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The author shall and will not be responsible for any consequences arising out of this article. In no event shall author be responsible or liable, directly or indirectly, for any image or loss caused or alleged to be caused by or In connection with the use of or reliance of this content of publication or resource -Any reliance you place on such information is therefore strictly at your own risk. International Human resource Management. Introduction : Today when we are In the twenty first century very rapid & unpredictable changes are occurring at local as well as global level.
Liberalizing, appropriation and globalization (LIP) have brought about changes In the business environment resulting in heightened competition & growth of the service sector. Changes in lattice, economic, social Technological & employment environment over the past decade have caused organizations to confront several unique challenges to survive & to excel. As our LIP policy started to show the positive results in the past decade, the currant global meltdown situation is started to affect on our increasing GAP growth.
We experienced the offensive strategies of our Indian companies at global level In Globalization of business actively through mergers, takeovers etc. But to survive In the present international financial crises caused by the mistakes of the global OFF face the challenges emerged because of the recession. The HARM has to face growing challenges in the light of liberalizing & globalization of Indian economy with the global meltdown situation. Types of International organizations.
Today Every businessman is trying to become global.. The globalization of business has its impact on HARM practices. A major consequence of globalization has been the internationalization business however the degree of internationalization of business in Indian companies is different from each other. Several firms they claim to be international are actually national co. That exports overseas Executives of these companies are of national origin, in such organizations opportunities for international career are limited.
Some organizations may be more international in their organizational operations, Hence use HRS Practices in international organization is based on the Nature of the organization & degree of internationalization . Organizations having international business can be classified in to four parts 1 . International Corporation, 2. Multinational Corporation 3. Global Corporation 4. Transnational Corporation. International HARM All the HARM Practices which are applicable to Domestic business are also equally applicable to international Business.. A Major difference is the setting.
International Human Resource Management involves the application of HARM Practices to an international setting. Therefore the simple definition of IHRAM is “Process of Managing people in international settings”. According to Proof. Scullion (1995) IHRAM as the HARM issues & problems arising from the internationalization of Business & the HARM strategies , policies & practices which rims pursue in response to internationalization process. IHRAM is the management of human resources in business operations in at least two nations. It focuses on employees who are on the international posting or on an international assignment.
Though IHRAM involves the same JAR activities as domestic HARM (staffing, performance management, development, compensation etc. ) the two differ in certain ways. Differences between IHRAM & Domestic HARM 1) Range of activities: IHRAM address a broader range of activities than domestic HARM does. These includes international Taxation, , coordinating foreign currencies & exchange rate, international relocation. International orientation for the employees posted abroad. 2) Environment: IHRAM faces the challenges created by international environment.
It addresses the issues of employees belonging to more than one nationality. Hence these managers need to set up different HARM systems for different locations. Human resource manager in the domestic environment administers HARM programmer to employees belonging to a single nationality. 3) Involvement in the personal life: IHRAM requires greater involvement in the personal life of the employee. The HRS manager of NC must ensure that the package paid to the executive posted to a foreign country is according to the foreign assignment, Such as cost of living, taxes etc.
HRS manager requires to assess the readiness of the employees family to relocate adjustment to the foreign culture. Help in admitting children in the schools. The HRS Manager may also require to take responsibility for the children left behind in boarding school in an employee’s family is comparatively very limited. 4) Risk Involvement: There is heightened exposure to risks these risks include the health & safety of employee & family. A major aspect of risk relevant to IHRAM today is possible terrorism. On the other hand the risk factor involved in case of domestic HARM is less. ) Complexities: IHRAM has to manage the complexities of operating in & employing people from different countries & culture, having different language& traditions. A management style successful in the domestic environment often fails if applied to the foreign environment without the appropriate modifications. The reason is IHRAM is more complex than domestic HARM. 6) Dealing with external factors: IHRAM has to deal with more external factors than mommies HARM. For example, Government regulations about the staffing practices in foreign locations, local codes of conduct, influence of local religious group etc.
IHRAM Practices Considering the above differences in the domestic HARM & IHRAM, the organization requires to develop separate strategy to deal with challenges created by Globalization & liberalizing. It is the need of the day to develop separate IHRAM practice for developing the adaptability of the business with the internationalization process. The strategic IHRAM involves an extensive selection system, training for international assignments, strategies for repatriation programmer etc. Following are some IHRAM practices with which the Indian Business can face the challenges of internationalization of business which is the result of our LIP policy. . Accessing the purpose of international assignment: Before selecting an employee for an international posting or assignment, an organization must establish the specific propose of the assignment. Is it to set up new business or develop new market? Is the purpose to transfer technology? Is it to manage an independent subsidiary or is it to a vacant position? After the purpose of international assignment has been specified, the organization can start the further process for selecting most appropriate employee for the assignment. 2.
International Staffing: This refers to process of selecting employees for staffing international operations. There are three different sources through which the NC can select the employee handling international operations. These options have their own advantages & disadvantages. Considering the same the organization can develop its strategy to select the appropriate candidate to handle foreign assignment. These sources are: a) Home or Parent country national: They are the citizens of they country in which the headquarter of the company is located.
They are not the citizen of the country in which they are working. Parent Country nationals are also called as expatriates. They are generally managers, Technicians, subsidiary heads & experts. The company can select this source if local talent is not available. B) Host Country Nationals: They are those employees of an organization who are the citizens of the country in which the foreign subsidiary is located. Home country sectionals are generally used for staffing middle and lower management levels.
The can select this option if it is possible to hire local talent. Where the organization is headquarter and the country that is hosting the subsidiary. A British citizen who works in the Indian subsidiary of an organizational head quarter in the US is a third country national. 3. Pre-departure Training for International Assignments: After the selection of appropriate & willing manager for international assignment, organization must provide training to the selected candidate. The training should focus on global skills hat are important for success in abroad.
It involves appreciation of cultural differences, understanding the socio-political atmosphere of the country of posting, etc. In addition to employee their families also need to be prepared to handle the foreign assignment effectively. Both the employee and his/her familiarities a peradventure training programmer. The peradventure is also called as expatriation, which is the process of preparing & sending to their foreign assignment. Expatriate training & development programmer incorporate three elements: (1) Language Training,(2) Cultural Training,(3) Managing personal & Family Life.
The objectives of the pre departure training are to make it easier for the manager to assume Job responsibilities & be effective on the Job in the foreign country as soon as possible. 4. Repatriation: Repatriation is the process of bringing an expatriate home after he/ she has completed the international assignment. For the expatriate, the return to the parent country is accompanied with certain fears & anxieties. It is the duty of the HRS Manager to take appropriate initiatives to manage these anxieties and to ease the re- entry of expatriate managers in to the parent company. 5.