GLOBAL HUMAN RESOURCE MANAGEMENT

GLOBAL HUMAN RESOURCE MANAGEMENTMODULE I

Objectives of the moduleIntroduction to IHRMIHRM: Concept, Scope and SignificanceMulti national corporations and IHRMTheories and models

HUMAN RESOURCE MANAGEMENTHRM refers to those activities undertaken by an organization to effectively utilize its human resources.Human resource planningStaffing Performance managementTraining and developmentCompensationIndustrial relationsDIMENSION MODEL OF IHRM

IHRM- DEFINITIONInternational Human Resource Management (IHRM) is the process of: -acquiring,designating, andeffectively using the human resourcesin a multinational company or organization, while trying and maintainingthe balance of integration and differentiation of HR activities in the foreign locations

Other definitions... . . the worldwide management of people in the multinational enterprise (Poole, 1990; p1). . .how MNCs manage their geographically dispersed workforce in order to leverage their HR resources for both local and global competitive advantage (Scullion, 2005; p5). . . a branch of management studies that investigates the design of and effects of organizational human resource practices in cross-cultural contexts (Peltonen, 2006; p523)Purpose of IHRMTo enable the firm /, the multinational corporations (MNCs), to be a successful globally.Objectives of IHRM: Remaining competitive throughout the world Efficient Locally Responsive Flexible and adaptive Capable to transforming learning across their globally dispersed unitsDifference Between domestic and IHRM:Six factors that differentiate international from domestic HRM.Theses are:1. A wide range of HR activities1) The need for a broader perspectives2) More Involvement in employees personal life.3) Responsiveness to changes in staffing requirements as internationalstrategy changes.4) Higher risk exposure5) More external influences.In ShortPointsDomestic HRMIHRMHR ActivitiesLessMoreInvolvement in employeesLessMoreNeedsNeeds is not so highNeeds to cater multiple needsRisk ExposureMinimumHighCultural EnvironmentSame DifferentSenior ManagementChange in attitude of Senior management not to be so high

Change in the attitude of senior management can be high

ComplexityComplexity is not so high as its in the parent country

HighIHRM ModelTYPES OF ORGANIZATIONDomestic organizations employing foreignersParent companiesSubsidiary companiesJoint venturesOther type of organizations operating in foreign countriesTYPES OF HUMAN RESOURCESDomestic human resourcesParent country nationalsThird country nationalsOther types of foreign countriesINTERNATIONAL HR ACTIVITIESProcuringDevelopingCompensatingUtilizingMigrationSocialization servicesSecurityRepatriationCross-cultural managementCharacteristics of international human resource management

Adaptation must be within cultural limits with extra care being taken, for example, when recruiting. HRM specialists can take generalizations and develop them according to international situation they find themselves in. IHRM must be included as part of core programmes in training and development it is no longer an option.Significance of IHRM in International Business:SignificanceCongruenceChallengeCompetenceCost EffectivenessCommitment

CHALLENGE:

Rapid growth of internalization and global competition has increased the nos. and significances of MNCs resulting in the increased mobility of human resources.

Increasing no. of strategic alliances and cross border mergers and acquisitions has increased the strategic implementation of IHRM as Global business.COMMITMENT:

World wide recognition of management of human resources in international business and cross cultural management.

2. Business Networks and Horizontal communication and HR plays a vital role.COST EFFECTIVENESS:

The performance of expatriates. (poor performance of expatriate may affect the market share and damage to foreign relations)

Growing Importance of Expatriates in International Business.COMPETENCE:

Global Strategy Implementation.

Success or failure of international business based on effectiveness of management of HRCONGRUENCE:

Learning, knowledge acquisitions have been identified as important potential sources of comp. advantages for MNCs. This has also enhanced the role of IHRM to meet the key strategic challenge of objectives.

Knowledge management is an important source of comp. advantage for MNCs, where IHRM is the key partner and plays a central role.