Training and Development in

International Human Resource

Management
Unit – 7
Prof. Sneha Ravindra Kanade
• Training and Development in International Human Resource
Management The role of expatriate training: Pre-departure
training Programs: - Cultural awareness programs, Preliminary
visits, Language training, Practical assistance, Security
briefings Management development- Individual Development
and International teams Re-entry and repatriation problems
• Learning Outcome: Identify the importance of expatriate
training, the components of effective pre-departure training
programs, and the overall process of repatriation.
Why Expatriate
training is important for
your business
Expatriate training enables your
employees to:

 Understand how their new culture

factors into both their social and
business relationships.

 Acquire essential information about

the host country.

 Nurture the skills needed to adjust to

their new living and working
environment.
Three main issues that concern the
training and development of the
expatriates.

 The first one concerns the different

training methods,

 Second the timing of training and

 Third issue concerns preparing the

spouse and family when
accompanying the expatriate
during the international
assignment.
Process of Training and Development in International Human Management
Components of a training regiment that
highlights the basic needed modifications for
international success:
1. Develop Relationship Skills

2. Learn the Language

3. Understand the Culture and the Market

4. Know the Simple Differences

5. Be prepared for the Marketplace

6. Find a Mentor or Trusted Partner

7. Have Patience
Management development- Individual
Development
Strategic International HRM
Unit – 10
Prof. Sneha Ravindra Kanade
• Unit 10: Strategic International HRM The development of SIHRM and the process of international strategic
management The evolution of the MNE in terms of various stages of internationalization and the methods
firms use to enter international markets. The process for developing MNE strategy and IHRM strategy and
the relationship between the two

• Learning Outcome: Understand the development of SIHRM and the process of International Strategic
Management
SIHRM

Broadly speaking, strategic

international human resource
management (SIHRM) is about the
management of human resources
consistent with the strategic direction
of the multinational enterprise in a
dynamic, interconnected, and highly
competitive global environment.

SIHRM for many firms can be critical to

their success, and effective SIHRM
can make the difference between
survival and extinction for many MNEs
 International strategic management

• The strategic management process means defining the organization’s strategy. It is also defined as the
process by which managers make a choice of a set of strategies for the organization that will enable it to
achieve better performance.

• Strategic management is a continuous process that appraises the business and industries in which the
organization is involved; appraises it’s competitors; and fixes goals to meet all the present and future
competitor’s and then reassesses each strategy.
Strategic management process has following four steps:

Environmental Scanning
Strategy Formulation
Strategy Implementation
Strategy Evaluation
Design and Structure of the
Multinational Enterprise
Unit – 11
Prof. Sneha Ravindra Kanade
• Design and Structure of the Multinational Enterprise The fundamentals of organizational design and
Structure and explain the process of designing an MNE, The basic characteristics associated with different
organizational Page 4 of 4 structures, The implications for IHRM from the different structures, The
importance of teams, networking, and the need for learning in MNEs

• Learning Outcome: Discuss the organizational structures in MNEs with examples.

Organizational structure gives the
framework or lines of
communication, authority,
responsibility and accountability.

Organizational structure specifies

the firm’s reporting relationships,
procedures, controls and authority
and decision processes. It is a critical
component of effective strategy
implementation process.
 Need?

• Geographic Needs For Structure

• International Division Structure

• Matrix Structure

• Decision-Making Authority

• Departmental Units

• Layers of Management
What is organizational design
International Employment Law,
Labor Standards
Unit – 12
Prof. Sneha Ravindra Kanade
• International Employment Law, Labor Standards - The three major legal systems
and their key differences: -civil, commercial, criminal, International labor law and
standards and their impacts; the goals of the various international trade
agreements

• Learning Outcome: Discuss the International Legal Aspects and International

Trade Agreements
What Is International Labor
Law?
International Labor Standards
Regional Labor Standards
ILO supervisory system
The ILO Declaration on
Fundamental Principles and
Rights at Work
.
• Less formal standards
• Multinational enterprises
• Resolutions and conclusions
• Birth of the international labour law
Declaration
The Declaration affirmed that all human beings, irrespective of
race, creed or sex, have the right to pursue both their material
well-being and their spiritual development in conditions of
freedom and dignity, of economic security and equal
opportunity.

