The difference between IHRM and Domestic HRM in culture environment
The cultural environment in international human resource management differs from domestic HRM in many ways because it has to consider more factors than domestic HRM.
1-domestic HRM is caring about margining employees form one nation, unlike international human resource is care about managing employees from many nations such as home country, the host country, and third country employees.
2. The international human resource management managers have to deal with huge IHRM activities that include, international human resource issues of employees belonging to more than one nationality. while domestic HRM managers deal with issues related to employees belonging to one nationality.
3. International human resource management has to deal with a broader range of activities more than domestic HRM. For instance, taxation, coordinating foreign currencies, exchange rates, international relocation, and Educate employees about working in an international environment.
4-Increased exposure to risks in international tasks; human and financial implications of errors in international human resource management is extremely severe.
Discussion Forum Activity for Week 2
Dowling et al (2016) and Dowling (1999) Identify 5 variables that moderate the difference between domestic and international HRM:
- Complexity involved in operating in different countries and employing different national categories of employees (which I have already discussed)
- The cultural environment
- Extent of reliance of the multinational on home country domestic markets
- Attitudes of senior management
- The industry or industries within which the multinational is primarily involved
You are third year students that have been exposed to a range of IB and HRM topics. You should all be aware of external and organisational factors that impact Human Resource Management and/or managing International Business. You are required to select one of the 5 variables referred to above (but not complexity) and identify three examples of how it impacts differently on domestic and international HRM.