Differences between Domestic and International HR Management

INTERNATIONAL HUMAN
RESOURCE
MANAGEMENT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................2
Domestic and international HRM....................................................................................................2
Factors diminishing or accentuating difference between HRM practices.......................................3
Complexity..................................................................................................................................3
Cultural environment...................................................................................................................6
Attitude of HR or senior management to international operations..............................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Human resource management (HRM) is defined as the approach to manage employees or
human resources of the organisation (Brewster and et.al., 2016). It includes various activities
such as recruitment, selection, induction, motivation, compensations and other strategies to
maintain good relations between employees and employers. With globalisation and improved
digital technologies majority of the organisations in hospitality industry are going international
with aim to maximise their market share. With increasing demand of such brands it has also
become vital for the companies to manage their human resources effectively so that service
quality and their brand aspects can be maintained.
However there exist various considerable differences between HRM practices as
domestic as well as at international level. For ensuring the success in international market
companies must evaluate the factors influencing their HRM practices. The report will discuss the
importance and key differences between domestic and international HR management. It will also
provide a critical evaluation of different factors which can influence the HRM practices in local
or international markets.
Domestic and international HRM
HRM emphasises upon strategic and effective use of human resources of the
organisation. As corporate strategy HRM helps organisation to gain competitive advantage so
that companies can enhance their performance and potential of employees can be explored fully.
In globalisation context there is huge difference between operations at local and global level
which causes difference between HRM practices at international level as compare to domestic
levels (Reiche and et.al., 2016). The key consideration which brings this difference is that for
organisations such as hotel Hilton, KFC, McDonald and other organisations or hospitality it is
required to manage their human resources and operational activities as per international policies.
The functions of HR department also seem to diversify with the internationalisation of
the organisational services. For example at domestic level organisations like Thomas Cook may
only provide training or health care services to their employees. However with the service
expansion at international level companies may require individuals who will travel from part of

the world to other. In such situations along with the compensatory benefits to employees,
organisation also gives facilities to take care of the families or children of such employees
(Reiche, Harzing and Tenzer, 2018). This kind of measures help organisation to assist employees
so that they can remain focused towards work while travelling from one place to other.
In addition to these operational and functional aspects it has been also observed that
international HRM is more risky than domestic one because in international context external
forces are either uncontrollable or not known to the organisation fully. In international HRM
heterogeneous functioning is an integral element of the HR practices. It not only explores or
utilises the skills or capabilities of employees but also involves personal life of employees,
greater emphasis on training as well as more controlling of external influences. IHRM also
consist of employees from various nations and thus is also influenced by huge differences and
possibilities of conflicts among different individuals (van Harten and et.al., 2017). In domestic
environment it may not be necessary for the organisations to take the consideration of relocation,
international taxes, and orientation of language translation needs. On the other hand these
elements are essential and integral part of the international HRM practices.
Factors diminishing or accentuating difference between HRM practices
Complexity
One of the key factors which accentuate the domestic and IHR is the nature of
complexity involved at both the levels. In the international market there are more severe
consequences and risks of failing in terms of financial as well as human resources. For
international corporations failure of HR functions may prove to be more risky and devastating.
For instance when companies such as hotel Hilton has management plan for domestic level only
then their training sessions, operational strategies, recruitment procedures as well as motivational
techniques depends upon domestic environments. In international environment the costing and
methods of these HR functions may vary drastically.
Since international regulations vary differently it is challenging and extremely complex
for an organisation to change its policies and functioning differently in different nations
(Dickmann, Brewster and Sparrow, 2016). For instance Hilton hotel pay different monetary