Main differences and smilarity between domestic hrm and international
Answers
HRM plays a key role in any organisation. It is the core of corporate strategy as HRM could help company improve their performance, form sustainable competitive advantages, and have a guiding role in the enterprise management. To quote from Dowling, et al. (2008: p2),
'General HRM refers to those activities undertaken by an organization to effectively utilize its human resources'.
This concludes the first similarities between the two. As basic functions such as procurement, allocation, utilization and motivation are the same whether they are specific in one country or several countries. Both domestic and international HRM have same major functions and activities in HR planning, recruitment, performance management, training and development, compensation, and industrial relations.
Another similarity is related to the environmental forces that influence the function of HRM. These external constraints include political, economical, legal, and cultural have significant impact on how the HR functions are carried both in domestic as well as global environment (Aswathappa and Dash, 2008).
Finally, both of them have similar basic human resource management objectives. Firstly of all, is to ensure organization having maximum satisfaction in the human resource demands. Another objective is to ensure effectiveness in the organisation through interventions. And then is to promote sustainable development of firms by maximizing the development of internal and external human resource management. The final similar objective is to maintain and encourage human resources within the company to upgrade the potential human capital.
Differences between Domestic and International HRM
The differences between domestic and international HRM are more striking than their similarities. In the context of globalization, HRM activities are differ materially from its domestic operations. This is because DHRM is only dealing with one national employee while IHRM is operating across national boundaries (Boxall, et al., 2007). In an article by Sparrow and Hiltrop (1997), national patterns of HRM are different from country to country due to the factors of HR roles and competence, culture, institution, and business structure. Thus, differences are mainly referring to how they complete administrative functions in different environments.
Many literatures about HRM have indicated the differences between domestic and international HRM. According to Claus (2003), the main differences in HRM essentially come from the interconnection between culture and structure of a particular society. Bratton and Gold (2007) state that IHRM distinguished from DHRM in the core activities such as recruitment and selection, training and development, rewards, performance management and expatriate management require cultural sensitivity and effectiveness in cross-cultural multinational environment. However, the work of Dowling, et al. (2008) point out that the key variable that differentiate IHRM from DHRM is the complexity of operating in different countries and employing different national categories of employees, rather than any major differences between HRM activities performed.
According to Morgan (1986), the International Human Resources Management is defined as the interaction among these three dimensions: Human Resource Activities, Type of employees and Countries of operation.