Difference between Domestic HRM and International HRM
Domestic HRM
Domestic HRM is the process of
procuring, allocating and
effectively utilising the human
resources in local countries. By
the name itself, you should
already have an idea that IHRMs
work internationally or beyond
national borders, whereas its
domestic counterpart works
within the set, local, national
borders.
Domestic HRM operates within
the national borders
Domestic HRM is concerned
with managing employees
belonging to one nation.
Domestic HRM is less
complicated due to less influence
from the external environment
Domestic HRM is concerned
with managing limited number
of HRM activities at national
level
Human resource managers in Human
domestic environment administer working
International HRM
IHRM can be defined as set of
activities aimed managing
organisational human resources
at international level to achieve
organisational and achieve
competitive advantage over at
national and international level.
IHRM operates beyond national
borders
IHRM is concerned with
managing employees belonging
to many nations (home country,
host country and third country
employees).
IHRM is very complicated as it
is affected by external factors
such as cultural distance and
institutional factors.
IHRM is concerned with
managing additional activities
such as expatriate management.
resource managers
in an international
HR programmes to employees environment face the problem of
belonging to a single nationality. addressing HR issues of
employees belonging to more
than one nationality. Hence,
these HR managers need to set
up different HRM systems for
different locations.
 In the domestic environment, International HRM requires
the involvement of the HR greater involvement in the
manager or department with an personal life of employees. The
employee’s family is limited to HR manager of an MNC must
providing family insurance ensure that an executive posted
programmes or transport to a foreign country understands
facilities in case of a domestic all aspects of the compensation
transfer. package provide in the foreign
assignment, such as cost of
living, taxes, etc.
Domestic HRM has to deal with International HRM has to deal
less external than IHRM. There with more external factors than
are fewer risks involved in domestic HRM. There are more
domestic HRM than in risks involved in IHRM than in
international HRM. the domestic HRM.