WHAT IS IHRM?

 Globalisation of business has probably touched the HR manager more severely than any other functional head  International orientation assumes greater relevance as business get increasingly interlinked across nations.  An international business must procure, motivate, retain & effectively utilise services of people both at the corporate office and at the foreign plants. OBJECTIVES OF IHRM

IHMR interplay among three dimensions, HR activities, types of employees and countries of operation : 1. The three broad activities of IHRM namely procurement, allocation and utilising cover all the six activities of domestic HRM.  The six functions of domestic HRM are – HR planning, employee hiring,training and development,remuneration, performance management and industrial relations.  These six functions can be joins together with the three broad activities of IHRM DIMENSIONS OF IHRM

2. The three national or country categories involved in IHRM activities are :  HOST COUNTRY – where a subordinate company may be located  HOME COUNTY – where the company has its headquarters  And other countries that may be the source of labour or finance

3. The three types of employees of an international business are – I. Host country nationals- these employees are hired for jobs in their own country. II. Parent country nationals –are the employees who are citizens of and are hired from nation where an organisation has its original headquarter III. Third country nationals-who is not a citizen of the home or host countries.

INTERNATIONAL HRM VS DOMESTIC HRM Several factors differentiate IHRM from domestic HRM (DHRM), the main differentiators are: 1.More HR activities 2.Need for a broader perspective 3.More involvement in employee’s personal lives 4.Changes in emphasis as the workforce mix of expatriates and locals vary 5.Risk exposure 6.More external influences

Managing expatriates Globalization has forced HRM to have International orientation. Effectively utilize services of people at both the corporate office and at the foreign plan Effective IHRM determinant of success in International business Movement to network organisations from traditional hierarchical structures. Significant role in implementation and control of strategies. Need for IIHRM

STEPS IN IHRM

STAFFING APPROACHES  ETHNOCENTRIC APPROACH  POLYCENTRIC APPROACH  GEOCENTRIC APPROACH

Managing international Assignments Employee and family adjustments Selecting the right person for foreign assignments Culture differences Language and communication ISSUES IN IHRM:

Clarifying taxation issues Coordinating foreign currencies and exchange rates Compensation plans Working directly with the families of employees More involvement in employees personal life and facilities Different HR system for different geography OTHER INTERNATIONAL ISSUES ADDRESSED BY HR

High failure rates of expatriation and repatriation Deployment-getting the right mix of skills in the organization regardless of geographical location Knowledge and innovation dissemination – managing critical knowledge and speed of information flow Talent identification and development-identify capable people who are able to function effectively Barriers to women in IHRM Main Challenges in IHRM

International ethics & Language (e.g. spoken, written, body) Different labor laws and political climate Different stages of technical advancement Different values and attitudes e.g. time achievement, risk taking Roles of religion e.g. sacred object,prayers,taboos and holidays etc. Educational level attained Social institutions, authority structure, interest group, status system

COMPANIES ADOPTING IHRM APPROACH

AVON

 Employee relations consist of all those areas of human resource management that involve relationship with employee directly or through collective agreement where trade unions are recognised EMPLOYEE RELATION

 Institutional factor  Economic factor  Technological factor  Political and legal factor  Global factor FACTORS INFLUENCING IER

EVLUATION OF INTERNATIONAL LABOUR RELATION AND ORGANIZATION  WFTU (WORLD FEDERATION OF TRADE UNION)  ICFTU (INTERNATIONAL COFEDERATION OF FREE TRADE UNIONS)  ITUC (INTERNATIONAL TRADE UNION COFEDERATION)  ETUC (EUROPEAN TRADE UNION COFEDERATION)  TUCA (TRADE UNION ADVISORY COMMITTEE)