International HR Strategies.docx

International HR Strategies 1. INTERNATIONAL HRM

Global Human Resource Management Management is a process concerned broadly with recruiting of persons, training them and putting them to the most productive usage. It is also concerned with maintaining of  congenial international industrial relations. It is the essential prerequisite for the success of the international firm owning to its complexities. Broadly defined, international human resource management management (IHRM) is the process of procuring, allocating, and effectively utilizing 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 i ntegrate 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.

1.1 Characteristics of International HR  – 

•International Human Resource Management (GHRM) -- the planning, selection, training, employment, employment, and evaluation of employees for global operations. •GHR managers managers serve in an advisory or support role to t o line managers by providing guidelines, searching, training, and evaluating employees. •How a firm recruits, trains, and places skilled personnel in its worldwide value chains sets it apart from competition. The combined knowledge, skills, and experiences experiences of employees employees are distinctive and  provide myriad advantages advantages to the t he firm’s operations worldwide.

1.2 Regulatory Policies of International HR:

•Four major tasks of HRM

 – Staffing Staffing policy.  – Management Management training t raining and development. development.  – Performance Performance appraisal.  – Compensation Compensation policy.

1.2.1STAFFING POLICY:

a.Selecting individuals with requisite skills to do a particular job.

 b.Tool for developing and promoting corporate culture. c.Types of Staffing Policy •Ethnocentric •Polycentric •Geocentric

1)Ethnocentric Policy: •Key management positions filled by parent-country nationals. •Best suited to international businesses.

Advantages:  – Overcomes lack of qualified managers in host nation.  – Unified culture.  – Helps transfer core competencies. Disadvantages:  – Produces resentment in host country.  – Can lead to cultural myopia.

2)Polycentric Policy: •Host-country nationals manage subsidiaries. •Parent companies nationals hold key headquarter positions. •Best suited to multi-domestic businesses.

Advantages:  – Alleviates cultural myopia.  – Inexpensive to implement.  – Helps transfer core competencies.

Disadvantages:  – Limits opportunity to gain experience of host country nationals outside their owncountry.  – Can create gap between home and host country operations.

3) Geocentric Policy: •Seek best people, regardless of nationality. •Best suited to global and trans-national businesses.

Advantages:  – Enables the firm to make best use of its human resources.  – Equips executives to work in a number of cultures.  – Helps build strong unifying culture and informal management network.

Disadvantages:  – National immigration policies may limit implementation.  – Expensive to implement due to training and relocation.  – Compensation structure can be a problem.

The aim of the Human Resources Strategy is to support staff. This it will do by developing and  promoting good HR practice for the recruitment and development of high quality staff, by effectively managing their performance and by providing appropriate rewards and flexible opportunities that allow individuals to manage their own development.

Core Functions of International Human resources are: A. Recruitment B. Selection Process C. Expatriates D. Performance Appraisal E. Training and Development F. Compensation

Sources of Recruitment -

Sources of Recruitment

There are many different types of interviews. Once you are selected for an interview, you mayexperience one or more of the situations described below. When you schedule an interview, try toget as much information about whom you will be meeting. It is rare to have only one interview prior  to a job offer. Most employers will bring back a candidate a number of times to be sure a potential employee will fit into the company culture. MODERN TECHNIQUES AND SOURCES OF RECRUITMENT FOR GLOBALCOMPANIES 1) Walk-In -: The busy global organizations and the rapid changing companies do not find timeto  perform various functions of recruitment. Therefore they advise the candidates to attend for an interview directly and without a prior application on a specified date, time and at a specified place. 2) Consult-In -: The busy and dynamic global companies encourage the potential job seekers toapproach them personally and consult them regarding the jobs. The international companiesselect the suitable candidates from among such candidates though the selection process. 3)Head-Hunting -: The global companies request the professional organizations to search for the best candidates particularly for the senior executive positions. The professional organizationssearch for the most suitable candidates and advice the global company regarding the filling up of the positions. 4)Body-Shopping -: Professional organizations and the hi-tech training institutes develop the pool of  human resources for possible employment. The prospective employers contact theseorganizations to recruit the candidates. The body shoppers appoint people for their organizationand provide the required/specific employees to various organizations on request. In fact, bodyshoppers collect fee/commission from the organizations and pay the salary/benefits to theemployees. 5) Business Alliance -: It is like acquisitions, mergers, and takeovers help in getting humanresources. In addition, the companies do also have alliances in sharing their human resources onad-hoc basis.

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