International Human Resources Management: Presented by Maksudul Huq
International Human Resources Management: Presented by Maksudul Huq
International Human Resources Management: Presented by Maksudul Huq
Presented By
Maksudul Huq
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IHRM
The process of procuring, allocating and effectively utilizing
human resources in an international business is called
international human resources management (IHRM).
This is the HRM issues and problems arising from the
internationalization of business, and the HRM strategies,
policies and practices which firms pursue in response to the
internationalization process
IHRM is the management of HR in business operations in at
least two nations
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Extent of reliance of MNC on home country domestic market
Major Diffe. between Domestic HRM and IHRM
Business activities e.g. taxation, international relocation,
expatriate remuneration, performance appraisals, cross-
cultural training and repatriation
Increased complexities e.g. currency fluctuations, foreign
HR policies and practices, different labor laws
Increased involvement in employee’s personal life e.g.
personal taxation, voter registration, housing, children’s
education, health, recreation and spouse employment
Complex employee mix – cultural, political, religious,
ethical, educational and legal background
Increased risks e.g. emergency exits for serious illness,
personal security, kidnapping and terrorism
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Main challenges in IHRM
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Main challenges in IHRM …
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Models of IHRM
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Reason for Growing interest in IHRM
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Indicators of Globalization
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Pressures of globalization
Globalization is the system of interaction among the countries of
the world in order to develop the global economy.
Globalization involves technological, economic, political, and
cultural exchanges made possible largely by advances in
communication, transportation, and infrastructure.
The advent of the era of globalization along with the
advancements in information technology (IT) has transferred the
world around us. It has brought to centre stage the importance of
human resources, more than ever before.
The pressures it poses on IHRM include:
- Remaining competitive throughout the world
- Efficient
- Locally Responsive
- Flexible and adaptive
- Capable to transforming learning across their globally
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dispersed units.
Global Challenges
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Characteristics of IHRM
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More HR activities
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More HR activities ...
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Need for a Boarder Perspective
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Types of International Organizations
There are four types of International Organizations:
1. International Corporations
2. Multinational Corporations
3. Global Corporations
4. Transnational Corporations
1. International Corporations
Domestic firms that builds on its existing capabilities to
penetrate overseas market.
Example : Honda, General Electric
2.Multinational Corporations
- MNCs have operating units (subsidiaries) located in foreign
countries
- Subsidiaries function as autonomous units
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Examples : Shell, Philips
Types of International Organizations …
3.Global Corporations
- Maintains control over its worldwide operations
(subsidiaries) through a centralized home office.
- They treat the entire world as a single market
Examples : Matsushita –Panasonic Global
4.Transnational Corporations
- Provides autonomy to independent country operations but
bring these operations together into an integrated whole
through networked structure
- They combines the local responsiveness of an MNC and the
efficiency of a global corporation
Examples : Ford & Unilever
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Major Factors Affect IHRM
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IHRM Planning
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IHRM Recruitment and selection
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Hiring PCNs
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Hiring HCNs
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Hiring TCNs
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Different Approaches in Global Compensation
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Different Approaches in Global Compensation
Hybrid Approach
This approach refer variation of the greater of home or host
system where a balance sheet is compared to local market
rate equivalent.
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