international business

1. PRESENTATION ON
INTERNATIONAL HUMAN
RESOURCE MANAGEMENT
PRANITA GOLE- 1315FM009
ANIKET KARADE- 1315FM0
TABISH KHAN- 1315FM0
MANALI MANJREKAR-1315FM016

2. •INTRODUCTION
DEALING WITH
DEALING WITH
•MEANING OF INTERNATIONAL HRM
•DEFINITION OF INTERNATIONAL HRM
•CORE FUNCTIONS OF INTERNATIONAL HRM

3. 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

4. GLOBAL RECRUITMENT
SOURCE OF GLOBAL RECRUITMENT
i. PARENTS COUNTRY NATIONALS
ii. HOST COUNTRY NATIONALS
iii. THIRD COUNTRY NATIONALS

5. GLOBAL SELECTION PROCESS
APPROACH
•ETHNOCENTRIC APPROACH
•POLYCENTRIC APPROACH
•GEOCENTRIC APPROACH

6. INTERNATIONAL ADJUSTMENT
DIMENSIONS OF INTERNATIONAL ADJUSTMENT
NON-WORK
CULTURE-NOVELTY
FAMILY
ADJUSTMENT
INDIVIDUAL
SELF-EFFICENCY
RELATION-SKILLS
JOB ROLE
CLARITY
ROLE
CONFLICT
EXPATRIATES
ORGANISATIO
N CULTURE
CULTURE
NOVELTY
SOCIAL-SUPPORT
DEGREE OF
ADJUSTMENT
WORK
ADJUSTMENT
GENERAL
ADJUSTMENT

7. PERFORMANCE APPRAISAL
OBJECTIVES
•360 PERFORMANCE APPRAISAL
•METHODS OF PERFORMANCE APPRAISAL

8. 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.

9. 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.

10. 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

11. 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

12. COMPENSATION AND BENEFITS
COPENSATION IN GLOBAL COMPANIES:
• EXPATRIATE PAY
• GRATUITY
• ALLOWANCES
• TAXATION

13. 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

14. 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.

15. 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

16. INTERNATIONAL INDUSTRIAL RELATION
• 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

17. 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
RUSSIA
1. RESPONSIBILITY
2. USE INITIATIVE
3. GENEROUS
HOLIDAYS
4. GOOD HOURS
INDIA
1. GENEROUS
HOLIDAYS
2. USE INITIATIVE
3. INTERESTING
JOB
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

18. 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

19. 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

20. 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.

21. 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
INFLUENCES OF TU
HUMAN RESOURCE
PRACTICES OF MNCS
1)EMPLOYMENT
2) RELOCATION OF JOBS/
BUSINESS OUTSOURCING
EG:THE USA AND UK MNCS
RELOCATED THEIR
MANUFACTURING UNITS IN
INDIA AND CHINA
3) SALARIES AND BENEFITS
INFLUENCES OF TU ON
BUSINESS PRACTICES
OF MNCS
MNCS STRATEGIES TO
COUNTER TU
INFLUENCES

22. 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