International Human Resource Management: An Overview

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International Human Resource Management An
Overview
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Why International Human Resource Management?

• Increasing globalization, firms and employees in
  them moving all over the world.
• Major problems in international operations
  because of human resource management blunders
• Hence need to understand human resource
  management in a global perspective

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Why International Human Resource Management?

• 110 senior human resource and industrial
  relations managers mentioned the most compelling
  issues in human resource management (57-US
  Cos.,43 Others)
• The role of HR in International Operations
• Managing a Multicultural Workforce
• Developing Managerial Talent in a Global Business
  Environment

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Differences in International and Domestic HRM

• Complexity involved in operating in different
  countries, varied nationalities of employees
• The Cultural Environment
• The industry or industries with which the MNC is
  involved
• Attitudes of Senior Management
• Extent of reliance of MNC on home country
  domestic market

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Comparisons between HR Activities Across Countries

• Staffing
• Performance Management
• Training and Development
• Compensation Benefits
• Hiring practices
• Labor relations

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The Expatriate Problem

• High Expatriate Failure Rates
• Average cost per failure to the parent firm can
  be as high as three times the expatriates annual
  domestic salary plus the cost of relocation
• Between 16 40 of all American employees sent
  abroad to developed nations, and almost 70 sent
  to less developed nations return home early

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Some Terms Defined

• Host Country National Belongs to the Country
  where the subsidiary is located
• Parent Country National Belongs to the Country
  where the firm has its headquarters
• Third Country Nationals Belongs to any other
  country and is employed by the firm

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Reasons for Expatriate Failure

• Inability of spouse to adjust
• Managers inability to adjust
• Other family problems
• Managers personal or emotional maturity
• Inability to cope with larger overseas
  responsibility
• Lack of technical competence
• Difficulties with new environment

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• A slow sort of country, said the Queen. Now,
  here, you see, it takes all the running to keep
  in the same place. If you want to get somewhere
  else, you must run at least twice as fast as
  that!
• Lewis Carroll in Through The Looking Glass