PRESENTATION ON INTERNATIONAL HUMAN

RESOURCE MANAGEMENTPRANITA GOLE- 1315FM009ANIKET KARADE- 1315FM0

TABISH KHAN- 1315FM0MANALI MANJREKAR-1315FM016

•INTRODUCTION

•MEANING OF INTERNATIONAL HRM

•DEFINITION OF INTERNATIONAL HRM

•CORE FUNCTIONS OF INTERNATIONAL HRM

DEALING WITH

DEALING WITH

CORE FUNCTIONS OF INTERNATIONAL HRM

1. GLOBAL RECRUITMENT

2. GLOBAL SELECTION PROCESS

3. EXPATRIATES

4. PERFORMANCE APPRAISAL

5. TRAINING & DEVELOPMENT

6. COMPENSATION

7. WOMEN IN INTERNATIONAL BUSINESS

8. DUAL CAREER GROUPS

9. INTERNATIONAL INDUSTRIAL RELATIONS

10. CONCERNS OF TRADE UNIONS

11. PARTICIPATIVE MANAGEMENT

GLOBAL RECRUITMENT

SOURCE OF GLOBAL RECRUITMENT

i. PARENTS COUNTRY NATIONALSii. HOST COUNTRY NATIONALSiii. THIRD COUNTRY NATIONALS

GLOBAL SELECTION PROCESS

APPROACH

•ETHNOCENTRIC APPROACH•POLYCENTRIC APPROACH•GEOCENTRIC APPROACH

NON-WORKCULTURE-NOVELTYFAMILY

ADJUSTMENT

INDIVIDUALSELF-

EFFICENCYRELATION-

SKILLS

JOB ROLE CLARITY

ROLE CONFLICT

ORGANISATION CULTURE

CULTURENOVELTY

SOCIAL-SUPPORT

DEGREE OF ADJUSTMENT

WORK ADJUSTMENT

GENERAL ADJUSTMENT

EXPATRIATES

DIMENSIONS OF INTERNATIONAL ADJUSTMENT

INTERNATIONAL ADJUSTMENT

PERFORMANCE APPRAISAL

OBJECTIVES

•360 PERFORMANCE APPRAISAL

•METHODS OF PERFORMANCE APPRAISAL

TRAINNING & DEVELOPMENT

• Training :

Is the act of increasing the knowledge and skill of an employee for doing a particular job.

• Development:

Is a systematic process of growth and by which the executives develop their ability to manage.

IMPORTANCE OF TRAINNNG:

• IMPROVE JOB KNOWLEDGE AND SKILL AT ALL LEVEL OF ORGANIZATION.

• IMPROVE MORAL OF HUMAN RESOURCES.

• IMPROVE PROFITABILITY

• IMPROVE RELATION BETWEEN BOSS AND SUBORDINATES

• IMPROVE UNDERSTANDING OF CULTURE OF VARIOUS COUNTRIES.

NEED FOR TRAINNIG AND DEVELOPMENT:• TO MATCH EMPLOYEE SPECIFICATIONS WITH THE JOB REQUIREMENT AND

ORGANIZATIONAL NEED.

• TO ACHIEVE ORGANIZATIONAL VIABILITY AND THE TRANSFORMATION PROCESS.

• TO MEET THE CHALLENGES OF TECHNOLOGICAL ADVANCE

• TO UNDERSTAND THE ORGANIZATIONAL COMPLEXITY

• TO MAKE THE EMPLOYEE AND HIS FAMILY MEMBER FAMILIAR WITH THE LANGUAGE, CUSTOMS, TRADITION, ETC. OF THE FOREIGN COUNTRY.

CROSS CULTURAL TRAINING

• CROSS CULTURAL TRAINING ENABLES THE EXPATRIATES TO LEARN THE CULTURAL NORMS, VALUES, APTITUDE, ATTITUDE, BELIEFS, BEHAVIORS, PRACTICES OF THE HOST COUNTRY.

CONTENT OF CROSS CULTURAL TRAINING:• INFORMATION OF FACT ORIENTED TRAINING

• ATTRIBUTION TRAINING

• CULTURAL AWARENESS TRAINING

• COGNITIVE-BEHAVIOUR MODIFICATION TRAINING

• EXPERIMENTAL TRAINING

TRAINING TECHNIQUES

• LECTURE

• AREA BRIEFING

• READING MATERIAL

• VIDEO FILMS

• CLASSROOM LANGUAGE TRAINING

• CASE STUDIES

• SENSITIVE TRAINING

• ROLE-PLAYS

• FIELD TRIPS

• SIMULATION

• INTERACTIVE LANGUAGE TRAINING

• CULTURAL ASSIMILATORS

COMPENSATION AND BENEFITS

COPENSATION IN GLOBAL COMPANIES:• EXPATRIATE PAY

• GRATUITY

• ALLOWANCES

• TAXATION

COMPONENTS OF INTERNATIONAL COMPENSATION PACKEGE

• PAY OR BASE SALARY• COST OF LIVING ALLOWANCES• TAX EQUALIZATION ALLOWANCES• HOUSING ALLOWANCES• EDUCATIONAL ALLOWANCES• RELOCATION ALLOWANCES• SETTLING-IN AND SETTLING-OUT ALLOWANCES• MEDICAL ALLOWANCES• HARDSHIP AND DANGER ALLOWANCES• EXCHANGE RATE PROTECTION ALLOWANCES• INSURANCE ALLOWANCES• STOCK OPTION• BONUS• GRATUITY• PENSION• BENEFITS • SOCIAL SECURITY MEASURE

