International Human Resources Management
International
Human Resource Management (IHRM)
International Human
Resource Management (IHRM) can be defined as a set of activities targeting
human resource management at the international level. It strives to meet
organizational objectives and achieve competitive advantage over competitors at
national and international level.
IHRM comprises of
typical HRM functions such as recruitment, selection, training and development,
performance appraisal and dismissal done at the international level and
additional exercises such as global skills management, expatriate management
and so on.
In short, IHRM is
concerned with handling the human resources at Multinational Companies (MNCs)
and it includes managing three types of employees −
·
Home
country employees − Employees
residing in the home country of the company where the corporate head quarter is
situated, for example, an Indian working in India for some company whose
headquarters are in India itself.
·
Host
country employees − Employees
residing in the nation in which the subsidiary is located, for example, an
Indian working as an NRI in some foreign country.
·
Third
country employees − These are the
employees who are not from home country or host country but are employed at the
additional or corporate headquarters.
For example, an Indian
MNC, which has its corporate office in America, may employ a French person as
the CEO to the subsidiary. The Frenchman employed is a third country employee.
IHRM vs. HRM
There are many
similarities between HRM at the national as well as international level.
However, let us have a look at the differences between them with the help of
points given below −
·
Domestic HRM takes place
at the national level, that is, within a country and IHRM takes place at the
international level, that is, in between two or more than two countries.
·
Domestic HRM is bothered
about managing employees belonging to one nation and IHRM is bothered about
managing employees belonging the home country and host country as well as third
country employees.
·
Domestic HRM is concerned
with managing limited number of HRM activities at the national level and IHRM
is concerned with managing additional activities such as expatriate management.
·
Domestic HRM is less
complicated due to less imprint from the external environment. IHRM is
comparatively more complicated, as it is deeply affected by the external
factors such as cultural distance and institutional factors.
We can conclude that
both IHRM and HRM share some grounds of similarities as well as
dissimilarities, but both have their own importance. Further, they contribute
to the development of a country in a combined manner.
eHRM can be defined as
the planning, implementation and application of information technology for both
networking and supporting the HR activities.
eHRM is in essence the
devolution of HR operations to management and employees. They access these
operations typically through intranet or other web-technology channels.
From this ground, eHRM
has expanded to embrace the delivery of virtually all HR policies. Within the
system of eHRM, it is possible for margin managers to use desktop computers to
organize and conduct appraisals, plan training and development, evaluate labour
costs, and examine indicators for turnover and absenteeism.
Employees can also use a
system of eHRM to plan their personal improvement, apply for promotion and new
jobs, and access a range of information on HR policy. Systems of eHRM are
increasingly encouraged by dedicated software produced by private suppliers.
Types & Goals:-
On the basis of
functionalities, we can divide eHRM into three different levels or tiers. In
this section, we will be having a brief idea about these three tiers.
·
Operational
eHRM − It is about administrative
functions like payroll and employee personal data. All the employee details are
stored in the database and regularly updated.
·
Relational
eHRM − It is about
supporting business processes. This is done by means of selection, training,
recruitment, performance management, career development of the employees and so
forth.
·
Transformational
eHRM − It is about
strategic HR exercises such as knowledge management and strategic
re-orientation. An organization may decide to pursue E-HRM policies from any
number of these tiers to meet their HR goals.
eHRM is seen as the
potential to develop services to HR department clients (both employees and
management), develop efficiency and cost effectiveness within the HR
department, and permit HR to become a strategic partner in achieving
organizational goals.
In recruiting aspect, we
have a number of websites for recruiting of employees in industries. Some of
the popular and important web sites in India are listed below.
·
naukri.com
·
indeedjobalert.com
·
jobsahead.com
·
monsterindia.com
·
careerindia.com
·
placementindia.com
·
jobsearch.rediff.com
·
bestjobsindia.in
·
jobzing.com
·
cybermediadice.com
·
Careerjet.co.in
We have mentioned a few
of the examples showing eHRM, but there are lot more we can use. Our ATM
transactions, automatic updating system, e-library, e-governance, all come
under eHRM. These are some of the examples showing eHRM in India. It is a huge
branch of study; in this section, we have just introduced the concept of eHRM.
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Development leading to international HRM perspective:- International Human Resource Management (IHRM) is the process of managing people in a global context, encompassing a wide range of activities such as staffing, training and development, compensation, and performance management. The development of an international HRM perspective has been shaped by several factors, including:
Globalization: The growth of international business has resulted in an increase in cross-border operations and the need for organizations to manage their employees in different countries.
Technological advancements: Technological advancements in transportation and communication have made it easier for businesses to operate globally, and for employees to work remotely across borders.
Cultural diversity: The workforce has become increasingly diverse, with people
from different cultures and backgrounds working together in the same
organization.
Economic factors: Economic factors such as the increasing importance of emerging markets, the rise of multinational corporations, and the growth of international trade have all contributed to the development of IHRM.
Legal and regulatory factors: Different countries have different laws and regulations regarding employment, which organizations must navigate when operating globally.
Organizations have recognized the need for an international
HRM perspective to effectively manage their global workforce. This perspective
involves taking into account the cultural, legal, economic, and social factors
that influence the management of employees in different countries. It also
involves developing policies and practices that are adaptable to different
cultural contexts and ensuring that employees have the necessary skills and
knowledge to work effectively in a global environment.
