A PROJECT REPORT ON

INTERNATIONAL HUMAN RESOURCE MANAGEMENT

A project report submitted to SRM University in partial fulfilment

of the award of the degree of
Master of Business Administration

Submitted by
ARATHY B RA1552001010504
Under the guidance of
Dr.Rajan Daniel

School of Management
SRM University
Kattankulathur
Chennai

DIFFERENCE BETWEEN HRM AND IHRM

There are two major factors therefore which differentiate domestic HRM from IHRM. First,
the complexities of operating in different countries (and therefore in different cultures) and
secondly, employing different national categories of workers. This suggests that international
HRM is concerned with identifying and understanding how MNCs manage their
geographically dispersed workforces in order to leverage their HR resources for both local
and global competitive advantage. Globalization has brought new challenges and increased
complexity such as the challenge of managing newer forms of network organization. In
recognition of such developments, new requirements of IHRM is to play a key role in
achieving a balance between the need for control and coordination of foreign subsidiaries,
and the need to adapt to local environments.
International HRM differs from domestic HRM in a number of ways. One difference is that
IHRM has to manage the complexities of operating in, and employing people from, different
countries and cultures. A major reason for the failure of an international venture is the lack of
understanding of the differences between managing employees in the domestic environment
and in a foreign one. A management style successful in the domestic environment often fails
if applied to a foreign environment without the appropriate modifications.

IMPORTANCE OF IHRM
1. Emphasis on Core Competency.
Post-liberalization, many organizations have started focusing on their core competence and
businesses are being organized around that. A core competence is unique strength of an
organization which may not be shared by others. This may be in the form of unique financial
resources (finance available at a much lower cost), manpower resources, marketing
capability, or technological capability. If the business is organized on the basis of core
competency, it is likely to generate competitive advantages. Because of this reason, many
organizations have restructured their businesses-divesting those businesses which do not
match core competence such as Tata Group divesting many businesses and acquiring Tetley, a
UK tea processing company, divestment of businesses by Voltas, Birla Group, etc. or
acquiring those businesses which fit core competence such as Reliance acquiring four
yarn/fiber manufacturing companies, Gujarat Ambuja acquiring cement companies, and so
on. The organization of business around core competence has changed the mind set and in
this change, more emphasis has been given to human factor.

2. Reorganization.
Along with restructuring, there has been emphasis on reorganization too. Many companies
are restructuring their organization structure by thinning their management levels and
expanding span of control. Thus, there is emphasis on flat structure against tall structure as
followed earlier. The old concept of seven layers in the pyramid and seven direct
subordinates under each boss which has been the historic norm for many large companies in
the past is becoming extinct. Further, departmentalization based on functional lines is being
changed to strategic business unit departmentalization to focus more sharply on products or
services. This reorganization has created need for additional skills on the part of the
organizational human resources which can be met by appointing new managerial talents or by
developing the existing human resources. The latter course of action is preferable because of
the increasing competition for human talents.
3. Competition for Human Resources.
With the entry of foreign firms in the Indian industrial scene, nature of competition for
human resources has changed. Foreign firms, particularly those operating in sector such as
consultancy, merchant banking, investment banking, etc. and computer software companies
of Indian origin, have put lot of competition for acquiring managerial talents.
4. Technological Changes.
With the removal of restrictions on technology import and acquisition, many organizations
have opted for newer technologies. Increased use of computers has added another dimension
to technological innovation. With the result, old skills are fast becoming obsolete. In their
place, the operatives have to acquire newer skills which have increased the training needs in
such organizations, and HR departments have to be more active.
5. Need for Workforce Empowerment.
hroughout the world, there has been increasing emphasis on workforce empowerment, that is,
giving them authority matching their responsibilities. India cannot lag far behind because of
the international impact. For workforce empowerment, there has to be a change in mindset as
well as there should be change in skills of workforce. The role of HRM is crucial in both

these respects. With the increasing role of human resources and their management,
organizations have accorded HRM a higher status than what it previously was.

