Importance Of IHRM

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1.1.1 Introduction to International Human Resource Management: Globalization as a concept has become very popular with organizations the world over. Many companies across the world are transcending national boundaries to enter the world of International business. International business is characterized by largecompanies, fierce competition and greater challenges. These companies are therefore compelled to integrate their Production, Finance, Marketing, Research and Development activities in a careful manner. There is an increasing need for these organizations to build organizational structures which help them balance their head quarters in the home country and the subsidiaries in the host countries. Global businesses today are trying to adapt…show more content…
An increase in business means increased demand for manpower. In International Business, Expatriate’s may play a very important role in establishing the business in a new market. However , in order to ensure the continuity of a successful business, local managers are crucial. Therefore, to understand the management of people from different cultural backgrounds and to align the goals of the organisation with the employees, IHRM is of extreme importance to Multinational Corporations. 1.1.5 Practices of IHRM: Human resource practices are mostly influenced by inter country differences and economic conditions prevailing in the market. Most companies look to newer markets to improve efficiency, increase productivity and to cut costs to improve profitability. However , managing people in different cultural and economic setup poses a challenge to the HR Manager. Therefore, International Businesses adopt practices which integrate business goals with strategic…show more content…
Cultural differences may lead to distortion of appraisals if carried out by local managers. b. Criteria such as profits , market share may arise out of political instability and change in government policy, host country evaluations etc.,therefore they may not be appropriate. Therefore, the following points must be kept in mind while conducting a performance appraisal for the Expatriate. - Consider difficulty of assignments. - Use both qualitative and quantitative criteria to evaluate performance. - Provide more weight to on-site managers appraisal than towards the home site managers appraisal. 6. International Labour relations : It is important for an Expatrite to understand that labour laws , collective bargaining practices , labour participation for decision – making and greivance redressal and other issues need to be carefully studied in order to understand the various complexities associated with labour laws across the world. 7. Repatriation :It means helping employees return home from international assignments. This can be facilitated through a reorientation programme, which will enable the expatriate to integrate back into the home
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