COMPLEXITIES IN INTERNATIONAL COMPENSATION SYSTEM

• THE SALARY AND BENEFITS LEVEL VARY COUNTRY TO COUNTRY

• COST OF LIVING VARIES WIDELY AMONG COUNTRIES

• VARYING REQUIREMENT OF PROVIDING HOUSING AND MEDICAL AND HEALTH FOR EMPLOYEE

• VARYING SALARY LEVEL EXPATRIATES IN THEIR RESPECTIVE HOME COUNTRIES

• FOREIGN EXCHANGE RATE FLUCTUATE WIDELY

• VARYING TAX RATES

• VARYING RATE OF INFLATION AND DEFLATION

• VARYING LOCAL CONDITION IN HOST COUNTRY

• COUNTRY PERSPECTIVES

• CONSISTENCY AND EQUITY

• EXPECTATION OF DIFFERENT CATEGORIES OF EMPLOYEES.

DUAL CAREER GROUP

• DEVELOPMENT OF CAREER ORIENTED EMPLOYMENT NETWORK

• PROVIDE THE SERVICE OF JOB SEARCH FIRMS

• PROVIDE MORE TIME TO THE EMPLOYEE SO THAT THE SPOUSE CAN FIND A JOB

• ESTABLISH EDUCATION FUND TO ACQUIRE TRAINING

• PROVIDE HELP FOR PROFESSIONAL EMPLOYMENT OPPORTUNITIES

• PROVIDE ACTIVITIES TO THE SPOUSE BASED ON THEIR APTITUDE

• PROVIDE REALISTIC PRE-DEPARTURE INFORMATION ON FOREIGN JOB OPPORTUNITY

• ADDRESS THE QUESTION OF UN EMPLOYMENT ,BENEFITS, PENSION, ETC.

• SPOUSE HAVE TO BE FLEXIBLE IN FINDING A BROAD AREA OF APPROPRIATE EMPLOYMENT FOR THEM

• MEANING– INDUSTRIAL RELATIONS IS A

WHOLE FIELD OF RELATIONSHIP THAT EXISTS BECAUSE OF THE NECESSARY COLLABORATION OF PARTIES IN THE EMPLOYMENT PROCESS:

– FOLLOWING ARE THE VITAL PARTIES INVOLVED:• EMPLOYEES

• EMPLOYEE UNIONS

• EMPLOYER

• EMPLOYERS ASSOCIATIONS

• GOVERNMENT

• EVOLUTION– IR IS THE OUTCOME OF THE

PRACTICES OF HUMAN RESOURCES MANAGEMENT

– IMPORTANT AREAS OF IR• TRADE UNION

• GRIEVANCE PROCEDURE

• DISCIPLINARY PROCEDURE

• COLLECTIVE BARGAINING

• INDUSTRIAL CONFLICTS INCLUDING STRIKES AND LOCK OUTS

• WORKERS PARTICIPATION IN MANAGEMENT

• QUALITY CIRCLES

• QUALITY OF WORK LIFE

INTERNATIONAL INDUSTRIAL RELATION

U.S.A.

1. GENEROUS

HOLIDAYS

2. JOB RESPECTED

3. GOOD HOURS

4. USE INITIATIVE

TURKEY

1. GENEROUS

HOLIDAYS

2. INTERESTING

JOB

3. RESPONSIBILITY

4. USE INITIATIVE

GERMANY

1. GENEROUS

HOLIDAYS

2. JOB RESPECTED

3. GOOD HOURS

4. RESPONSIBILITY

CHINA

1. GENEROUS

HOLIDAYS

2. RESPONSIBILITY

3. USE INITIATIVE

4. INTERESTING

JOB

INDIA

1. GENEROUS

HOLIDAYS

2. USE INITIATIVE

3. INTERESTING

JOB

4. GOOD HOURS

RUSSIA

1. RESPONSIBILITY

2. USE INITIATIVE

3. GENEROUS

HOLIDAYS

4. GOOD HOURS

NIGERIA

1. GENEROUS

HOLIDAYS

2. GOOD HOURS

3. USE INITIATIVE

4. JOB RESPECTED

PERU

1. GENEROUS

HOLIDAYS

2. INTERESTING

JOB

3. GOOD HOURS

4. ACHIEVE

SOMETHING

COMPOSITION OF THE CULTURAL ENVIRONMENT OF INTERNATIONAL BUSINESS

Religion

sacred objects

philosophical

systems

beliefs & norms

prayer

taboos

holidays

rituals

Technology and

Material Culture

transportation

energy systems

tools & objects

communications

urbanization

science

invention

Values and Attitudes

Toward:

