HUMAN RESOURCE MANAGEMENT1

DIAGRAMMATIC VIEW
HRM MODEL
Framework
&
Challenges

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Employee
Relation
&
Assessment

Preparation
&
Selection
OBJECTIVES
Societal
Organizational
Functional
Personal

Compensation
&
Protection

Development
&
Evaluation

SOCIETAL

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CHAPTER - 3

INTERNATIONAL
CHALLENGES

FRAMEWORKS
&
INTERNATIONAL CHALLENGES

FRAMEWORKS & INTERNATIONAL

CHALLENGES
ASSUMPTIONS
Ethnocentrism
Bases of Judgment Ethnocentrism is the process of judging of
another culture
solely by the values & standards of one's own culture. especially
with concern
tolanguage, behavior, customs &religion

Assumption Operating managers & HR professionals discover

that the nationality,
training & experience lead them to make assumptions which are
based culturally
Views Failure An ethnocentric view often fails to recognize the
view point of
others because its bases to judge others is incorrect as the own
values &
standards are very much different
Examples

FRAMEWORKS & INTERNATIONAL

CHALLENGES
ASSUMPTIONS
Research Summary
Placement Even mobility/movement from one place to other
e.g postings &
transfers are some time hurdle in the way of corporate life
Shaping Influence Nationality had three times more influence
on the shaping
of the managerial assumptions than any other factors e.g
education,
functions & age etc
Applications of Assumptions HR Professionals & other
decision makers must
guard against ethnocentrism by not assuming that there
attitudes & values
apply universally

FRAMEWORKS & INTERNATIONAL

CHALLENGES
DEPARTMENTAL STRUCTURE
Centralization vs Decentralization
Influence May it be the centralization or decentralization,
the HR dept is
strongly influenced by the objectives & practices
Past Practices The degrees of centralization or
decentralization is shaped by
the past practices of the dept & the culture of the country.
For example:- In Germany, it is a low level activity
- In USA & Japan an important corporate function

HR Dept Concerns The challenges of international HR

mangt concerns the HR

FRAMEWORKS & INTERNATIONAL

CHALLENGES
Handling Activities Following activities may be handled
centrally by the home
country or decentralized to the divisional, regional or national
levels
-

Recruitment
Selection
Placement
Compensation
Other traditional activities

Important Responsibilities Despite the decentralization,

some of the
important responsibilities are yet handled centrally for
example
- Relocation policies
- Executive level replacement planning

Response The greater the cultural economic & political

differences, the more

FRAMEWORKS & INTERNATIONAL

CHALLENGES
Ethics & Laws

EMPLOYEE RIGHTS

- Employee rights are major elements in a country where the

employees work
regardless of their origin
- Socially responsible ethical management must match the
international
nondiscrimination standards with local customs & laws before
applying as
the same may be impractical or even illegal at home
- Laws & court ruling s against wrongful discharge harnesses
employers ability
to practice the fire or lay off the workers
- To guard against violation of local laws firms may find it in favor to
rely on the
foreign national to staff the HR positions

Codetermination
- It gives the right to the unions & employees to participate in board

FRAMEWORKS & INTERNATIONAL

CHALLENGES
EMPLOYEE RIGHTS
Common Laws The Laws about workers health n safety are
common to all
the industrial nations
Lifetime Emplacement In certain countries lay offs &
downsizing takes place
on & off but in Japan male workers at large companies are
give life time
employments to his retirement
HR Specialists Responsibilities It is imperative to
understand the rights of
employees any where the company does the business

INTERNATIONAL
PREPARATION & SELECTION

INTERNATIONAL PREPARATION &

SELECTION
SALIENT ASPECTS
Crucial Activities Planning & staffing orgs overseas are crucial
activities in the
international HR management
Employers Policies Centric to preparations & selection
activities are the
employers policies about filling the jobs with foreign national or
home country
citizens assigned to an international post
Home Country Nationals The employees of home country
nationals once
assigned to foreign job must be aware of companys
expectations, policies,
practices & procedures
International Succession planning HR dept is involved in
international

