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Introduction To International Human Resource Management Essay

Human Resource Management (HRM) includes all management decisions and procedures that directly affect individuals who be employed by the organization. Hence HRM is the tactical and coherent method of the management of the organization's most valued assets - people working there who independently and collectively donate to the success of the aims of the business enterprise. In simple words, HRM means hiring people, expanding their capacities, utilizing, preserving and compensating their services in melody with the work and organizational need.

1. 2 International Human Resource Management

INTERNATIONAL HUMAN Source MANAGEMENT (IHRM) is an activity of procuring, allocating, and effectively utilizing recruiting in a multinational organization, while balancing the integration and differentiation of Human Learning resource activities in foreign locations.

Hence it could be defined as "Procurement, allocation, utilization and desire of RECRUITING in International business.


To reduce the risk of international human learning resource.

It has helped a lot in reducing the risk in the business by by using a proper standard recruitment and selection process.

To avoid cultural risks.

International HRM has helped a whole lot in overcoming the inter-continental culture by causing people from various areas of world work under the same roof covering.

To manage diversifies individual capital.

Due to IHRM human capital is varied and hence the risk involved has lessen down to a great scope.

1. 4 P. Morgan's Style of IHRM

P. Morgan: Two sets of variables that impacts basic HR process

1st - Types of employees.

2nd - Politics, financial, legal environment, labor laws and regulations and routines prevailing in several countries.

1. 5 Individual resource activities



Utilization of recruiting.

1. 6 Nations categories where businesses grow and operate

Host country

A country where the MNE seeks to find or has already located a center.

Parent country

The country when a company's corporate head office is located.

Third country

The countries apart from the one where the MNC is headquartered or the main one in which it is given to work by the MNC.

1. 6Categories of employees in an MNE

Parent Country Countries (PCNs)

PCNs are professionals who are residents of the Country where in fact the MNC is headquartered. The reason why for using PCNs include

- The desire to supply the company's more promising managers with

International experience.

- The need to maintain and help organizational coordination and control.

- The unavailability of managerial expertise in the coordinator country.

- The company's view of the overseas operation as short lived.

- The web host country's multi-racial people.

- The belief that a mother or father country manager is the better person for the work.

. Web host Country Nationals (HCNs)

HCNs are local managers hired by MNCs. The reasons for using HCNs

- Familiar with the culture, vocabulary.

- Less costly, understand how things done, rules of local market.

- Hiring them is good general public relation.

Third Country Nationals (TCNs)

TCNs are managers who are citizens of countries other than the one in which

the MNC is headquartered or the one in which it is given to work by the

MNCs. The explanation for using TCNs:

- These folks have the required expertise.

- They were judged to be the best ones for the job. .


Difference between IHRM and Domestic HRM

2. 1

· In charge of a lot more functions and activities

· Broader knowledge of foreign county career law

· Closely associated with employees lives

· Cope with more external influences

· Contact with problems and liabilities

· Management of differential compensation

· Diversity management

· More coordination and travel

· More risk management

2. 2 Difference between Domestic and International Managers

· Global mindset

· Communication skills

· Issue management skills

· Oriented towards an activity of continual change

· International experience

· Political, economical and social sensitivity and knowledge of many countries.

· Understanding of culture shock and how to minimize it.

· Management and team building skills.

2. 3 Factors that average difference between Home HRM and IHRM:

Main Troubles in IHRM:

Talent identification and development - identify in a position individuals who are able to function effectively

Language (e. g. spoken, written, body)

Different labor laws

Different political climate

Different stage(s) of scientific advancement

Educational level gained.


Forces of change and global work environment

Globalization, scientific changes, knowledge management and mix boundaries cooperation are four factors that are major forces creating change in organizations today.

These changes influence decision-making as organizations are forced to recognize that they want market leaders who are impressive, creative visionaries who understand the various surroundings that their organizations are functioning in, and have the ability to distinguish between these different conditions.

These environments include: the exterior or functioning environment; the competitive environment (that area of the external environment where businesses that are fighting for the same market exist) and the macro environment where influences including the economy, government regulations, societal prices, demographics and technology come to keep upon an organization.

Faced with such complexities market leaders have to be outfitted with appropriate skill-sets such as overall flexibility, good communication, and critical thinking and negotiation abilities. They need to also be recognized with the necessary resources in order to make good decisions that will profit their organizations.


A convergence of international activities like the increase in overseas production of goods and services; increasing consumer demands in emerging markets worldwide; declining obstacles to international trade aided by speedily changing technology, have created a globalized market where inter-dependency among countries has surfaced as the norm today. Therefore the hiring techniques of companies who would like the best expertise have transformed because the best expertise might no longer be resident in the home country.

Companies have had to calibrate their selecting, training and management routines to meet this problem. In a world where "Americans all too often run into as intrusive, manipulative, and garrulous" (David, 2007, p. 291), US organizations need to be respectful of the culture, customs, politics, and legal differences of the countries that they are operating in.

