You are on page 1of 5

International Human Resource Management

IHRM International HRM is the process of procuring, allocating and utilizing human resource in an MNC or a global firm.

Difference Between IHRM & HRM


1.HRM and IHRM are all about the management of the employees of organizations. There is a difference between both of them. HRM can be expanded as Human Resource Management. It indeed includes both employment and arbitration in accordance with the law and with the rules and regulations formed by the firm or the company. 2. IHRM on the other hand is the International Human Resource Management that can be defined as a set of activities aimed at managing the organizational factors of the human resources at the international level. This is the primary difference between the Human Resource Management and the International Human Resource Management.

3. Both the concepts show some difference between them when it comes to their features as well. It is very important to understand their features too. The features of the IHRM include the management of the additional activities such as expatriate management, cross cultural training. On the other hand the features of the HRM include manpower management, personnel management, organizational management and industrial management. 4. One of the primary differences between HRM and IHRM is that HRM is done at national level whereas IHRM is done at the international level. HRM is not affected by external factors where as the functioning of IHRM is sometimes affected by external factors. HRM is more concerned about managing employees belonging to one nation. On the other hand the International Human Resource Management is concerned with managing employees belonging to many nations.

4.Major differences between domestic HRM and IHRM Business activities e.g. taxation, international relocation, expatriate remuneration, performance appraisals, crosscultural training and repatriation Increased complexities e.g. currency fluctuations, foreign HR policies and practices, different labor laws Increased involvement in employees personal life e.g. personal taxation, voter registration, housing, childrens education, health, recreation and spouse employment Complex employee mix cultural, political, religious, ethical, educational and legal background Increased risks e.g. emergency exits for serious illness, personal security, kidnapping and terrorism

Approaches to IHRM
Major approaches to managing and staffing subsidiaries: Major approaches to managing and staffing subsidiaries Ethnocentric: company uses the approach developed in home country and the values, attitudes, practices and priorities of headquarters determine the HR policies and practices. Polycentric : company considers the needs of the local subsidiary when formulating human resource policies. Regiocentric : the company considers the needs of an entire region when developing the human resource policies and practices. Global or geocentric: The companys priority is the optimal use of all resources including human resources, local or regional considerations are not considered important for the success of corporate strategy.