Unit 1 (P 9) HRM in Context: International HRM and HRM Strategic Perspective

International perspective of Human Resource Management

1. International Human Resource Management (IHRM) is the process of procuring, allocation, and effectively utilizing human resources in an international business or scenario. It is the interplay among the three dimensions- HR activities, types of employees, and countries of operation.
               
• The three broad activities of IHRM, namely procurement, allocation, and utilizing cover all the six activities of domestic HRM. The six functions of domestic HRM. HR planning, employee hiring, training and development, remuneration, performance management, and industrial relations.
• The three national or country categories in IHRM are: host country, home country and other countries.
• Three types of employees of IHRM are host country nationals, parent country nationals, and third country nations.
2. Comparisons of domestic and IHRM
• More HR activities.
• Need for a border perspective
• More involvement in employee personal lives
• Change in emphasis as the workforce mix of expatriates and local varies
• Risk exposure
• More external influence.

Human Resource Strategic Concept and Perspectives

1. Strategic HRM is an approach to making decisions on the intentions and plans of the organization in the shape of the policies, programmes and practices concerning the employment relationship, resourcing, learning and development, performance management, reward, and employee relations. The concept of strategic HRM is derived from the concepts of HRM and strategy. 
2. Strategic HRM is an approach to the strategic management of human resources in accordance with the intentions of the organization on the future direction it wants to take. What emerges from this process is a stream of decisions over time that form the pattern adopted by the organization for managing its human resources and which define the areas in which specific HR strategies need to be developed. These focus on the decisions of the organization on what needs to be done and what needs to be changed in particular areas of people management.
3. The effective development and implementation of strategy depends on the strategic capability of the organization’s managers. This means the capacity to create an achievable vision for the future, to foresee longer term developments, to envisage options (and their probable consequences), to select sound courses of action, to rise above the day-to-day detail, to challenge the status quo. 
4. Strategy is about implementation, which includes the management of change, as well as planning. An important aspect of strategy is the need to achieve strategic fit. This is used in three senses:
• matching the organization’s capabilities and resources to the opportunities available in the external environment;
• matching strategy human resource management, to the business strategy; and
• ensuring that different aspects of a strategy area cohere and are mutually supportive.

Long Question:

1. Discuss how strategic approach to HRM is applicable to organization.
2. Discuss the possible challenges faced by the organization while addressing International HRM

Short Question:

1. List perspective on application of strategic HRM