A

PRESENTATION
ON

INTERNATIONAL HUMAN RESOURCE

MANAGEMENT
Presented by:
Anjali Nair
Manish Singh
Prateek Shrivastava
Devendra Prasad
Rounit Roy

Human Resource Management:

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

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.

OBJECTIVES OF I-HRM:
To reduce the risk of international human resource.
To avoid cultural risks.
To manage diversifies human capital.

P. MORGANS MODEL OF IHRM

Human resource activities

Procurement
Allocation
Utilization of human resources

Nations categories where firms expand and operate

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

The country in which a companys

corporate headquarters is located.
Third country
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

Host-country nationals (HCNs)
Employees born and raised in a host country.

Advantages

Disadvantages

No problems with language and

Head Quarters may have less

culture.
Reduced hiring costs.
No work permits required.

control over operations.

HCNs may still have limited career
opportunities outside the
subsidiary.

Parent-country nationals (PCNs)

Employees who were born and live in a parent country.
Advantages

Disadvantages

Control and co-ordination by

HQ is maintained.

HCNs promotion opportunities

are limited.

Promising managers get

international experience.

PCNs may impose an

inappropriate HQ style.

Assurance that the

subsidiary will comply with
company objectives policies
etc.

Compensation differences
between PCNs and HCNs may
cause problems.

Third-country nationals (TCNs)

Employees born in a country other than a parent or host country.

Advantages

Disadvantages

Salary and compensation

may be lower than for PCNs.

Transfers must consider national

animosities.

May be more familiar with

host country than the PCNs.

TCNs may not want to return after

assignment.

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

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

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)
Different labor laws
Different political climate
Different stage(s) of technological advancement
Educational level attained

THANKYOU