International human resource management

IHRM
Broadly defined, international human resource management (IHRM) is the process of procuring, allocating, and effectively utilising human resources in a multinational corporation. If the MNC is simply exporting its products, with only a few small offices

in foreign locations, then the task of

the international HR manager is relatively simple.

 However, in global firms human resource managers must achieve two somewhat conflicting strategic objectives. First, they must integrate human resource policies and practices across a number of subsidiaries in different countries so that overall corporate objectives can be achieved. At the same time, the approach to HRM must be sufficiently flexible to allow for significant differences in the type of HR policies and practices that are most effective in different business and cultural settings.

Barriers/ features of ihrm

Cultural awareness Legal awareness Responsibility towards family Different expectations and requirement of employee across cultures Managing cross cultural teams Diluting risk on business front and

increasing risk on people front

 Given by Morgan-

International human resource management model

He defined Ihrm as the

interplay among 3 dimensions

human resource activities,

type of employees and country

of operations

What is an expatriate?
An employee who is working and temporarily residing in a foreign country Some firms prefer to use the term international assignees

Reasons for Expatriate Failure

1.Inability of spouse to adjust 2.Managers inability to adjust 3.Other family problems 4.Managers personal or emotional maturity 5.Inability to cope with larger overseas responsibility 6.Lack of technical competence 7.Difficulties with new environment

Approaches to Managing and Staffing Subsidiaries

Ethnocentric
Home country approach

Polycentric
Local approach

Regiocentric
Regional approach

Geocentric/Global
Global approach

8-9

Issues in IHRM
Employee and family adjustment Selecting the right person for the foreign assignment Culture and communication Language and communication`1

Hrm functions