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    International HR Issues

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    Vinesh Reddy
    This document discusses international human resource management (IHRM). IHRM involves managing employees across national borders. It addresses issues like staffing international subsidiaries, providing pre-departure training, managing performance abroad, and compensating expatriate employees. Effective IHRM is important for global organizations to utilize international talent and navigate cultural and regulatory differences between countries. The document outlines IHRM practices and challenges companies face when operating on a global scale.

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    International HR Issues

    Uploaded by

    Vinesh Reddy
    294 views13 pages
    This document discusses international human resource management (IHRM). IHRM involves managing employees across national borders. It addresses issues like staffing international subsidiaries, providing pre-departure training, managing performance abroad, and compensating expatriate employees. Effective IHRM is important for global organizations to utilize international talent and navigate cultural and regulatory differences between countries. The document outlines IHRM practices and challenges companies face when operating on a global scale.

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    The ppt describes about the International HR Issues and how to overcome it

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    This document discusses international human resource management (IHRM). IHRM involves managing employees across national borders. It addresses issues like staffing international subsidiaries, providing pre-departure training, managing performance abroad, and compensating expatriate employees. Effective IHRM is important for global organizations to utilize international talent and navigate cultural and regulatory differences between countries. The document outlines IHRM practices and challenges companies face when operating on a global scale.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    294 views13 pages

    International HR Issues

    Uploaded by

    Vinesh Reddy
    This document discusses international human resource management (IHRM). IHRM involves managing employees across national borders. It addresses issues like staffing international subsidiaries, providing pre-departure training, managing performance abroad, and compensating expatriate employees. Effective IHRM is important for global organizations to utilize international talent and navigate cultural and regulatory differences between countries. The document outlines IHRM practices and challenges companies face when operating on a global scale.

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    At a glance
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    The key takeaways are that international human resource management deals with managing people across different countries and cultures. It involves issues like staffing expatriates, cultural adaptation and developing policies for a global workforce.

    The three main approaches to staffing subsidiaries discussed are ethnocentric, polycentric and geocentric. An ethnocentric subsidiary has decisions made at headquarters and uses parent country nationals. A polycentric subsidiary uses a mix of host country nationals and parent country nationals. A geocentric subsidiary selects staff based on ability rather than nationality.

    The three main elements of pre-departure training discussed are language training, cultural training and training on managing personal and family life abroad.

    International HR Issues

    VINESH K

    International HRM

    Simple definition is the process of managing people in international settings Scyllion (1995) defined IHRM as the HRM issues and problems arising from the internationalization of business, and the HRM strategies, policies and practices which firms pursue in response to the internationalization process

    IHRM is the management of HR in business operations in atleast two nations

    Need for IHRM


    Managing expatriates. Globalization has forced HRM to have international orientation. Effectively utilise services of people at both the corporate office and at the foreign plants.

    External environment & IHRM


    Political Environment Cultural Environment

    IHRM Practices

    International staffing Pre-departure training for international assignments Repatriation Performance management in international assignments Compensation issues in international assignments

    International staffing
    International staffing refers to the process of selecting employees for staffing international operations of an MNC. MNCs can be staffed using three different sources

    Parent Country National (PCN) - Employees of an organization who are citizens of the country in which the headquarters of the company is located. Host Country Nationals (HCN) - Employees of an organization who are the citizens of the country in which the foreign subsidiary is located. Third Country Nationals (TCN) - Employees of an organization who are the citizens of the country other than the country where the organization is headquartered and the country that is hosting the subsidiary.

    Approaches to staffing subsidiaries

    Ethnocentric foreign subsidiary has little autonomy. All strategic decisions are made at the headquarters. PCNs staff key positions at quarters as well as the foreign subsidiary. Polycentric staff foreign subsidiaries of the firm with HCNs and headquarters consist of PCNs. Geocentric staff may be PCNs, HCNs or TCNs ability and not nationality is the key to staffing's.

    Pre-departure Training for International Assignments


    To make it easier for the employee to assume job responsibilities and be effective in the foreign country as soon as possible.

    To facilitate cultural adaptation as quickly and as effectively as possible.


    3 elements of T&D program
    1. 2. 3.

    Language training Cultural training Managing personal and family life

    Repatriation
    It is the process of bringing an expatriate home after he/she has completed the international assignment. Organizations can follow 3 practices
    1. 2.

    Create knowledge and develop global leadership skills. Ensure that candidates have cross-cultural skills to match their technical abilities. Prepare people to make the transition back to their home offices.

    3.

    Performance Management in International Assignments


    Performance is the combination of several factors

    Compensation Package Task Assigned to the Expatriate Head quarters Support Environment

    Cultural Adjustment

    Compensating Managers in International Assignments


    Components of expatriate compensation

    Home leave and travel allowances Childrens education allowance Currency differential payments Relocation allowance

    Housing allowance
    Cost of living adjustment Payments to protect from negative tax consequences

    CONCLUSION
    As organizations have gone global in their operations, the impact of cultural
    differences as well as workforce issues have caught the attention of the HR managers. As the world becomes boundary less, the ability to work in a cross cultural environment becomes a valuable asset for any executive. Understanding, managing, and even exploiting these cultural differences could well spell the difference between success and failure in several business situations.

    Thank You

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