UIN Syarif

Hidayatullah
Jakarta

International
Human Resource
Management
Presentation Group 5

Lecturer

RIO TRISASMITA, S.E.,M.E.

 Si Tampan dan Pemberani

Akmallusyahroni Ahmad Fadli Fatahilah Arif Widianto

11210810000009 11210810000117 11210810000164
 UIN Syarif
Hidayatullah
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Background

The increasingly rapid progress of

information technology in the industrial era
4.0 is changing the structure of almost every
industry in every country.

Basically, the presence of technology makes

human work more effective and efficient.

The presence of multinational companies

opening branches in various countries has
created new and complex problems for
human resource management practices.
 UIN Syarif
what is international human
Hidayatullah
Jakarta resources management (IHRM)
Menurut Dowling et al, (2013) Manajemen Sumber
daya manusia internasional adalah penggunaan
sumber daya internasional untuk mencapai tujuan
organisasi tanpa memandang batasan geografis.

3 Aproaches of IHRM

International human resource management is

characterized by 3 approaches, namely: (1)
emphasizing cross-cultural management, namely
looking at human behavior in organizations from
an international perspective, (2) developed from
comparative industrial relations and HRM literature
and trying to to describe, compare and analyze HR
systems in several countries, and (3) try to focus
on HRM aspects in multinational companies
 Factors Influencing
UIN Syarif
Hidayatullah International HRM
Jakarta
According to Noe et al (2006) in (Suparyadi,
2015) stated that there are four things that
influence global human resource management,
namely:

CULTUTRE HUMAN CAPITAL

Education Increasing competition in
Culture can be interpreted as the
business, especially in global business,
values ​held by every society of a
has required companies to have high
particular country, which provide a
quality human resources. The role of
general description of the
high quality human resources,
characteristics of a national society,
especially for strategic positions, is
the economic system, education and
very important because it can
legal political system that they
determine the extent to which the
practice in everyday life.
company is able to compete.
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POLITIC AND LEGAL

ECONOMIC SYSTEM

System Political-legal systems often A country's economic system can

dictate the terms of certain human influence human resource
resource management practices, such management practices in several
as recruiting, compensating, firing and ways, for example in countries that
layoffs. Recruitment must not be adhere to a socialist economic system,
discriminatory, whether in terms of there are many opportunities to
gender, ethnicity or nationality, develop human capital, because the
religion, social status, including education system is free.
towards people with disabilities.
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Recruitmen & Selection

The words recruitment and selection are
often considered to have the same meaning.
Many people are confused or even confused
about the meaning of these two words.
Recruitment is the process of searching for,
attracting and selecting the best candidates
who meet predetermined requirements.
Meanwhile, selection is a follow-up to
recruitment activities, namely activities
carried out after the recruitment process is
complete, where the selection process is to
obtain an available position or job. The
selection process begins when applying for a
job and ends when a decision on
employment is issued.
 UIN Syarif
Hidayatullah
Jakarta EPRG STAFFING POLICY

ETNOCHENTRIC POLYCENTRIC REGIOCENTRIC GEOCENTRIC

“Hometown Heroes” This This approach gives local This approach seeks This approach seeks the
approach focuses on branches great authority qualified employees from best employees without
employees from the to recruit and manage specific regional areas. regard to nationality. Skills
company's home country. their own employees. Local Employees are seen as and work culture suitability
Companies are more likely to
employees are considered having the same culture are the main
recruit and move talented
employees from
to understand the local and business compared considerations. Employees
headquarters to manage culture and market better to the company they can be promoted and
operations in overseas so they can be more come from, even though placed anywhere based
branches. effective. they are from different on company needs.
countries.
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Training and Development
Hidayatullah An effective ITDC program addresses
Jakarta these challenges by

