Transcript
Subject: International Human Resource Management Code:12/33/4/B
Subject
General Instructions:
The Student should submit this assignment in his/her won handwritten form (not in the typed format) The Student should submit this assignment within 2 days. The student should attach this assignment paper with the answered papers. Each Question mentioned in this assignment should be answered within the word limit specified The student should only use the Rule sheet papers for answering the questions. Failure to comply with the above Five instructions would lead to rejection of assignment.
Specific Instructions:
There are Four Questions in this assignment. The student should answer all the four questions. Marks allotted
100.
Each Question carries equal marks (25 marks) unless specified explicitly.
Kindly discuss the scope and meaning of IHRM Broadly defined, international human resource management (IHRM) is the process of procuring, allocating, and effectively utilising human resources in a multinational corporation. If the MNC is simply exporting its products, with only a few small offices in foreign locations, then the task of the international HR manager is relatively simple. However, in global firms human resource managers must achieve two somewhat conflicting strategic objectives. First, they must integrate human resource policies and practices across a number of subsidiaries in different countries so that overall corporate objectives can be achieved. At the same time, the approach to HRM must be sufficiently flexible to allow for significant differences in the type of HR policies and practices that are most effective in different business and cultural settings. This problem of balancing integration (control and coordination from HQ) and differentiation (flexibility in policies and practices at the local subsidiary level) have long been acknowledged as common dilemmas facing HR and other functional managers in global corporations. Although some argue that IHRM is not unlike HRM in a domestic setting, others point out that there are significant differences. Specifically compared with domestic HRM, IHRM (I) encompasses more functions, (2) has more heterogeneous functions, (3) involves constantly changing perspectives, (4) requires more involvement in employees’ personal lives, (5) is influenced by more external sources, and (6) involves a greater level of risk than typical domestic HRM. When compared with domestic human resource management, IHRM requires a much broader perspective on even the most common HR activities. This is particularly so for HR managers operating from a MNC’s headquarters (H Q). The number and variety of IHRM activities are daunting. International HR managers must deal with issues as varied as international taxation; international relocation and orientation; various other administrative services for expatriates; selecting, training and appraising local and international employees; and managing relations with host governments in a number of countries around the world. Even when dealing with one particular HR function area such as compensation, the international HR manager is faced with a great variety of national and international pay issues. For example, while dealing with pay issues, the HQ-based HR manager must
coordinate pay systems in different countries with different currencies that may change in relative value to one another over time. In the case of fringe benefits provided to host company employees, some interesting complications might arise. For instance, it is common in the United States to provide health insurance benefits to employees and the employee’s family, whic h usually means spouse and children. In some countries however, the term “family” may include a more extended group of relatives — multiple spouses, aunts, uncles, grandparents, nephews, and nieces. How does the firm’s benefit plan deal with these different definitions of family? A final aspect of the broader scope of IHRM is that the HQ-based manager deals with employee groups that have different cultural backgrounds. The HQ manager must coordinate policies and procedures to manage expatriates from the firm’ s home country (parent country nationals, PNCs), host-country nationals (HCNs), as well as third country nationals (TCNs, e.g. a French manager working for an American MNC in the firm’s Nigerian subsidiary) in subsidiaries around the world. Although such issues are important for the HQ-based manager, they are also relevant to the HR manager located in a subsidiary. This manager must develop HR systems that are not only acceptable to the host country but also compatible with company-wide systems being developed by his or her HQ-based counterpart. These policies and practices must effectively balance the needs and desires of local employees, PCNs and TCNs. It is at the subsidiary level that the increased involvement of IHRM in the personal lives of employees becomes particularly apparent. It is not unusual for subsidiary HR managers to be involved in arranging housing, healthcare, transportation, education, and recreation activities for expatriate and local staff. IHRM activities are also influenced by a greater number of external forces than are domestic HR activities. The HQ-based manager may have to set equal employment opportunity (EEO) policies that meet the legal requirements of both the home country and a number of host countries. Because of the visibility that foreign firms tend to have in