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International Human Resource Management (IHRM) involves managing human resources in multinational corporations operating across different countries. Its role and activities are distinguished from domestic HRM due to the complexities of managing a diverse workforce across various cultural, legal, economic, and political contexts. Here are the key roles and distinguishing activities of IHRM:
1. Global Staffing: IHRM is responsible for sourcing, selecting, and deploying talent across borders. This involves managing expatriates (employees working in a foreign country), host-country nationals (locals hired in foreign subsidiaries), and third-country nationals (individuals from neither the parent nor host country).
2. Cross-Cultural Training: IHRM provides training and development programs to help employees understand and adapt to the cultural differences in diverse work environments. This includes language training, cultural orientation, and sensitivity training to facilitate effective communication and collaboration.
3. Compensation and Benefits Management: IHRM designs and administers compensation packages that are competitive and equitable across different countries while complying with local laws and regulations. It involves managing currency fluctuations, tax implications, and variations in cost of living.
4. International Labor Relations: IHRM deals with labor unions, works councils, and other employee representatives in various countries, ensuring compliance with labor laws and negotiating collective agreements that accommodate diverse workforce needs.
5. Global Talent Development: IHRM designs career development and succession planning programs that offer international mobility opportunities for employees to gain cross-cultural experience and develop global leadership capabilities. It involves identifying high-potential talent and providing them with international assignments and developmental opportunities.
6. Legal Compliance and Risk Management: IHRM ensures compliance with employment laws and regulations in multiple countries, minimizing legal risks and liabilities associated with employment practices. It involves staying updated on local labor laws, immigration policies, and regulations governing employment contracts, terminations, and workplace health and safety.
7. Managing Expatriation and Repatriation: IHRM facilitates the smooth transition of employees into and out of international assignments. This includes pre-departure orientation, ongoing support during assignments, and repatriation assistance to help employees reintegrate into the home organization effectively.
8. Global HR Planning and Strategy: IHRM aligns human resource strategies with the organization's global business objectives. It involves forecasting future workforce needs, identifying skill gaps, and developing strategies to recruit, retain, and develop talent that supports international expansion and growth initiatives.
9. Diversity and Inclusion Management: IHRM promotes diversity and inclusion by fostering a culture that values differences and leverages the unique perspectives and talents of a diverse workforce. It involves implementing policies and practices that promote equal opportunities, prevent discrimination, and create an inclusive work environment across borders.
10. Managing Virtual Teams: With the increasing use of technology and globalization, IHRM oversees the management of virtual teams composed of employees located in different countries. It involves leveraging communication technologies, building trust, and overcoming cultural barriers to facilitate collaboration and teamwork among geographically dispersed employees.
Overall, the role of IHRM is crucial in facilitating the effective management of human resources in multinational organizations, ensuring alignment with global business strategies and addressing the unique challenges posed by international operations.
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The organizational structure and human resource management (HRM) practices are closely intertwined, as the structure of an organization determines how HRM functions are organized, roles are defined, and decisions are made regarding people management. Here's how organizational structure and HRM interact:
1. Alignment with Strategic Objectives: The organizational structure should be aligned with the strategic objectives of the company. HRM plays a key role in ensuring that the structure supports the organization's strategic goals by providing the necessary human capital, skills, and capabilities.
2. Designing Job Roles and Responsibilities: HRM is responsible for designing job roles and responsibilities within the organizational structure. This involves creating job descriptions, defining reporting relationships, and determining the hierarchy of authority and decision-making.
3. Recruitment and Selection: HRM is involved in recruiting and selecting employees who fit into the organizational structure. The structure dictates the type of talent needed for various positions, and HRM ensures that recruitment efforts are aligned with the structure and strategic objectives of the organization.
4. Training and Development: HRM designs training and development programs to help employees adapt to the organizational structure and perform effectively in their roles. This includes providing training on organizational policies, procedures, and systems, as well as developing leadership and managerial skills to support the structure.
5. Performance Management: HRM establishes performance management systems to evaluate employee performance within the organizational structure. This involves setting performance expectations, providing feedback, and aligning individual goals with the overall objectives of the organization.
6. Compensation and Benefits: HRM designs compensation and benefits packages that are consistent with the organizational structure and competitive within the industry. The structure influences how pay scales are determined, job classifications are made, and rewards are distributed across different levels of the organization.
7. Employee Relations: HRM manages employee relations within the context of the organizational structure. This includes resolving conflicts, promoting a positive work environment, and ensuring compliance with labor laws and regulations governing employee rights and responsibilities.
8. Organizational Culture: HRM plays a role in shaping the organizational culture, which is influenced by the structure of the organization. HRM develops policies, practices, and programs that reflect the values, norms, and beliefs of the organization, promoting a culture that supports the structure and facilitates employee engagement and performance.
9. Change Management: HRM supports organizational change initiatives by helping employees adapt to changes in the structure, processes, and systems. This involves communication, training, and providing support to employees as they navigate through transitions within the organization.
10.Organizational Effectiveness: HRM contributes to organizational effectiveness by ensuring that the structure supports efficient workflow, clear communication channels, and collaboration among employees. HRM monitors and evaluates the effectiveness of the structure and implements changes as needed to improve performance and achieve strategic objectives.
In summary, organizational structure and HRM are interrelated aspects of managing people within an organization. HRM practices are designed to support and align with the organizational structure, ensuring that the right people are in the right roles, with the necessary support systems and processes in place to drive performance and achieve organizational goals.
