A

REPORT

ON

INTERNATIONAL HUMAN RESOURCE MANAGEMENT

SUBMITTED BY:

Anjali nair

MANISH SINGH

Prateek shrivastava

Devendra Prasad

Rounit roy

INTERNATIONAL ACADEMY OF MANAGEMENT AND ENTREPRENEURSHIP

2009-2011

ACKNOWLEDGEMENT

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This successful completion of the seminar is the result of invaluable help and

guidance from Mr. P. S. P. Swamy.

We express our gratitude towards him as his presence has been a source of

inspiration for us & helped us to become more knowledgeable in my topic.

We are deeply indebted to our college International Academy of Management &

Entrepreneurship, Bangalore for providing us the opportunity to complete our research in this

field.

Last but not the least we take this opportunity to thanks all those who have

contributed directly or indirectly through suggestions, thoughts and presence during the work

of seminar.

Group no. 07

Anjali Nair

Manish Singh

Prateek Shrivastava

Rounit Roy

Devendra Prasad

Introduction:

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Human Resource Management

Human Resource Management (HRM) involves all management decisions and practices that directly affect the people who work for the organization.

Hence HRM is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. In simple words, HRM means employing people, developing their capacities, utilizing, maintaining and compensating their services in tune with the job and organizational requirement.

International Human Resource Management

INTERNATIONAL HUMAN RESOURCE MANAGEMENT (IHRM) is a process of procuring, allocating, and effectively utilizing human resources in a multinational corporation, while balancing the integration and differentiation of Human Resource activities in foreign locations.

Hence it can be defined as “Procurement, allocation, utilization and motivation of Human Resources in International business.

OBJECTIVES OF I-HRM

To reduce the risk of international human resource.

It has helped a lot in reducing the risk in the business by using a proper standard recruitment and selection process.

To avoid cultural risks.International HRM has helped a lot in overcoming the inter-

continental culture by making people from different parts of world work under the same roof.

To manage diversifies human capital.Due to IHRM human capital is diversified and hence the risk

involved has lessen down to a great extent.

P. Morgan’s Model of IHRM

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P. Morgan: Two groups of variables that affects basic HR process

1st – Types of employees.

2nd – Political, economic, legal environment, labor laws and practices prevailing in different countries.

Human resource activities

Procurement.

Allocation.

Utilization of human resources.

Nations categories where firms expand and operate

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Host country

A country in which the MNE seeks to locate or has already located a facility.

Parent country

The country in which a company’s corporate headquarters is located.

Third country

The countries other than the one in which the MNC is headquartered or the one in which it is assigned to work by the MNC.

Categories of employees in an MNE

Parent Country Nations (PCNs)

PCNs are managers who are citizens of the Country where the MNC is headquartered. The reasons for using PCNs include

- The desire to provide the company’s more promising managers

with

international experience.

- The need to maintain and facilitate organizational coordination and

control.

- The unavailability of managerial talent in the host country.

- The company’s view of the foreign operation as short lived.

- The host country’s multi-racial population.

- The belief that a parent country manager is the best person for the

job.

. Host Country Nationals (HCNs)

HCNs are local managers hired by MNCs. The reasons for using HCNs

- Familiar with the culture, language.

- Less expensive, know the way things done, rules of local market.

- Hiring them is good public relation.

Third Country Nationals (TCNs)

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TCNs are managers who are citizens of countries other than the one in whichthe MNC is headquartered or the one in which it is assigned to work by theMNCs. The reason for using TCNs:

- These people have the necessary expertise.

- They were judged to be the best ones for the job..

International Recruitment and Selection

Recruitment

It is defined as searching for and obtaining potential job candidates in sufficient numbers for and quality so that the organization can select the most appropriate persons for its job needs.

Selection

It is defined as the process of gathering information for the purposes of evaluating and deciding whom should be employed in particular jobs.

