international human resource management.2 (1)
TRANSCRIPT
OBJECTIVES
• To understand the meaning of international HRM.
• To discuss the importance of HRM in international business.
• To know the strategic functions of IHRM.
IntroductionIf you are planning for a year, plant a grain. If you
are planning for a decade, plant trees. If you are planning for a century, plant people.
-Chinese proverb
“A good global company” is “a global people company”.
-Jeffrey ImmeltCEO and Chairman, GE
“The single most important issue for us has been, and will continue to be, organization and people.”
Former Chairman, Unilever
Agenda
• Definition of HRM• Definition of IHRM• Importance of HRM in international
business• Strategic functions of IHRM• Factors influencing HRM in international
business• Global HRM as competitive advantage• Conclusion
HUMAN RESOURCE MANAGEMENT
Determine HR needs Hire people Motivate them
Upgrade their skills Retain them
INTERNATIONAL HUMAN RESOURCE MANAGEMENT
• International HRM (IHRM) is the process of:– Procuring, – Allocating, and– Effectively utilizing human resources – In a multinational corporation, while– Balancing the integration and
differentiation of HR activities in foreign locations
Importance of IHRM
Sustain high productivity
Competitive advantage Value creation
Firm’s financial position
Functions of IHRM
RECRUITMENT
SELECTION
MANAGE EXPATRIATES
PERFORMANCE APPRAISAL
TRAINING AND DEVELOPMENT
COMPENSATION
GENDER EQULITY IN INTERNATIONAL BUSINESS
INTERNATIONAL INDUSTRIAL RELATIONS
TRADE UNIONS
RETAIN EMPLOYEES
STRATEGIC FUNCTIONS
• RIGHT-
• STRATEGIES-
• EXPATRIATES
STRATEGIZING HRM
PERSON JOB PLACE TIME SALARY
INTERNATIONALMULTI
DOMESTICGLOBAL TRANSNATIONAL
STRATEGIZING HRM
• Leverage core competency by expanding into foreign markets,
• Eg. McDonalds, Google, Wal Mart.
INTERNATIONAL STRATEGY
• Foreign country operations independently handled
• Eg. Johnson & Johnson
MULTI-DOMESTIC STARTEGY
• Maximize integration
• World as one marketGLOBAL STRATEGY
TRANSNATIONAL STRATEGY
• Integrates creative ideas, financial resources, people, technology.
• Maximize global integration and local response, leverage core competency.