TOPIC

:DIFFERENCES
BETWEEN
INTERNATIONAL &
DOMESTIC HRM
WHAT IS 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.
WHAT IS 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.
 The industry within
which the
The cultural environment multinational is
primarily involved

Complexity
Domestic & involved in
Attitudes of international operating in
senior activities of the different countries
management HRM function and employing
different national
categories of
Extent of reliance of the employees
multinational on its
home- country
domestic markets
DIFFERENCE BETWEEN INTERNATIONAL &
DOMESTIC HRM
INTERNATIONAL HRM DOMESTIC
HRM
1. Domestic HRM
1. IHRM is done
is done at national
at international level.
level
• IHRM is concerned • Domestic HRM is
with managing concerned with
employees belonging managing
to many nations. employees
belonging to one
nation.
• IHRM has concerned with • Domestic HRM is
managing additional concerned with
activities such
managing limited
expatriate management.
as
number of HRM
• IHRM is very complicated
activities at national
as it is affected heavily
• level.
Domestic HRM is less
external factors such
by
cultural differences and
as complicated due to
institutional factors. influence from the
external environment.
• Human resource managers • Human resource
working in an managers in domestic
international environment environment administer
face the problem of HR programmes to
addressing HR issues of employees belonging to
belonging
employeesto more than one a single nationality.
nationality. Hence, these
HR managers need to set
up different HRM systems
different locations.
for
• International HRM requires
• In the domestic environment,
greater involvement in the the involvement of the HR
personal life of employees. manager or department with
The HR manager of an MNC an employee’s family is
must ensure that an limited to providing family
executive posted to a insurance programmes or
foreign country understands transport facilities in case of
all aspects of the a domestic transfer.
compensation package
provide in the foreign
assignment, such as cost
of
living, taxes, etc.
• International HRM has to • Domestic HRM has to
deal with more external deal with less
factors than domestic HRM. external than IHRM.

• There are more risks • There are fewer risks

involved in IHRM than in involved in domestic
the domestic HRM than in
HRM. international HRM.