Professional Documents
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BU IHRM Mod 1 - 1
BU IHRM Mod 1 - 1
M Difference between Domestic HRM and IHRM, Managing International HR activities- HR planning, Recruitment & Selection, Training & Development, Performance management, Remuneration, Repatriation & employee relations. Socio-Political Economic System U.S, U.K, Japan and India a comparative analysis.
Why study of IHRM is essential? Impact of internationalisation of business - Boundary-less business operations - Increasing international competition on quality, price, delivery schedule, material availability etc
Typical HRM activities are: - HR planning - Staffing (recuitment, selection, placement) - Performance management - Training and development - Compensation and benefits - Industrial Relations
Morgan model of IHRM presents three Dimensions of IHRM: 1. Procurement, allocation and utilisation of HR (covers all typical HR activities) 2. National or country categories involved in IHRM activities. -Host country -Home country -Other countries
3. Category of employees of an international firm - Host Country Nationals (HCNs) - Parent Country Nationals (PCNs) - Third Country Nationals (TCNs) Example :-US multinational IBM employs Australian citizen in its Australian operations (HCNs), often sends US citizens to Asia-pacific countries on assignments (PCNs) and may send some of its Singaporean employee on an assignment to its Japanese operations (TCNs)
Model of IHRM
HR Activities
Utilize
Procure
Allocate
Other HCNs
Home
PCNs Host
TCNs
Types of employees
countries
Morgan defines IHRM as the interplay among the three dimensions HR activities, type of employees and countries of operation. Broadly functions remain the same but national boundaries changes. Domestic HRM is also now taking IHRM issues like multicultural workforce issues, workforce diversity etc. but the context changes when dealing in international context.
What is an Expatriate? If an employee who is working and temporarily residing in a foreign country. Also called international assignees. What is inpatriate? Transfer of subsidiary employee to parent country. Or when HCN is transferred to parent country operation What is transpatriate? Employees who are moved between subsidiaries
Parent country HQ/operations HCNs HCNs National Border PCNs Subsidiary operations Counrty B
PCNs
TCNs
National Border
-Admn. Services for the expatriates: in host country, policy/practice may conflict with local condition. Host country requires AIDS test for work permit for employee whose parent firm headquarter is in USA where this remains controversial issue - Host govt. relations: - Policy/practices in host country: payment in kind also violates US foreign corrupt Practices Act. - language translation service:
5. Risk exposure
The potential high cost problems are: - Expatriate failure - Under performance while on international assignment - The direct cost per failure to the parent firm may be even three times the domestic salary plus relocation expenses. The indirect cost are: - loss of foreign market share - damage to key host country relationship - terrorism and political risk - devise emergency evacuation procedure
Cultural environment
Culture is acquired thru socialisation process which begins at birth Behavioral attitude are transmitted culturally During visit abroad, cultural differences in language, food, dress, hygiene and attitude to time is confronted. This ac prove difficult when required to live Cultural shock is a phenomena experienced by people who move across cultures. People experience shock reaction to new cultural experience that cause psychological disorientation Cultural shock can lead to negative feeling about host country and its people
Another issue in x-culture is Emic-Etic distinction Emic- is culture specific aspects of concepts or behaviour Etic- is culture common aspects of concepts or behaviour