SELECTION PROCESS

HUMAN RESOURCE

TRAINING DEVELOPMENT
Human resource management regards training and development as a function concerned
with organizational activity aimed at bettering the job performance of individuals and groups
in organizational settings. Training and development can be described as "an educational
process which involves the sharpening of skills, concepts, changing of attitude and gaining
more knowledge to enhance the performance of employees". The field has gone by several
names, including "Human Resource Development", "Human Capital Development" and
"Learning and Development".
Training and development encompasses three main activities: training, education, and
development

Training: This activity is both focused upon, and evaluated against, the job that an
individual currently holds.

Education: This activity focuses upon the jobs that an individual may potentially hold
in the future, and is evaluated against those jobs.

Development: This activity focuses upon the activities that the organization
employing the individual, or that the individual is part of, may partake in the future,
and is almost impossible to evaluate.

Training is crucial for organizational development and its success which is indeed fruitful to
both employers and employees of an organization. Here are some important benefits of
training and development

Increased productivity

Less supervision

Job satisfaction

Skills Development

RECRUITMENT PROCESS
1. Recruitment Planning:
The first step involved in the recruitment process is planning. Here, planning involves to draft
a comprehensive job specification for the vacant position, outlining its major and minor
responsibilities; the skills, experience and qualifications needed; grade and level of pay;
starting date; whether temporary or permanent; and mention of special conditions, if any,
attached to the job to be filled
2. Strategy Development:
The strategic considerations to be considered may include issues like whether to prepare the
required candidates themselves or hire it from outside, what type of recruitment method to be
used, what geographical area be considered for searching the candidates, which source of
recruitment to be practiced, and what sequence of activities to be followed in recruiting
candidates in the organisation.
3. Searching:
This step involves attracting job seekers to the organisation. There are broadly two sources
used to attract candidates.
These are:
1. Internal Sources, and
2. External Sources.
4. Screening:
The reason being the selection process starts only after the applications have been screened
and shortlisted.
.
. Applications are screened against the qualification, knowledge, skills, abilities, interest and
experience mentioned in the job specification. Those who do not qualify are straightway
eliminated from the selection process..

5. Evaluation and Control:

The costs generally incurred in a recruitment process include:
(i) Salary of recruiters
(ii) Cost of time spent for preparing job analysis, advertisement
(iii) Administrative expenses
(iv) Cost of outsourcing or overtime while vacancies remain unfilled
(v) Cost incurred in recruiting unsuitable candidates
In view of above, it is necessary for a prudent employer to try to answer certain questions
like: whether the recruitment methods are appropriate and valid? And whether the recruitment
process followed in the organisation is effective at all or not? In case the answers to these
questions are in negative, the appropriate control measures need to be evolved and exercised
to tide over the situation.

FINANCE
GLOBAL FINANCE AND ITS IMPORTANCE
Global finance refers to the financial system consisting of regulators and various
financial institutions that conduct their business on an international level.

International finance examines the dynamics of the global financial system, international
monetary systems, balance of payments, exchange rates, foreign direct investment, and how
these topics relate to international trade.[1][2][3]
Sometimes referred to as multinational finance, international finance is additionally
concerned with matters of international financial management. Investors and multinational
corporations must assess and manage international risks such as political risk and foreign
exchange risk, including transaction exposure, economic exposure, and translation exposure.
Three major dimensions set international finance apart from domestic finance. They are:
1. Foreign exchange and political risks.
2. Market imperfection.
3. Expanded opportunity set.
These major dimensions of international finance largely stem from the fact that sovereign
nations have the right and power to issue currencies, formulate their own economic policies,
impose taxes, and regulate movement of people, goods, and capital across their borders

TRAINING PROCESS INSIDE THE CAMPUS

Training Cost saving the cost per delegate is typically less when compared to sending the
same number on to public training courses.
Travel Cost saving no need for employees to travel any further than their offices and incur
extra costs.
More specific generally running a course for a single client allows the training to focus on
specific items that are causing issues within the business.
Customised training Getting a group together allows all of the training and learning to be
focused on the company and can discuss real and current examples.
Convenience fit around the working schedule of the staff and at a location they come to
everyday!
Team Building a room full of delegates from different departments can encourage greater
team work, awareness and understanding of each others role.

BENEFITS OF INDIAN LABOUR