International Human Resource ManagementInternational Human

Resource Management

Definition Of Human Resources Management

“Human” represents the dimension of HRM which relates to the soft aspects such as commitment of employees through participation and the most important assets being the employees. “Resource” represents the hard aspects such as the strategy link of HRM and the importance of efficient utilization of employees. “Management” represents the role of HRM as part of management that implies that it is not only an administrative function that carries out the formulated policies and strategies but also a managerial function that contributes to strategy formulation.

Responsibilities of Human Resource Management

To ensure that the employees of an organization are used in such a way that the employer obtains the greatest possible benefit from their abilities and that the employees obtain both material and psychological rewards from their work.

Staffing : identifying the job requirements within an organization determining the numbers of people and the skills mix necessary to do these jobs and recruiting selecting and promoting qualified candidates. Retention : rewarding employees for performing their jobs effectively insuring harmonious working relations between employees and managers and maintaining a safe healthy work environment.

Development : preserving and enhancing employees’ competence in their jobs through improving their knowledge skills abilities and other characteristics.Adjustment : maintain compliance with the organization’s personnel policies and business strategies.

Performance Selection Appraisal

Rewards

Development

The Michigan Matching Model of HRM

Stakeholderinterests•Shareholders•Management•Employee groupsGovernment•Community•Unions

HRM PolicyChoicesEmployee

influenceHuman

Resource flowReward systems

HR OutcomesCommitmentCompetenceCongruenceCosteffectiveness

Long-termconsequencesIndividual well

beingOrganizational

effectivenessSocietal well-

beingSituationalfactors•Work force characteristics•Business strategyand conditions•Management

philosophy•Labor market

•Unions

•Laws and societalvalues

The Harvard Model of Human Resource Management

International Human Resource Management

IHRM is interplay among three dimensions:

HR FunctionsCountry of OperationsTypes of Employees

HR FunctionsRecruitment & Selection Training & Development Performance AppraisalCompensationIndustrial & Labor Relations

Types Of EmployeesParent country nationals (PCNs) are residents of the international business’s home country who are transferred to one of its foreign operationsHost country nationals (HCNs) are residents of the host country, and are the most common choice for mid-level and lower-level jobs. Employing HCNs is popular because they are already familiar with local laws, culture, and economic conditionsThird country nationals (TCNs) are citizens of neither the firm’s home country nor of the host country. TCNs are most likely to employed in upper-level or technical positions

Who is an expatriate?

An employee who is working and temporarily residing in a foreign country or people working and residing in countries other than their native countrySome 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.

International Vs Domestic HRMMore functions to perform (taxation culture orientation relocation admin services for expats) Broader perspective (cater to needs of PCNs, HCNs & TCNs) Greater involvement in the personal lives of employees Greater risk exposure (expat failure, family problems & terrorism) More external influences (government regulations, local ways of doing business, code of conduct)

Main challenges in IHRMHigh failure rates of expatriation and repatriationDeployment – getting the right mix of skills in the organization regardless of geographical locationKnowledge and innovation dissemination – managing critical knowledge and speed of information flowTalent identification and development – identify capable people who are able to function effectivelyBarriers to women in IHRMInternational ethicsLanguage (e.g. spoken, written, body)

Main challenges in IHRMDifferent labor lawsDifferent political climateDifferent stage(s) of technological advancementDifferent values and attitudes e.g. time, achievement, risk takingRoles of religion e.g. sacred objects, prayer, taboos, holidays, etcEducational level attainedSocial organizations e.g. social institutions, authority structures, interest groups, status systems

International Recruitment and Selection

A selection program for international assignments involves assessing prospective candidates on certain criteria thought to be associated with assignment effectiveness. In order to have a successful selection program there needs to be a broad range of prospective candidates from which to choose criteria of effectiveness and valid procedures for assessing candidates on them.

empathy flexibility patience openness reliability confidence emotional stability communication skills tolerance for differences humor resourcefulness sensitivity teaching skills

ability to handle alcoholcuriositypositive regard for othersacceptability of assignmentdesire to be abroadnon ethnocentrismhigh motivationcourtesyadaptabilitytolerance for ambiguitylanguage skillsinterest in host culture

International Training and Development

Empirical literature give guarded support to the proposition that cross cultural training has a positive impact on cross cultural effectiveness.Cultural awareness training is not just for the employee going overseas. It has numerous applications domestically that will increase organizational effectiveness. Findings indicate that it should be a regular part of personnel training especially management development. The realities of a more pluralistic society and international business make this a necessity.

Area studies programs Culture assimilator programs Language training programs Sensitivity training programs Field experience programs

International Training and Development

International Compensation

If compensation is high then problems may be encountered on return to head office. If compensation is not adequate then there may be no incentive to go for the international assignment given the hardships that are usually involved in doing so.

International Compensation

Expatriation PremiumCost of Living Allowance  Shelter AllowanceHome LeaveBenefits – Medical, Educational Allowance

for children, Flights to Home etc

RepatriationVirtually all repatriated personnel experienced some personal difficulty in reintegrating on return home. The main complaints were loss of status loss of autonomy lack of recognition of the value of the experience and lack of career direction.