time

achievement

work

wealth

change

scientific method

risk-taking

Education

formal education

vocational training

primary education

secondary education

higher education

literacy level

human resources

planning

Social Organization

kinship

social institutions

authority structures

interest groups

social mobility

social stratification

status systems

Language

spoken

written language

official language

linguistic pluralism

language hierarchy

international

languages

mass media

Law

common law

code law

foreign law

home country law

antitrust policy

international law

regulation

Politics

nationalism

sovereignty

imperialism

power

national interests

ideologies

political risk

STRATEGIES USED BY MNC

• MNC HAVE TO DEAL WITH THE EMPLOYEES OF VARIOUS COUNTRIES WITH VARIED CULTURAL, SOCIAL, POLITICAL AND RELIGIOUS ENVIRONMENT OF ONLY ONE COUNTRY AND IT HAS TO FORMULATE ANOTHER STRATEGY FOR ANOTHER COUNTRY.

• MNC DECENTRALISE THEIR IR POLICIES AND PRACTICES.

• IR ARE SEEN IN THE LARGER INTEREST OF SOCIAL CLASS STRUGGLE IN SWITZERLAND, FRANCE AND ITALY.

• IN MOST OF THE OTHER COUNTRIES THIS IS SEEN ONLY AS THE RELATIONSHIP BETWEEN WORKERS AND MANAGEMENT

CONCERN OF TRADE UNION (TU) IN MNC

• STRATEGIES• THE SIGNIFICANT CONCERN OF TU’S TOWARDS MNCS IS THAT THE LATER CAN SHIFT THE

MANUFACTURING AND OTHER BUSINESS VENTURE TO OTHER COUNTRIES WHERE THE INFLUENCE OF TU IS EITHER ZERO OR RELATIVELY LESS. THEREFORE, TU IN MNC DEAL WITH THE EMPLOYERS CAREFULLY AND JUDICIOUSLY

• MNCS LOCATE VERY CRUCIAL OPERATION IN HOME COUNTRY OR WHERE SUCH HUMAN RESOURCES ARE AVAILABLE AND LOCATE OTHER BUSINESS OPERATIONS IN THE OTHER COUNTRIES WHERE THE HUMAN RESOURCE COST IS CHEAP. IN FACT IT OFFERS RELATIVELY HIGHER SALARIES THAN THAT OF DOMESTIC ORGANIZATION, BUT SIGNIFICANTLY LESS THAN THAT OF ITS HQ OR HIGHER SALARY RANGE COUNTRIES. THESE PRACTICES REDUCE BARGAINING POWER OF TU AS WELL AS REDUCE TU ACTIVES.

• EG: MICROSOFT, ORACLE CORPORATION OPERATING IN INDIA FOLLOWS THIS STRATEGY

• SOME MNC IMPLEMENT THE PARENT COMPANY’S AS WELL AS HOST COUNTRY HR POLICIES TO REDUCE INFLUENCE OF TU

• EG. : JAPANESE AUTOMOBILE COMPANIES OPERATING IN THE USA FOLLOW THE HR POLICIES THEY FOLLOW IN THEIR PARENT COMPANIES THAT PREVENT IN THE FORMATION OF TU IN US SUBSIDIARIES.

1) OFFSET THE LOSSES IN ONE COUNTRY WITH THE PROFITS EARNED IN OTHER COUNTRY

2) ALTERNATE/DUAL SOURCE

3) DEVELOPMENT OF DIVERSIFIED PORTFOLIOS

1) OPTIMUM SIZE

2) LOCATION AND SHIFTING

3) CLOSER OF UNITS

1)EMPLOYMENT

2) RELOCATION OF JOBS/ BUSINESS OUTSOURCINGEG:THE USA AND UK MNCS RELOCATED THEIR MANUFACTURING UNITS IN INDIA AND CHINA

3) SALARIES AND BENEFITS

INFLUENCES OF TU HUMAN RESOURCE

PRACTICES OF MNCS

INFLUENCES OF TU ON BUSINESS PRACTICES OF MNCS

MNCS STRATEGIES TO COUNTER TU INFLUENCES

PARTICIPATIVE MANAGEMENT

• MEANING:

SYSTEM OF COMMUNICATION AND CONSULTATION EITHER FORMAL OR

INFORMAL BY WHICH EMPLOYEES OF AN ORGANIZATION ARE KEPT INFORMED ABOUT THE AFFAIRS AND THROUGH WHICH THEY EXPRESS THEIR OPINIONS TO THE MANAGEMENT IN DECISION MAKING

• EVOLUTION:

THE WORKER MANAGEMENT JOINT COMMITTEES WHICH WERE SET UP IN BRITISH

MUNICIPAL UNDERTAKING IN 1916

USA, FRANCE, SWEDEN, WEST GERMANY, ETC ALSO MADE ATTEMPTS TO INTRODUCE SCHEME OF WORKERS PARTICIPATION IN MANAGEMENT