Rashmi (Ihrm Vs DHRM)
Rashmi (Ihrm Vs DHRM)
Rashmi (Ihrm Vs DHRM)
By:
Rashmi Vaishya
PGDBM-HR
14
Definitions of IHRM
International human resource management is all
about the world wide management of human
resources Process of sourcing, allocating, and
effectively utilising their skill, knowledge, ideas, plan
and perspective in responding to TQM.
The process of procuring, allocating and effectively
utilizing human resources in an international business
is called International Human Resource Management
or IHRM.
International Human Resource Management is the
process of sourcing, allocating and effectively utilizing
human resources in a multinational organization.
Dimensions of IHRM
According to P.V.
Morgan: IHRM is
the interplay
among 3
dimensions:
HR Activities
Types of
employees
Types of
Countries
Purpose of IHRM
To enable the firm /, the multinational
corporations (MNCs), to be a
successful globally.
Objectives of IHRM
International Corporations
Multinational Corporations
Global Corporations
Transnational Corporations
Global Efficiency and Local Responsiveness of
Firms
Global
efficienc
y
Global
Transnational
High
International
Multinational
Low
Low
Local
responsiveness
High
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
International Corporations
Domestic firms that builds on its
existing capabilities to penetrate
overseas market.
Example : Honda, General
Electric, P&G
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
Multinational Corporations
MNCs have operating units
(subsidiaries) located in foreign
countries. Subsidiaries function as
autonomous units
Examples : Shell, Philips, Xerox
International HRM
Domestic HRM
Role of International
HRM
Limitations in IHRM
Management is basically the principle based on local
cultures, traditions, practices and needs of the
organizational growth. It is not universal for
everywhere, specially in the field of human resources
management.
HRM methods and systems developed by one society
can not always be transferred and applied to another.
HRM and industrial relations practices differ across
countries as these have their historic origin in
countries.
Personnel management and industrial relations are
embedded in societal rules, norms, values, ideologies
and no MNC can afford to ignore the influence of local
culture.
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