The differences and similarities between

IHRM and HRM

Mohamed Rasheed
What is HRM?
• Human Resource Management (HRM) refers to the
strategic and coherent approach to the management
of an organization's most valuable assets – its
people. HRM involves the planning, organization,
recruitment, selection, training, development,
motivation, and management of employees to
achieve organizational goals effectively and
efficiently.

(Brewster, Sparrow & Vernon, 2007)

What is IHRM?
• International Human Resource Management
(IHRM) is an extension of traditional Human
Resource Management (HRM) that specifically
focuses on managing human resources in a global
context.

(Noe, Hollenbeck, Gerhart & Wright, 2017)

How is IHRM different from HRM?
• While HRM primarily deals with managing
personnel within a single country or region, IHRM
involves dealing with employees who are from
different countries and who may be working in
various locations around the world.
• It encompasses a range of activities and
considerations unique to the international or global
business environment.

(Brewster, Sparrow & Vernon, 2007)

Differences between HRM and IHRM
• Scope:

• IHRM: Manages human resources on a

global scale.
• HRM: Primarily focuses on domestic
human resource management.
Differences between HRM and IHRM
• Complexity:
• IHRM: Deals with complexities arising
from diverse cultures, laws, and economic
systems.
• HRM: Faces simpler challenges within a
specific national or regional context.
(Brewster, Sparrow & Vernon, 2007)
Differences between HRM and IHRM
• Legal Compliance:
• IHRM: Involves adherence to a variety of
international laws and regulations.
• HRM: Complies with domestic laws and
regulations.

(Noe, Hollenbeck, Gerhart & Wright, 2017)

Differences between HRM and IHRM
• Staffing:
• IHRM: Involves managing a diverse workforce across
different countries.
• HRM: Focuses on staffing within a single geographical
area.

(Brewster, Sparrow, Vernon, 2016)

Differences between HRM and IHRM
• Compensation:
• IHRM: Considers currency variations and cost of living in
designing compensation structures.
• HRM: Designs compensation packages based on local market
conditions.

(Brewster, Sparrow & Vernon, 2007)

Similarities between HRM and IHRM
• Strategic Alignment:
• Bothaim to align HR practices with
overall organizational strategy.

(Brewster, Sparrow, Vernon, 2016)

Similarities between HRM and IHRM
• Employee Development:
• Emphasize employee training, development,
and continuous learning.

(Noe, Hollenbeck, Gerhart & Wright, 2017)

Similarities between HRM and IHRM
• Performance Management:
• Involve monitoring and managing employee
performance through appraisals and feedback.

(Brewster, Sparrow & Vernon, 2007)

Similarities between HRM and IHRM
• Employee Relations:
• Address issues related to employee
relations, motivation, and workplace
culture.

(Noe, Hollenbeck, Gerhart & Wright, 2017)

Similarities between HRM and IHRM
• Ethical Considerations:
• Both IHRM and HRM need to uphold ethical standards in their
practices.
(Brewster, Sparrow & Vernon, 2007)
Conclusion
• In conclusion, Human Resource Management (HRM) and
International Human Resource Management (IHRM) differ in
scope, complexity, and global considerations. HRM focuses on
local workforce management, while IHRM navigates the
complexities of a diverse, global workforce, addressing cross-
cultural challenges and international legal compliance.
References
• Brewster, C., Sparrow, P., & Vernon, G. (2007). International
human resource management. CIPD Publishing.
• Brewster, C., Sparrow, P., & Vernon, G. (2016). International
Human Resource Management. Routledge.
• Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017).
Human resource management: Gaining a competitive advantage.
McGraw-Hill Education.