International Human Resource Management

International Human Resource
Management
Group 3
Arslan Javaid Siddiqui Be-17-71
Nida Mumtaz Be-17-76
Bakhtawer Saeed Be-17-63
Marium Mujahid Be-17-40
Marium Rafique Be-17-08
Table of content
1. Significance of IHRM
2. Distinctiveness between domestic & Inter. HRM.
3. Challenges for IHRM
4. Models of IHRM
5. Why it is globally valued.
6. Globalization indicator
7. Pressure of globalization
8. Attributes
9. Fuctions of IHRM
10. IHRM Planning
11. Hiring PCN,TCN,HCN
12. Approaches for compensation globally.
Arslan Javaid be-17-71
Significance of International Human
Resource Management
Various type of threats in an economy due
to poor management practices can be met
only through bringing corresponding
changes in management practices. In this
era HRM holds a strong management
perspective due to following influencial
factors of Human resource management as
management perspective.
Core Competence
Emphasis on Human Capital
Technological enhancement
Recruiting the right talent
Training
Employee development and retention
Resource planning and allocation
Helps forecast future challenges
Legal compliance internationally
HRM is a very important discipline as it manages the most
important asset of any organization- the people
International HRM vs Domestic
IHRM HRM
 Managing international affairs •Managing employees in the
city
Thru expatriate or foreign country of origin thru appraisal,
Expertise. monitoring system and
 Managing trends & psychology retaining good atmosphere.
Of foreign consumers •Managing employee retention
 Three dimension strategy And domestic market risks.
 HR activities, type of • it is concerned with
employees leadership
 countries development and overall
effectiveness of the
organization.
Challenges for IHRM
International laws are very strict to obey so you need expert
Hr team in global team.
 Cultural differences cause professional misunderstandings.
Its hard to create a human connection internationally.
Accounting risk due to fluctuation of rate of exchange
 Managing the trends internationally and catering the right
Target market abroad is a must to meet challenge.
Ethnocentric approaches cannot be applicable in different
countries.
Nida Seyal be-17-71
Topics:
Models of IHRM
Reasons for IHRM rising popularity
Globalization indicator
Nida Mumtaz
BE-17-76.
Models of IHRM
International human resource activities:

Categorization of countries in the concept of IHRM
Home Country
Host Country
Third Country
Types of employees in IHRM
Home country or Parent Country Nationals

(PCNs)
Host Country Nationals (HCNs)
Third-country Nationals (TCNs)
Reasons for IHRM rising popularity
Globalization indicator
International trade in goods
Foreign direct investment:
Pros and cons of foreign direct investment

Cross border inter-firm agreements have rise
dramatically during the last 20 years.
Social, economic and political developments
throughout the world have changed the way global
business is conducted
Topics:
Pressure of Globalization
Global Challenges
Charactertics/attributes Of IHRM
Bakhtawar
Saeed
BE-17-63
Indicators of Globalization:
Measures of globalisation include indicators on capital

movements and foreign direct investments, international
trade, the economic activity of multinational firms and the
internationalisation of technology.
International trade in goods.
Foreign direct investment.
Employment and turnover in foreign controlled enterprises.
Employment and turnover in foreign affiliates.
Research and development in foreign controlled enterprises.
Pressure of Globalization:
The pressures it poses on IHRM included:

