Analysis of International HRM Practices & Key Issues Faced

This report provides a critical analysis of International Human Resource Management (IHRM) practices, focusing on international staffing, expatriation and repatriation, and international compensation. It highlights the objective of IHRM in developing managerial skills and organizational knowledge for better handling of global business operations. The report discusses the advantages and disadvantages of ethnocentric and polycentric approaches to staffing, elaborates on the processes of expatriation and repatriation, and examines the complexities of international compensation, including the going rate approach. Key issues such as staffing and recruiting challenges, tax implications, protection of intellectual property rights, regional culture, and language barriers are also addressed. The report concludes that effective IHRM is crucial for managing human resources in international organizations, emphasizing the importance of understanding and addressing the various challenges involved in these practices. Desklib offers similar solved assignments and resources for students.

INTERNATIONAL HRM

TABLE OF CONTENT
INTRODUCTION
CRITICAL ANALYSIS
INTERNATIONAL STAFFING
EXPATRIATION AND REPATRIATION
INTERNATIONAL COMPENSATION.
KEY ISSUES
CONCLUSION

INTRODUCTION
International HRM is the term which is used for defining the
organization’s management of their Human Resources
activities for the international level.
The International HRM is concerned with the global
understanding of the management for the HR activities in the
organization.
This project will discuss the three most important HR
practices for an international business.

CRITICAL ANALYSIS
The international HRM has the objective to develop managerial
skills and organizational knowledge.
It has the aim of developing the better handling of the global
business operations.
With the help of the international the organization is able to
manage and secure the performance and also develop a career path
for the business.

INTERNATIONAL STAFFING
Staffing is considered to be challenging function for an organization.
As it is important for the business to find the right set of individuals
which can fit its organizational requirements.
In the international operations of HR, the staffing complexity
increases even more due to the addition of other new factors.
The decision on how many local employees the organization want to
hire and how many it wants to send from the home country changes the
decision making of the organization.

CONTINUE..
They have their own advantage and disadvantages.
Ethnocentric
Advantages Disadvantages
This approach is very effective towards
attaining better coordination in between the
parent and the host country.
It is considered to become very difficult to
train and guide the employees which are at
far distant places and away from the parent
country.
It enables the organization in the
achievement of effective control of the
company’s head branch and also towards the
subsidiaries operating the other countries.
The staff of the parent country might face the
difficulty during the adjustment of
themselves in host country because of the
differences in the culture.
Polycentric
Advantages Disadvantages
This approach is considered to be very
effective in eliminating the language
barriers.
It proves to be difficult for the achievement
of the effective communication between
HCN managers at subsidiaries level and PCN
managers at corporate headquarters.
This helps with allowing the continuity of the
management in the host country.
It proves to show some difficulty in
exercising effective control over the
subsidiaries (Rodriguez, Johnstone and
Procter, 2017).

EXPATRIATION AND REPATRIATION
Expatriation is the process in which expatriates which are the
representatives of the international business who work for the foreign
nation for extensive stretches in the given time period.
The expatriate employees usually get paid more than the normal
employees and also have the extra advantage such as the
maintenance and labour costs which also includes the lodging or
training and other costs relocations.

CONTINUE..
Repatriation is the process in which the expatriate is coming back to
the parent country after spending a lot of time in the host country.
 Reasons for Repatriation are,
The task for which the expat was sent to the host country has finished.
It could be a personal reason for Expat which might involve their
family.

INTERNATIONAL COMPENSATION
Compensation is a very important and complex aspect to the
International HRM practices which is related to providing the
compensation to the employees who are posted abroad.
The organization for giving the compensation follows the different
norms of the host country.
The compensation is important as a very essential motivational tool.

CONTINUE..
There are two approaches of international compensation which
are used by the organizations,
Going Rate Approach – it is the approach in which the method
is to treat the expatriate as the citizen of the host country, this is
done by encouraging them to be do what the local culture
suggests.
Advantages Disadvantages
Equality is developed by the expatriate with the locals of the
host country.
This can create variations in the assignment for the same
employee.
The life style of the expat becomes more simplistic. It can be problematic in the potential re-entry for that expat.
The expat develops an own identification in the host
country.
It may also create variation between the assignee of same
nationality in different country.

KEY ISSUES
Staffing and recruiting
There must be appropriate rate to the work which is performed in the
international HRM.
In the staffing there is a need of hiring individuals which have complete
package.
Taxes in the international HRM may differ in different countries which
may effect the HRM practices.
The protection of the intellectual property rights is also important
otherwise the business can get into legal conflicts.

CONTINUE..
Expatriation and Repatriation
Regional culture is very effective issue.
The cost of the expatriation can affect the organization in this
process.
Language barrier can affect the expats in their foreign assignments.
Personal issues may lead to repatriation.

CONCLUSION
With the help of this project it can be concluded that the international HRM is very
important and effective for management of human resource of the organization
internationally.
In this project three different international HRM practices are discussed.
These practices are international staffing, expatriation and repatriation and International
compensation.
In this project the key issues faced in these practices by HRM are also highlighted.

REFERENCES
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Gope, S., Elia, G. and Passiante, G., 2018. The effect of HRM practices on
knowledge management capacity: a comparative study in Indian IT industry. Journal
of Knowledge Management.
Morley, M.J., Minbaeva, D. and Michailova, S., 2018. HRM in the transition states
of Central and Eastern Europe and the former Soviet Union. In Handbook of research
on comparative human resource management. Edward Elgar Publishing.