Professional Documents
Culture Documents
HUMAN RESOURCE
MANAGEMENT
Presented by
RHIMY C RAJAN
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International Corporations
Domestic firms that builds on its existing capabilities to
penetrate overseas market.
Example : Honda, General Electric, P&G
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Multinational Corporations
MNCs have operating units (subsidiaries) located in foreign
countries
Subsidiaries function as autonomous units
Examples : Shell, Philips, Xerox
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Global Corporations
Maintains control over its worldwide operations (subsidiaries)
through a centralized home office.
They treat the entire world as a single market
Examples : Matsushita
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Transnational Corporations
Provides autonomy to independent country operations but
bring these operations together into an integrated whole
through networked structure
They combines the local responsiveness of an MNC and the
efficiency of a global corporation
Examples : Ford & Unilever
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Domestic HRM
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IHRM
Domestic HRM
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IHRM Practices
International staffing
Pre-departure training for international assignments
Repatriation
Performance management in international
assignments
Compensation issues in international assignments
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International staffing
refers to the process of selecting employees for staffing
international operations of an MNC
MNCs can be staffed using three different sources
a. Home country or Parent Country National (PCN)
b. Host Country Nationals (HCN)
c. Third Country Nationals (TCN)
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PCN
Employees of an organization who are citizens of the country in
which the headquarters of the company is located
HCN
Employees of an organization who are the citizens of the
country in which the foreign subsidiary is located
TCN
Employees of an organization who are the citizens of the
country other than the country where the organization is
headquarterd and the country that is hosting the subsidiary
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Polycentric
staff foreign subsidiaries of the firm with HCNs and headquarters consist of
PCNs
Geocentric
staff my be PCNs, HCNs or TCNs
ability and not nationality is the key to staffing
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Repatriation
It is the process of bringing an expatriate home after he/she
has completed the international assignment.
Organizations can follow 3 practices
1. Create knowledge and develop global leadership skills
2. Ensure that candidates have cross-cultural skills to match their
technical abilities
3. Prepare people to make the transition back to their home
offices
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Compensation Package
Task Assigned to the Expatriate
Headquarters Support
Environment
Cultural Adjustment
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CONCLUSION
As organizations have gone global in their operations, the
impact of cultural differences as well as workforce issues have
caught the attention of the HR managers. As the world
becomes boundary less, the ability to work in a cross cultural
environment becomes a valuable asset for any executive.
Understanding, managing, and even exploiting these cultural
differences could well spell the difference between success
and failure in several business situations.
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Thank You
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