Differences and Similarities Between Domestic and International HRM

Table of Contents

List of Abbreviations

List of Figures and Tables

1 Introduction

2 Definition of Human Resource Management

3 Similarities Between Domestic and International HRM

4 Differences Between Domestic and International HRM

5 Conclusion and Outlook

Reference List

List of Appendixes

Appendix

List of Abbreviations

Abbildung in dieser Leseprobe nicht enthalten

List of Figures and Tables

Figure 1 The Model of IHRM

Figure 2 International Assignments / Expats

Figure 3 Variables Moderating Differences Between Domestic and International HRM

1 Introduction

Human resource management (HRM) is becoming an increasingly important topic as organisations are forced to adapt their operations to a rapidly growing global environ­ment (Boxall, Purcell & Wright, 2007, pp. 216-218). In this regard, international human resource management (IHRM) has gained in substantiality compared to domestic human resource management in terms of management, organisational structures, cultures and workforce utilisation. The sustainable international human resource management is es­sential for implementing strategies in multinational companies (MNCs) (Bartlett & Ghoshal, 1989).

Companies generally engage in internationalisation activities for the following reasons: higher profit and sales potential, risk spreading, realisation of competitive or country- specific advantages (CSAs), reaction to competitor actions, capitalisation on govern­ment incentives, securing business relations, access to know-how and hedging of cur­rency movements (Rump, 2006, p. 10). From an HR perspective companies need to address issues such as the selection, recruiting, compensation, and legal/regulatory re­quirements of a ‘global workforce’ (Du Plessis, Venter, Prabhudev, 2007, p. 59). Over­all, the globalisation has led to a heightened acknowledgement of a well-managed work­force (Keating & Thompson, 2004, p. 595). On top of that, this development has also contributed to the view that HRM has become a function of strategic significance rather than simply a support function (Scullion & Starkey, 2000, pp. 1061-1081; Pucik, 1992, pp. 61-81).

The objective of this paper is to provide a clear overview of the differences between domestic and international HRM analysing recent developments and current issues in this subject. The coursework is divided into five chapters. Initially, the general theoretic foundations of human resource management are explained in chapter two. Thereafter, the specific commonalities and differences of domestic and international human re­source management will be outlined in chapters three and four, respectively. Finally, in a retrospective analysis of the paper, the research findings will be analysed and an out­look of the future development of HRM on a global level compared to domestic human resource management will be given.

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