It also referred to the social aspect of economic and financial

measures.
Comparative IHRM: Operating in
Other Regions and Countries
Unit – 13
Prof. Sneha Ravindra Kanade
Unit 13: Comparative IHRM: Operating in Other Regions and Countries

Understand different types of regions in the world; Important features of IHRM in

Europe, North America, Asia Pacific, Latin America, Middle East, and Africa

Learning Outcome: Develop and Overview of the important features of HRM in

different countries/different regions.
Comparative IHRM
International Human Resource
Management has been defined as HRM
issues, functions, policies and practices
that result from the strategic activities
of MNEs.

The emphasis is on the MNCs’ ability to

attract, develop and deploy talented
employees in a multinational setting
and to get them to work effectively
despite differences in culture, language
and locations. .
Taylor’s model of strategic international HRM has been described below.

• Exportive:
• Adaptive
• Integrative
International Pay and Reward and Performance
Management
The concept fair pay and reward is also subject to different
interpretations depending on the national business system. In
individualistic cultures, there are few rules and norms about
correct behavior and employees expect to be rewarded on their
own merits and performance.
Countries like US feature at the higher end of the individualistic
spectrum. On the other hand, collectivism emerges in societies
that have many rules and regulations about correct behavior.
 Training and
Development
Training and development is vital to
ensure that the workforce remains
competent and flexible by developing
the ‘know-how’ thought necessary for
success in the company and on the job.
Scholars have highlighted the
importance of national culture on
training and development in terms of
the hard and soft approach. The hard
approach views employees in the
organisation as a mere resource to
achieve goals of the organisation while
the soft approach views them more as
valued assets capable of development.
The Three Types Of Regions In Human
Geography
•Formal Regions
•Functional Regions
•Perceptual Regions
Global Ethics and Well-Being of
the International Workforce
Unit – 14
Prof. Sneha Ravindra Kanade
• Unit 14: Global Ethics and Well-Being of the International Workforce The
ethical climate within different countries: Bribery and pay-offs: Code of
Conduct for International Business; Ethical absolutism and Employment
practices in various countries The importance of global health & Safety;
Role of IHRM in health & Safety

• Learning Outcome: Understand the role of IHRM ethics and well-being of

employees.
Global Business Ethics

The field of ethics (or moral

philosophy) involves systematizing,
defending, and recommending
concepts of right and wrong
behavior.

Philosophers today usually divide

ethical theories into three general
subject areas: metaethics, normative
ethics, and applied ethics. .
Where Do Our Values Come From?

There’s a history to how thinking has evolved over

time. What may or may not have been acceptable just
a hundred years ago may be very different today—
from how people present themselves and how they
act and interact to customs, values, and beliefs.
What Are the Reformation and Enlightenment?
Modern political and economic philosophies trace their roots
back to the Reformation and Enlightenment. The Reformation
was a period of European history in the sixteenth century when
Protestant thinkers, led by Martin Luther, challenged the
teachings of the Roman Catholic Church. .
Challenges and Emerging Issues in
IHRM
Unit – 15
Prof. Sneha Ravindra Kanade
• Unit 15: Challenges and Emerging Issues in IHRM

• Integration Issues, Heterogeneous Functions, Changes in a political,

economic, and legal environment, Local versus Universal Perspectives,
Social Responsibility

• Learning Outcome: Develop and Gain perspectives on the challenges in

IHRM
Challenges and
Emerging Issues in
IHRM Integration
Issues

Staff shortages

Failed expatriate assignments

Localisation vs. standardisation of HR practices

Ethical challenges in multinational corporations

HR managers have to play a vital role.

