1. International HRM
By:-
Isha Narula
MBA(PT)- 5th
0331914308

2. What Is International HRM?
 HRM involves a wide range of activities right from
identifying the manpower requirements, identifying the
most appropriate sources, attracting the best talent
available from the most cost effective places, nurturing
and enhancing their skills to suit the organizational
needs, motivating them through an effective system of
compensation to perform optimally, and continuously
monitoring their performance with suitable reward-rebuke
mechanism.
 The application of these principles and practices to
manage “People” in more than one country is termed as
IHRM.

3. Domestic Vs International HRM
 Increased Functional Activities
 Functional Heterogeneity
 Increased Involvement in Employees
personal lives
 Enhanced Risks
 Increased Influence of External
Environment

4. Managing International Human
Resource Activities
 Staffing
 Recruitment and Selection
 Expatriate Management
 Training and Development
 Performance Management
 Compensation
 Regulatory Framework

5. Staffing
 Staffing refers to the process of determining the
organization’s current and future human Resource
requirements to meet the organizational goals and taking
appropriate steps so as to fulfill those requirements.
 Human Resource planning refers to the process of
forecasting supply and demand of the organization and
the action plan to meet Human Resource requirements.
 International Companies need to assess their human
Resource requirements, assess availability of right type
of manpower, decide upon the right type of international
assignments.

6. Sources of Human Resource
 Host Country Nationals
 Parent country Nationals
 Third Country Nationals
 Expatriates
 Inpatriates
 Off-Shoring

7. Recruitment and Selection
 Recruitment refers to the process by
which an organization attracts the most
competent people to apply for its job
opening.
 Selection refers to the process by which
organizations fill their vacant positions.

8. Selection Criteria for International
Assignments
 Technical and Managerial Competence
 Ability to Perform under Cross Culture
Environments
 Family Attitude towards International
assignments
 Regulatory framework in host Country
 Language

9. Selection Approaches
 Ethnocentric Approach
 Polycentric Approach
 Geocentric Approach

10. Managing Expatriates
 People working out of their home countries, also
known as Expatriates, form an integral part of a
firm’s international staffing strategies, especially
for higher management positions.
 Besides identifying and recruiting right men for
international assignments, it is also very
important to provide them with a conducive
environment to get their optimum output.

11. Expatriate adjustment Process
 Initial Euphoria
 Cultural Shock
 Adjustment
 Re-entry

12. Training and Development
 Training refers to process by which
employees acquire skills, knowledge and
abilities to perform both their current and
future assignments in the organization.
 Training aims at altering behavior, attitude,
knowledge, and skills of personnel so as
to increase the performance of
employees.

13. Types of the Training
 Cultural Sensitization Programme
 Preliminary Visit
 Language Training
 Practical Training

14. Performance Management
 It refers to a process that enables the firm to evaluate the
performance of its personnel against pre-determined parameters for
their consistent improvements so as to achieve organizational goals.
 It is important to facilitate administrative decisions related to
compensation, promotion or transfer etc.
 In international context performance evaluation of Expatriates is a
great challenge.
 Performance Appraisal become more complex due to possible
conflict between objective of MNE’s headquarter and its subsidiary.
 The volatility in international market also make it more complex.

15. Compensation
 Compensation refers to the financial remuneration that employees receive
in exchange of their services rendered to organization. In international
context it includes:-
 Basic Salary
 Foreign Service Premium
 Allowance
 Hardship Allowance
 Cost of living Allowance
 Housing Allowance
 Home Leave Allowance
 Education Allowance
 Relocation Allowance
 Assistance for Tax Equalization
 Other Benefits

16. Strategic Approaches to
international Compensation
 Home Country Based Compensation
System
 Host Country Based Compensation
System
 Hybrid Compensation System

17. Regulatory Framework & Industrial
Relation
 Regulatory Framework is to manage human
resource varies substantially across countries.
 MNE’s required to adhere various legislative
provisions under labour Law, Compensation and
Benefit Law, Individual Rights related to Civil
Rights, Immigration, Discrimination, and Sexual
Harassment at work place.