International Human Resource Management Essay 2022

Running head: INTERNATIONAL HUMAN RESOURCE MANAGEMENT
International Human Resource Management
Name of the Student
Name of the University
Author note

INTERNATIONAL HUMAN RESOURCE MANAGEMENT1
Introduction
The essay throws light in the analysis of the differences between the International
Human Resource Management along with Domestic HRM practices. In the current scenario,
it has been analyzed that the major and actual reason for the overall failure of the
Multinational Corporations is that they are not capable of understanding the differences in
management of the HR in foreign environments.
In the assignment, the main aim and purpose is to understand the different points in
analysing difference between international and domestic HRM for making the companies
succeed in both kinds of environments. The concepts which will be discussed in the essay
includes domestic HRM, international HRM, analysis of the differences and similarities of
the same. The organization which has been analysed in the essay is Tesco which helps in
analysing the same in an effective manner.
Literature Review
As commented by Pudil et al. (2018), the world has become highly globalized as well
as competitive than before and as there are different firms which have started operating in
international marketplace, there has been extensive kind of search for the various elements of
the competitive advantage. The main component of gaining high level of competitive
advantage over the different competitors can be calculated in terms of the HRM especially in
Human Resource Management. The overall quality of the management seems to be one of the
critical elements in international HRM in comparison to the Domestic HRM.
As opined by Pokharel (2016), human resource management is considered to be the
activities which have been undertaken by the companies in efficient manner for utilising the
human resources. The different activities include staffing, performance management aspects,

INTERNATIONAL HUMAN RESOURCE MANAGEMENT2
training as well as development, compensation and benefits along with planning. As
described by Haak-Saheem, Festing and Darwish (2017), the IHRM is considered to be the
different set of activities which aims in managing the organizational kind of HR at the
international type of level for achieving the organizational goals and competitiveness against
the different national as well as international aspects which are available.
On the other hand, as opined by Garavan, McCarthy and Carbery (2017), the domestic
HRM is considered to be process of procuring, allocating along with efficiently using the
human resources in the different local countries. From the terms, it is clear that domestic
HRM works within the local or national borders and on the other hand, international HRM
works in the international market and it goes beyond the domestic market as well. In addition,
as opined by Farndale et al. (2017), the international HRM is being characterised by the
different heterogenous functions which includes the greater level of inclusion as well as
participation in the private life of different employees, unique approach in managing the
training and development processes.
Moreover, as described by Farndale et al. (2019), the international HR Managers are
required to become more diligent as there is high level of dissatisfaction in the multinational
companies in comparison to the other domestic companies. Fan et al. (2016), have
commented that the IHRM is mainly concerned with overall management of different
employees belonging to different nations as in case of the domestic HRM, it is mainly
concerned with the management of employees who belongs from the particular nation. For
instance- In case of Tesco Supermarket, while they are operating their business in the
economy of the United Kingdom, they do not have to face much difficulties as the employees
are belonging from UK or other parts near UK. Tesco UK, is considered to be domestic HRM

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which mainly managing the limited number of the HRM related activities at the national level
(The Guardian.com 2020).
However, on the contrary, as commented by Edwards et al. (2016), the International
Human Resource Management is complicated as it is mainly affected as well as influenced
heavily by the different other cultural factors such as differences along with other
institutional factors. For instance- In case of Tesco, while they have established their
business in India or China, the culture of the different countries varies from one another. In
such scenario, the top management of Tesco faced difficulties as they were quite unaware
regarding the different cultural aspects of the customers. There was a time when Tesco
decided to step back from going in China as it failed to understand Chinese customers and it
impacted their business badly.
Due to the cultural differences, it led to the failure of Tesco in Chinese market and it
created difficulties in managing their business effectively. According to the different surveys,
it has been noticed that Tesco had mistaken the fact that the Chinese customers will be happy
with the concept of the Clubcard as it helped them in proving popular in the market of the
United Kingdom. However, it flopped in an ineffective manner in China as they were unable
to understand the different preferences of the customers in the market and it impacted their
profitability negatively. From the instance of Tesco in the market of China, it can be seen that
the International Human Resource Management is complicated as they are heavily affected
by the different external factors which includes institutional factors that create difference in
the managing of the company’s activities in the international environment.
However, in the economy of the United Kingdom, it has been noticed that the
Clubcard is one of the significant elements which has been able to make Tesco an appropriate
shopping hub for the different customers for the different retailing. Moreover, in case of the