Anticipation of change
Security for women employees
Periodical training
Focus on high net worth employees
Career counselling
Challenges
Modern political and economic philosophies trace their roots
back to the Reformation and Enlightenment. The Reformation
was a period of European history in the sixteenth century when
Protestant thinkers, led by Martin Luther, challenged the
teachings of the Roman Catholic Church. .
Cultural Dimensions of
International Human
Resource Management
Unit – 2
Prof. Sneha Ravindra Kanade
• Unit 2: Cultural Dimensions of International Human Resource
Management Definitions of Culture; Hofstede’s cultural
dimensions, Trompenaar’s cultural dimensions The GLOBE
study; the cultural dimensions by Hall and Hall; Growth and
spread of internationalization Learning Outcome: Develop and
Understanding of HRM within the context of internationalization
and cultural environment.
• Outcome
Culture
 IHRM in Mergers &
Acquisitions, and Joint
Ventures
Unit – 4
Prof. Sneha Ravindra Kanade
• Unit 4: IHRM in Mergers & Acquisitions, and Joint Ventures Foreign
Operation Modes and their Combinations, Cross Border M&A, Role
of the HR function in M&As, M&A phases and HR implications, The
role of expatriates in M&As International Joint Ventures, IJV
development stages and HRM implications, Crosscultural
management in international joint ventures(IJV), The top
management team and the role of expatriates in IJVs
• Learning Outcome: Analyze how international growth places
demands on management, and that HR activities are determined by
organizational factors
IHRM in Mergers & Acquisitions, and Joint
Ventures
• The Human Resource (HR) department plays a pivotal role in the process of merger and acquisition
between two companies.

• While mergers and acquisitions are considered an essential part of a company’s growth strategy
and carried out for beneficial reasons, a messed up and weak understanding of HR issues often
stands as an obstruction that results in failed mergers.
Foreign Operation Modes and their
Combinations
• The choice of foreign operation mode is one of the most important components of an internationalisation
strategy, since the operation mode determines the type and intensity of control over foreign market
activity, necessary resource transfers and the associated risks.

• The foreign operation mode is defined as an institutional or organisational arrangement used for
organising and conducting an international business transaction, such as the manufacture of goods,
servicing customers or sourcing various inputs
M&A Transaction
• PHASE 1: IDENTIFYING BUYERS
• PHASE 2: SECURING THIRD-PARTY SERVICES
• PHASE 3: PREPARING FOR THE TRANSACTION
• PHASE 4: NEGOTIATIONS, VALUATION AND FINAL AGREEMENT
• PHASE 5: IMPLEMENTATION
IJV Development Stages
• Stage 1 :Formation
• Stage 2: Development
• Stage 3 : Implementation
• Stage 4 : Advancement and Beyond
MNCs Approach to International
Human Resource Management
and International Staffing,
Recruitment, and Selection
Unit – 5
Prof. Sneha Ravindra Kanade
• Unit 5: MNCs Approach to International Human Resource Management
and International Staffing, Recruitment, and Selection Introduction to
Global Talent Management. Approaches for international staffing:-
Ethnocentric, Polycentric, Geocentric, Regiocentric. Three categories of
staff:- Advantages and Disadvantages of using Home Country or Parent
Country Nationals(PCNs), Host Country Nationals (HCNs), Third Country
Nationals (TCNs), Determinants of staffing choices, Reasons for
international assignments, Types of international assignments, Roles of
Expatriates, Non-expatriates, and Inpatriates, Recruitment and Selection
Criteria of International Managers, Expatriate Success and Failure, Female
expatriates
• Learning Outcome: Discuss the importance of global talent management
policies and practices for multinational organizations
Home Country or Parent Country
Nationals(PCNs), Host Country Nationals
(HCNs), Third Country Nationals (TCNs)
International Performance
Management
Unit – 6
Prof. Sneha Ravindra Kanade
• Introduction: Performance Management around the Globe PMS
Policies and Practices in MNEs. Types of international
assignments: ‘technical assignments’, ‘developmental
assignments’, ‘strategic assignments’, ‘functional assignments’.
Variables affecting expatriate performance. A cross-cultural
context for performance management Performance criteria
• Learning Outcome: Infer those aspects of performance
management processes with regard to expatriate performance.
 Training and Development in
International Human Resource
Management
Unit – 7
Prof. Sneha Ravindra Kanade
• Training and Development in International Human Resource
Management The role of expatriate training: Pre-departure
training Programs: - Cultural awareness programs, Preliminary
visits, Language training, Practical assistance, Security
briefings Management development- Individual Development
and International teams Re-entry and repatriation problems
• Learning Outcome: Identify the importance of expatriate
training, the components of effective pre-departure training
programs, and the overall process of repatriation.
Why Expatriate
training is important for
your business
Expatriate training enables your
employees to:

 Understand how their new culture

factors into both their social and
business relationships.