Develop Cross- Improve Language Building Host Managing

Cultural Skills Country Expertise Adjustment Issues:
Competency
Fluency in the local Equipping employees with Helping employees adapt
·Equip employees with the language is a knowledge of the local to cultural differences,
skills to understand and breakthrough. This business environment, manage stress, and
navigate cultural differences, strengthens relationships, regulations, and market overcome potential
fostering effective facilitates business dynamics allows them to feelings of isolation is
communication and operations, and operate effectively and critical to their well-being
collaboration across borders. and success in
encourages integration make informed decisions.
into the host society . international assignments.
 ITDC International Training,
Development and Career
Programs :

Pre-Departure On-the-Job Training: Language Training:

Training
Provides essential information Although English is the common
Focuses on specific job skills,
and skills before relocation, business language, fluency in
knowledge of local business
including cultural awareness, the local language is beneficial.
practices, and familiarization
language training, and practical with subsidiary operations in the
advice about life in the host host country .
country .
 ITDC International Training,
Development and Career
Programs :

Cultural Awareness Mentorship Program Reverse Culture

Training Shock Training
:Develops cross-cultural Pairing expatriates with Prepares employees for the
sensitivity, understanding, and experienced local employees potential challenges of
communication skills. will foster valuable guidance, adjusting to their home country
support and insight into the host after an international
country's business culture. assignmen
 EXPATRIATES
In the dynamic world of multinational enterprises
(MNEs), expatriates play a critical role in driving
global operations and fostering cross-cultural
collaboration. International Human Resources
Management (IHRM) encompasses the strategies
and practices used by multinational companies to
effectively manage their foreign workforce.

Expatriates are employees sent by their

companies to work abroad for a certain period of
time. They are typically assigned to international
subsidiaries, joint ventures, or project teams ,
bringing expertise, cultural insight, and a global
perspective to host country operations.
 There are several challenges faced
by expatriates:

Cultural Adjustment: Language Barriers: Isolation and Loneliness:

Language proficiency is essential

Adapting to a new culture, for effective communication, Living away from family, friends, and
language, customs, and social building relationships, and a close support network can lead to
norms can be difficult and integrating into the host society . feelings of isolation and loneliness.
requires patience, flexibility, Limited language skills can hinder
and open-mindedness. performance and increase stress
 There are several challenges faced
by expatriates:

Family and Couple Issues: Reverse Culture Shock:

Expat families face challenges in Adjusting to your home country after

adapting to a new environment, an international assignment can be
sending children to school, and just as challenging as the initial
finding work for their partner. cultural adjustment.
COMPENSATION
Compensation is a reward in the form of money or
non-money given to employees from the
company.

• Salary
• Allowances
Benefits given to employees based
on an employment agreement Additional payments other than the
which are calculated on a fixed basic salary given to support
basis, usually per month. employees in meeting certain
needs.

• Bonuses
Additional payments given
as recognition foremployee
performance or certain
achievements.
 Components and Types
• Salary (Salaries): • Allowances:
Basic Salary -Fixed allowances
Fixed Salary Health Benefits
Transportation Allowance
Meal Allowance
-Non-Fixed Allowance:
Overtime Allowance
Educational Allowance
Family Benefits

• Bonuses (Bonuses):
Annual Bonus
Performance Bonus
Profit Bonus
Recruitment Bonus
Regulations and Policies
• Government Regulations: Set minimum standards for
salaries, allowances and bonuses, including regional
minimum wages, holiday allowances (THR), and others.
• Company Policy: Determine the amount of salary,
allowances and bonuses based on position,
performance and internal company policies.

Benefits for Employees and Companies

• Employee:
Improve well-being and quality of life. Provides
motivation to work better. Provides additional financial
protection.
• Company;
Increase employee productivity and performance.
Attract and retain the best talent. Building a reputation
as a good employer.
 B. International Status
• Definition: Internationalization of status in compensation is a company strategy
to adjust employee pay and benefits packages to suit the economic, legal, and social
conditions of the countries where they work.

