Table of Contents
Differences between Domestic and International Human Resource Management 2
What is Expatriate 4
IHRM has three dimensions 4
International assignments create expatriates 5
Increasing Importance of International Human Resource Management 6
Significance of International Human Resource Management 9
As we enter the new millennium, more and more companies are recognizing the importance of managing their human resources as effectively as possible. They are also recognizing that doing so, however, cannot be done without recognition and incorporation of the global context. It is ...view middle of the document...
Human Resource Management (HRM) is a group of individuals in an organization created to increase employee performance in service of the employer’s objectives. HRM focuses on recruitment, management, and providing direction for employees with organizations within the organization’s policy and systems. There are two primary types are the international HRM or IHRM and the domestic HRM or just HRM. Domestic HRM is when HRM is practiced with in the geographical boundaries of one country. It focuses on the management of people in a single-country. International HRM is when HRM is practiced by multinational organizations. It focuses on the management of people in multi-country. There are multiple similarities between the international and domestic human resource practices. The similarities are areas like planning and staffing, recruitment and selection, reward, along with appraisal and development HRM can work with each other and it would be hard to tell the difference between the two (Dowling, 2008). But there are two ways to tell them apart (Dowling, 2008).
For instance, the first one would be difficulties of working in one country, where the employee have to adapt to different policy and procedures to address their customs and laws. The second one would be the fact of having to hire multiple nationalities in order of facilitate the operations to make sure there are employees that are already accustom to the laws and customs of that region.
Differences between Domestic and International Human Resource Management
Sl. No. IHRM Domestic HRM
1. It deals with a very broader perspective. It deals with a very narrow perspective- looks only for the domestic country HR.
2. It considers the global laws prevailing across the world. It considers the laws prevailing in the country where company is having its headquarters.
3. More involvement in employees lives happens There are standard policies for every employees working in the country.
4. External influences and factor affect the company. There are not much of external influences to affect the company.
5. Work force that is people from different culture work together. Generally people from the home country works in the company.
6. There is a risk factor involved such as terrorism crisis etc. A minimal of risk is involved as compared to international perspective.
7. There is a complexity involved in handling different people from different country. It is relatively easy to handle the employees as they belong to same country.
8. Attitude of senior management people differ as it involves dealing globally. Attitudes generally tend to be the same with all employees.
9. Involvements of different culture do affect the organization’s culture. As employees are generally from same country, adoption of culture is very feasible.
The main differences as expected that the IHRMs follow more rules and regulations along with more stringent international policies like those related taxation at the...