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Introduction International

Human Resource Management

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What is HRM?

Human resource management (HRM) is the strategicand coherent management of an organizations mostvalued assets the people working there whoindividually and collectively contribute to the

achievement of the objectives of the business. Activities like :

Human Resource Planning

Staffing(recruitment ,selection , placement)

Performance Management

Training and Development

Compensation

Industrial relations

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Model of IHRM

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IHRM

International HRM is the process of

Procuring

Allocating

Effectively utilizing human resources in

multinational corporation , while balancing the

integration and differentiation of HR activities in

foreign location.

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Countries

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Types Of Employees

Parent country nationals (PCNs) are residents of theinternational businesss home country who are transferredto one of its foreign operations

Host country nationals (HCNs) are residents of the

host country, and are the most common choice for mid-level and lower-level jobs. Employing HCNs is popularbecause they are already familiar with local laws, culture,and economic conditions

Third country nationals (TCNs) are citizens of neitherthe firms home country nor of the host country. TCNs aremost likely to employed in upper-level or technicalpositions

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Difference Between Domestic and

International HRM

An IHRM operates beyond national borders while domesticHRMs operate within the borders.

IHRMs have more functions and are subject to morestringent international rules and are more exposed to a

wider array of activities as opposed to domestic HRMs. In an IHRM, theres constant change for a broader set of

perspectives.

In an IHRM, theres more attention given to the associate orexpatriate employees personal well-being.

There are more risks involved in IHRM than in the domesticHRM.

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Why International HRM

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Mergers and Acquisitions

Mergers and acquisitions (abbreviated M&A) is an aspect ofcorporate strategy, corporate finance and management dealingwith the buying, selling, dividing and combining ofdifferent companies and similar entities that can help an enterprisegrow rapidly in its sector or location of origin, or a new field or new

location, without creating a subsidiary, other child entity or using ajoint venture.

When one company takes over another and clearly establisheditself as the new owner, the purchase is called an acquisition.

A merger happens when two firms, often of about the same size,agree to go forward as a single new company rather than remain

separately owned and operated. This kind of action is moreprecisely referred to as a "merger of equals.

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Joint venture

A contractualagreement joining together two

or more parties for the purpose of executing a

particular business undertaking. All

parties agree to share in the profits and losses

of the enterprise.

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Wal-Mart

Wal-Mart Stores Inc. has been successful using itsstrategy of everyday low prices to attractcustomers. The idea of everyday low prices is tooffer products at a cheaper rate than competitors

on a consistent basis, rather than relying on sales.Wal-Mart is able to achieve this due to its largescale and efficient supply chain. They sourceproducts from cheap domestic suppliers and from

low-wage foreign markets. This allows thecompany to sell their items at low prices and toprofit off thin margins at a high volume.

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Stages of Organization

Stage I: (Fire-Fighting Mentality)

short-term focus

Lack of clear direction and goals

Shifting priorities

Unclear policies and procedures

Us vs. them attitude

Blame and lack of ownership

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Contd..

Stage II: Stability (Back to the Basics)

Clarity of goals and direction Consistency in priorities

Well-defined policies and procedures(technical and personnel) Agreement on roles and responsibilities Basic management processes rewarded andpracticed (goal-setting, performance reviews,etc.)

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Contd..

Stage III: High Performance (Outstanding, sustainableresults)

Clear statement of mission Well defined values which result in distinctive culture Respect for people that is a deeply ingrained part ofculture Good communication and information sharingsystems

High involvement and empowerment of people Design (work flow, structure, systems) that supportsmission and values

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What is a Mission Statement?

A Mission statement: Defines the present

state or purpose of an organization;

Answers three questions about why an

organization exists -

WHAT it does;

WHO it does it for; and

HOW it does what it does.

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Vision Statement

A vision statement is sometimes called a pictureof your company in the future but its so muchmore than that. Your vision statement is your

inspiration, the framework for all your strategicplanning.

A vision statement may apply to an entirecompany or to a single division of that company.

Whether for all or part of an organization, thevision statement answers the question, "Wheredo we want to go?"

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Questions