Difference between Domestic and International HRM: A Case Study of Starbucks

This study discusses Starbucks and the difference that comes in managing human resource in foreign environment. It shows the key points that strike the difference between domestic and foreign HRM. The study highlights the importance of employee mix, broader outlook, high involvement in personal lives of employees, and lack of familiarities in international HRM. It also discusses how Starbucks manages its human resources in foreign environments. The study is based on the analysis of various books and journals.

MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION
MAIN BODY
Key factor that strikes the difference between domestic and international
HRM
CONCLUSION
REFERENCES

INTRODUCTION
 Management is the process of planning, organising, staffing, directing and controlling human
efforts to achieve organisational goals or objective. Starbucks is a U.K oriented largest coffee
chain in the world.
 It was founded by Jerry, Zev and Gordon in year 197 in Washington. Expanding itself year by
year now the Starbucks has become a universal coffee cafe brand serving in almost every
country of the world.
 This study is going to discuss Starbucks and the difference that comes in managing human
resource in foreign environment also it will show the key points that strike the difference
between domestic and foreign HRM.

MAIN BODY
Key factor that strikes the difference between
domestic and international HRM.
 Domestic Human resource management is mixed up with the working of employees in one and
only single country.
 International human resource management is involved with working of employees in different
nation categories such as- home, host and third country.
 IHRM manages outside the geographical boundaries of a country whereas DHRM manages
within the geographical boundary.
 IHRM have to manage employees from many nations whereas DHRM have to manages
employees of their domestic nation.

 Employee mix- In IHRM, high importance is on transformation in hired hand mix mainly in the
terms of employee's nationality. Most often, this happens when a firm start it's business in a
international country. They took high number of recruits from there origin country.
 When Starbucks introduced their first coffee store internationally they have recruited employees of
their country living in the foreign country which have created it's mass favourable image in the
foreign country. IHRM involves high risk and cost of establishment as compared to DHRM.
 Broader Outlook – In comparison with domestic HRM, foreign HRM must needs wider outlook in
all the activities of HR.
 This says that manager of HR have to keep in mind many factors while making decision on any of
the issue of international HRM. Many of these factors are not even in domestic HRM

 In Starbucks while fixing compensation packages HR's have to seek in the cost of living of different location
so that they can give equal benefit to their employees working in different international locations.
 High involvement in personal lives of employees- As compared to DHRM, Human resource departemen
involves themselves more in employees private life in IHRM because of safety of employees or to ensure
that the employee living out of their home country are placed suitable in the location that they are not
regular or familiar with.
 Lack of familiarities such as living quarters, legal factors and health factors. In Starbucks there are high
number of employees working in different countries so to ensure their safety and taking care of them. They
have created a special unit(International Human Resource Service)to stay in touch with them and helping
them with some sort of problems.

CONCLUSION
 This discussion had taught us about how an organisation differs everything according to IHRM and
DHRM, it has also taught the difference of both of these HRM.

REFERENCES
(BOOKS AND JOURNAL)
 Furusawa, M. and Brewster, C.,2019. The determinants of the boundary-spanning
functions of Japanese self-initiated expatriates in Japanese subsidiaries in China:
individual skills and human resource management. Journal of International
Management,25(4), p.100674
 Meyer, K.E. and Xin, K.R., 2018. Managing talent in emerging economy multinationals:
Integrating strategic management and human resource management. The International
Journal of Human Resource Management,29(11), pp.1827-1855.
 Otoo, F.N.K., 2019. Human resource management (HRM) practices and organizational
performance: The mediating role of employee competencies.Employee Relations: The
International Journal.