8/8/2019 CCIHRM A1

1/12

Context of IHRMContext of IHRM

Chapter A 1Chapter A 1

DowlingDowling WelchWelch

8/8/2019 CCIHRM A1

2/12

Salient PointsSalient Points

Understanding key elementsUnderstanding key elements

Difference between domestic &Difference between domestic &

international HRMinternational HRM Trends , challenges in global workTrends , challenges in global work

environmentenvironment

22

8/8/2019 CCIHRM A1

3/12

HRM : Essential ElementsHRM : Essential Elements

Activities undertaken by an organisation to useActivities undertaken by an organisation to use

its human resources effectivelyits human resources effectively

Essentially should includeEssentially should include

Human resources planning ( Numbers , skills , needHuman resources planning ( Numbers , skills , need

gaps , succession )gaps , succession )

Staffing ( recruitment , selection , placement )Staffing ( recruitment , selection , placement )

Performance managementPerformance management

Training & developmentTraining & development

Compensation & benefitsCompensation & benefits

Industrial relationsIndustrial relations

8/8/2019 CCIHRM A1

4/12

International HRM ContextInternational HRM Context

3 D model which spins domestic HRM arm3 D model which spins domestic HRM arm

across location , employee mobilityacross location , employee mobility

Broad HR activitiesBroad HR activities

Procure , allocate , utiliseProcure , allocate , utilise

Country of operationCountry of operation

Home , Host , OtherHome , Host , Other

Category of employeeCategory of employee

PCNs, HCNs , TCNsPCNs, HCNs , TCNs

Multinational v/s Multidomestic operationMultinational v/s Multidomestic operation

Expatriates , InpatriatesExpatriates , Inpatriates

8/8/2019 CCIHRM A1

5/12

Difference between Domestic &Difference between Domestic &

IHRMIHRM While Human Resources ManagementWhile Human Resources Management

remains at core for both ; IHRM differsremains at core for both ; IHRM differs

from Domestic HRM on followingfrom Domestic HRM on followingparametersparameters

Complexity of operationComplexity of operation

Cultural environmentCultural environment

Industry typeIndustry type

Reliance on home country salesReliance on home country sales

8/8/2019 CCIHRM A1

6/12

IHRM : Complexity of OperationIHRM : Complexity of Operation

More HR activities :More HR activities : International taxationInternational taxation

International relocation , orientationInternational relocation , orientation

Added admin : Transitioning , interface between expat &Added admin : Transitioning , interface between expat &

authorities .Ethical issues . Dealing with authoritiesauthorities .Ethical issues . Dealing with authorities

Greater involvement in employee personal lifeGreater involvement in employee personal life

More than domestic operations due nature of transitionMore than domestic operations due nature of transition

Children schooling ( home country ) , Spouse jobChildren schooling ( home country ) , Spouse job

Recreation facilities in remote , less hospitable set upRecreation facilities in remote , less hospitable set up

Need for broader perspectiveNeed for broader perspective

Deft at straddling across policies for PCN/HCN/TCNDeft at straddling across policies for PCN/HCN/TCN

Equity issues on differential compensation issuesEquity issues on differential compensation issues

8/8/2019 CCIHRM A1

7/12

IHRM : Complexity of OperationIHRM : Complexity of Operation

Job emphasis with changing employee mix :Job emphasis with changing employee mix :

Maturity of operations changes mix : ExpatsMaturity of operations changes mix : Expats LocalsLocals HRHR

Export . Changes work patternExport . Changes work pattern

Risk exposureRisk exposure

Disruption & costs due Expat failure . Impact on moraleDisruption & costs due Expat failure . Impact on morale

Disruptions due policy change , law & order around ExpatDisruptions due policy change , law & order around Expat

workingworking

Sensitivity in handling local bribery within HO frameworkSensitivity in handling local bribery within HO framework

Broader external influencesBroader external influences

Government interference ( official / unofficial ) reGovernment interference ( official / unofficial ) re

employment of locals ( Ref Malaysia , India )employment of locals ( Ref Malaysia , India )

8/8/2019 CCIHRM A1

8/12

IHRM : Cultural EnvironmentIHRM : Cultural Environment

Multicultural workforce is a part ofMulticultural workforce is a part of

conscious work ethos at MNCsconscious work ethos at MNCs

HR managers need to be aware of culturalHR managers need to be aware of culturalnuances of a country while workingnuances of a country while working

through HR processesthrough HR processes

Task also to sensitise staff / facilities toTask also to sensitise staff / facilities to

work in a multi culture set upwork in a multi culture set up

8/8/2019 CCIHRM A1

9/12

IHRM : Industry TypeIHRM : Industry Type

Different approaches on policy , practice ,Different approaches on policy , practice ,

training , performance management ,training , performance management ,

employee mobility etc , depending on :employee mobility etc , depending on :

Global Industry with multinational competitionGlobal Industry with multinational competition

will need Globally integrated strategywill need Globally integrated strategy

Multi domestic Industry with country specificMulti domestic Industry with country specific

competition ( e.g. Retail , Real estate ,competition ( e.g. Retail , Real estate ,Distribution , Insurance ) will need domestic Distribution , Insurance ) will need domestic

strategystrategy

8/8/2019 CCIHRM A1

10/12

IHRM : Size of Domestic SalesIHRM : Size of Domestic Sales

Relative size of domestic sales will decideRelative size of domestic sales will decide

top management involvement intop management involvement in

International operationsInternational operations

Smaller business size , non strategicSmaller business size , non strategic

areas get low organisational attention;areas get low organisational attention;

consequently are lesser integrated intoconsequently are lesser integrated into

Corporate ways Corporate ways

8/8/2019 CCIHRM A1

11/12

8/8/2019 CCIHRM A1

12/12

Challenges for MultinationalChallenges for Multinational

ManagementManagement BureaucracyBureaucracy Growth , size may impact flexibility . Need for greaterGrowth , size may impact flexibility . Need for greater

control may make it over bureaucratic , slowcontrol may make it over bureaucratic , slow

Knowledge sharingKnowledge sharing Need to guard against discontinuity due departures .Need to guard against discontinuity due departures .

More critical is Tacit knowledge .More critical is Tacit knowledge .

Tools : Interactive forums , reports / bulletins / webTools : Interactive forums , reports / bulletins / webposting , reward system , ambience , training programsposting , reward system , ambience , training programs

Transfer of competenceTransfer of competence Mind orientation , MentorsMind orientation , Mentors

Tools : Cross function workgroups , International projects /Tools : Cross function workgroups , International projects /assignments , T & D programsassignments , T & D programs