1. Efficiency
2. Growth
3. Knowledge
4. Customer needs and preferences
5. Remaining competitive throughout the world
6. Flexible and adaptive
7. Locally responsive
Global challanges:
Charactertics/Attributes of IHRM:
Flexibility
Be Comfortable with Uncertainty
Cultural Awareness and Sensitivity
Adaptability
Curiosity
Sharing and Listening.
More involvement in employee
personal lives
More HR activities
Risk exposure
More external influences
Need for a broader perspective
Marium Mujahid
BE-17-40
International business
THE BIGGER PICTURE
International corporation (Honda ,p&g)
Multinational corporation (shell ,Philips)
Global corporation (matsushita)
Transactional corporation (unilever)
Broader prospective
Pay issues
difference of currencies
gender based pay in Korea , japan
Health insurance for employees
Overtime workings
Promotion based seniority
Factors influencing IHRM
Cultural factors
Economic system
Legal and industrial relation factors
Training and development
Human resource planning
Conclusion
As organizations have gone global in their operations ,
the impact of cultural difference as well as workforce
issue have caught the attention of HR managers. As the
world become boundary less, the ability of work in a
cross cultural environment becomes a valuable asset for
any executive.
Understanding, managing even exploiting these cultural

difference could well spell the difference between
success and failure in several business situation.
IHRM planning
(Recriutment and selection)
Marium Rafiq (BE-17-08)

Ethnocentric Approach Geocentric approach
• Key management positions • Seek best people for key job,
held by parent company- irrespective of the nationality.
country nationals • Underlying principle of a global
• Appropriate during easy corporation.
phases • Colgate and Palmolive
• P&G, Philips
Polycentric Approach Regiocentric Approach

• Host company nationals hired to • Acts as a Stepping Stone for
manage subsidiaries. organiztions.
• Parent company nationals • Ethnocentric Polycentric
occupy key positions at Geocentric approach
corporate HQ.
• HUL
“Hiring PCN’S”
Merits:
A working knowledge of home offices and procedures
Control and coordination within the organisation is simple.
Exposure to talented managers on a global scale.
PNCs, as well as specific skills and experiences.
Demerits:
Adoption of a new culture is difficult.
Exorbitant costs of recruiting, training, and keeping expats.
Promotional opportunities for HCNs are limited.
It's possible that they'll try to impose HQ styles that aren't appropri
ate.
Differences in compensation for PCNs vs HCNs.
Problems with family adjustment.
“Hiring HCN’s”
Merits:
Knowledge of the host company's status.
A lower cost of recruiting.
Locals are driven by the prospect of promotion.
Adapts effectively to the regionalization of subsidiary activities.
There isn't a linguistic barrier.
HNC's stay in place for a longer period of time.
Demerits:
Controlling subsidiary activities is proving to be difficult.
There is a communication issue with the people in the home office.
There is no possibility for nationals from the home country to get exp
erience.
Outside of the subsidiary, there are few employment options.
“Hiring TCN’s”
Merits:
Salary and benefit requirements are less stringent than those
of PCNs.
A greater understanding of the host country's environment
Managers who are truly multinational.
Demerits:
The government of the host corporation must oppose the hiri
ng of TCNs.
They are not permitted to return to their home nation after c
om-pleting their mission.
Sensitivity of the host country to nationals of specific countrie
s.
“Different Approaches and Compensations at
a Global
Level”:
1. "Balance Sheet Approach"
 Income taxes, housing, goods and services, and disc
retionary costs are the main focus of attention in th
e home nation.
 The employer calculates how much each of these fo
ur expenses will cost in the expatriate's home count
ry and in the host nation.
 Any disparities, such as higher income taxes or hous
ing expenses, are paid by the employer.
2. "Local Going Rate Approach"
 In high_paying countries like the United States and Switz
erland, this may be desired.
 When the assignment is likely to be long-
term or permanent, the market rate is also desirable.
 The fundamental benefit of this system is that it is easie
r to administer than the balance sheet.
3."Hybrid Approach" is a term used to describe a metho
d that combine both above methods.
 When a balance sheet is compared to a local market rat
e equivalent, the
approach refers to variations of the greater of home or
host system.
Thankyou 
regards: Group3

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International Human Resource

International human resource activities:

Home country or Parent Country Nationals

Pros and cons of foreign direct investment

Measures of globalisation include indicators on capital

The pressures it poses on IHRM included:

Understanding, managing even exploiting these cultural

Marium Rafiq (BE-17-08)

Polycentric Approach Regiocentric Approach

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