International HRM: Term VI 2019-2021 Sdmimd

International HRM
Term VI
2019-2021
SDMIMD
Faculty Member: Dr. Mousumi Sengupta
Use with International Human Resource Management ISBN 1-84480013-X 1/1

Published by Thomson Learning © Peter Dowling and Denice Welch
Challenges for human resource management and
global business strategy
• The globalized workforce

• Guiding corporate strategic decision-making
• Preparing for the future
• Staying within laws
• Recent pandemic and the implications

Global human capital trends
• Organizational design
• Organizational culture
• Leadership
• Digital HR
• Learning
• Changing nature of work

Introduction and Overview
Figure 1-1: Inter-relationships between approaches in the field

A multinational corporation (MNC) or
multinational enterprise (MNE) is a
corporation / enterprise that manages
production or delivers services in more
than one country. It can also be referred to
as an international corporation.

How we classify a company as an MNC?
• Companies that operate in more than one country with

headquarters located in “home country”
• Generally, to qualify as an MNC, the following qualities are

essential :
– Subsidiaries in foreign countries

– Operations in number of countries
– High proportion of assets / revenues in / from global operations
– Overseas operations should have manufacturing / R&D operations
– Employees / Stakeholders should be from different countries
Use with International Human Resource Management ISBN 1-84480013-X

Figure 2-1: A model of IHRM

HR activities
• Human resource planning
• Staffing
– Recruitment
– Selection
– Placement
• Training and development
• Compensation (remuneration) and benefits
• Performance Management
• Industrial relations
Who is an expatriate?
• An employee who is working and

temporarily residing in a foreign country
• Some firms prefer to use the term
‘international assignees’.

Figure 1-3: International assignments create expatriates

Differences between domestic
and international HRM
• More HR activities
• The need for a broader perspective
• More involvement in employees’ personal
lives
• Changes in emphasis as the workforce mix
of expatriates and locals varies
• Risk exposure
• Broader external influences
Variables that moderate differences between domestic and
international HRM
Cultural environment
• Culturally transmitted behavioral attributes

• Defining culture: a priori, not post hoc
• Emic (culture secific) & Etic (culture common aspects
Industry type
• Multi-domestic industry
• Global industry

Reliance of the MNC on home country’s
domestic market
• Large domestic market influences international

operation, management attitude & need to expand
Management attitude
• Degree of focusing on internationalization

Factors influencing the global work environment

Forces for change
• Global competition
• Growth in mergers, acquisitions and
alliances
• Organization restructuring
• Advances in technology and
telecommunication

Impacts on multinational
management
• Need for flexibility
• Local responsiveness
• Knowledge sharing
• Transfer of competence

Managerial responses
• Developing a global ‘mindset’
• More weighting on informal control
mechanisms
• Fostering horizontal communication
• Using cross-border and virtual teams
• Using international assignments

Figure
1-5
Strategic HRM in multinational enterprises
IHRM Chapter 1 Use with International Human Resource Management ISBN 1-84480013-X
Published by Thomson Learning © Peter Dowling and Denice Welch 19
Top 10 Multinational Companies in India
• 1) Microsoft: Microsoft corporation India is a American Multinational Company founded in 1975
by Bill Gates and Paul Allen. It is having its head quarters in Hyderabad. Microsoft Corporation
started in India in 1990 and has developed its operations and contributed much to the IT industry
and development of technology. It is top company in India in providing Operating System for
laptops, tablets, computers and mobile phones.
Website: http://www.microsoft.com/en-in/default.aspx
• 2) IBM: IBM is also a top MNC on the basis of its market capitalization. IBM India private limited
is a American multinational company established in 1911. It is having its head quarters in
Bangalore. IBM started in India in 1992 and has become a leading Information technology
company in India. Its services in India include IT services, business consulting, application
management.
Website: http://www.ibm.com/in/en/
• 3) Nestle: Nestle company is established in Switzerland and is the top food and beverage company.
Nestle is started in India in 1912 by selling condensed milk products. Its popular brand names are
Nescafe, maggi, Kit Kat, Bar one, milk maid.
Website: http://www.nestle.in/

• 4) Procter and Gamble: Procter and Gamble is a Consumer goods company. It is a American
Multi national company established in 1837. It is started in India in 1964. Its products include
Gillette, Vicks, Olay, Tide, pantene. It serves more than 650 million customers.
Website: http://www.pg.com/en_IN/
• 5) Coca Cola: Coca cola is also one of the leading beverage manufacturing companies in India. It
has products like Coca- Cola, Sprite, Minute maid pulpy orange, Maaza.
Website: http://www.coca-colaindia.com/
• 6) Pepsico:Pepsico is an American based food and beverage company. It is established in 1965. It

manufactures snack foods and beverages which include Lays, Kurkure, Slice.
Website: http://www.pepsicoindia.co.in/
• 7) CITI Group:CITI Group is a American multinational company related to banking and financial
services. It is head quartered in Newyork and established in the year 1998.
•
Website: http://www.citigroup.com/citi/

• 8) Sony Corporation: Sony is a multinational company which is established in Japan. It provides
products related to electronics and music which includes mobile phones, cameras.
Website: http://www.sony.co.in/section/home
• 9) Hewlett Packard:HP is a multinational electronics and Information technology company and

headquartered in Palo Alto, California, United States. which is founded in 1939. It provides
hardware, software and services to customers. It manufactures laptops, printers, monitors.
Website: http://www.hp.com/country/us/en/uc/welcome.html
• 10) Apple Inc: Apple Inc is a American Multinational company and headquartered in Cupertino,
California. It was established on 1st April, 1976 by steve jobs, steve wozniak and ronald wayne.
That develops and sells computers, online services and personal computers. It also manufactures
iphone, ipad, ipod. This is the world's second largest information technology company by revenue.
Website: https://www.apple.com/in/


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International HRM

Faculty Member: Dr. Mousumi Sengupta

Use with International Human Resource Management ISBN 1-84480013-X 1/1

• The globalized workforce

Use with International Human Resource Management ISBN 1-84480013-X 1/2

Use with International Human Resource Management ISBN 1-84480013-X 1/3

Figure 1-1: Inter-relationships between approaches in the field

Use with International Human Resource Management ISBN 1-84480013-X 1/4

Use with International Human Resource Management ISBN 1-84480013-X 1/5

• Companies that operate in more than one country with

• Generally, to qualify as an MNC, the following qualities are

– Subsidiaries in foreign countries

Use with International Human Resource Management ISBN 1-84480013-X

Use with International Human Resource Management ISBN 1-84480013-X 1/7

• An employee who is working and

Use with International Human Resource Management ISBN 1-84480013-X 1/9

Use with International Human Resource Management ISBN 1-84480013-X 1/10

• Culturally transmitted behavioral attributes

Use with International Human Resource Management ISBN 1-84480013-X 1/13

• Large domestic market influences international

Use with International Human Resource Management ISBN 1-84480013-X 1/14

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Use with International Human Resource Management ISBN 1-84480013-X 1/16

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Use with International Human Resource Management ISBN 1-84480013-X 1/18

Use with International Human Resource Management ISBN 1-84480013-X 1/23

• 6) Pepsico:Pepsico is an American based food and beverage company. It is established in 1965. It

Use with International Human Resource Management ISBN 1-84480013-X 1/24

• 9) Hewlett Packard:HP is a multinational electronics and Information technology company and

Use with International Human Resource Management ISBN 1-84480013-X 1/25

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