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IBM Unit V Part 1

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12 views

IBM Unit V Part 1

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SHALINI P
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Unit -V

HUMAN RESOURCE MANAGEMENT


IN INTERNATIONAL BUSINESS
Selection of expatriate managers- Managing
across cultures -Training and development-
Compensation - Disadvantages of international
business – Conflict in international business-
Sources and types of conflict – Conflict
resolutions – Negotiation –Ethical issues in
international business – Ethical decision-
making.
INTERNATIONAL HUMAN RESOURCE
MANAGEMENT
• Human resource management is a process of bringing people and

organizations together so that the goals of each are met.

• It is that part of the management process which is concerned with

the management of human resources is an organization.

• It tries to secure the best from people by winning their whole

hearted co-operation.

• In short, it may be defined as the art of procuring, developing and

maintain competent work force to achieve the goals of an

organization is an effective and efficient manner.


Objective of IHRM

 To reduce the risk of international human resource


 To avoid cultural risks
 To avoid regional disparities
 To manage diversified human capital
 To remain competitive throughout the world
 Maintaining local responsiveness
 To be capable of transferring learning across globally dispersed units
 To ensure an international look with respect to local sensitivities.
 To spread cross-cultural sensitivities and awareness amongst managers and
employees across the globe.
Importance of IHRM
 Given globalization of economy, business is crossing country borders to
become international business, which is dynamic.
 Markets are no longer protected from foreign competition. It s now open for
competition from both domestic and foreign firms.
 A large proportion of workforce is located in other countries away from their
homes and home countries.
 The unusual level of foreign competition in both domestic and foreign markets is
forcing businesses to find and retain the competitive advantage.
 Finding and nurturing the suitable and capable human resources in the context
of high competition at both domestic and international levels are high on the list
of priorities of the top managements
 Quality human resources are a must for implementing global competitive
strategies
BARRIERS TO EFFECTIVE IHRM
1.Variations: The biggest challenge is also the most obvious the worldwide variations
in social, political, and economic circumstances. An HR practice that works in one
country may be unacceptable in another.
2.Perception of HR: Another global challenge is that the perceived value of HR
function varies across locations. In one country, HR may be perceived as a true
business partner, working with high-level managers on critical strategic assessments.
3.Attitude and actions of Headquarters towards HR: These help determine how
seriously the HR function is viewed locally.
4.Resistance to change: Another major challenge facing global HR practitioners is that
different locations have their own way of doing things and resisting change.
5.Cultural differences in learning and teaching styles: These are subtle differences.
For example the entertaining instructional style often used in the U.S. might not find
a receptive audience in Japan, where such an approach is not considered credible.
GLOBAL CHALLENGES IN IHRM

 Management of cultural diversity


 Management of complexity of the workforce
 Management of communication channels
 Management of divergent economic systems
 Management of legal and labor relations issues
• ROLE OF EXPATRIATES IN GLOBAL ENVIRONMENT
• Globalization of organizations has necessitated the use of expatriates --
employees sent out on foreign assignments -- for long or short
international assignments.
• The three types of expatriates –
• Third Country Nationals (TCNs),
• Parent Country Nationals (PCNs) and
• Host Country Nationals (HCNs) -- all play vital roles in companies.
Stages of Expatriate Adjustment
Stages of Expatriate Adjustment

• Phase 1: Honeymoon
• Period Lasting: 4 to 6 weeks (depending on the individual)
• Phase 2: Culture Shock
• Period Lasting: 6 to 8 months (depending on the individual)
• Phase 3: Gradual Adjustment
• Period Lasting: 1 to 2 years (depending on the individual)
• Phase 4: Basic Competence
• Period: 2 to 4 years from start of posting (depending on the
individual)
• Phase 5: Mastery
• Period: 5 to 7 years from start of posting (depending on the
individual)
• EXPATRIATE SELECTION PROCESS

Selection criteria
• self-orientation dimension,

• other‘s orientation dimension

• perceptual dimension

• cultural toughness dimension.


EXPATRIATE COMPENSATION

• Home-based approach (also known as the balance sheet approach)


• equalizes cost differences between the international
assignment and the same assignment in the home country of the
individual or the organization.
• Host-Based Approach
• host country compensation practices and regulations
• Global Market Approach
• All assignees are on the equivalent compensation scale, regardless of
their home country.
ELEMENTS OF EXPATRIATE
COMPENSATION PACKAGE
• Expat premium
• Mobility premium
• Cost of living allowance
• Installation premium
• Children’s scholarship
• Health coverage and insurance
o International sickness coverage (family);
o Retirement;
o Unemployment
o Emergency repatriation insurance;
o Life, handicap and death insurance;
o Daily indemnities
o Traveling insurance
• Moving and storage benefit
• Tax and social security protection
• Direct Compensation
• Fair Compensation Packages
REPATRIATION
Repatriation is the process of
returning a person to their place of
origin or citizenship. This includes the
process of returning refugees or
soldiers to their place of origin
following a war.

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