 Acquire essential information about

the host country.

 Nurture the skills needed to adjust to

their new living and working
environment.
Three main issues that concern the
training and development of the
expatriates.

 The first one concerns the different

training methods,

 Second the timing of training and

 Third issue concerns preparing the

spouse and family when
accompanying the expatriate
during the international
assignment.
Process of Training and Development in International Human Management
Components of a training regiment that
highlights the basic needed modifications for
international success:
1. Develop Relationship Skills

2. Learn the Language

3. Understand the Culture and the Market

4. Know the Simple Differences

5. Be prepared for the Marketplace

6. Find a Mentor or Trusted Partner

7. Have Patience
Management development- Individual
Development
International Compensation
Unit – 8
Prof. Sneha Ravindra Kanade
• Objectives of an international compensation: Base salary, Foreign
Service inducement and hardship premium, Allowances:-Housing,
COLA, Education, Relocation, Benefits -Medical, emergency,
security, Contributions to savings, pension schemes, etc. while
abroad International Compensation Approaches:-The Going Rate
Approach (Market Rate Approach) and the Balance Sheet Approach
(the Build-up Approach). A third emerging approach to international
compensation: - ‘Local Plus’ Income taxes incurred in both home and
host country.
• Learning Outcome: Develop and understanding of the key
components of an international compensation program.
What is International
Compensation?

International compensation can be

defined as the provision of
monetary and non-monetary
rewards, including base salary,
benefits, perquisites, long- and
short-term incentives, valued by
employees in accordance with their
relative contributions to MNC
performance.
There are many complexities in the
international compensation programme as
all the objectives are difficult to meet and
require a high degree of expertise. The
main elements are discussed as follows:

Base pay

Incentives

Retention and Referral Bonuses

Allowances

Benefits

Taxes

Long-term Benefits
Long-term Benefits
Employee Stock Option Plan (ESOP)- a certain nos. of shares are reserved for purchase
and issuance to key employees

Restricted Stock Unit (RSU) –Units of stocks are provided with restrictions on when they
can be exercised. It is usually issued as partial compensation for employees

Employee Stock Purchase Plan (ESPP) –Company sells shares to its employees at a
discount. Company deducts the purchase price of these shares every month from the
employee’s salary
Approaches to International
Compensation

• There are two main approaches of international compensation,

such as follows:

• Going Rate Approach

• Balance-Sheet Approach
Approaches to Global Compensation
• International assignment compensation has many moving parts
and is difficult to standardize. Many factors affect the
compensation of a particular expatriate, including assignment
type and length, location, family needs (if any), and benefits.
The main compensation items for expatriates involve base pay,
cost-of-living adjustments, housing allowances, home leave,
education assistance for dependents and premium pay.
• BASE PAY

• When an employee accepts an international assignment, it is up to the employer to determine the

base rate of pay (referred to as the base salary). The base salary is normally related to pay ranges
in the home country, which then may be adjusted based on local variances (i.e., fluctuations in the
economy).
• The home-country-based approach
• The host-country-based approach
• The headquarters-based approach
• Balance sheet approach
PREMIUMS AND ALLOWANCES

• Hardship and hazard/danger pay

• Cost-of-living adjustments
• Educational assistance
• Housing assistance
• Home leave.
• Treaties and taxation

• Moving, Packing, and Transportation Costs

• COLA
• Expectations Among Expat Communities

• Achieving Compliance

• Offering Lawfully Compliant Benefits

• Why expatriate benefits packages matter?

