Anda di halaman 1dari 7

HOW COMPANIES FACE HR CHALLENGES IN INTERNATIONAL BUSINESS

GROUP MEMBERS
Priyanka Bhagwat 04

Shweta Gurav
Veena Hukerikar Sapna Jangid Prachi Nemade

Laxmi Panchabhai
Shivani Sabnis Sneha Tamboli

INTRODUCTION
Definition of IHRM

IHRM as, performing HRM and it related activities and arranging for related and necessary immigration facilities for prospective and current expatriate employees, by organisation operating in domestic and/or foreign countries.
- by P. Subharao

Vary from country to country due to variations in culture, government policies, labour laws, etc

IHRM INTERPLAY AMONG THE 3 DIMENSIONS


HR Activities

Procure

Allocate

Utilise Host countries

Host country Nationals (HCNs)


Home Parent Country Nationals (PCNs) Other Third Country Nationals (TCNs) Type of employee

HR CHALLENGES FACE IN INTERNATIONAL BUSINESS


Global organizational move
1. Global human resource management (GHRM) includes the same functions as domestic HRM, plus several aspects unique to international management 2. 1. 2. 3. 4. 5. 6. 7. 1. 2. 3. 4. 1. 2. The concept of "fit" in global human resource management 3.

Challenges
people challenge the most difficult for firms becoming international Most critical to success, acquiring a competent workforce (survey of top execs.) Finding suitable candidates Intercultural understanding Career management Employee retention Adjusting to environment Partner dissatisfaction Relocation reluctance Individualism versus collectivism Power distance Uncertainty avoidance Masculinity versus femininity Fit (congruence among HR policies, firms plan & values of foreign culture) Internal fit (HR policies that allow for smooth work flow: HQ & local) External fit (HR to consider the local cultural/socioeconomic environment)

The top HR challenges include

The cultural nature of global human resource management cultural differences

Multinational Corporation (MNC) - HRM Philosophy

1. 2. 3. 1. 2. 3. 1. 2.

Early stages of internationalization strategy Ethnocentric orientation - PCN hires Adapting products and services to local markets National boundaries disappear Geocentric orientation TCN hires The world is the market for its products & services Finding competent expatriate managers To capitalize on the diversity of a global workforce without suppressing each nations desire to maintain its cultural identity Complex & sensitive task Technical competence Self image: self-confidence, self-esteem, stress coping Interaction skills: interpersonal style, sensitivity to nonverbal communication perceptual orientation: open-mindedness, tolerate uncertainty accept cultural differences Fascination Culture shock Adaptation Select managers who desire/want foreign assignments (where possible) Language fluency Preparation for cultural differences

Global Corporation (GC) - HRM Philosophy

The real challenge

Selecting the expatriate manager

1. 2. 3. 4.

Stages of reaction to foreign experience

1. 2. 3. 1. 2. 3.

Effective measures to deal with culture shock

When recruiting try to use the same recruitment methods as local businesses & other successful GCs HCNs - Recruitment

1. 2.

Training the expatriate manager

Provide intercultural training improves chances for success How much & type of training depends on level of contact with host culture 3. Degree of dissimilarity between home & host cultures 4. Training to differ/vary at different phases of expatriates assignment (ex. pre-departure, overseas assignment, repatriation)

Compensating the expatriate manager

1. 2. 3. 4. 5.

Expensive proposition Pay expatriate premium, COLAs, allowances Financial (education, home leave) Social adjustment (language, cross cultural training, locate home) Family support (child care, trailing spouse, schools) 1. Less expensive 2. Have distinct advantages in cultural sensitivity, understanding local employee needs/motivation strong reservations exist in using HCNs: 3. Concern that locals will not adopt PC culture & management system 4. Level of commitment to organization may not be high 5. Dont have the expertise or requisite skills that PCNs/expatriates possess 6. Communication between HQ and host offices will be less effective 7. Most problems can be eliminated by careful recruitment, selection, and training of HCNs

Host Country Nationals and the Global Corporation

Foreign Corrupt Practices Act (1977) forbids in conducting to give the firm an unfair advantage 2. There exists varying degrees of employment discrimination in other countries The legal and ethical climate of global human resource management which may cause problems/dilemmas for PCNs managers 3. Civil Rights Act of 1991 applies to US firms operations overseas 4. Sullivan Principles

1.

Anda mungkin juga menyukai