Page 277 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Human Resource Mangement

Notes Indian manager working for a German MNC in the firm's Mexican subsidiary) in
subsidiaries around the world.
Although such issues are important for the HQ-based manager, they are also relevant to
the HR manager located in a subsidiary. This manager must develop HR systems that are
not only acceptable to the host country but also compatible with company-wide systems
being developed by his or her HQ-based counterpart. These policies and practices must
effectively balance the needs and desires of local employees, PCNs and TCNs.

Task Gather more information on: PCN, TCN, SOE and IJV.

Notes Different Aspects of IHRM
International Human Resource Management (IHRM): encompasses strategic and
operational aspects of international HRM. According to Schuler et al., 2002, IHRM covers
following areas:

1. Understanding international HRM strategies and practices in relation to changing
strategies of the international business firm.
2. Exploring the links between the implementation of international strategies and
international HRM policy and practices.
3. Developing comprehensive frameworks to reflect the complex set of environmental
factors.

4. Examining international HRM activities to recognise their systematic interaction.
It is now recognised world wide that HRM is strategic to business success. IHRM is the
internationalisation of business, and the HRM strategies, policies and practices, which
organisations pursue to meet the requirement of internationalisation of business' (Scullion,
1995). It is now agreed globally that IHRM is essentially concerned with some core activities
of recruitment and selection, training and development, compensation and repatriation
of expatriates, managing multicultural teams and international diversity and performance
management.

Self Assessment

State whether the following statements are true or false:
1. The home country is the place where the expatriate is working.

2. A global corporation operates in various countries but each foreign business unit is operated
separately.
3. Business principles and values can be successfully applied anywhere in the world.

4. Even in global operations, the HR function tends to be highly centralised.
5. Expatriates often lose touch with their organisations.
6. Global activities add a whole new set of often-unforeseen challenges to the HR function.

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