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International Human Resources. Type of countries Host country Home country Other; source of labor or finance. Type of employees Local nationals Host country nationals (HCNs) Expatriate Parent country nationals (PCNs) Third country nationals (TCNs). Definitions.
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Type of countries Host country Home country Other; source of labor or finance Type of employees Local nationals Host country nationals (HCNs) Expatriate Parent country nationals (PCNs) Third country nationals (TCNs) Definitions
International HR Management • Is the interplay between • HR functions • Differing countries • Different types of employees • Closely related to workplace diversity issues
International Versus Domestic HR Management • More functions and activities • Broader perspective • More involvement in employees' personal lives • Changes in emphasis as workforce mix of PCNs and HCNs varies • Risk exposure • More external influences
More Functions and Activities • Activities not necessary in domestic human resource management • International taxation • International relocation • International orientation • Administrative services for expatriates • Host government relations • Language translation services
Broader Perspective • Design and administration of programs for more than one national group • PCNs, HCNs, TCNs • Compensation and benefits • Equity issues
More Involvement in Employees' Personal Lives • Make sure employee understands health care, compensation, housing • Handling banking, investments, home rental, coordinate home visits • Find schooling, housing • Run recreational programs in under-developed areas
Changes in Emphasis As Workforce Varies • As foreign operations mature, emphasis on human resource management functions change to accommodate more HCNs
Risk Exposure • Consequences of failure, both human and financial, are more severe in international organizations • Expatriate failure • Terrorism • MNC's Spend 1-2% of revenues on terrorism protection
More External Influences • Type of government • State of the economy(ies) • Accepted business practices in various host countries
Attitudes of Senior Management • If senior management does not have strong international orientation, importance of international operations may be underestimated in corporate goals and objectives • Focus on domestic issues • Minimize difference between international and domestic environments