International Human Resource Management (AVON)

1. INTERNATIONAL HUMAN
RESOURSE MANAGEMENT
INTERNATIONAL HUMAN
RESOURCE MANAGEMENT
Khizer Hussam

2. MEANING AND DEFINATION
• International Business must procure, motivate, retain
and effectively utilize services of people both at the
corporate office and at the foreign plant. The process of
procuring, allocation, effectively utilizing human
resources in an international business is called
International Human Resources Management.
• IHRM can be defined as set of activities aimed managing
organizational human resources at international level to
achieve organizational objectives and achieve
competitive advantage over competitors at national and
international level.

3. Model of IHRM
Countries
Types of
Employees
HR Activities
Host Country
Third Country
Nationals
Procure
IHRM

4. Characteristics of IHRM that
differentiate IHRM from Domestic HRM
• More HR activities.
• Need for a broader perspective.
• More involvement In employee personal lives.
• Changes in emphasis as the work force mix of expatriates
and locals vary.
• Risk exposure.
• More external influences.

5. Reasons for growing interest in
IHRM
• Globalization of business leading to mobilization of
resources.
• Effective management of human resources.
• To minimize the risk of underperformance or failure in
overseas assignments.
• Implementation of international strategies by competent
managerial personnel to man overseas assignments.
• Movement from traditional hierarchical organizational
structures towards the network organization.
• Plays significant role in implementing and control of
strategies in an international business.

6. Steps in IHRM
HRP
Recruitment and selection
Training and Development
Performance Management
Remuneration
Repatriation
Employee Relations
Multi-Cultural Management

7. Cultural Differences in IHRM
• Language (e.g. spoken, written, body)
• Different labour laws
• Different political climate
• Different stage(s) of technological advancement
• Different values and attitudes e.g. time, achievement,
risk taking
• Roles of religion e.g. sacred objects, prayer, taboos,
holidays, etc
• Educational level attained
• Social organizations e.g. social institutions, authority
structures, interest groups, status systems

8. Multicultural Management
Multiculturalism means that people from many cultures
interact regularly . Global firms are the repositories of
multiculturalism.
Multicultural management offers the following benefits:
• Greater creativity and innovation.
• Awareness about the need to maintain sensitivity in
dealing with foreign customers.
• Possibilities of hiring the best talent.
• Creating a ‘superorganisational culture’, using the best of
all cultures.
• Evolving universally acceptable HR policies and
practices.

9. Benefits of Multiculturalism
• Greater creativity and innovation.
• Awareness about the need to maintain sensitivity in
dealing with foreign customers.
• Possibilities of hiring the best talent.
• Creating a “superorganisational culture” using the best
of all the cultures.
• Evolving universally acceptable HR policies and
practices.

10. Pressures of globalization
• Globalization is the system of interaction among the
countries of the world in order to develop the global
economy.
• Globalization involves technological, economic, political,
and cultural exchanges made possible largely by
advances in communication, transportation, and
infrastructure.
• The advent of the era of globalization along with the
advancements in information technology (IT) has
transferred the world around us. It has brought to centre
stage the importance of human resources, more than
ever before.

11. CONTD…
• The pressures it poses on IHRM include:
 Remaining competitive throughout the world
 Efficient
 Locally Responsive
 Flexible and adaptive
 Capable to transforming learning across their globally
dispersed units.

12. Companies Adopting IHRM Approach
• AVON
• General Electrics
• Wipro
• Reebok
• Coco Cola
• Honda
• Toyota

13. AVON
• The company adopted the use of the internet so as to make its
sales. This strategy enabled the company to venture into the
international markets with ease.
• The IHRM, having noted the increasing international markets,
increased its workforce to integrate diverse cultures.
• This has earned the company a reputation for hiring employees from
minority groups and cultures.
• . Training was also enhanced so as to ensure that the sales people
have the right sales know how and sales knowledge to foster profits.
IHRM has also adopted on job training sessions as well a regular
leadership program aimed at ensuring that the company has the
best and well trained workforce.
• The IRHM has also focused on hiring female executives to run the
company. This assures the female consumers that the company
does in deed have an understanding of their needs.