International HRM: Stages of Internationalization, HR Policies, and Knowledge Management, Slides of International relations

Download International HRM: Stages of Internationalization, HR Policies, and Knowledge Management and more Slides International relations in PDF only on Docsity!

International Human

Resource Management

By Himanshu Jain

Amulya Reddy

Topics

Internationalization of Firms

Global versus Local Strategies in MNC’s

HR Practices & policies in MNC’s

Role of Knowledge Management and IHRM

Stages of Internationalization Domestic Operation Export Operation Subsidiaries or Joint Ventures Multi-National Operations Transnational Operations

Domestic Operations The firms market is exclusively domestic. Most international companies have their orgin as domestic companies. These companies focus on domestic operations only.

Subsidiaries or Joint Ventures The firms, physically moves some of its operations out of the home country. There is a mutual cost, profit sharing and management in such method. Example: a joint venture between maruti and

suzuki.

Multinational Operations The firm becomes the fully fledged multinational co.[MNC] with the assembly of production facilities in several countries & regions of the world. Some decentralization of decision making is common but many personnel decisions are still made at corporate level in headquarters. Example: Mc Donalds is a MNC operating worldwide.

Global Strategies in MNC’s

International Strategy Firms pursuing an international strategy are neither concerned about costs nor adapting to the local cultural conditions. They attempt to sell their products internationally with little to no change.

Global Strategy A firm using a global strategy sacrifices responsiveness to local requirements within each of its markets in favor of emphasizing lower costs and better efficiency. This strategy is the complete opposite of a multi-domestic strategy. Some minor modifications to products and services may be made in various markets, but a global strategy stresses the need to gain low costs and economies of scale by offering essentially the same products or services in each market.

Transnational Strategy A firm using a transnational strategy seeks a middle ground between a multi-domestic strategy and a global strategy. Such a firm tries to balance the desire for lower costs and efficiency with the need to adjust to local preferences within various

countries.

Five Fundamental Steps in the Process

Q1: What factors influence the configuration of human resource policies in the HQ? Q2: On what factors would a company base their decision to transfer human resource policies internationally? Q3: What factors would the negotiation process depend on in the transfer of human resource policies? Q4: What factors determine the manner in which the subsidiary implements the human resource policies? Q5: What factors determine the internalization of the policies by subsidiary employees?

What does knowledge management for HR look like?

New technology

Collaborative culture

Spend less time recreating knowledge

Transparency

Improve on boarding new employees

Role based access control and customizable

permissions

Thank You