Some of the customs affect protocol such as the exchange of gifts, the observance of vacations, and labor laws and regulations. Even accounting specifications differ internationally. Therefore organizations must be hypersensitive to these dissimilarities when formulating operational and human source (HR) insurance policies for implementation overseas for, in this global environment, it is hardly likely that companies can apply the local policies that home based, abroad.

Technological Change:

Technology is similar to a two-edged sword that can make our lives easier or worse. THE WEB has revolutionized how information is exchanged, communication facilitated and business conducted. Technology is speedily changing and effective management needs more knowledge in these areas for companies to control their resources and develop, maintain or keep their competitive border.

While technology has enabled firms just to save time and money by conducting business such as negotiations, trade, and commerce instantly, additionally, it may accomplish the dissemination of very sensitive information in regards to a company's techniques, trade secrets and new product development in a matter of seconds.

Hackers can breach a company's security via the internet and put companies vulnerable. Organizations have responded by having whole new types of departments such as Information Technology (IT) departments, going by professionals with headings such as Chief Information Official (CIO), to manage both the opportunities and the risks associated with technological changes.

Additionally, technology has ushered within an array of high-tech devices that aid and facilitates companies in gathering and taking care of information, maintaining contact with their employees internationally, making and connecting decisions instantaneously. This can be both a benefit and a way to obtain stress for professionals and market leaders who must learn to deal with their choice and use of these devices. In a worldwide economy technology can certainly help in knowledge management

Knowledge Management

Driving pushes such as shifts in buyer demographics and choices; technology, product and market invention; changes in contemporary society, consumer attitudes and lifestyle all demand new ideas. This has created a dependence on knowledge individuals.

Knowledge workers include a company's intellectual capital and are made up of creative people with novel ideas and problem-solving skills. Taking care of its knowledge investments can give a business a competitive border as it effectively utilizes the experience, skills, intellect, and romantic relationships of participants of the organization.

For example, a company's strategic management initiatives can be greatly increased when knowledge that is resident in its international talent pool is tapped at its source, since a supervisor who's "nearer to the bottom" and area of the local culture might be better in a position to sense environmental changes than person who is not.

Keeping knowledge personnel motivated and incentivized by both intrinsic and extrinsic means will cause organizations to re-think and change their benefits and reimbursement methods and, perhaps, even redefine the traditional view of the employer-employee romantic relationship into something new, such as a company-contractor model, for example.

Cross-boundaries Collaboration

An important part of knowledge management is effectively handling organization-wide collaboration. Usage of appropriate technology and applications such as a virtual private sites; VoIP, e-mail, networks such as Face Booklet, and even company-sponsored weblogs can help communication between a business and its stakeholders, and help in various types of inside and external collaborative processes. A good example of a tool you can use in cross-boundaries cooperation might be an easily accessible online database that delivers a central way to obtain information to employees, customers, or suppliers.

Managing in the 21st Century

In the 21st Century change is typical as opposed to the exception and leaders must be able to embrace it. They need to be able to develop:

A vision, and be able to communicate it to their organizations

An orientation to serving

An entrepreneurial mind-set

A determination to constant innovation

A global mindset

Ease and confidence with technology

Know-how in systems thinking (a broad view of the inter-relationship of organization's parts, rather than a narrow view that is focused on one part or event. )

A sense of ethics and understanding of spirituality in the workplace

A dedication to continuous learning, personal and professional development

In order to respond effectively to the four major causes creating change in the current global economy leaders must be inclined to accept change; they must be wondering and appreciative of the richness and variety of other ethnicities. The must be trust-worthy and adaptable; and they should have quite strong time management, communication, conflict-management, problem-solving and people-skills to be able to effectively take care of these motorists of change.

Human Reference Management: Futuristic Vision

On the foundation of the various issues and challenges the following recommendations will be of much help to the beliefs of HRM in regards to to its futuristic perspective:

1. There should be a properly identified recruitment policy in the business which should give its focus on professional aspect and merit established selection.

2. In every decision-making process there must be given proper weightage to the aspect that employees are involved wherever possible. It'll eventually lead to sense of team heart, team-work and inter-team collaboration.

3. Opportunity and extensive construction should be provided for full manifestation of employees' talents and manifest potentialities.

4. Networking skills of the organizations should be developed internally and externally as well as horizontally and vertically.

5. For performance appraisal of the employee's emphasis should get to 360 degree feedback which is based on the review by superiors, peers, subordinates as well as self-review.

6. 360 level opinions will further lead to increased focus on customer services, creating of highly engaged workforce, decreased hierarchies, keeping away from discrimination and biases and identifying performance threshold.

7. More emphasis should get to Total Quality Management. TQM covers all employees in any way levels; it will conform to customer's needs and goals; it'll ensure effective utilization of resources and will lead towards ongoing improvement in all spheres and activities of the organization.


To conclude IHRM should be associated with tactical goals and targets in order to boost business performance and develop organizational civilizations that foster technology and flexibility. All the above futuristic visions in conjunction with tactical goals and objectives should be based on 3 H's of Heart and soul, Head and Hand i. e. , we should feel by Heart and soul, think by Mind and implement yourself.

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