Salient features that distinguish international HRM from domestic HRM
Complexity in the policy framework: The International HRM provides a broader framework for the study and analysis of a wider range issues that are relevant at the global spectrum. These include issues include but not limited to: foreign cultures, living standards, tax policies, issues of difference in the values of foreign currencies, and postings, time’s differences and many other (Collings & Scullion, 2012). These present significant challenges to the HR professionals working for the Multinational Corporations and the International Civil service institutions like the UN and other inter-governmental bodies. All the variables mentioned have to be taken into consideration by the management while making certain managerial decisions. This makes International Human Resource management applicable in global firms like Unilever, GlaxoSmithKline, Samsung and the likes to be more complex.
Multiplicity of nationalities and diverse cultures: International human recourse management handles staff drawn from various countries with diverse cultural practices, values, social norms and language. This presents a significant challenge to Human resource practitioners keen on developing uniform standards and unique organizational culture for the international entities. Issues such as culture shock on an employee posted to a foreign country have to be dealt with. There can also be failure by the expatriate to understand the local culture of the host community. This can hamper the realization of the organizational objectives (Lee, 2007). Therefore multiplicity of nationalities and diversity of culture contradistinguishes International HRM and Domestic HRM.
The scope and nature of human relations: When it comes to employee relations there is a significant difference in how International human resource varies from domestic human resources in terms of the focus on the personal lives of the employees in an international context. Family life, schooling of the employee’s children and welfare of family members have to be taken into consideration in the management of human resources (Bonache & Stirpe, 2012). Domestic HRM may not focus much on more intimate issues concerning the employees thus bringing out the difference in that regard.
More Risk exposure: The international Human resource management framework has to be in cognizance of the risk inherent in various parts of the world where the organization may have extended its operation. Geo-political issues such as conflict and political instability in places such as South Sudan, Somalia, DRC presents a considerable challenge to expatriates in those countries. It is therefore the work of the international human resource management practitioner to meet the specific needs of employees confronted by such situations which is not an easy task. On the other hand domestic human resource management only has to deal with local socio-cultural issues.
Training and Capacity Development needs: Within the context of International human resources, training and capacity building is also quite complex. A firm’s level of internationalization affects decisions related to training and capacity development. Difference in training methodologies and difference in basic education curriculum in various countries makes decision making a bit complex. Standardization of training solutions therefore becomes more difficult to the IHRM practitioner.
Remuneration: Global firms and intergovernmental organizations face considerable difficulty in developing a globally competitive remuneration package. It has to consider a host of issues, namely, the respective Country’s legislations relating to employment and labour relations; taxation regimes, variation in the cost of living, economic conditions such as the rate of inflation, prices of commodities among others. Therefore the International human resource practitioners must come up with remuneration package that is globally competitive (Dowling & Welch, 2004).
References
Agarwala, T. (2007). Strategic Human Resource management, 1st ed. Oxford University, UK.
Bonache, J., & Stirpe, L. (2012). Compensating global employees. In Handbook of Research in
International Human Resource Management (2nd ed.; pp. 162–182). Cheltenham, UK: Edward
Elgar Publishing Limited.
Collings, D., & Scullion, H. (2012). Global Staffing. In Handbook of Research in International
Human Resource Management (2nd ed.). Cheltenham, UK: Edward Elgar Publishing Limited.
doi:10.4337/9781849809191.00014
Dowling, J., & Welch, E. (2004). International Human Resource Management. Managing People
in a Multinational Context (4th ed.). Thomson Learning.
Friedman, T. (2005). The World is Flat: The Globalized World in the Twenty-first Century. London:
Penguins Books.
Lee, W. (2007). Factors that influence expatriate failure: An interview study. International Journal
of Management, 24(3), 403–413.