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.
Table of Contents
- Introduction
- Definition of Human Resource Management
- Similarities Between Domestic and International HRM
- Differences Between Domestic and International HRM
- Conclusion and Outlook
Objectives and Key Themes
This paper aims to provide a clear overview of the differences between domestic and international HRM, analyzing recent developments and current issues. It examines the theoretical foundations of HRM, then explores the similarities and differences between domestic and international HRM practices.
- The evolving role of HRM in a globalized environment.
- Similarities and differences in HRM practices between domestic and international contexts.
- Challenges and opportunities presented by managing a global workforce.
- The strategic importance of HRM in multinational companies (MNCs).
- Legal and regulatory considerations in international HRM.
Chapter Summaries
Introduction: This chapter introduces the growing importance of HRM in a globalizing world and the increasing significance of international HRM (IHRM) compared to domestic HRM. It highlights the reasons companies engage in internationalization, such as increased profit potential, risk diversification, and access to specific advantages. The chapter establishes the need to address the challenges of managing a global workforce, encompassing aspects like recruitment, compensation, and legal compliance. It emphasizes the shift in perception of HRM from a support function to a strategically important one.
Definition of Human Resource Management: This chapter would provide a thorough explanation of the theoretical underpinnings of Human Resource Management (HRM). It would likely delve into the core functions of HRM, such as recruitment, training, compensation and benefits, performance management, and employee relations. The chapter would set the stage for the comparison between domestic and international HRM by laying out a common understanding of the foundational concepts of the field. The significance of this foundational knowledge lies in its ability to provide a consistent framework for evaluating the differences and similarities discussed in later sections.
Similarities Between Domestic and International HRM: This chapter would identify the commonalities between domestic and international HRM. Despite the differences in geographical scope and cultural contexts, certain core principles and functions of HRM would remain consistent. This might include the fundamental importance of strategic alignment, the necessity of effective employee relations, or common best practices in recruitment and selection. Examples of these similarities would be drawn from both domestic and international organizational practices. The significance of this section lies in establishing a baseline understanding of the core aspects of HRM which transcend geographical boundaries.
Differences Between Domestic and International HRM: This chapter would focus on the key differences between managing human resources domestically and internationally. This would involve discussing complexities such as cultural differences, varying legal and regulatory frameworks, managing diverse workforces, and international compensation and benefits packages. The discussion would incorporate examples of how MNCs navigate these challenges. The significance of this section lies in highlighting the unique considerations necessary for effective HRM in a global context.
Keywords
Human Resource Management (HRM), International HRM (IHRM), Domestic HRM, Global Workforce, Multinational Companies (MNCs), Cross-Cultural Management, Legal Compliance, Compensation, Recruitment, Strategic HRM.
Frequently Asked Questions: A Comprehensive Language Preview of Domestic vs. International HRM
What topics are covered in this language preview?
This preview provides a comprehensive overview of the differences between domestic and international Human Resource Management (HRM). It includes the table of contents, objectives and key themes, chapter summaries, and keywords. The preview offers a structured analysis of similarities and differences in HRM practices, highlighting the challenges and opportunities of managing a global workforce.
What is the main objective of this paper?
The paper aims to clearly illustrate the distinctions between domestic and international HRM, analyzing recent developments and current issues in the field. It explores both the theoretical foundations of HRM and the practical applications within domestic and international contexts.
What are the key themes explored?
Key themes include the evolving role of HRM in a globalized world; the similarities and differences in HRM practices across domestic and international settings; the challenges and opportunities of managing a global workforce; the strategic importance of HRM in multinational companies (MNCs); and the legal and regulatory considerations within international HRM.
What does the chapter on "Definition of Human Resource Management" cover?
This chapter provides a detailed explanation of the theoretical foundations of HRM, outlining core functions such as recruitment, training, compensation and benefits, performance management, and employee relations. It establishes a framework for comparing domestic and international HRM practices.
What are the key similarities between domestic and international HRM discussed in the preview?
Despite geographical and cultural differences, the preview identifies commonalities such as the strategic importance of HRM, the need for effective employee relations, and best practices in recruitment and selection that transcend geographical boundaries.
What are the key differences highlighted between domestic and international HRM?
The preview emphasizes the complexities of international HRM, including cultural differences, varying legal and regulatory frameworks, managing diverse workforces, and the development of international compensation and benefits packages. It uses examples of how MNCs navigate these challenges.
What are the key words associated with this topic?
Key words include Human Resource Management (HRM), International HRM (IHRM), Domestic HRM, Global Workforce, Multinational Companies (MNCs), Cross-Cultural Management, Legal Compliance, Compensation, Recruitment, and Strategic HRM.
What is the significance of this preview?
This preview serves as a valuable resource for understanding the nuances of international HRM. It provides a structured and concise overview of the key concepts and challenges, making it useful for academic research and professional development within the field.
- Quote paper
- Robert Stolt (Author), 2010, Differences and Similarities Between Domestic and International HRM, Munich, GRIN Verlag, https://www.grin.com/document/150103
