International Human Resource Management

Topics: Human resource management, Human resources, Management Pages: 8 (3111 words) Published: May 9, 2013
1. Introduction2
2. International HRM2
2.1 Expatriate3
2.2 Factors Affecting companies in an international level3
3. Activities of HR managers in local and international level4
3.1 HR Planning and Analysis:4
3.2 Equal Employment Opportunities:4
3.3 Recruitment and Selection process:5
3.4 Motivation, Compensation and Benefits:5
3.5 Health, Safety and Security:5
3.6 Management Employee relationships:6
4. Conclusion and Recommendation6
5. References and Bibliography7

1. Introduction
Arguably after customers, the most important part of an organization is their employees. Employees are the heart and soul of a company and no matter how big a corporation is, without motivated and well oriented employees, they cannot succeed. The part of an organization who manages these employees thus can be considered as the most critical part of an organization. Thus, Human Resource Management (HRM) is the function within a company who focus on recruiting people, managing them and providing them with the right directions so that they can do well in the future. Companies usually have a separate department with a number of employees working under one particular HR Manager, but in smaller companies, the general managers themselves perform HR duties. As they deal with people’s affair, motivation and performance management, HRM is a strategic and comprehensive approach. The modern HRM is phasing away from the conventional mode of HR activities based solely on employee motivation, performance and recruiting (Human Resources, 2013). Now, HR plays a critical role in traditional, administrational, international and transactional roles as well. This diverse form of HR has therefore made HR departments in different organizations a vital part of the organization. For companies which are operating in an international scale, the appeal and importance of HRM is more than ever. Companies which are operating under only one particular border have the ‘luxury’ of using one fixed model, culture or policy related to HR. However, for multi-national companies, adjusting the organization according to host country is very important which can even be decisive for the success or failure of the organization (Palgrave, 2001). 2. International HRM

The practices for HR usually tend to differ from country to country. As people from different places have different attitude, culture and way of doing things, it is important that while conducting businesses there, the local culture be respected. The allocation, motivation, procurement and utilisation of Human Resources in an international scale are usually referred to as International HRM. A company might need to procure International HRM due to either of these reasons: * Having a foreign parent expatriate manager

* Having a host country to conduct business in
* Outsourcing of services and/or production
* Mergers and acquisitions (Scribd, 2013).
A model was developed by P.V. Morgan which identifies or presents International HRM on three different dimensions: 1. Procurement of various HR activities which is basically about allocation and utilization of HR 2. Host country category involved in HR activities:

a. A host country where a subsidiary is located
b. Home country where the main office is located
c. Other countries where units such as labour, customer service, etc. are outsourced. 3. Employees in an international firm:
d. HCNs (Host country nationals)
e. PCNs (Parent country nationals)
f. TCNs (Third country nationals) (Pattnayak, 2005)
Example 1: British banks such as NatWest and Barclays have outsourced their customer service to cheaper labour countries such as India. Therefore, NatWest or Barclays hire local Indian managers (HCNs), or send expatriate managers from Britain (PCNs) or might even hire someone who not originally from UK or India. The nationality of the employee here is the main factor which...

References: and Bibliography
Article Base, 2011, “How inter-country business affects HRM” [Online] Available at: [Accessed on 11/04/2013]
Palgrave, 2001, “HRM in international context” [Online] Available at: [Accessed on 09/04/2013]
Pattnayak, B.., 2005, Human Resource management, 3rd ed., International Human Resource Management pp
Scribd, 2013, “How inter-country differences affect HRM” [Online] Available at: [Accessed on 11/04/2013]
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