Ccihrm A1

Context of IHRM
Chapter A 1
Dowling Welch
Salient Points
 Understanding key elements

 Difference between domestic &
international HRM
 Trends , challenges in global work
environment
2
HRM : Essential Elements
 Activities undertaken by an organisation to use

its human resources effectively
 Essentially should include
 Human resources planning ( Numbers , skills , need
gaps , succession )
 Staffing ( recruitment , selection , placement )
 Performance management
 Training & development
 Compensation & benefits
 Industrial relations
International HRM Context
 3 D model which spins domestic HRM arm
across location , employee mobility
 Broad HR activities
 Procure , allocate , utilise
 Country of operation
 Home , Host , Other
 Category of employee
 PCNs, HCNs , TCNs
 Multinational v/s Multidomestic operation
 Expatriates , Inpatriates
Difference between Domestic &
IHRM
 While Human Resources Management
remains at core for both ; IHRM differs
from Domestic HRM on following
parameters
 Complexity of operation
 Cultural environment
 Industry type
 Reliance on home country sales
IHRM : Complexity of Operation
 More HR activities :
 International taxation
 International relocation , orientation
 Added admin : Transitioning , interface between expat &
authorities .Ethical issues . Dealing with authorities
 Greater involvement in employee personal life
 More than domestic operations due nature of transition
 Children schooling ( home country ) , Spouse job
 Recreation facilities in remote , less hospitable set up
 Need for broader perspective
 Deft at straddling across policies for PCN/HCN/TCN
 Equity issues on differential compensation issues
IHRM : Complexity of Operation
 Job emphasis with changing employee mix :
 Maturity of operations changes mix : Expats Locals
HR Export . Changes work pattern
 Risk exposure
 Disruption & costs due Expat failure . Impact on morale
 Disruptions due policy change , law & order around Expat
working
 Sensitivity in handling local bribery within HO framework
 Broader external influences
 Government interference ( official / unofficial ) re
employment of locals ( Ref Malaysia , India )
IHRM : Cultural Environment
 Multicultural workforce is a part of
conscious work ethos at MNCs
 HR managers need to be aware of cultural
nuances of a country while working
through HR processes
 Task also to sensitise staff / facilities to
work in a multi culture set up
IHRM : Industry Type
 Different approaches on policy , practice ,
training , performance management ,
employee mobility etc , depending on :
 Global Industry with multinational competition
will need Globally integrated strategy
 Multi domestic Industry with country specific
competition ( e.g. Retail , Real estate ,
Distribution , Insurance ) will need ‘ domestic ‘
strategy
IHRM : Size of Domestic Sales
 Relative size of domestic sales will decide
top management involvement in
International operations
 Smaller business size , non strategic
areas get low organisational attention;
consequently are lesser integrated into
‘ Corporate ways ‘
Change Factors in IHRM
 Global expansion
 Convergence force via standardisation
 Countervailing force of local context , pressure groups
 Ethics , social responsibility
 Mergers , Acquisitions , restructuring
 Part of growth strategy poses integration challenge
 Structure evolution , sale of operation , retrenchment
 Technology , telecommunications advancement
 Mobile , I’net impacts time , speed , access in doing
work , virtual expats
 HR implication : flexi work norms , work from home ,
connectivity on travel , compensation , evaluation
Challenges for Multinational
Management
 Bureaucracy
 Growth , size may impact flexibility . Need for greater
control may make it over bureaucratic , slow
 Knowledge sharing
 Need to guard against ‘ discontinuity ‘ due departures .
More critical is Tacit knowledge .
 Tools : Interactive forums , reports / bulletins / web
posting , reward system , ambience , training programs
 Transfer of competence
 Mind orientation , Mentors
 Tools : Cross function workgroups , International projects /
assignments , T & D programs

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Context of IHRM

 Understanding key elements

 Activities undertaken by an organisation to use

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