Criteria for Selecting Staff for International Assignments

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Description

Technical Ability

• Technical and managerial competencies of the person to perform the required tasks

• Research studies indicate that technical ability are the most important selection criteria for organizations

• Usually easy to evaluate on the basis of past performance.

Cross-Cultural Suitability

• Certain individual traits and characteristics can have an impact on the success or failure of an international assignment – cultural empathy, adaptability, diplomacy, language ability, positive attitude, emotional stability, and maturity

• Ability to implement technical and managerial skills and feel reasonably comfortable in a in a foreign environment.

• Sometimes difficult to determine

Family Requirements

• Spouse may not adjust to a foreign environment

• Adjustment level of spouse depends on several factors, such as the adjustment of the expatriate and the spouse’s own opinion of the international assignment.

Country-Cultural Requirements

• “Hardship Postings” (Remoteness of job location, social upheavals, safety risks, very low standard of living and lack of recreational opportunities etc.)

• Pressure of living in repressive cultures and countries (e.g. China, Saudi Arabia and other totalitarian Islamic states in the Middle East).

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Organization-Specific Requirements)

Situational Factors influence staff selection. Examples:

• Organization’s staffing approach may require sending more expatriates to work in certain regions and locations than otherwise

• Partner organizations may be involved in the selection of expatriate staff, for example, on international joint ventures

• Certain specific skills, for example, training, may be used as a selection criteria.

Language

• Important situational factor. Knowledge of the host country’s language is considered critical for many senior level positions along with the ability to communicate effectively.

• Knowledge of the host country’s language helps expatriates and their families feel more comfortable in the new environment.

Difference between IHRM and Domestic HRM

· Responsible for a greater number of functions and activities

· Broader knowledge of foreign county employment law

· Closely involved with employees lives

· Cope with more external influences

· Exposure to problems and liabilities

· Management of differential compensation

· Diversity management

· More coordination and travel

· More risk management

Difference between Domestic and International Managers

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· Global mindset

· Communication skills

· Conflict management skills

· Oriented towards a process of continual change

· International experience

· Political, economic and social sensitivity and knowledge of many countries.

· Knowledge of culture shock and how to minimize it.

· Leadership and team building skills.

Variables that moderate difference between Domestic HRM and IHRM:

Main Challenges in IHRM:

Talent identification and development – identify capable people who are able to function effectively

Language (e.g. spoken, written, body)

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Different labor laws

Different political climate

Different stage(s) of technological advancement

Educational level attained.

Human Resource Management: Futuristic Vision

On the basis of the various issues and challenges the following suggestions will be of much help to the philosophy of HRM with regard to its futuristic vision:

1. There should be a properly defined recruitment policy in the organization that should give its

focus on professional aspect and merit based selection.

2. In every decision-making process there should be given proper weightage to the aspect that

employees are involved wherever possible. It will ultimately lead to sense of team spirit, team-work

and inter-team collaboration.

3. Opportunity and comprehensive framework should be provided for full expression of employees'

talents and manifest potentialities.

4. Networking skills of the organizations should be developed internally and externally as well as

horizontally and vertically.

5. For performance appraisal of the employee’s emphasis should be given to 360 degree feedback

which is based on the review by superiors, peers, subordinates as well as self-review.

6. 360 degree feedback will further lead to increased focus on customer services, creating of highly

involved workforce, decreased hierarchies, avoiding discrimination and biases and identifying

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performance threshold.

7. More emphasis should be given to Total Quality Management. TQM will cover all employees at all

levels; it will conform to customer's needs and expectations; it will ensure effective utilization of

resources and will lead towards continuous improvement in all spheres and activities of the

organization.

Conclusion

To conclude IHRM should be linked with strategic goals and objectives in order to improve

business performance and develop organizational cultures that foster innovation and flexibility. All

the above futuristic visions coupled with strategic goals and objectives should be based on 3 H's of

Heart, Head and Hand i.e., we should feel by Heart, think by Head and implement by Hand.

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