Explain the term ‘International Human Resource
Management’. Discuss in detail the differences between domestic and
international HR practices.
Ans :
Human resource management (HRM,
or simply HR) is the management of an organization's workforce,
or human resources. It is responsible for
the attraction, selection, training, assessment,
and rewarding of employees, while also overseeing
organizationalleadership and culture, and ensuring compliance
with employment and labor laws. In circumstances where employees desire
and are legally authorized to hold a collective bargaining agreement, HR
will also serve as the company's primary liaison with the employees'
representatives (usually a labor union).
HR is a product of the human relations movement of
the early 20th century, when researchers began documenting ways of creating
business value through the strategic management of the workforce. The function
was initially dominated by transactional work such aspayroll and benefits administration,
but due to globalization, company consolidation, technological
advancement, and further research, HR now focuses on strategic initiatives
like mergers and acquisitions, talent management, succession
planning, industrial and labor relations, and diversity and inclusion.
In startup companies, HR's duties may be performed by
trained professionals. In larger companies, an entire functional group is
typically dedicated to the discipline, with staff specializing in various HR
tasks and functional leadership engaging in strategic decision making across
the business. To train practitioners for the profession, institutions of
higher education, professional associations, and companies themselves have
created programs of study dedicated explicitly to the duties of the function.
Academic and practitioner organizations likewise seek to engage and further the
field of HR, as evidenced by several field-specific publications.
What is the difference between international HRM and Domestic
HRM? Have their same roll they have to perform? Or are they have same
responsibilities? Difference in function?selection cretira?and
problemfaces when they are performing at their levels?so we can defined
differences as:
Nature Difference
International Human resource management is the process of
procuring allocating and effectively utilizingthe human resources in a
multinational corporation or at least three countries. While HR Managers
inthese organization have to integrate HR policies and practices across a
number of subsidiaries spread inseveral countries so that the organization
goals can be achieve at the same time they have to make these policies and
practices sufficiently flexible to allow significant differences in
these policies in differentcountries. International HRM is concerned with
identifying and und
erstanding how the MNC’s manage
their geographically dispersed worked force in order to
leverage their HR resources for obtaining local aswell as global competitive
advantage. Domestic HRM is the process of procuring allocating andeffectively
utilizing the human resources in local countries.By the name itself, you should
already have an idea that IHRMs work internationally or beyond
national borders, whereas
it’s
domestic counterpart works within the set, local, national borders.
In thisconnection, it is also expected that the IHRMs follow not just more
rules and regulations but also morestringent international policies like
those related to taxation at the international location
of work,employment protocols, language requirements, and special work
permits. For local HRMs, the rules andregulations to be followed are just
regarding local taxation and ordinary employment-related issues.1.
An IHRM operates beyond national borders while domestic HRMs
operate within the borders.2.
IHRMs have more functions and are subject to more stringent
international rules and are moreexposed to a wider array of activities as
opposed to domestic HRMs.3.
In an IHRM, there’s constant change for a broader set of
perspectives.
4.
In an IHRM, there’s more attention given to the associ
ate or expatriate
employee’s personal well
- being.5.
There are more risks involved in IHRM than in the Domestic
HRM.6.
Domestic HRM is done at national level and IHRM is done at
international level.7.
Domestic HRM is concerned with managing employees belonging
to one nation and IHRM isconcerned with managing employees belonging to many
nations (Home country, host country andthird country employees)8.
Domestic HRM is concerned with managing limited number of HRM
activities at national leveland IHRM has concerned with managing additional
activities such as expatriate management.9.
Domestic HRM is less complicated due to less influence from
the external environment. IHRM isvery complicated as it is affected heavily by
external factors such as cultural distance andinstitutional factors.
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