HRM VS IHRM

Meaning of Human Resource Management and International Human Resource

Management (HRM and IHRM)

Human Resource Management is commonly defined as a strategic and coherent approach

to the management of an organization’s most valued assets – the people working there who
individually and collectively contribute to the achievement of its objectives. Another definition
delineates human resource management as ‘designing management systems to ensure that human
talent is used effectively and efficiently to accomplish organizational goals.

International Human Resource Management encompasses the distinctive features that emerge
through the global operations of MNCs in various parts of their processes. IHRM broadly covers all
issues related to the management of people in an international context. Morgan (1986) developed
a three-dimensional model of IHRM, which expose firstly the broad human resource activities of
procurement, allocation, and utilization, secondly the national or country categories involved in
IHRM activities (host, home, other), and lastly three categories of employees of an
international firm. Morgan defines IHRM as the interplay among these three dimensions. Generally,
IHRM involves the same activities as domestic HRM and focuses only on activities within only one
national boundary.

HRM VS IHRM

The internationalization of U.S. corporations has grown at a faster pace than the internationalization
of many organizations’ HRM efforts and staff. Broadly defined. IHRM is the process of procuring,
allocating, and effectively utilizing human resources in a multinational corporation. HRM
managers in MNCs must achieve two somewhat conflicting strategic objectives. First, they must
integrate HRM policies and practices across several different countries to achieve overall corporate
objectives. Simultaneously, the approach to HRM must be sufficiently flexible to allow for significant
differences in the types of HRM policies and practices that are most effective in different businesses
and cultural settings.

Although some argue that IHRM is not unlike HRM in domestic settings, others suggest that IHRM
differs from domestic HRM in several ways. In broad terms, IHRM involves the same activities as
domestic HRM (e.g. procurement refers to HRM planning and staffing); however, domestic

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HRM is involved with employees within only one national boundary.

For Example, IHRM necessarily emphasizes functions and activities such as relocation, orientation,
and translation services to help employees adapt to a new and different environment outside their
own country. Larger corporations have a full-time staff of HRM managers devoted solely to assisting
globalization. When compared to domestic HRM, IHRM requires a much broader perspective
on even the most common HRM activities. This is particularly so for HRM managers operating
from the MNC's headquarters location.

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