A Critical Analysis of Key HR Practices in International HRM Today

This report provides a critical analysis of International Human Resource Management (IHRM) practices, focusing on recruitment and selection, training and development, and Human Resources Information Systems (HRIS) within a global business context. It examines different approaches to recruitment such as ethnocentric, polycentric, and geocentric, highlighting their advantages and disadvantages. The report also discusses internal and external recruitment sources and various selection methods. Furthermore, it explores the importance of training and development programs for employees, particularly expatriates, and the challenges associated with them. Finally, it delves into the role of HRIS in international business, emphasizing its features, functions, advantages, and challenges, such as data privacy and regulatory compliance. The report concludes that effective management of these HR practices is crucial for the success of international organizations, and adopting HRIS can significantly enhance performance and efficiency.

International HRM

Table of Contents
 Introduction
 Critical Analysis
Recruitment & Selection for Global business
International Training & Development
Human Resources Information System in International Business
 Conclusion
 References

INTRODUCTION
 International Human Resource Management is defined as human resource practices that
organizations manages at international level. IHRM performs all basic functions of recruitment,
selection, compensation, training & development, etc.
 It is more complex and complicated because managing people across national boundaries is a
difficult task than on domestic level.
 The present report will critically analyse the importance of human resource management practices.
Further, it will discuss three most important HR practices for an international business.
 In addition to this, study will also discuss benefits and drawbacks of HR practices along with its
issues.

Recruitment & Selection for Global business
While recruiting employees on global level, HR has function globally by co-ordinating
various systems and having complete knowledge about local environment.
For that, companies are looking for best talent across the world and requires competent and
diverse team to work together.

Contd.
Approaches to recruitment
Ethnocentric Approach
Polycentric Approach
Geocentric Approach

Contd.
Advantages
Easy
communicat
ion
Transfer
employees
easily
Proper
alignment
of interest
Advantages & Disadvantages of Ethnocentric Approach
Disadvantages
Imposes
risks of
cultural
norms
Very
expensive
Create
resentment
in foreign
countries
and thereby
losing
morale.

Contd.
Advantages
Workers are
easy &
cheap to
hire
Reduces the
needs for
cultural
awareness
Proper
guidance
about
foreign
country
market
Advantages & Disadvantages of Polycentric Approach
Disadvantages
Limited
opportunities
to gain
exposure
Relying on
locals can
negatively
affect
Difficulty in
bridging the
gap between
parent & host
country
employees

Contd.
Advantages
It improves ability
of company to
perform better
Supports
coordination and
cooperation
Advantages & Disadvantages of Geocentric Approach
Disadvantages
Expensive
Subsidiary
management
has limited
independence
Devising a
compensatory
plan is difficult

Contd.
Sources of Recruitment
Promotions
Transfers
Internal
sources
Advertising
Internet
Educational
Institutes
External
sources

Contd.
Selection methods
• Interviews
• Assessment Centres
• Psychological Testing

Contd.
Key challenges
 Making the process correct
 Lack of qualified personnel
 No technology used
Main Advantages
 Mobile applications
 Interviews through Videos
 Remote working

International Training & Development
The training and development of employees is completely
depended on his/her performance. It helps company
operating at international level to continuously build its
human capital by engaging employees in training programs.