International Industrial Relations
and the Policies and Practices of
MNEs
Unit – 9
Prof. Sneha Ravindra Kanade
• Unit 9: International Industrial Relations and the Policies and Practices of MNEs Industrial
relations policies and practices of multinational firms. Trade unions and Industrial relations:-
Influencing wage levels, Constraining the ability of multinationals to vary employment levels at
will Hindering or preventing global integration of the operations of MNEs, International trade
secretariats (ITS)s Regulation of multinationals by international organizations, Regional
integration - EU. The concept of offshoring and its strategic importance, Offshoring and HRM in
India, Offshoring and HRM in China, Code of Conduct - Monitor the HRM practices
• Learning Outcome: Examine the potential constraints that trade unions may have on MNEs and
understand the HR implications of offshoring strategies
What are Industrial
Relations?

“Industrial Relations” refers to all types of

relations between employers and workers, be
they at national, regional or company level; and
to all dealings with social and economic issues,
such as wage setting, working time and working
conditions.

Social dialogue has demonstrated its potential

as an instrument for democratic governance and
participation; a driver for economic stability and
growth; and a tool for maintaining or
encouraging peaceful workplace relations.
• Why are Industrial Relations
relevant to business?

• What is IOE’s position on

Industrial Relations?

• How does IOE’s work in Industrial

Relations advance the agenda for
business?
What are the Key Issues in
International Industrial
Relations (IIR)?

International trade
secretariats (ITS)s

Regulation of multinationals
by international
organizations
The concept of offshoring and
its strategic importance

Global Environment

Global HR Trends

Culture as a Major Aspect of

HRM Overseas
OUTSOURCING

OFFSHORING
Strategic International HRM
Unit – 10
Prof. Sneha Ravindra Kanade
• Unit 10: Strategic International HRM The development of SIHRM and the process of international strategic
management The evolution of the MNE in terms of various stages of internationalization and the methods
firms use to enter international markets. The process for developing MNE strategy and IHRM strategy and
the relationship between the two

• Learning Outcome: Understand the development of SIHRM and the process of International Strategic
Management
SIHRM

Broadly speaking, strategic

international human resource
management (SIHRM) is about the
management of human resources
consistent with the strategic direction
of the multinational enterprise in a
dynamic, interconnected, and highly
competitive global environment.

SIHRM for many firms can be critical to

their success, and effective SIHRM
can make the difference between
survival and extinction for many MNEs
 International strategic management

• The strategic management process means defining the organization’s strategy. It is also defined as the
process by which managers make a choice of a set of strategies for the organization that will enable it to
achieve better performance.

• Strategic management is a continuous process that appraises the business and industries in which the
organization is involved; appraises it’s competitors; and fixes goals to meet all the present and future
competitor’s and then reassesses each strategy.
Strategic management process has following four steps:

Environmental Scanning
Strategy Formulation
Strategy Implementation
Strategy Evaluation
Design and Structure of the
Multinational Enterprise
Unit – 11
Prof. Sneha Ravindra Kanade
• Design and Structure of the Multinational Enterprise The fundamentals of organizational design and
Structure and explain the process of designing an MNE, The basic characteristics associated with different
organizational Page 4 of 4 structures, The implications for IHRM from the different structures, The
importance of teams, networking, and the need for learning in MNEs

• Learning Outcome: Discuss the organizational structures in MNEs with examples.

Organizational structure gives the
framework or lines of
communication, authority,
responsibility and accountability.

Organizational structure specifies

the firm’s reporting relationships,
procedures, controls and authority
and decision processes. It is a critical
component of effective strategy
implementation process.
 Need?

• Geographic Needs For Structure

• International Division Structure

• Matrix Structure

• Decision-Making Authority

• Departmental Units

• Layers of Management
What is organizational design
International Employment Law,
Labor Standards
Unit – 12
Prof. Sneha Ravindra Kanade
• International Employment Law, Labor Standards - The three major legal systems
and their key differences: -civil, commercial, criminal, International labor law and
standards and their impacts; the goals of the various international trade
agreements

• Learning Outcome: Discuss the International Legal Aspects and International

Trade Agreements
What Is International Labor
Law?
International Labor Standards
Regional Labor Standards
ILO supervisory system
The ILO Declaration on
Fundamental Principles and
Rights at Work
.
• Less formal standards
• Multinational enterprises
• Resolutions and conclusions
• Birth of the international labour law
Declaration
The Declaration affirmed that all human beings, irrespective of
race, creed or sex, have the right to pursue both their material
well-being and their spiritual development in conditions of
freedom and dignity, of economic security and equal
opportunity.

