Difference

between IHRM and

Domestic HRM
CROSS CULTURAL MANAGEMENT
What is HRM?
Human Resource Management is the process of
managing people of an organization or company (in
both the private and the public sector) in a structured
and thorough manner in order to achieve the set
goals and targets as decided by the companys
management.
HRM includes the area of
Hiring people
Retaining them in the company
Negotiating their pay package and perks setting
Performance management
Change management
Taking care of the exit of the employees
Functions of HRM
1. Managerial functions
Planning
Organising
Staffing
Directing
Controlling
2. Operative functions
Procurement
Development
Compensation
Maintenance
IHRM
IHRM : Management of employees in the three nation
categories
Parent Country Nationals (PCN):A parent-
country national is an employee working in a country
which is not the country where his origin is based.
Host Country Nationals (HCN):These employees
of an organization are the citizens of the country in
which the foreign subsidiary is located.
Third Country Nationals (TCN):These are the
citizens of a country other than the country where
the organization is headquartered or the country
that is hosting the subsidiary.
Difference between HRM & IHRM
Human Resource Management (HRM): local recruitment,
management, and development of employees
International Human Resource Management (IHRM): recruitment,
management, and development of employees who come from other
countries.
Have similar functions, but IHRM also involves training and orientation
of employees with different cultures, religions, and ethicalvalues
while HRM does not.
HRM: affected by internals factors only; IHRM: internal as well as
external factors
HRM: Personnel management concerning people with the same
nationality and cultural environment
IHRM: Concerned with management of employees of diverse
nationalities and cultural environment
 Difference between IHRM & Domestic HRM
IHRM
It deals with a very broader
perspective
It considers the global laws
prevailing across the world.
More involvement in
employees lives happens
External influences & factors
affect the company.
Work force i.e. people from
different culture works
together
HRM
It deals with the very narrow
perspective looks only for the
domestic country HR
It considers the laws prevailing
in the country where company
is having its headquarters.
There are standard policies for
every employees working in
the country.
There are not much of external
influences affecting to the
company.
Generally, people from the
home country works.
There is a risk factor involved
i.e. Terrorism, crisis, etc.
There is a complexity involved
in handling different people
from different countries
Attitudes of senior
management people differ as
it involves dealing globally
Involvement of different
cultures do affect the
organizations culture
IHRM also includes all
functions of HR but to carry
them out the techniques and
methods are different.
A minimal of risk is involved as
compared to international
perspective.
It is relatively easy to handle
the employees as they belong
to same country.
Attitudes generally tend to be
the same with all employees.
As employees are generally
from same country, adoption of
culture is very feasible.
There is a standard technique
and method to carry out the HR
functions in organization.
THANK YOU!