Differences in Approach and Perspective between Domestic and International Human Resources

7HR007: International
Human Resources-
Contemporary Issues

TABLE OF CONTENTS
ACADEMIC PAPER 1....................................................................................................................3
Introduction..................................................................................................................................3
Literature review..........................................................................................................................3
Literature review..........................................................................................................................6
Remote multi cultural working .................................................................................................10
Academic sources role in future management ..........................................................................13
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................18

ACADEMIC PAPER 1
Topic: To analyze the differences in approach and perspective between Domestic and
International Human Resources
Introduction
Human resource management can be defined as the process and practices of managing
the employees of an organisation for achieving optimally higher productivity. It can be defined
as a strategic approach the is needed in the management for gaining competitive advantage,
achieve the company goals and objectives and maximisation of people performance. It involves
practices like recruitment, selection and hiring, onboarding, training and development,
compensation and performance management, succession planning, employee motivation and
retention etc (Michael, 2019). International HRM is associated with management of employees
that belong to many nations usually host country, home country and third country nationals;
while domestic HRM is concerned with managing personnel that belong only to one nation. This
academic paper will discuss two types of human resource management. International and
domestic and try to understand the approaches and perspectives of both.
Literature review
According to Fattaah, Singh and Darwish, (2020) the approaches to HRM is concerned
with management of a limited number of activities as it operates within one nation and
subsequently is affected by a limited degree of external factors. The human resource managers
present in a single nation tend to administer all HR programs, policies, employee legislations,
regulations and requirements in context to the specific country standards. In such domestic
environments, the approaches used are aimed and focussed at single cultures and country people
and the perspectives are relatively less wide. The processes of procurement, allocation and
utilisation of personnel is limited locally for gaining competitive advantage. Domestic HR tends
to deal with a less diverse workforce and the polices implemented don’t give a great emphasis on
workforce diversity and cross-cultural sensitivity. The approaches to training, compensation,
hiring is not a highly complex procedure (Fattaah, Singh and Darwish, 2020).
As per Routledge, Ariss and Sidani, (2016) international HRM is generally characterised
by high complexity, need for a broader perspective, higher involvement in the personal lives of
the employees and closely managing them. There is also a higher emphasis on the employee mix,
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change management, higher risks and more degree of impact by external environmental factors.
The global HRM addresses a broad range of activities in comparison to domestic human resource
management. At global levels, the personnel management have to deal with elements like
international taxation, coordination in terms of exchange rates and foreign currencies, global
recruitment drives and internal orientation programs that support assisting various cultures.
Routledge, Ariss and Sidani, (2016) also states that IHRM is concerned with workers that work
across nationalities and the management needs a greater level of involvement as employees
might be an expatriate and staying abroad to conduct company functions. The MNC HR manager
needs ensuring various aspects like the environment of the foreign workplaces, compensation
and benefits, cross cultural training and development through workshops especially for
expatriates. A global HRM provides greater exposure to workers due to different international
assignments and learning opportunities in comparison to local projects. Aside from this, there is
a high tendency that global HRM could face more risks and costs along with facing internal
political, economic and societal factors and implementing internal laws and regulation-based
employee policies (Routledge, Ariss and Sidani, 2016). At the same time it can be stated that
there is high exposure of risk in international HRM in contraction with domestic HRM as there
are different types of risk associated like Political, regulatory etc. Thus, such risk can lead to
serious consequences like social boycott of parent country nationals so international HR manager
needs to be very careful in taking decision related to issue of international HRM.
From the point of view of Doğru, (2019), IHRM is completely different form domestic
human resources management, as there are more varied activities that need to be performed by
HR at international level. It can be stated that international HRM has broad perspective because
it has to considered variety of factors while making decision or any issue of international HRM.
Thus, all these factors are not relevant to domestic HRM while taking decision making process.
International human resources required to be more involved in the process so that it can be
suitably placed employees in international location in which they are more familiar. Thus they
can easily complete the task in more familiar environment and contribute their best for
achievements of end goals. In international human resources management, there is more
emphasis in employees mix in terms of nationality of employees. Like in many circumstances
HR manager recruit employees normally from country of its origin so that company have
favourable image in the country. Therefore this approaches resulted in increasing proportion of
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