HRM Vs IHRM PDF

FACULTY OF INTERNATIONAL HUMAN RESOURCE MANAGEMENT
ASSISGNMENT COVER PAGE

Please fill in all the required details for your case study to be accepted.
Student’s Name Muhammed Mashboob RM

Student’s Matric No LC000122000010
Year/Semester 4TH semester
Program Master in Business Administration in Human Resource Management
Lecturer’s Name Ms.Priyanka
Assignment Title
HRM v/s IHRM
No. of Pages
(excluding this page) 3
Required words Actual # of words

Soft copy included Yes / No
DECLARATION BY STUDENTS:
I certify that this case study is my own work in my own words.All resources have been acknowledged
And the content has not been previously submitted for assessment to LINCOLN or elsewhere.I also
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HRM v/s IHRM
Management is the efficient operation of a business or organization towards

the achievement of its goals and objectives. It involves the management of its
financial, capital, and human resources which comprises its financial value. It has
several branches such as: financial, marketing, strategic, production, operations,
service, information technology, human resource management, and in the case of
organizations that hire expatriates, international human resource management.
Human Resource Management (HRM) is defined as a management function
that deals with the recruitment, management, and development of employees in
order to maximize their potential and roles in the company or organization.
Not only is it utilized in personnel management but also in manpower,
organizational, and industrial management. It is previously referred to as personnel
management. Its functions include:
Job analysis and planning, determining the specific personnel needs of a certain job.
Personnel and workforce planning, choosing whether to hire contractors or
independent employees. Recruitment and selection, hiring the best candidate for the
job. Induction and orientation, making sure that the employees are aware of the
organization’s goals and policies. Wage and salary regulation, making sure that
employees are properly compensated. Training, development, and performance
appraisal in order to enhance employees’ potential and utilize his expertise in the
achievement of the organization’s goals. Benefits administration, to make sure that
employees get what are due to them. Resolving labor disputes, making sure of good
relations between the management and employees.
HRM strategies always pursue the achievement of the organization’s goals
and objectives. It cooperates with senior management in developing corporate
strategies and in the proper management of its personnel.
International Human Resource Management (IHRM), on the other hand, is
defined as a management function which deals with the management of personnel
who are stationed in other countries or who are citizens of other countries that are
hired to work in the organization.
Like HRM, its functions also include recruitment, planning, training,
performance appraisal, and compensation. Unlike it, however, IHRM functions
involve cross-cultural training such as orienting employees with different cultural,
ethical, and religious values. It also involves global skills management. While HRM
is affected only by internal factors, IHRM is affected by both internal and external
factors because it involves the management of employees that come from several
countries.
International human resource management bears both functional and strategic
resemblance to human resource management. Functionally it performs almost the
same set of activities as human resource management – recruitment, selection,
performance management, compensation, training, industrial relations, career
management etc. Strategically international HRM is closely linked to the business
strategy of the organization.
Hence international human resource management can be defined as the set of
activities involved in hiring, managing performance, compensation, training and
relations with employees hired to manage internal operations of a company, with a
view to ensure the success of their international business and strategies.
International human resource management differs from domestic human resource
management primarily in terms of the complexity associated with managing people
across national boundaries.
DIFFERENCES
1. IHRM operates beyond national borders while domestic HRM operates within the
borders.
2. Domestic HRM is concerned with managing employees belonging to one nation
and IHRM is concerned with managing employees belonging to many nations (home
country, host country and third country employees).
3. IHRM is subject to more stringent international rules & regulations as opposed to
domestic HRM.
4. Domestic HRM is concerned with managing limited number of HRM activities at
national level and IHRM is concerned with managing additional activities such as
expatriate management.
5. Domestic HRM is less complicated due to less influence from the external
environment. IHRM is very complicated as it is affected by external factors such as
cultural distance and institutional factors.
6. IHRM is much more complex, involves more risk, and comparatively challenging
than domestic HRM.
Difference between IHRM and Domestic HRM
IHRM is done at international level Domestic HRM is done at national level
IHRM is concerned with managing employees Domestic HRM is concerned with managing
belonging to many nations employees belonging to one nation
IHRM is concerned with managing additional Domestic HRM is concerned with managing
activities such as expatriate management. limited number of HRM activities.
IHRM is very complicated as it is affected Domestic HRM is less complicated due to

heavily by external factors such as cultural influence from the external environment.
differences and institutional factors.
Human resource managers working in an Human resource managers in domestic

international environment face the problem of environment administer HR programmes to
addressing HR issues of employees belonging to employees belonging to a single nationality.
more than one nationality. Hence these HR
managers need to setup different systems for
different nationalities.
International HRM requires greater In the domestic environment, the
involvement in the personal life of employees. involvement of the HR manager or
The HR managers of an MNC must ensures that department with an employee’s family is
an executive posted to a foreign country limited to providing family insurance
understands all aspects of the compensation programmes or transport facilities in case of
package provide in the foreign country domestic transfer.
There are more risks involve in IHRM than in There are fewer risks involved in domestic
domestic HRM. HRM that international HRM.

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FACULTY OF INTERNATIONAL HUMAN RESOURCE MANAGEMENT

ASSISGNMENT COVER PAGE

Student’s Name Muhammed Mashboob RM

Required words Actual # of words

Management is the efficient operation of a business or organization towards

IHRM is done at international level Domestic HRM is done at national level

IHRM is very complicated as it is affected Domestic HRM is less complicated due to

Human resource managers working in an Human resource managers in domestic

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