INTERNATIONAL HUMAN RESOURCE MANAGEMENT

Throughout the world, organizations increasingly function on an international basis. Multinational corporations require not only coordination of international strategy, but also the people and organization to implement it. Outlining the consequences of internationalization both for management and generally, and for human resource policy and practice in particular.

 International HRM (IHRM) is the process of Procuring, Allocating, and effectively utilizing HUMAN RESOURCES in a Multinational corporation, while balancing the integration and differentiation of HR activities in foreign locations. A multinational corporation varies from firm to firm. It also depends on whether the manager is located in a global corporation’s headquarters or onsite in a foreign subsidiary. The main Objective of IHRM is to reduce the risk of International human resources is,

1. Avoid the cultural risks.
2. Avoid regional disparities. 
3. Manage Diversifies human capital.

In simple terms, IHRM is concerned about managing human resources at Multinational Companies (MNC) and it involves managing 03 types of employees namely,

1. Home country employees- Employees belonging to home country of the firm where the corporate head quarter is situated.
2. Host country employees- Employees belonging to the nation in which the subsidiary is situated.
3. Third country employees- These are the employees who are not from home country/host country but are employed at subsidiary or corporate head quarters. As an example, A American MNC which has a subsidiary at India may employ a French person as the CEO to the subsidiary. The Frenchman employed is a third country employee.

When compared with domestic human resource management, IHRM requires a much broader perspective on even the most common HR activities. This is particularly so for HR managers operating from a MNC’s headquarters (HQ). In IHRM there will be a more involvement in Employees personal life’s (spouses, children’s).  The number and variety of IHRM activities are daunting. International HR managers must deal with issues as varied as international taxation; international relocation and orientation; various other administrative services for expatriates; selecting, training and appraising local and international employees; and managing relations with host governments in a number of countries around the world.