International human resource management (IHRM) refers to the process of managing human resources in a global or cross-cultural context. It involves the strategic planning and execution of HR policies, practices, and programs that support the organization's goals and objectives in a global setting.
IHRM involves a range of activities, including the recruitment and selection of international employees, training and development, compensation and benefits, and performance management. It also involves adapting HR practices to meet the cultural, legal, and economic differences of the countries in which the organization operates.
Effective IHRM requires an understanding of the cultural, legal, and economic differences between countries and the ability to adapt HR practices accordingly. It also requires the ability to manage diversity within the organization and to foster a positive and inclusive work environment for employees from different cultural backgrounds.
One key aspect of IHRM is the development of global mobility policies and programs to support the movement of employees between countries. This includes managing issues such as visas, work permits, and other legal requirements, as well as providing support for the transition of employees and their families to a new country.
IHRM is increasingly important as organizations become more global in their operations and as the trend towards globalization continues. It is critical for organizations to have a global perspective on HR and to understand the unique challenges and opportunities of managing human resources in a cross-cultural context.
Overall, IHRM is a complex and dynamic field that requires a strong understanding of both HR and international business. It is an essential element of any organization that operates in a global setting and plays a critical role in supporting the organization's overall success in the global marketplace.
Global Human Resource Management
By and large some of the important components of this package are cost of living adjustment, incentive benefits, travel allowance, home leave, relocation allowance, currency differential payments and hardship posting allowances etc. It has become a challenge to procure, train, and retain employees for global organizations. These activities include international human resource planning, staffing recruitment, selection, induction and placement , performance management, training and development, compensation and reward management and managing international employee relations and industrial relations. Polycentric Approach: In this case, the subsidiaries are basically independent from headquarters. To manage and organise cross cultural counselling and language training programme; ADVERTISEMENTS: 5.
Domestic HRM vs International HRM
Much of this predicted growth is due to the fact that, over time, more Human Resources Specialists will be needed to handle the increasingly complex laws and healthcare coverage options that relate to businesses and their employees. Uncertainty avoidance focuses on the level at which people in a certain country tolerate uncertainty and ambiguity within the society. It enhances to develop managerial skills, organisational knowledge and technical abilities of HR managers and employees; 2. The apprentice programs are still common in these countries. Increased international trade and widespread globalization over the past few decades have given rise to a contemporary branch of HRM, i. Developing basic internal HR management practices at the beginning of internalization. On the other hand, the HRM department in the local country is only responsible for providing insurance programmes and transport facility in case of a domestic transfer.
Definition of International Human Resource Management (IHRM)
Calculating compensation packages for expatriate employees is one of the most difficult tasks facing MCSs because of variations in laws, living costs, tax policies, etc from one country to another. The flexible wage system has certain principles in common. With this approach, strategic decisions are all made by the headquarters, and the management practices transfer to the subsidiaries. However, IHRM seems to suffer a setback in its international ventures more than often due to the lack of understanding and adjustment in the differences of managing employees in the domestic and foreign front. But, if not prior to such decisions, at least after such decisions are made, HR will be tasked with ensuring the timely staffing of the new or existing international operations. Human Resource Development HRD is that part of Human Resource Management which specifically deals with the training and development of employees. It is not difficult to determine which strategy to pursue an MNC in an internationalizing environment.
