TRAINER MANUAL

International Human Resource

Management
PGDM H06

Prepared by

Major V. Jayaraman
Faculty
New Horizon Leadership Institute
Bangalore.
 I. COURSE OVERVIEW
More firms move outside their domestic borders into the dynamic world of
international business. The globalization of world markets appears to be gaining momentum.
According to the information available from the United Nations Conference on Trade and
Development, there are currently 65,000 transnational corporations, with 850 000 affiliates. These
organizations now employ a total of 54 million people worldwide. These figures do serve to
demonstrate how global the world of business has become. Dramatic changes have taken place in
international trade and business in the last two decades. Once safe markets are now fierce battle
grounds where firms aggressively fight for market share against foreign and domestic competitors.
Therefore, we find a large proportion of the workforce regardless of their national origin is located in
other countries. These trends will continue in the 21st century. Firms give top priority for
international business. But finding and nurturing human resources required to implement an
international or global strategy is of critical importance. Effective human resources management is
essential where international expansion places additional stress on limited resources, particularly
people.

II. COURSE OBJECTIVE

Ø To define International Human Resource Management

Ø To understand the variables that moderate differences between domestic and

international HRM.

Ø To understand the path to global status and the control mechanisms

Ø To study different approaches to staffing

Ø To understand and implement expatriate training

Ø To understand the key components of international compensation

Ø To study the process of repatriation

Ø To understand the key issues in international industrial relations

Ø To study the important components of international performance management

Ø To find out the relationship between international business and ethics.

Ø To know about HR Information System (HRIS) & its use

Ø To know how to manage Human Resource in virtual organizations

 Ø To study globalization & HRM

II. COURSE STRUCTURE

1. Introduction to international human resource management

§ Human resource planning

§ Approaches to International Human Resource Management (IHRM)

§ Defining IHRM

§ More HR activities

§ International re-location and reorientation

§ Host Government relations

§ Tackling the language problem

§ More involvement in employee’s personal lives

§ More external influences

§ The cultural differences

.2. IHRM-HR Planning

§ Human Resource Planning

§ Recruitment and Selection

§ Training and Development

§ Developing Multinational Teams

3. Compensation and Performance management

§ Importance of Compensation

§ Objectives of compensation

§ Key components

§ Approaches of international compensation

§ Performance management

4. Expatriate failure
 § Repatriation

§ Repatriation process

5. Labour Relations

§ Key issues in international labour relations

§ Strategic choices-Firms and Unions

§ Union Tactics

6. HR Information System & Managing HR in Virtual organizations

§ Meaning and use of HRIS.

§ Managing HR in virtual organizations

III. COURSE KEY LEARNING AREAS

Ø Learn the definition and intricacies of IHRM
Ø Learn about the dimensions affecting domestic and international HRM

Ø
Learn about developing multinational teams
Ø
Learn about the approaches to international compensation
Ø
Learning about expatriate failure
Ø
Learning about repatriation
Ø
Learning about international industrial relations and union tactics.
IV. COURSE OUTCOME.
At the end of the course students would be able to
• Know that international human resource management is full of challenges and
opportunities.
• International human resource planning would be a part of corporate strategic
planning
• Know that there are two approaches to international compensation
• Know how to develop multinational teams
• Know about international performance management
• Know about strategic choices of firms and unions
V. COURSE BENEFITS
This course would enable the students to
v Understand the complexities of international human resource management
v Understand that cultures are diverse in the countries of the world and play a major role
in IHRM.
v Understand that language plays a crucial role in IHRM.
v Understand that International compensation and tax laws are very complex and should
be mastered
VI TEACHING/TRAINING METHODOLOGY
The method of training would be through lectures, power point presentations, case
studies, presentations by the students, group representation, task execution, assignments,
class tests and group discussions.

Guidelines for internal assessment:

Internal assessment would comprise the following segments-

1. Quizzes- Quizzes would be taken after the completion of few chapters to test the
understanding of the concepts by the students. Objective type quizzes would also
prepare the students for the multiple type questions, thereby preparing them for the
examination.

2. Assignment-Topics for them would be prior given to the students during the course
tenure. Four assignments would have to be completed. These topics should be
comprehensively written covering all the possible aspects of it. Five assignments and
five case studies will be given to each student which has to be submitted as on when
requested.
3. Seminar / Class presentation- Students should present the case studies either in group
or individually depending upon the trainers request and this will test their
communicative ability, together with the knowledge of the subject, and their group
dynamics.

4. Class Test - Test will be conducted on a cycle basis on every Monday afternoon by the
respective subject trainer with the syllabus covered till that date. This helps the trainer
to continuous evaluation and the students will study day to day portions covered.

5. Attendance – 85% of the attendance in each subject is compulsory to take up the each
trimester examinations failing on which the student will not be permitted to take up the
examinations.
 6. Paper Reading – Every student has to read the suggested paper and should note down
the important happening in the business world and should maintain the cuttings of the
same and should be produced when reminded.

Satisfying all the above conditions a student is eligible for a healthy evaluation.

