Presented by: Jitesh Saini Mohit Bansal Neha Chahal Noopur Gupta Shobhit Bhatnagar Aman Dua

CURRENT TRENDS IN HRM

HR OUTSOURCING
HR AUDIT HR INFORMATION SYSTEM

DUAL CAREER COUPLE

EXPATRIATE & INTERNATIONAL HRM

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HR OUTSOURCING (HRO)
CONCEPT As HR, is a non-profit non-core function, it is an obvious candidate for outsourcing. HR Outsourcing is the process of hiring third party associates or individuals who will perform various functions and responsibilities. The provider deals with different processes such as manpower acquisition, retention, management, etc.

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ADVANTAGES
Reduced cost Reduced risk

Increased efficiency
Focus on core business Access to improved HR IT systems

Access to HR expertise not available internally

Increased flexibility and speed of response

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DISADVANTAGES
HR outsource providers solution might not be most

suitable from the organization's perspective HR outsourcing arrangements are generally long term (five to 10 year) Loss of local knowledge and processes which instead reside with the outsource provider Standardization of processes in line with outsource provider not organizational preferences

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CASE STUDY

European subsidiary of a large auto manufacturer achieves high performance by outsourcing its HR function to Accenture

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COMPANY PROFILE
This subsidiary is responsible for the manufacturing, distribution, marketing and sales of products in the European market. It employs approximately 14,000 people across its operations.
The company produced a total of 576,632 vehicles

and sold more than 570,000 vehicles across Western and Eastern Europe in 2006.

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CHALLENGE
The company wanted to create value through its provision of products and services, and build relationships of trust with its diverse stakeholders, includingand especiallyits employees.
The company wanted to improve the way it develops, manages and delivers HR services to its employees.

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SOLUTION
The company signed a 7 year outsourcing contract Accenture provided recruitment, performance and

progression and also learning, employee life cycle management, payroll administration and information management services to the companys 14,000 employees. These services were delivered through Accenture's delivery centers in Czech Republic, India, Spain & UK.
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OUTCOME
A reduction in HR cost of about 30%
The implementation of an integrated HR system. The design and implementation of standardized HR

processes across more than 20 countries, especially for talent life cycle management. An improvement in the scalability of HR services to meet peak demands.

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UNIQUE INSTANCE
The scalability came in handy when the company driven by a huge sales demand for the latest vehicle model, needed to recruit and train 800 new employees within the country to increase its operations by adding a completely new shift to its production linea task traditionally managed over the course of a year. But this was achieved in just one month.

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PROCURE
HR ACTIVITIES

UTILISE ALLOCATE HOME COUNTRY NATIONALS

IHRM

EMPLOYEES

HOST COUNTRY NATIONALS

THIRD COUNTRY NATIONALS

HOME COUNTRY COUNTRIES
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HOST COUNTRY THIRD COUNTRY

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INTERNATIONAL RECRUITMENT POLICY

ETHNOCENTRISM: MNCs following ethnocentric orientation prefers to bring managers from home country to head operations in the subsidiary.
POLYCENTRIC: When MNCs adopts a polycentric approach for staffing, host country nationals are hired to staff subsidiary activities. GEOCENTRIC: In geocentric orientation, subsidiary operations are managed by best qualified individuals, regardless of their nationality.
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WHO IS AN EXPATRIATE?
An expatriate is an employee sent by his or her employer to work in a foreign country. The firm is normally referred to as the parent company, while the country of employment is known as the host country.

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INTERNATIONAL SELECTION CRITERIA:

GENERAL AND TECHNICAL SKILLS
LANGUAGE SKILLS CROSS-CULTURAL SUITABILITY FAMILY SITUATION RELATIONAL SKILLS
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EXPATRIATE TRAINING:
ORIENTATION: International position requires an extensive orientation to familiarise the employee with culture, language and other unique aspects of the assignment. It includes:
Pre-arrival orientation:

Cultural briefing Assignment briefing Shipping requirements

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CONTD...
Post-arrival orientation: Once global employees

arrive in the host country, they will require further assistance in settling in.
CROSS CULTURAL TRAINING:

Differences in culture, language and laws may make it difficult for global employees to be on track quickly. In order to lead a normal life, they need cross cultural as well as language training.
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CONTD...
LANGUAGE TRAINING:
Most important component of a CCT programme. Helps in effective communication.

Verbal and non-verbal communication.

English-

primary

language

of

international

business.

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CONTD...
CULTURAL TRAINING:
It should have an integrated approach, consisting

of both general cultural orientation and specific host country cultural orientation. General cultural orientation helps understand nuances of cultural differences and their likely impact on expatriates. Specific cultural orientation facilitates an understanding of host countrys culture.
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PROBLEMS FACED BY EXPATRIATES

Family stress
Cultural shocks Emotional immaturity

Responsibility overload
Physical breakdown Sorting out finances and healthcare

Loneliness

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ADVANTAGES
Familiarity with home official goals, objectives, policies and practices
Easy organisational control and coordination

Overseas experiences
Better income Exposure

Establishes a pool of internationally experienced executives

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DISADVANTAGES
Difficulty in adapting to the foreign environment and culture
Excessive cost of selecting, training and maintaining

expatriate managers and their families abroad Promotional opportunities for HCNs are limited May result in personal and family problems Social security

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COMPENSATION TO EXPATRIATES
Increase in base salary
Incentives Allowances

Taxes
Long term benefits
Employee Stock Option Plan (ESOP) ii. Restricted Stock Unit (RSU) iii. Employee Stock Purchase Plan (ESPP)
i.

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