host countries (especially in developing countries), subsidiary HR managers may have to deal with ministers, other political figures, and a great variety of social and economic interest groups than would normally be encountered in a purely domestic HRM. What is HRM? What are the characteristic differences between HRM and IHRM? HRM and IHRM are all about the management of the employees of organizations. There is a difference between both of them. HRM can be expanded as Human Resource Management. It indeed includes both employment and arbitration in accordance with the law and with the rules and regulations formed by the firm or the company. IHRM on the other hand is the International Human Resource Management that can be defined as a set of activities aimed at managing the organizational factors of the human resources at the international level. This is the primary difference between the Human Resource Management and the International Human Resource Management. Both the concepts show some difference between them when it comes to their features as well. It is very important to understand their features too. The features of the IHRM include the management of the additional activities such as expatriate management, cross cultural training. On the other hand the features of the HRM include manpower management, personnel management, organizational management and industrial management. One of the primary differences between HRM and IHRM is that HRM is done at national level whereas IHRM is done at the international level. HRM is not affected by external factors where as the functioning of IHRM is sometimes affected by external factors. HRM
is more concerned about managing employees belonging to one nation. On the other hand the International Human Resource Management is concerned with managing employees belonging to many nations. Some of the typical functions of the HRM include recruitment, selection of the qualified and the deserving candidates, training imparted to the selected employees and the development of the employee relationships as a whole. It also takes into account activities such as performance appraisal whereas IHRM concentrates mainly on the aspect of global skills management. These are the differences between HRM and IHRM. Kindly discuss how the global factors and work environment changes has changed the approaches of IHRM. IHRM means working across national boundaries to formulate and implement strategic, polices and practices which can be applied to an international workplace. IHRM focuses on the current global work environment, looking at forces for change, requirement for MNE and managerial responses that have implications for the way in which people are being managed in multinationals. International Human Resource Management (IHRM) is a process of procuring, allocating, and effectively utilizing human resources in a multinational corporation, while balancing the integration and differentiation of Human Resource activities in foreign locations. Hence it can be defined as “Procurement, allocation, utilization and motivation of Human Resources in International business. As with all other human resource management decisions and practices, global staffing should be linked to the overall strategy and objectives of the multinational enterprise. These strategies and objectives are of course influenced by and must be set with in context of the overall global business environment. What are the various strategies for companies to go GLOBAL? The IHRM literature uses four terms to describe multinational enterprise approaches to managing and staffing their subsidies. These terms are taken from the seminal work of perlmutter who claimed that it was possible to identify among international executives three primary attitudes are: Ethnocentric approach: Under this, parent nation employees fill all key positions in a multinational. That is key positions in domestic and foreign operations are held by headquarters personnel. Subsidiaries are managed by staff from the home country (PCN’s) Polycentric approach: The multinational enterprise treats each subsidiary as a distinct national entity with some decision making autonomy. Subsidiaries are usually managed by local nationals (HCN’s) and parent country nationals and are rarely transf erred to foreign subsidiary nations. Geocentric approach: Multinational enterprise is taking a global approach to its operations, recognizing that each part (subsidiaries and headquarters) makes a unique contribution with its unique competence. This approach subscribes the view of employing the best people in key positions throughout the organization without the consideration of any nationality. Moreover, it helps the organization to develop core competency taking the best talents in the core team. Regiocentric approach: In regiocentric approach Operations managed regionally; communication and coordination high within the region. Like geocentric approach, it utilizes a wider pool of managers but in a limited way.
This approach advocates the division of operations of the multinational company on the basis of some geographical regions and allows the transfer of employees with in a particular region. To conclude IHRM should be linked with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility. All the above futuristic visions coupled with strategic goals and objectives should be based on 3 H's of Heart, Head and Hand i.e., we should feel by Heart, think by Head and implement by Hand.
