2. Increased Concern For HRM
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Sound Industrial Relations.
Dual career couples.
Flexi-working hours.
Work from home facility.
3. International HRM-Managing intercountry differences
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Process of employing and developing people in international organisations which
operate globally.
Applying HRM policy familiar in domestic markets to international workforce, for
example:
– employee development (ED)
– recruitment and selection
– reward and remuneration
– policies and practices.
Means working across national borders.
Includes any type of worker, for example:
– own country national working as expatriate
– own country national working overseas for short time for specific project/s
– individual of one nationality working for organisation based in another country but
who is actually working in yet another country.
IHRM primarily exists in multinational corporations with HRM having a wider contextual
setting.
4. Employees in an International Workforce
• Parent-country national – employee who was born
and works in the country in which an organization’s
headquarters is located.
• Host-country national – employee who is a citizen of
the country (other than parent country) in which an
organization operates a facility.
• Third-country national – employee who is a citizen
of a country that is neither the parent country nor
the host country of the employer.
5. International HR Strategies
• Ethnocentric
– Centralized HR
– Managed by Parent Country Nationals (PCNs)
– Pay based on local market for employees; home country
for PCNs
– Training aimed at KSAs to perform the job
• Polycentric
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Decentralized HR
Managed by Home Country Nationals (HCNs)
Pay based on local market
Training given added importance
6. International HR Strategies
• Geocentric
– Global workforce deployed throughout the world
– Positions filled by most qualified regardless of
nationality: HCNs, PCNs, or TCNs,
– Compensation based on value-added
– Training and development emphasized
• Regiocentric
7. Why Do International Managers Fail?
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Does it change the essence of HR?
Culture Shock
Cultural arrogance (Parochialism)
Cultural Insensitivity
The Key success factor?
– Cultural adaptability
8. What is SHRM?
• “All those activities affecting the behaviour of individuals in their
efforts to formulate and implement the strategic needs of the
business”: (Schuler, 1992).
• “Formulating and executing human resources policies and practices
that produce the employee competencies and behaviors the company
needs to achieve its strategic aims” (Dessler, 2011)
• FIVE Ps---Philosophy, policies, programmes,practices and
processes.
• Strategic HRM is an outcome as organizational systems designed
to achieve sustainable competitive advantage through people.
SHRM is a process of linking HR practices to Business strategy.
10. Talent Management
• Talent management implies that companies are strategic and
deliberate in how they source, attract, select, train, develop,
retain, promote, and move employees through the
organization.
Editor's Notes
When organizations operate globally, their employees are very likely to be citizens of more than one country. Employees may come from the employer’s parent country, a host country, or a third country