It also referred to the social aspect of economic and financial

measures.
Comparative IHRM: Operating in
Other Regions and Countries
Unit – 13
Prof. Sneha Ravindra Kanade
Unit 13: Comparative IHRM: Operating in Other Regions and Countries

Understand different types of regions in the world; Important features of IHRM in

Europe, North America, Asia Pacific, Latin America, Middle East, and Africa

Learning Outcome: Develop and Overview of the important features of HRM in

different countries/different regions.
Comparative IHRM
International Human Resource
Management has been defined as HRM
issues, functions, policies and practices
that result from the strategic activities
of MNEs.

The emphasis is on the MNCs’ ability to

attract, develop and deploy talented
employees in a multinational setting
and to get them to work effectively
despite differences in culture, language
and locations. .
Taylor’s model of strategic international HRM has been described below.

• Exportive:
• Adaptive
• Integrative
International Pay and Reward and Performance
Management
The concept fair pay and reward is also subject to different
interpretations depending on the national business system. In
individualistic cultures, there are few rules and norms about
correct behavior and employees expect to be rewarded on their
own merits and performance.
Countries like US feature at the higher end of the individualistic
spectrum. On the other hand, collectivism emerges in societies
that have many rules and regulations about correct behavior.
 Training and
Development
Training and development is vital to
ensure that the workforce remains
competent and flexible by developing
the ‘know-how’ thought necessary for
success in the company and on the job.
Scholars have highlighted the
importance of national culture on
training and development in terms of
the hard and soft approach. The hard
approach views employees in the
organisation as a mere resource to
achieve goals of the organisation while
the soft approach views them more as
valued assets capable of development.
The Three Types Of Regions In Human
Geography
•Formal Regions
•Functional Regions
•Perceptual Regions
Global Ethics and Well-Being of
the International Workforce
Unit – 14
Prof. Sneha Ravindra Kanade
• Unit 14: Global Ethics and Well-Being of the International Workforce The
ethical climate within different countries: Bribery and pay-offs: Code of
Conduct for International Business; Ethical absolutism and Employment
practices in various countries The importance of global health & Safety;
Role of IHRM in health & Safety

• Learning Outcome: Understand the role of IHRM ethics and well-being of

employees.
Global Business Ethics

The field of ethics (or moral

philosophy) involves systematizing,
defending, and recommending
concepts of right and wrong
behavior.

Philosophers today usually divide

ethical theories into three general
subject areas: metaethics, normative
ethics, and applied ethics. .
Where Do Our Values Come From?

There’s a history to how thinking has evolved over

time. What may or may not have been acceptable just
a hundred years ago may be very different today—
from how people present themselves and how they
act and interact to customs, values, and beliefs.
What Are the Reformation and Enlightenment?
Modern political and economic philosophies trace their roots
back to the Reformation and Enlightenment. The Reformation
was a period of European history in the sixteenth century when
Protestant thinkers, led by Martin Luther, challenged the
teachings of the Roman Catholic Church. .
Challenges and Emerging Issues in
IHRM
Unit – 15
Prof. Sneha Ravindra Kanade
• Unit 15: Challenges and Emerging Issues in IHRM

• Integration Issues, Heterogeneous Functions, Changes in a political,

economic, and legal environment, Local versus Universal Perspectives,
Social Responsibility

• Learning Outcome: Develop and Gain perspectives on the challenges in

IHRM
Challenges and
Emerging Issues in
IHRM Integration
Issues

Staff shortages

Failed expatriate assignments

Localisation vs. standardisation of HR practices

Ethical challenges in multinational corporations

HR managers have to play a vital role.

Anticipation of change
Security for women employees
Periodical training
Focus on high net worth employees
Career counselling
Challenges
Modern political and economic philosophies trace their roots
back to the Reformation and Enlightenment. The Reformation
was a period of European history in the sixteenth century when
Protestant thinkers, led by Martin Luther, challenged the
teachings of the Roman Catholic Church. .