Examples of Companies with Good

International Compensation
International Compensation
Components:
Practices
• Base Salary
• Relocation Allowance • Microsoft: Offers a compensation
• Educational Benefits package that includes housing,
• Health Insurance education, and cost of living allowances
• Bonuses and Incentives for international employees.
• IBM: Has compensation policies tailored
to the country of deployment, including
special bonuses and incentives.
Perks
In international business, “perks” or additional
benefits often play an important role in attracting
and retaining employees, especially in high-level
executive and management positions who may
have to work abroad or travel frequently.

type of perks
• Relocation Allowance
• Housing Benefit
• Educational Allowance
• Transportation Allowance
• Health Benefits
• Tax Benefits
Perks Management Strategy in
International Business:
• Suitability to Local Culture: Companies must
ensure that the perks offered are in line with
cultural norms and expectations in the country
where employees are posted.
• Flexibility: Offer a flexible perks package so
employees can choose the benefits most relevant
to their needs.
• Transparency and Communication:
Communicate clearly with employees about what
perks are included and how to access them.
• Legal Compliance: Ensure that all perks comply
with local regulations and laws in the country
where the employee works.
Challenges in Implementing International Perks:

• Cultural Differences: Manage the expectations of

employees from various cultural backgrounds who
may have different views on benefits and
compensation.
• Cost: Providing international perks can be very
expensive, especially if it involves relocation and
educational benefits.
• Policy Changes: Laws and regulations in different
countries may change, which may affect the types
and amounts of perks that can be awarded.
• Tax Management: Handle complex tax
implications for employees working across national
borders.
 CASE STUDY

PT Indofood CBP Sukses Makmur Tbk is a leading instant noodle and processed food products company in
Indonesia which is a subsidiary of the Salim Group. As an FMCG company, Indofood certainly controls a large
market share. Fast Moving Consumer Goods (FMCG) companies are currently the most numerous, most well-
known and much needed industry. This industry provides most of the goods needed by society. The FMCG
industry supplies daily necessities products that are sold quickly, in large quantities, and tend to be cheap.

• Factors Affecting Human Resource Management in International Markets

Implementing Human Resource Management (HRM) in international markets requires adapting to the
business environment in the country where PT Indofood CBP Sukses Makmur Tbk operates. Therefore,
it is appropriate for HRM for companies to go global to know and understand the factors surrounding
international HRM practices. There are at least 5 important factors that influence HRM in daily practice,
namely (Mondy and Mondy, 2014: ).
1) Culture.
2) Education.
3) Economic system.
4) Political.
5) Legislation and Trade Unions.
References
Ni Nyoman Suli Asmara Yanti et al. (2014). International
Resource Management . 2013 , 634.
https://hsgm.saglik.gov.tr/depo/birimler/saglikli-
beslenme-hareketli-hayat-db/Yayinlar/kitaplar/diger-
kitaplar/TBSA-Beslenme-Yayini.pdf
WAHJONO, ESI (2024). GLOBAL HUMAN RESOURCE
MANAGEMENT At PT. Indofood CBP Sukses Makmur Tbk.
Researchgate.Net , January .
https://www.researchgate.net/profile/Hanjah-
Hidayah/publication/377204653_MANAJEMEN_SUMBER_D
AYA_MANUSIA_GLOBAL_Di_PT_Indofood_CBP_Sukses_M
akmur_Tbk/links/65996b5b6f6e450f19d0de20/MANAJEME
N-SUMBER-DAYA-MANUSIA-GLOB AL-Di-PT-Indofood-CBP-
Sukses-Makmur-Tbk.pd
https://www.ags-relocation.com/news/eprg-model-for-
hr-strategy/ Accessed on May 23 2024. At 19.25 WIB
Dowling, P. J., & Brewster, C. (2014). International human
resource management: Strategies and practices for
multinational companies. Cengage Learning. Accessed on
May 23 2024. At 21.50 WIB
https://www.ocbc.id/id/article/2023/12/14/allowance-
dengan accessed on 23 May 2024 at 20.37 WIB
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