International Human Resource Management (IHRM) Can Be Defined As A Set of Activities

International Human Resource Management (IHRM) can be defined as a set of activities
targeting human resource management at the international level. It strives to meet

organizational objectives and achieve competitive advantage over competitors at national
and international level.
Features
1. It is an art and a science: The art and science of HRM is indeed very complex. HRM is
both the art of managing people by recourse to creative and innovative approaches; it is a
science as well because of the precision and rigorous application of theory that is required.
2. It is pervasive: Development of HRM covers all levels and all categories of people, and
management and operational staff. No discrimination is made between any levels or
categories. All those who are managers have to perform HRM. It is pervasive also because it
is required in every department of the organisation. All kinds of organisations, profit or non-
-profit making, have to follow HRM.
3. It is a continuous process: First, it is a process as there are number of functions to be
performed in a series, beginning with human resource planning to recruitment to selection, to
training to performance appraisal.
4. HRM is a service function: HRM is not a profit centre. It serves all other functional
departments. But the basic responsibility always lies with the line managers. HRM is a staff
function – a facilitator. The HR Manager has line authority only within his own department,
but has staff authority as far as other departments are concerned.
5. HRM must be regulation-friendly: The HRM function has to be discharged in a manner
that legal dictates are not violated. Equal opportunity and equal pay for all, inclusion of
communities in employment, inclusion of tribal’s (like Posco or Vedanta projects) and
farmers in the benefits and non-violation of human rights must be taken care of by the HRM.
Globalisation and IHRM
Globalization symbolizes free flow of technology and human resources across national
boundaries presenting an ever-changing and competitive business environment.
Globalization is a process that is drawing people together from all nations of the world into a
single community linked by the vast network of communication technologies. This aspect of
globalization has also affected the HRM in the business world of today. HR managers today
not need to rely in a small limited market to find the right employees needed to meet the
global challenge, but today they can recruit the employees from around the world. The future
success of any organizations relies on the ability to manage a diverse body of talent that can
bring innovative ideas, perspectives and views to their work. Thus, a HR manager needs to
be mindful and may employ a ‘Think Global, Act Local’ approach in most circumstances.
The impact of globalization on HRM is as follows:
 Managing Cultural Diversity

 Managing Expatriates
 Difference in the Employment Laws
 Managing virtual employees
 Corporate Social Responsibility
 Coping with flexible working hours
HRM Internationalization of Firms
 Providing Training: Human resource professionals maintain a productive

environment by ensuring that employees have the skills and knowledge to
accomplish job tasks. They make arrangements for training courses that enable
employees to get the proper credentials for performing their function. This also
ensures that companies adhere to all government regulations.
 Fostering Global Collaboration: As companies become more international, human

resource professionals have become more generalist. They tend to know less about
day-to-day, internal operations and focus more on ensuring personnel work
effectively together as teams. They care about competitive advantage, profitability
and economic survival during tough financial times. Their role may have been
restricted to hiring employees, managing benefits and handling disciplinary action in
the past, but human resource professionals now deal with controlling health care
costs, reducing employee attrition and participating in the community, as well.
 Working with Managers: Years ago, human resource professionals in traditional

small business settings focused on completing administrative tasks, such as
recruiting and hiring personnel, often without input from department managers. As
companies become more global, human resource professionals act as business
partners to interview and orient new employees to the workplace. A complex
business operation typically requires specialized personnel, so human resource
professionals must work cooperatively with managers on the production lines.
 Building Teams: Human resource professionals who support international business

operations typically must to ensure that diverse teams work well together. By
conducting team-building workshops, promoting acceptance of cultural diversity and
motivating employees to achieve strategic goals, they help their company build
strong teams. By recognizing that in some countries, individual recognition plays a
larger role than others do, human resource professionals can create awareness
about how teams can function effectively across borders to maintain company
profitability.
Module 2
Global vs local strategy
Knowledge management
Knowledge management (KM) is the process of creating, sharing, using

and managing the knowledge and information of an organisation. It refers to a
multidisciplinary approach to achieving organisational objectives by making the best use
of knowledge.
Cross-culture management
Cross-culture management happens when a manager oversees employees from a culture other than
her own or when employees on a team are from different countries, as well. There are a number of
ways a multicultural team might be set up. Organizations have offices in different countries which
are managed by people in the head office. At other times, remote employees around the world are
managed by someone in yet another country. Another scenario is when people have immigrated
from different countries and work alongside others who have also travelled from elsewhere.
For cross-culture management to be effective, the manager must identify and acknowledge the
differences in cultures, practices and preferences of the team members. Managers also need to be
able to modify or adapt certain business processes or systems, such as the way information is
communicated or the how decisions are made, in order to improve the efficacy of the workforce.

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International Human Resource Management (IHRM) can be defined as a set of activities

targeting human resource management at the international level. It strives to meet

 Managing Cultural Diversity

 Providing Training: Human resource professionals maintain a productive

 Fostering Global Collaboration: As companies become more international, human

 Working with Managers: Years ago, human resource professionals in traditional

 Building Teams: Human resource professionals who support international business

Global vs local strategy

Knowledge management (KM) is the process of creating, sharing, using

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