Resource Management (HRM) plays a pivotal role in the success of any organization. It encompasses various functions such as recruitment, training, and compensation, which are essential for managing a company’s workforce. HRM can be broadly classified into two categories: Domestic HRM (DHRM) and International HRM (IHRM). This article delves into the differences between DHRM and IHRM, highlighting their scope, employee placement, HRM activities, involvement of HR managers, exposure to risks, and external factors.
Scope
DHRM is concerned with managing employees within a single country, while IHRM manages employees across multiple countries. DHRM operates within the national boundaries, while IHRM extends beyond national borders.
Key Facts
- Scope: Domestic HRM (DHRM) manages employees within a single country, while International HRM (IHRM) manages employees across multiple countries.
- Employee Placement: In DHRM, employees work within the national boundaries, whereas in IHRM, employees are placed and work outside national boundaries.
- HRM Activities: DHRM focuses on a narrow range of HRM activities, while IHRM addresses a broad range of HRM activities.
- Involvement of HR Manager: In IHRM, there is a higher involvement of HR managers in the personal lives of employees, while in DHRM, there is less involvement.
- Exposure to Risks: IHRM has a higher exposure to risks in international assignments, while DHRM has limited risks in domestic assignments.
- External Factors: IHRM deals with several external factors, such as government regulations of foreign countries, while DHRM deals with fewer external factors.
Employee Placement
In DHRM, employees work within the national boundaries of the country where the organization is headquartered. In contrast, IHRM involves placing employees outside the national boundaries, often in different countries.
HRM Activities
DHRM focuses on a narrow range of HRM activities, such as recruitment, training, and compensation, which are specific to the domestic context. IHRM, on the other hand, addresses a broad range of HRM activities, including cross-cultural management, expatriate management, and global compensation and benefits.
Involvement of HR Manager
In IHRM, there is a higher involvement of HR managers in the personal lives of employees. This is because HR managers need to ensure that employees are well-adjusted to the new cultural and social environment in the host country. In DHRM, there is less involvement of HR managers in the personal lives of employees.
Exposure to Risks
IHRM has a higher exposure to risks in international assignments. These risks include political instability, economic downturns, and cultural differences. DHRM, on the other hand, has limited risks in domestic assignments, as employees are familiar with the local culture and legal framework.
External Factors
IHRM deals with several external factors, such as government regulations of foreign countries, cultural differences, and economic conditions. These factors can significantly impact the management of employees. DHRM, on the other hand, deals with fewer external factors, as it operates within a single country.
Conclusion
DHRM and IHRM are two distinct areas of HRM with different scopes, employee placement, HRM activities, involvement of HR managers, exposure to risks, and external factors. DHRM is focused on managing employees within a single country, while IHRM extends beyond national borders and addresses the challenges of managing a diverse workforce in multiple countries.
References
- Are you confused with Domestic HRM vs. International HRM? Read this.
- Difference between IHRM and DHRM – GeeksforGeeks
- Domestic HRM vs. International HRM – Alp Consulting
FAQs
What is the primary difference between domestic HRM and international HRM?
The primary difference lies in their scope. Domestic HRM manages employees within a single country, while international HRM manages employees across multiple countries.
How does employee placement differ between domestic HRM and international HRM?
In domestic HRM, employees work within the national boundaries of the country where the organization is headquartered. In international HRM, employees are placed outside the national boundaries, often in different countries.
What are the key external factors that international HRM must consider?
International HRM must consider several external factors, such as government regulations of foreign countries, cultural differences, economic conditions, and political stability.
How does the involvement of HR managers differ in domestic HRM and international HRM?
In international HRM, there is a higher involvement of HR managers in the personal lives of employees to ensure their adjustment to the new cultural and social environment. In domestic HRM, there is less involvement of HR managers in the personal lives of employees.
What are some of the risks associated with international HRM?
International HRM is exposed to risks such as political instability, economic downturns, cultural differences, and legal complexities.
How does the range of HRM activities differ between domestic HRM and international HRM?
Domestic HRM focuses on a narrow range of HRM activities specific to the domestic context, such as recruitment, training, and compensation. International HRM, on the other hand, addresses a broad range of HRM activities, including cross-cultural management, expatriate management, and global compensation and benefits.
What are the challenges faced by HR managers in international HRM?
HR managers in international HRM face challenges such as managing a diverse workforce, dealing with cultural differences, complying with multiple legal and regulatory frameworks, and ensuring the well-being of employees in foreign countries.
What are the benefits of effective international HRM?
Effective international HRM can lead to increased global competitiveness, access to a wider talent pool, improved employee engagement, and enhanced innovation and creativity within the organization.