INTERNATIONAL PREPARATION &

SELECTION
INTERNATIONAL RECRUITING
Potential Applicants Global orgs need to identify the
potential applicants for
jobs at home country & abroad from two sources, new hires &
existing
employees
Barriers Below barriers may cause experienced candidates
not to apply for the
international assignments :- Career, family, language, cultural & dual-career families
- Assignments to less developed areas & lack of knowledge of internal
openings
- People fear their loss of touch with developments & harming their
opportunities

INTERNATIONAL PREPARATION &

SELECTION
INTERNATIONAL RECRUITING
Difficult Recruitment Recruiting foreign nationals to work in
home country
can be more difficult than seeking applicants from domestic
market
Women Recruitment Differences in the cultural
expectations can be
frustrating for women, who may not be considered
appropriate for senior or
professional level positions by the senior management of an
international
employer
Systematic Linkages Many people are forced to rely on

INTERNATIONAL PREPARATION &

SELECTION
INTERNATIONAL SELECTION

Similar Path As an org evolves from a domestic to a global

company, the selection process follows a similar path of
development
Initial Efforts The companys initial efforts to operate
overseas tend to favor transferring employees form the home
country
Scope As the company becomes more international in its
scope of operations & outlook , the more foreign nationals are
hired for positions abroad
Maturity As a company matures into a truly global operation,
senior managers at headquarters become more diverse
Common Factors Researches show that maturity &
emotional stability & technical knowledge of the business are

INTERNATIONAL PREPARATION &

SELECTION
INTERNATIONAL SELECTION
Identification Selection process must identify the candidates
chances for success
Influencing Factors Employment opportunities for a spouse,
education for the children, & the familys ability to adapt to new
surroundings influence weather the placement will be successful
Challenges Legal constraints & adaptation challenges make
international selection complex & it rather grows when few of
the following standards are applied as selection criteria:-

Religious
Tribal
Language
Class
Caste

DEVELOPMENT
&
PLACEMENT

DEVELOPMENT & PLACEMENT

ORIENTATION
Orientation Failure Rate Regardless of how qualified or
experienced the job
employees are, they need orientation of firm & their job.
Research suggest that
expatriates have high failure rate e,g 10 to 20% being not
oriented properly
Orientation Duration Span Unlike new employees orientation
that may span
over some hours, the international orientation may begin
months before &
may lasts weeks after an assignments is made
Orientation Elements International openings add culture,
language, & other
unique aspects to the assignment, requiring insight into local
customs, culture,
& expectations. Few of the orientation elements include:- Social attitudes towards time & punctuality

DEVELOPMENT & PLACEMENT

TRAINING & DEVELOPMENT
Rotations To help develop managers & professionals into
potential executives
the many global firms rely on a series of their rotations
through different
business functions in different countries
Exposure The exposure to different functions & cultures
produces a broad
understanding of the org & the environments in which it
operates
Interactive Forums Large multinational firms hold annual
conferences on
relevant issues to bring together key personnel from around
the world as
an interactive training & development feature
Traditional Courses The training & development activities
are added with
more traditional education & training courses by universities,

DEVELOPMENT & PLACEMENT

EVALUATION & CAREER DEVELOPMENT
Career Planning The employees in international operations
need to be
evaluated & require assistance in their career planning
Difficulties The international assignments makes the
evaluation & development
of abroad employees difficult because :- The person being evaluated is thousands of miles away from the
evaluator
- The evaluator may not be familiar with the unique challenges faced
by the
person who is to be evaluated

Specific Performance The specific performance expectations

not only form the
bases for evaluation but also give direction to expatriates
career development
Rotation Program

DEVELOPMENT & PLACEMENT

EVALUATION & CAREER DEVELOPMENT
Flow of Information The employee & his evaluator/mentor are
expected to keep
each other informed about performance (success & failures) that
will affect the
employees career
Employees Concern The distinct feature of international HRM
is the factor of
compensation to the employees including expatriation &
repatriation benefits &
his/her job employment at home country when the employee is
repatriated

