A presentation on International Human Resource Management

1. Welcome to the Presentation
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2. IUBAT- FRIENDS CAFE
NAME ID
MD. Saidur Rahman Said 12102053
Pial Mahmud Rupu 12102051
Abu Bakar Siddique Hasan 12102019
Asma Hossain 12102015
Aleya Ferdousi 12102005
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3. OUR TOPIC
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4. Introduction
Before we can begin to explore International Human Resource Management
(IHRM), we have to begin with HRM.
The purpose of human resource management (HRM) is to enable appropriate
deployment of human resource so that the quality culture can maintain and satisfy
the customers not only in national level but to in global level.

5. Definition
 In one word we can say, IHRM the managing and requiting people in an
organization internationally.
 In details, IHRM is the process of managing people across international
boundaries by Multinational Corporation. It involves the worldwide
management of people not just the management of expatriates
 The IHRM issue and problems arising from the internationalization of
business, and the IHRM strategies, policies and practices which firms
pursue in response to the internationalization of business.

6. Dimension Model of IHRM
 HR activities
• -procurement,
• -allocation and
• -utilization
 Types of Countries
• -Home Country
• -Host Country
• -Other Countries

7. Types of employee
• Parent Country Nationals(PCNs)
• Host Country Nationals(HCNs)
• Third Country Nationals(TCNs)

8. Expatriate vs Immigrant
The word expatriate comes from the Latin terms ex ("out of") and patria
("country, fatherland").
The term is often used in the context of professionals or skilled workers sent
abroad by their companies.
Skilled professionals working in another country are described as expatriates,
whereas a manual laborer who has moved to another country to earn
money might be labeled an 'immigrant' or 'migrant worker'.
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9. Major Issues in International Human Resource Management
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There are three main Issues in IHRM. These are:
1. The management and development of :
 Selection of expatriates
Since most expatriates work under minimal supervision in a distant location, mistakes in
selection are likely to go unnoticed until it is too late. To choose the best employee
for the job, management should:
 emphasize cultural sensitivity as a selection criterion
 establish a selection board of expatriates
 required previous international experience
 screen candidates’ spouses and families

10.  Expatriate training
Expatriates are more successful when their organizations train them to prepare for their
life and work abroad. Lack of training is a major cause of expatriate failure.
The most important aspect of expatriate training is cross-cultural training (CCT). Such
training prepares an expatriate to live and work in a different culture.
 Expatriate failure
career blockage, culture shock, lack of cross-cultural training, an overemphasis on
technical qualifications, a tendency to use international assignments as a way to get
rid of problem employees, and family problems.
2. The internationalization of management throughout the organization (host
country, parent country and other third countries).
3. The need to internationalize the whole organization by creating a new
corporate culture reflecting the need for greater international experiences
across the whole organization.
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11. Types of Staffing Policy
1. The Ethnocentric Approach
• An ethnocentric approach to staffing policy is one in which key
management positions in an international business are filled by parent-
country nationals.
• Headquarters from the home country makes key decisions, employees
from the home country hold important jobs, and the subsidiaries follow
the home country resource management practice.
• This is good strategy at early stage of new start up/operations in host
country

12. Ethnocentric staffing policy
• An ethnocentric staffing policy is attractive when
– Lack of qualified individuals in the host country .
– Best way to maintain a unified corporate culture
– Transfer knowledge of core competencies to the foreign operation
– Familiarity with headquarters goals and objectives
– More organizational control and coordination
– Competent managers are giving expatriate opportunity
• This policy is falling out of favor because
– Difficulty in adjustment
– It can lead to cultural myopia
– Higher cost

13. 2. The Polycentric Approach
• A polycentric staffing policy is one in which host country nationals are
recruited to manage subsidiaries in their own country, while parent
country nationals occupy the key positions at corporate headquarters.
• Each subsidiary manages on a local basis.
• Some countries have made regulation or exert pressure to hire host
country nationals for top position in subsidiary
Types of Staffing Policy

14. The Polycentric Approach
• The advantages of the polycentric policy are that
– the firm is less likely to suffer from cultural myopia
– it may be less expensive to implement
• The disadvantages of the polycentric policy are that
– host country nationals have few opportunities to gain foreign
experience and so cannot progress beyond senior positions in their
own subsidiaries
– Isolate headquarters from foreign subsidiaries

15. 3. The Geocentric Approach
• A geocentric staffing policy is one in which the best people are
sought for key jobs throughout the organization, regardless of
their nationality.
• The geocentric firm combines global corporate strategy
• Interdependence between centre and subsidiaries.
Types of Staffing Policy

16. Geocentric approach
• The advantages of a geocentric approach to staffing are that it
– enables the firm to make the best use of its human resources
– builds a cadre of international executives who feel at home working in
a number of different cultures
• The disadvantages of geocentric approach include
– difficulties with immigration laws
– costs associated with implementing the strategy

17. Pial Mahmud Rupu
ID: 12102051

18.  Availability of useful human resources
 Economic Justification / cost effectiveness
 Employee motivation and performance
 Global exposure for need of the organization
 Development of Cross cultural Management

19. Purpose of IHRM
 Efficient
 Locally Responsive
 Flexible and adaptive
 Capable to transforming learning across their globally dispersed units

20. CHALLENGE
COMMITMENT
COST EFFECIVENESS
COMPETENCE
CONGRUENCE

22. Abu Bakar Siddik Hasan
ID: 12102019

23. Role of International Human
Resource Management
IHRM department deals with heterogeneous functions and has
to give additional focus on various aspects, such as:
Deals with different Groups of employees
 Manage external influences
Provide guidance

24.  IHRM operates beyond national borders while domestic HRMs operate within the
borders.
 In an IHRM, there’s constant change for a broader set of perspectives.
 There are more risks involved in IHRM than in the domestic HRM.
 More Hr Activities

26. Asma Hossain
ID: 12102015

27.  Management is basically the principle based on local cultures,
traditions, practices and needs of the organizational growth.
 HRM methods and systems developed by one society
 HRM and industrial relations practices differ across countries
as these have their historic origin in countries.
 Personnel management and industrial relations

28. In above decision, we can say that international
human resource management play an important role
in Multinational Corporation (MNCs) .
International human resource management is a
contested field of study with many competing
model.

29. DO YOU HAVE ANY QUESTION ?
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30. THANK YOU FOR YOUR KIND ATTENTION
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