LESSON PLAN

POST GRADUATE DIPLOMA IN MANAGTEMENT

Course: PGDM International Human Resource Management

Session: 35 hours

Faculty: Major V. Jayaraman

No. of Topics Pedagogical

classes Tools
2 Introduction to IHRM, Human Resource Slides
Planning, Approaches to IHRM, Defining /Blackboard
IHRM.
2 Model of International HRM, More HR Slides
activities, international relocation and /Blackboard
orientation, Administrative services, Host
Government relations, more involvement in
employees’ personal lives.
2 Workforce mix of expatriates and Locals, Slides
Risk exposure, More external influences, /Blackboard
Variables that moderate differences between
domestic and international HRM, the cultural
environment, industry type, Reliance of the
MNC on its home country domestic market.
2 Attitudes of Senior Management to Slides
international operations, HR Planning, /Blackboard
Recruitment and Selection issues.
2 Executive Nationality- Staffing policies Slides
/Blackboard
2 Expatriate selection, Selection criteria, Slides
Factors in Expatriate selection, cross cultural /Blackboard
suitability, Family requirements, country
cultural requirements, MNE requirements
2 Other situational factors, Language, inter- Slides
 relatedness of criteria, Selection tests, Dual /Blackboard
career couples, intercompany networking,
Job hunting assistance
2 Intra-company employment, support for Slides
commuter marriages, on-assignment career /Blackboard
support, Female international Managers,
Family considerations
2 Selecting third country nationals, training Slides
and development, Expatriate training, /Blackboard
preliminary visits, language training,
practical assistance
2 Job related factors, HCN training, Slides
international training of HCNs, Developing /Blackboard
international staff and Multinational teams,
individual career development.
2 Compensation and Performance Slides
Management- objectives of international /Blackboard
compensation, key components of
international compensation, allowances,
relocation allowance, spouse allowance and
benefits.
2 Approaches to international compensation, Slides
the going rate approach, the balance sheet /Blackboard
approach, taxation, tax protection,
international living cost
2 Multinational Performance management, Slides
non-comparable data, volatility of /Blackboard
international environment, separation by time
and distance, variable levels of maturity,
factors associated with individual
performance and appraisal.
2 Phases of cultural adjustment- U curve, Slides
criteria used for performance appraisal of /Blackboard
international employees, frequency of
evaluation, performance feed back.
2 Repatriation, Expatriate failure, repatriation Slides
process. /Blackboard
2 Labour relations, key issues in international Slides
relations, strategic choices-firms and unions, /Blackboard
union tactics.
3 Case study, presentation Student-professor
interaction
35 Total
 SUGGESTED READINGS

1) Sengupta and Moushumi S Bhattacharya, International Human Resources Management, Excel

Books

2) S. Jayashree, What every MBA should know about HRM- HPH

MODEL QUESTION PAPER

New Horizon Leadership Institute
Ring Road, Panathur Post, Near Marathahalli
Bangalore-560 087
Subject: International Human Resource Management
PGDM H06

Duration: 3 Hours Total Marks: 100

Section –A (Answer all questions) 20X1=20
1. More firms move outside their domestic borders to the world of international business.
(True/False)
2. Once safe markets are now fierce battle grounds where firms aggressively fight for
market share. (True/False)
3. Large proportion of the work force regardless of their national origin is located in other
countries. (True/False)
4. People of different nations will continue to migrate in the 21st century
(True/False)
5. Firms give top priority for international business. (True/False)
6. Nurturing human resources to implement a global strategy is not of critical importance
(True/False)

7. International expansion of business places additional stress on human resource

(True/False)

8. Any type of international problem is created by people. (True/False)

9. Any type of international problem is solved by people. (True/False)

10. Human resource planning is about placing the right people in the right place at the
right time. (True/False)

11. Approaches to international HRM are

(a) Two (b) three (c) four (d) five

12. IHRM mainly includes

(a) Eliminating (b) punishing (c) rewarding (d) staffing

13. PCN is from the

(a) host country (b) the country in which the head quarters is located (c) some other
country (d) none of these

14. Domestic HRM has (a) more activities (b) less activities than IHRM (c) medium
activity (c) no activity.

15. International HRM calls for involvement in the personal life of the employee (a)to a
less extent (b) more extent (c) moderate involvement (d) no involvement

16. Expatriate is one who is recruited from (a) a host country (b) third country (c) parent
country (d) adjacent country

17. Expatriates are subject to (a) international taxation (b) less taxation (c) more taxation
(d) none of these

18. International relocation is (a) shifting residence from one city to the other (b) shifting to
the neighbouring country (c) from one country to another (d) shifting in the same city

19. Aids testing for a US national for international posting is (a)compulsory (b) optional (c)
advisory (d) none of these

20. Personal relationship with government officials in the host country is (a) not important
(b) optional (c) important (d) none of these

Section-B (Answer any four) 4X5=20

21. Bring out the similarities between domestic and international human resource
management.

22. Discuss the issues relating to dual career couples in MNCs.

23. Comment on the balance sheet approach to expatriate compensation.

24. Discuss the challenges in recruitment of expatriates. What can be done to minimize
expatriate failures?

25. Why is performance appraisal important for international firms?

26. Point out the employee relations strategies adopted by MNCs. Give your comments on
each.
Section- C (Answer any four) 4X10=40

27. Explain the advantages and disadvantages of polycentric and geocentric approaches to
staffing in MNCs.

28. In what ways can organized labour constrain the strategic choices of an international
business? How can an international business limit these constraints?

29. What is IHRM? Bring out the scope of IHRM.

30. Assuming you have accepted a foreign job, what would be the content of the pre-
departure training for you and your family?

31. Explain the executive pay policies for global managers with examples.

32. Discuss the main causes for expatriate failure.

Section-D (Compulsory) 1x20=20

Analyze the case and answer the questions given below:

One of the hotels in Australia had to explain to the Equal Employment Opportunities
Commissioner as to it was circulating an internal memo that violated the Australian Equal
Employment Law. The internal memo had vacancies for two young single males. Under
Australian Equal Employment Law, these constitute age, marital status and sex
discrimination respectively, so the memo violated the Australian law on three counts.

Questions:

a) If you are the HR manager of the hotel, what is your explanation for the allegations
made against the hotel?

b) How to handle the situation without disturbing the hotel operation?

c) What is the lesson a HR manager can learn from the case?