difference between international hrm and domestic hrm
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human resource projectTRANSCRIPT
International HRM amp
Domestic HRM
The Difference between International HRM and Domestic HRM
What is the difference between international HRM and Domestic HRM Have their same roll they have to perform Or are they have same responsibilities Difference in functionselection cretiraand problem faces when they are performing at their levelsso we can defined differences as
Nature Difference
International Human resource management is the process of procuring allocating and effectively utilizing the human resources in a multinational corporation or at least three countries While HR Managers in these organization have to integrate HR policies and practices across a number of subsidiaries spread in several countries so that the organization goals can be achieve at the same time they have to make these policies and practices sufficiently flexible to allow significant differences in these policies in different countries International HRM is concerned with identifying and understanding how the MNCrsquos manage their geographically dispersed worked force in order to leverage their HR resources for obtaining local as well as global competitive advantage Domestic HRM is the process of procuring allocating and effectively utilizing the human resources in local countries
By the name itself you should already have an idea that IHRMs work internationally or beyond national borders whereas itrsquos domestic counterpart works within the set local national borders In this connection it is also expected that the IHRMs follow not just more rules and regulations but also more stringent international policies like those related to taxation at the international location of work employment protocols language requirements and special work permits For local HRMs the rules and regulations to be followed are just regarding local taxation and ordinary employment-related issues
1 An IHRM operates beyond national borders while domestic HRMs operate within the borders2 IHRMs have more functions and are subject to more stringent international rules and are more
exposed to a wider array of activities as opposed to domestic HRMs3 In an IHRM therersquos constant change for a broader set of perspectives4 In an IHRM therersquos more attention given to the associate or expatriate employeersquos personal well-
being5 There are more risks involved in IHRM than in the Domestic HRM6 Domestic HRM is done at national level and IHRM is done at international level7 Domestic HRM is concerned with managing employees belonging to one nation and IHRM is
concerned with managing employees belonging to many nations (Home country host country and third country employees)
8 Domestic HRM is concerned with managing limited number of HRM activities at national level and IHRM has concerned with managing additional activities such as expatriate management
9 Domestic HRM is less complicated due to less influence from the external environment IHRM is very complicated as it is affected heavily by external factors such as cultural distance and institutional factors
International HRM amp
Domestic HRM
Function Difference
In our view the complexity of operating in different countries and employing different national categories of workers is a key variable that differentiates domestic and international HRM rather than any major differences between the HRM activities performed Dowling11 argues that the complexity of international HR can be attributed to six factors
More HR activities The need for a broader perspective More involvement in employeesrsquo personal lives Changes in emphasis as the workforce mix of expatriates and locals vary Risk exposures Broader external influences
Moderate differences
Many firms underestimate the complexities involved in international operations and there has been consistent evidence to suggest that business failures in the international arena are often linked to poor management of human resources In addition to complexity there are four other variables that moderate (that is either diminish or accentuate) differences between domestic and international HRM These four additional moderators are
The cultural environment The industry (or industries) with which the multinational is primarily involved The extent of reliance of the multinational on its home-country domestic market The attitudes of senior management
Conclusion-
We can say both IHRM and Domestic HRM are performing same function and have same responsibilities but differences are the broader and narrow approaches and level of work and function performs IHRM have performed on broader level function and domestic HRM have performed on narrow or at local level Different cultures languages selection criteria level of activities local polices and rules and regulation as comparison international rules and regulation risk involvement external influences and internal influences different employees selection situations employees personal lives involvement that may reasons to create the difference between IHRM and Domestic HRM
Refferences-
International Human Resource Management10485781048578Centre for Financial and Management Studies1048578SOAS University of LondonFirst Edition 2008 2010
- The Difference between International HRM and Domestic HRM
-
International HRM amp
Domestic HRM
Function Difference
In our view the complexity of operating in different countries and employing different national categories of workers is a key variable that differentiates domestic and international HRM rather than any major differences between the HRM activities performed Dowling11 argues that the complexity of international HR can be attributed to six factors
More HR activities The need for a broader perspective More involvement in employeesrsquo personal lives Changes in emphasis as the workforce mix of expatriates and locals vary Risk exposures Broader external influences
Moderate differences
Many firms underestimate the complexities involved in international operations and there has been consistent evidence to suggest that business failures in the international arena are often linked to poor management of human resources In addition to complexity there are four other variables that moderate (that is either diminish or accentuate) differences between domestic and international HRM These four additional moderators are
The cultural environment The industry (or industries) with which the multinational is primarily involved The extent of reliance of the multinational on its home-country domestic market The attitudes of senior management
Conclusion-
We can say both IHRM and Domestic HRM are performing same function and have same responsibilities but differences are the broader and narrow approaches and level of work and function performs IHRM have performed on broader level function and domestic HRM have performed on narrow or at local level Different cultures languages selection criteria level of activities local polices and rules and regulation as comparison international rules and regulation risk involvement external influences and internal influences different employees selection situations employees personal lives involvement that may reasons to create the difference between IHRM and Domestic HRM
Refferences-
International Human Resource Management10485781048578Centre for Financial and Management Studies1048578SOAS University of LondonFirst Edition 2008 2010
- The Difference between International HRM and Domestic HRM
-