Differences between domestic and international HRM

This presentation discusses the differences between domestic and international HRM, including their meanings, roles, cultural aspects, and perspectives. It also explores the importance of international HRM for businesses expanding their operations in different countries.

International Human Resource
Management (IHRM)

Differences between domestic and
international HRM
Basis of Differences Domestic HRM International HRM
Meaning It is defined as HRM which involved with
managing of employees at one country.
This is defined as management of staff in more
than one country especially in three nations
such as parent, host and third country.
Role The main role of HRM includes retaining, hiring
employees, performing negotiation of salary,
performance management and so on (Domestic
HRM vs International HRM, 2020).
The main role of international HRM is
achievement of balance among controller and
coordinator of global subsidiaries and adapting
towards local environments.
Cultural Domestic HRM does not have to face cultural
differences because majority of staffs belong to
same category or social community.
International HRM has to face multi-cultural
differences in order to operate local subsidiary
of parent business.
Perspective In context of domestic HRM, issues is narrow in
nature.
The perspective of international HRM is
broader in nature.

Cont..
In order to known about international market in proper manner,
McDonald's has to apply international HRM theory which is
described below:
 Environmental Factors: This includes characteristics of
industry and competitive environment. McDonald's is large
fast food industry which is operating their business activities
and operations in different parts of world (Thornton and
et.al., 2016).

Cont..
• Corporate Strategic Issues - This includes global competitive
strategy, internationalisation strategy, centre subsidiary relations.
While running business at international market, McDonald's has to
determine structure, culture, processes of both domestic as well as
global setting and strategies for business performance (Chai, 2019).

Cont..
• IHRM Policies and Practices - While running business at
international market, it is very important for McDonald's to follow
all policies and practices for effective results. In this elements they
have to consider different policies as well as practices in terms of
maintaining employee relations, appraisal, training and
development, planning, staffing and compensation (Duggal and
Alexander, 2018).

Conclusion
From the above report, it has concluded that international HRM is
important for business to expand their operation and functions in
different countries. While doing internationalisation, organisation
has to face different problems for attainment of goal and objectives.
It is difficult for enterprise to understand difference of HR policies
to manage global environments.

References
Stone, D. L. and et. al., 2015. The influence of technology on the future of human resource
management. Human Resource Management Review. 25(2). pp.216-231.
Voegtlin, C. and Greenwood, M., 2016. Corporate social responsibility and human resource
management: A systematic review and conceptual analysis. Human Resource Management
Review. 26(3). pp.181-197.
Duggal, R. and Alexander, P., 2018. Staff management training in McDonalds.
Chai, W.J., 2019. The Effects Of Liquidity Risk And Market Risk On Mcdonald’S Corporation
Performance From 2014 To 2018.
Thornton, L.E. and et.al., 2016. The impact of a new McDonald's restaurant on eating behaviours
and perceptions of local residents: A natural experiment using repeated cross-sectional data.
Health & place, 39, pp.86-91.

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