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BUS325006VA016-1154-001: Global Hum Res Mgt

Business & Finance
Tutor: None Selected Time limit: 1 Day

•Analyze the main differences and similarities between domestic and international HRM. Determine whether or not it would be beneficial to adopt one (1) policy for domestic and international sites. Support your response with one (1) example
Apr 10th, 2015

There are some commonalities in IHRM and domestic HRM practices, particularly in areas like; HR planning and staffing, recruitment and selection, appraisal and development, rewards, etc the main distinctions, however, lies in the fact that while domestic HRM is involved with employees within only one national boundary, IHRM deals with three national or country categories, i.e., the parent country where the firm is actually  originated and headquartered; the host country where the subsidiary is located; and other countries from where the organization may source the labour, finance or research and development.

Similarities between Domestic and International HRM

'General HRM refers to those activities undertaken by an organization to effectively utilize its human resources'.

This concludes the first similarities between the two. As basic functions such as procurement, allocation, utilization and motivation are the same whether they are specific in one country or several countries. Both domestic and international HRM have same major functions and activities in HR planning, recruitment, performance management, training and development, compensation, and industrial relations.

Another similarity is related to the environmental forces that influence the function of HRM. These external constraints include political, economical, legal, and cultural have significant impact on how the HR functions are carried both in domestic as well as global environment.Finally, both of them have similar basic human resource management objectives. Another objective is to ensure effectiveness in the organisation through interventions. And then is to promote sustainable development of firms by maximizing the development of internal and external human resource management. The final similar objective is to maintain and encourage human resources within the company to upgrade the potential human capital.

Differences between Domestic and International HRM

HRM activities are differ materially from its domestic operations. This is because DHRM is only dealing with one national employee while IHRM is operating across national boundaries.IHRM requires a number of additional activities, which are unnecessary in a domestic context. Typical examples are the consideration of international taxation, relocation and orientation, administrative services, host-government relations and language translation services.Due to the diversity of employees in an international environment, HR managers are required to have broader perspective on all the HR activities to ensure equity of treatment for different groups.

For domestic HRM, involvement with employee's personal lives is only confined to issues such as providing employee insurance programmes and offering assistance in relocating. However, the involvement with staff's family member is limited. This is unlikely for firms operating internationally. IHRM must involve broader compensation, including transportation, recreational programmes, housing, children education, spouse employment and family healthcare for expatriate and local staff.

Conclusion

Similarities between DHRM and IHRM are referred to the major functions and activities, which normally including HR plan, recruitment, people management, performance evaluation, compensation, training and development, industrial relations and motivation. However, differences between the two are mainly due to the complexity of operating in several countries and having different cultural background employees.


Apr 11th, 2015

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