HR Dept Responsibilities

Tasks of tracking , evaluating &

COMPENSATION
&
PROTECTION

COMPENSATION & PROTECTION

Taxes & Living Expenses The International compensation &
protection go
beyond pay & benefits, as the pay is expanded to compensate
for additional
taxes & living expenses
Incentives The supplemented incentives may be added,
especially for the
assignments to less desirable locations for covering the extra
cost of :- Educating Children
- Return trips to home country
- Paying servant salaries

Foreign Benefits All above changes must be considered with

in the context of
foreign country culture, the benefits normally reserved for top
management
may include
- Company car

COMPENSATION & PROTECTION

Relocation Assistance Most complicated benefit is the
Relocation Assistance
which can range from buying the house at its market value to
shopping household
goods, cars & other possessions abroad
List of Concerns Medium size company who place its executives
internationally :- Developing an overseas compensation & benefits plan
- Giving tax advice & financial counseling
- Supervising the extensive paper work involved
- Assisting with housing & having the selection of good school
- Helping employees to set up banking accounts & make cash transfers
- Transferring medical , dental & school record & assisting with
inoculations
- Helping with absentee ballets and international driving licensees
- Providing language training often through immersion courses

COMPENSATION & PROTECTION

Repatriation Issues As part of protecting ones career with
the company. The
repatriation of the person back to the country of origin involves
many of the
same issues involved in sending some one abroad
Careful Consideration Home-office HR dept requires careful
consideration of
international succesesion planning to ensure that repatriation
of an
employee to the home country result in meaningful jobs &
development
experience with clear career path & job
International Transfer The HR dept must make a
contribution to the company
& the employee by ensuring that international transfers are
well planed &
facilitated depts compensation plans

EMPLOYEES RELATIONS
&
ASSESSMENT

EMPLOYEES RELATIONS &

ASSESSMENT

Complex Area One of the most complex areas of international

HR is employee
relations with managers whether they are expatriates or foreign
because this
has direct impact on the orgs. ability to execute its strategies.
Considerable Variations The following variables need to be
considered &
assessed for cardinal relationship & may be done through HR
dept in accordance
with the assessments & home-office policy standards:-

Language
Customs
Culture
Laws
Employee expectations
Competition
Other factors etc

Assessment & Prediction For employees relations, the

CHALLENGES
OF
INTERNATIONAL HRM

CHALLENGES OF INTERNATIONAL
HRM
INERNATIONAL TROUBLE SHOOTING
Troubles Alike domestic operational troubles HR problems
also arises in
international operations & managers may need assistance
consonant to HR
issues. The troubles could be as dealing with:- Labor Shortage
- Unexpected resignation
- Union related issues etc

Addressing Issues HR dept to address the operational

troubles /problems
must be able to :- Identify the source of assistance to handle the internationally faced
issues
- Identify people within the company & outside who can provide
needed

CHALLENGES OF INTERNATIONAL
HRM

INERNATIONAL CHALLENGES & WORKPLACE DIVERSITY

Workforce Diversity Challenges of workforce diversity are

amplified in international HR management. Globalization means
increased diversity both at home & abroad

Mixed Diversity It is a growing network of international

alliances among firms based on the factor that how well HR
policies ate integrated & implemented

Increased Diversity The diversity increases as the foreign

nationals are transferred to the home country & jobs are
transferred to other countries

Future Challenge Immigrants or foreign employees in future

will bring more diversity in the workforce. Thus pose a challenge
to the managers and HR depts

Competitive Edge Employers with diversity programs &

extensive international operations can gain a competitive edge
by getting prepared to manage the appearing highly diverse

CHALLENGES OF INTERNATIONAL
HRM
CULTURAL AWRENESS

Information Managers & HR dept further their contributions to

the orgs by being
informed about cultural differences among the firms
international operations
Unawareness The focus of HR innovators on the technology &
financial feasibility
without proper awareness of cultural differences can lead to
their success
Solution Proactive HR depts & managers work to identify the
solution to cultural
& national differences
Woman Cadre An aspect of cultural differences commonly
affect business plans is
the growing cadre of woman managers & professionals

THANKS