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An international business must procure,retain and effectively utilize services of people both at the corporate office and at the foreign office. The process of procuring,allocation,and effectively utilizing human resources in an international business is called international human resources mgmt.
Procure
Allocate
Utilize
Other
Home
Host
Countries
Types of Employee
Model of IHRM
ETHNOCENTRIC APPROACH
In this approach, all key mgmt. Positions are held by parent country nationals This strategy may be appropriate during the early phases of international business, because firms at that stage are concerned with transplanting a part of the business that has worked well in their home country.
POLYCENTIRC APPROACH
The polycentric staffing requires host country nationals to be hired to manage subsidiaries ,while parent-country national occupy key positions in corporate headquarters
GEOCENTRIC APPROACH
The staffing philosophy seeks the best people for key jobs throughout the organization, regardless of nationality
Advantages *Familiarity with home office,goals objectives *Promising managers are given international exposure *Easy organizational control and coordination
Disadvantages *Difficulty in adapting to the foreign lang.culture etc *Excessive cost of selection, training etc
HCNs
Advantages Familiarity Lower cost incurred in hiring,training etc Language and other barriers are removed Disadvantages HCNs have limited career opportunity outside the subsidiary Communication problem with home office personnel
TCNs
Advantages TCNs are truly international managers Salary and benefit requirement may be lower than for PCNs Disadvantages Host country govt. may resent hiring TCNs Host countrys sensitivity with respect to nationals of specific countries
The expatriate problem A person living in a country that is not their own
Technical ability
CrossCultural suitability
Family requirements
Selection decision
language
MNC requirements
Crisis and
Reassignment Abroad
Adjustment
Post-arrival Departure The Selection Process Pre-assignment Training Crisis and Failure
Orientation and
Training
Employee leasing
An employee leasing company is a business, which by agreement and for a fee, places employees of a client company on the leasing company's payroll. In turn, the leasing company "leases" these employees back to their original employer, usually for an unlimited period of time.
Through a co-employment relationship with the business and employees, Employee Leasing Organizations will help to reduce your administrative burdens like payroll, payroll taxes and personnel record-keeping. Employee Leasing Organizations can also provide expert guidance in the areas of human resources, compliance, and safety as well as minimize employee turnover with enhanced employee benefits. In many cases employer liability can be significantly reduced
No More Workers Comp Audits Zero Workers Comp Claims HR Headaches Eliminated Retention Increase 90% Affordable Employee Benefits
Benefits of EL
Employee leasing companies provide a number of valuable services to their clients. Typically, an employee leasing company will provide payroll services and assist companies in managing their human resources by providing employee manuals and other services, which are sometimes difficult for smaller companies to provide on their own
Contd..
. Better management of workplace safety can help control the cost of worker compensation. Improved hiring practices and experienced representation in unemployment insurance benefit and tax matters can help keep the cost of unemployment compensation down
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In some cases, client employers, which could not afford to provide certain benefits such as health insurance, find it affordable to do so when taking advantage of the buying power of an employee leasing company.
Employee Leasing Organizations are growing at a rate of over 30% per year. Outsourcing non-productive employee administration responsibilities have become more and more popular. Employee Leasing has taken many forms, PEO's Professional Employer Organizations, ASO's Administrative Service Organizations, Administrative Employers and more.