International HR management refers to an extension of HR that relates to having people working overseas. HR professionals are going to have to consider how to best provide policies, practices and services to a diverse set of employees located in potentially very different locations and operating environments.
The differences between IHRM and HRM involve: involves working with an organisational structure that is more complex there are a greater number of more diverse stakeholders groups to take account of there is a greater involvement in people’s private lives because of the expatriation element
Diversity is necessary in terms of management style greater number of external influences and risks to understand and manage
Regardless of the type of organisation, policies, practices and HR systems must be compatible and effective across the world, and need to balance the needs, wants and desires of all the various groups of employees, whilst remaining cost- effective. It should take into account the following.
Range of Manpower approaches: Ethnocentric: HQ management dispatched, Polycentric: Local management; global; Right Person in right job.
The International Dimension: Contextual impact of Globalisation; International effectiveness of Organisations and the global nature of Labour Markets.
Cultural Orientations: Nationality is important in HRM because of its effect on human behaviours and the consequent constraints on management action. Understanding cultural diversity is crucial to managing an international organisation effectively.
Hoffstede defines 4 distinguishing factors of national culture: Individualism: Power Distance: Uncertainty, avoidance and masculinity: Time Orientation: Hofstede’s work is interesting in that it demonstrates that cultures among a people remains persistently divergent despite convergence in areas such as technology and economic systems.
Trompenaars is a researcher who has looked at different dimensions