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
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
Objectives and Topics
The objective of this paper is to provide a clear overview of the differences and similarities between domestic and international Human Resource Management (HRM) by analyzing recent developments and current key issues in the field.
- The theoretical foundations of Human Resource Management.
- Core commonalities between domestic and international HRM practices.
- Key factors influencing the increased complexity of International HRM (IHRM).
- Moderating variables such as cultural environment, industry type, and senior management attitudes.
Excerpt from the Book
4 Differences Between Domestic and International HRM
The differences between domestic and international HRM are generally attributed to the inherent level of complexity and uncertainty of operations in other countries, rather than variations in the HRM activities (Dowling et al., 2008, p. 5). In addition to this, there are other variables that influence the differences between domestic and international HRM, such as the industry in which the multinational is positioned, the cultural environment, the reliance of the multinational on its domestic market and the attitudes of senior management (Dowling et al., 2008, p. 9) (Figure 3, p. 5).
The additional complexity of international HRM activities can result from the heightened number and heterogeneity of decision-making factors as well as the inherent liability of foreignness, which leads to more complex cause-effect relations. Furthermore, environmental constituents are not always stable and differ in various countries, thus require the multinational to engage in situation-specific, case-by-case actions.
Summary of Chapters
1 Introduction: This chapter highlights the growing importance of HRM in a globalized environment and outlines the paper's objective to analyze differences and similarities between domestic and international approaches.
2 Definition of Human Resource Management: This section defines the strategic nature of HRM and introduces a model of IHRM that incorporates different types of employees and operational dimensions within multinational companies.
3 Similarities Between Domestic and International HRM: This chapter discusses the convergence of basic HRM functions and the universal applicability of core concepts despite the move toward a more international workforce.
4 Differences Between Domestic and International HRM: This chapter examines the moderating variables, such as cultural environment and industry type, that make international HRM significantly more complex than domestic practice.
5 Conclusion and Outlook: The final chapter summarizes the research findings and provides a forward-looking perspective on the ongoing debate between convergence and divergence in global HR systems.
Key Words
International Human Resource Management, IHRM, Domestic HRM, Multinational Companies, MNCs, Globalisation, Cultural Environment, Expatriates, Workforce Diversity, Strategic HRM, Human Resource Planning, Staffing, Compensation, Convergence, Divergence
Frequently Asked Questions
What is the core focus of this publication?
The publication focuses on the comparison between domestic and international Human Resource Management, specifically identifying the key differences and commonalities in these two domains.
What are the central themes covered in the text?
The text covers the definitions of HRM, the theoretical foundations of global business operations, the complexities introduced by international markets, and the influence of cultural and organizational variables.
What is the primary research goal?
The goal is to provide a clear academic overview of how HRM functions must adapt when shifting from a domestic to an international, globalized context.
Which methodology is employed in this work?
The work utilizes a literature-based theoretical analysis, drawing upon established HR models and research findings to compare domestic and international management strategies.
What aspects of HRM are discussed in the main body?
The main body treats fundamental HR activities like planning, staffing, performance management, training, and compensation, specifically contrasting their application in single-nation versus multi-nation environments.
Which keywords best characterize this research?
Key terms include IHRM, Globalization, Expatriates, Cultural Environment, Strategic HRM, and Multinational Companies.
How does the "liability of foreignness" affect international HRM?
The liability of foreignness contributes to more complex cause-effect relations, requiring multinationals to engage in situation-specific and case-by-case management actions rather than standardized domestic procedures.
Why does the text mention the U-Curve of Cultural Adjustment?
The U-Curve is used to illustrate the phases of adjustment experienced by expatriates, highlighting the personal challenges that IHRM departments must manage to ensure successful international assignments.
What role does senior management play in international operations?
Senior management attitudes are identified as a critical moderator; a lack of a global mindset or cultural insensitivity at the executive level can lead to operational failure in international markets.
- Citation du texte
- Robert Stolt (Auteur), 2010, Differences and Similarities Between Domestic and International HRM, Munich, GRIN Verlag, https://www.grin.com/document/150103
