International HRM vs Domestic HRM: A Comparative Report for Tesco

This report provides a detailed comparison between International Human Resource Management (IHRM) and Domestic Human Resource Management (DHRM). It explores the fundamental differences, such as the scope of operations, risk factors, and the influence of external factors like cultural and institutional differences. The report also highlights the similarities, including shared HR functions like planning, recruitment, and performance management. Furthermore, the report uses Tesco as a case study to illustrate the practical application of IHRM in a multinational context, discussing its impact on the company's objectives, costs, and resources. The conclusion emphasizes the importance of understanding these differences for companies expanding internationally, particularly in terms of managing employees and adapting to diverse business environments. The report references several academic sources to support its analysis.

INTERNATIONAL AND
DOMESTIC HRM
TESCO

TABLE OF CONTENT
• INTRODUCTION
• Differences between International HRM and Domestic HRM
• Similarities between International HRM and Domestic HRM
• CONCLUSION

INTRODUCTION
• International HRM is the
process of acquiring,
allocating and utilizing
human resources in a global
business to achieve the
predetermined objectives.
While, Domestic HRM
works within the set, local
and national boundaries.

DIFFERENCES BETWEEN INTERNATIONAL
HRM AND DOMESTIC HRM
Basic Domestic HRM International HRM
Definition If the HRM is concerned only with the interests of
domestic employees, can be termed as domestic human
resource management,
On the other side, if the HRM takes care of interests of
global employees along with domestic employees then
it will be termed as international HRM.
Employees management Domestic HRM is concerned with managing
employees within one nation only.
IHRM is concerned with managing employees to many
nations.
Complications It is concerned with limited number of managing HR
activities at national level.
It is very complicated as it is heavily affected by
external factors such as cultural issues, institutional
factors any more.

CONTINUE
Risk level There is lesser risk factors involved in domestic factors. In comparison to domestic HRM, the level of risk is very
high as it crosses local boundaries.
HR activities Domestic HRM deals with issues related to employees
belonging to single nationality.
IHRM addresses broad range of activities.
Impact of internal & external factors Domestic HRM deals more with internal factors like
recruiting, selecting, labor supply and compensation,
employees relations and many more.
IHRM has to deal more with the external factors as it
includes government regulations about staffing practices in
foreign locations, local code of conduct and many more.

CONTINUE
SCOPE Domestic HRM is involved with employees, labour
and other resources within one national boundary
only.
IHRM deals with three national or country categories
i.e. the parent company where the firm is actually
originated & headquartered, the host country where
the subsidiary is located and other countries from
other countries where the organization may source the
labour, finance and research and development.

SIMILARITIES BETWEEN INTERNATIONAL
HRM AND DOMESTIC HRM
• Both of the domestic and international HRM have same major functions and activities in HR
planning, recruiting, performance management, training and development, compensation,
employee and industrial relations and many more.
• One of the similarity between both HRM is that both regard putting the right people to the right
job as one of the overall goals of managing activities and people at the workplace.
• Both are affected by external factors like new technologies, policies, rules and regulations,
competitors, innovation and development and many more that affects business firm and their
strategies.

CONCLUSION
• As per the above studies, when multinational companies invest in a country and creates
employment opportunities, and responsible for increased incomes and expenditures in the
economy of the host country stimulating growth. MNCs involvement oftens results in the lack of
development of local R&D to host countries of technology. The use of capital intensive
technology that reduces jobs and increase the psychological dependence on multinational
corporation. As discussing about the company Tesco, it has crossing national boundaries, it starts
their business in London then spreads with other boundaries like Europe, Asia. The company
must know the differences and similarities between international HRM and domestic HRM that
can affects company's objective, costs and profits, resources and many more

REFERENCES
• Markoulli, M.P., Lee, C.I., Byington, E. and Felps, W.A., 2017. Mapping Human Resource
Management: Reviewing the field and charting future directions. Human Resource Management
Review, 27(3), pp.367-396.
• Sparrow, P. and Cooper, C.L. eds., 2017. A Research Agenda for Human Resource Management.
Edward Elgar Publishing.