relations
What is an expatriate?

 An employee who is working and temporarily


residing in a foreign country
• Some firms prefer to use the term “international
assignees”
• Expatriates are PCNs from the parent country
operations, TCNs transferred to either HQ or another
subsidiary, and HCNs transferred into the parent
country
»“Confusion - Expatriates”
International Assignments Create
Expatriates
Main challenges in IHRM

• Different labour laws


• Different political climate
• Different stage(s) of technological advancement
• Different values and attitudes e.g. time,
achievement, risk taking
• Roles of religion e.g. sacred objects, prayer,
holidays, etc
• Educational level attained
• Social organizations e.g. social institutions, authority
structures, interest groups, status systems
MAJOR DIFFERENTIATION BETWEEN DHRM/ IHRM
• Wider Nationalities:
– Number fo of Nations Domestic and IHRM
– People from different Culture/ Values/ Ethical/ Religion/
Beliefs and like
• Nath and Sadhu Summarised four characteristics
based on the geographical division
– North Americans:
– Individualists
– Power in distance
– Medium in uncertainty
– Masculine
– Japanese:
– Collectivism
– High in uncertainty
– Masculine and feminine
– Respect others same time respect authority
• Chinese:
• Collectivism
• Low in uncertainty
• tradition and custom

• Culture Of Various Countries


• Japan
– Peace and harmony
– Uncertainty
– Mix authority and humanity
– Participative mgt
– Devotion to work
• America
– Individualistic
– Risk taking
– Bold initiative
– Acting spontaneously
– Outspoken
– Critical thinking
– Logical reasoning
– Clarity and frankness
– Confronting and threatening
– Germany
» High on individualistic
» High on uncertainty
» Prefer around familiar people
» DETAILED EVALUATION – discussions are lengthy
» Rule minded
» Strict with time
» close door policy
» Conservative, value privacy
– South Korean:
» High on collectivism
» High on uncertainty
» Respect family, authority, formality
» Class and rank
» Aggressive, hard working friendly and hospitable
» Business based on honour based trust
» Koreans praise not criticism
• Saudi Arabia
– Allah is always present, Controls everything
– More than two hours a day in prayer
– Work culture mixed with religion, politics and social life
– Family and friends relations are good
– Outsiders establish – through trust

• India
– Are collectivism
– Family relation / social relation are strong
– Respect family authority
– Social class / rank
– Aggressive, hard working, hospitable
– Loyal
• Broader Relationship and complexities

• Organisation seek employee info and family information


• Age, health, qualification, driving skill, criminal record
• Organisation arrange – visa – air tickets - employee and family
• socialisation – local community
• Health, shopping, hotels, housing ,religious places etc
• Employee pay attention towards culture, habits, behaviour,
language, ascent, way of presentation, body language, eating
and drinking habits

• Influence of International Environment:
• Business Process
• IT
• Political Liberation

• Enduring Complexities of IHRM activities


• Discriminative remuneration
• Counselling to reduce frustration
• Variety of Function
– Additional Information
– Techniques of Recruitment
– Checking the records / Criminal Records
– On-line Selection
– Immigration details
– Air-tickets
– Arranging – receiving candidates
– Induction
– Language classes
– Attractive pay
– Details of pay package
– Close relation with immigration officers
– Translator
Types of Expatriate Assignment

• Short Term Expatriate Assignment

• Long term assignments

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