INTERNATIONAL HUMAN RESOURCE MANAGEMENT

DEFINITION

It is process of procuring, allocating and effectively utilizing human resources in multi-national organization while balancing human resources activities with in foreign countries.

It encompasses planning, organizing, directing and controlling various human resources activities to contribute organizational, individual and social goals at international level.

OBJECTIVES

International human resource management have to deal with human resource functions like recruitment, selection, training, performance appraisal at international level.

Efficiently manage a diverse workforce across different countries.

Foster employee develop and integration.

It has to focus on global training program to enhance the skills and cultural awareness.

Balancing global consistency with local adaption.

It has to create more and more opportunities within global HR scenario.

It has to develop and handle the global business operation.

It has to reduce cultural differences as characterized by friendliness in organization.

APPROACHES:-

ETHNOCENTRIC

Under this approach organization simply transfer HR practices and policies used in home country to subsidiaries in foreign countries. Expatriates from organizational home country manage foreign subsidiaries and organizational headquarter maintain tight control over subsidiaries policies.

POLYCENTRIC

In this approach, subsidiaries are basically independent from headquarter. HR policies are developed to meet each circumstances in each foreign countries. Local managers are hires to manage HR activities.

REGINOCENTRIC

This approach represents a regional group of subsidiaries. HR policies are coordinated within the region to as much an extent as possible. Subsidiaries may be staffed by manager from any of the countries within region. Coordination and communication within region are high but quite limited between regions and organizational headquarters.

GEOCENTRIC

Under this HR policies are developed to meet the goals of the global network of home country locations and foreign subsidiaries. This may include policies which are applied to across subsidiaries as well as policies adapted to the need of individual locations depending on what is best to maximize global results.

DIMENSIONS:-

HR ACTIVITIES

HR activities includes recruiting, selection, training, development, performance, employee relation etc.

TYPE OF EMPLOYEE

TYPE OF COUNTRY:-

PARENT COUNTRY NATIONAL

It refers to an employee of multi-national company who is sent from company's home country where headquarter is located to work in foreign subsidiaries.

HOST COUNTRY NATIONAL

It refers to an individual who is citizen of country where multi-national companies operates subsidiaries.

THIRD COUNTRY NATIONAL

It refers to individual who is neither citizen of home country nor subsidiaries.