Similarities and differences between Domestic and International HRMS

Days have gone when one had to wait for hours for getting reply back from their relatives. With advancement of technology, everything has become easy. For this, a good chunk of human resource is required. Here comes the role of Human Resource Department. Human Resource Management or HRM has always played key role in any Organization. If you knock in the history of evolution of HRM, you will find that it has evolved from Personnel Management. Human Resource Management basically includes human resource development, how to supervise and manage employees in the organization, how to work in the organization, all around development of employees etc. The present HRM emphasizes on strategically utilizing the human resource. You can also say that HRM acts as the core corporate strategy as it helps your organization to build a stronger strategy over your competitors and ultimately will help you to improve your performance. HRM deals with the utilization of employees to their utmost potential.

If you talk about similarities between the International HRM and Domestic HRM, the basic similarities between the two include recruitment, planning, Performance Appraisal, Compensation, Training and Development, Industrial Relations etc. Another similarity which you will find is environmental forces like legal, cultural, economical, social and political factors which influence the Human Resource Management both domestically and globally. As human resource department looks after human resource, so the other similarities between the two includes satisfying the demand of the organization in terms of manpower, increasing the effectiveness through interventions in the organization, encouraging human resources to meet the present and future needs.

The differences between the domestic and International HRM are more noticeable because if you consider globalization, operations of the two are of great difference. Since, International HRM is linked with management of human resources outside the boundaries of home country; it gets affected by international policies. The other major difference between the two is that international HRM is a broad perspective as it focuses on three types of employees; Host Country Nationals, Parent Country Nationals and Third Country Nationals. Therefore, it becomes quite challenging to manage such a workforce who is from different culture, language, tradition and religion. In domestic HRM, the employees are from the parent country. So, managing the employees in domestic HRM is easy compared to IHRM. As International HRM deal with different kinds of employees, therefore, International HR Manager should align the training and development programs to their employees so that they can adapt in alien country. As the employees go to work in foreign country, so the organization has to look after their children as well as provide special opportunities to their children. This will help them to remain intact with the organization. On the other hand, these kinds of training and development programs are not required for domestic HRM. The other difference you will find that International HRM is more risky than domestic HRM because more external forces are involved. Hope now you are clear with the differences between IHRM and Domestic HRM.