International Human Resource Management (IHRM)

International Human Resource Management (IHRM)


International Human Resource Management (IHRM) has for several years been established as a vital space in management studies and one that is vital for organizations. Currently, corporations participate as an important method of economic process or group action that obliges them to be competitive in a very world market. To keep up aggressiveness, corporations should initiate and develop a bigger capability for reaction than that of their competitors. during this sense, an acceptable individual’s management will endow corporations with the indispensable capacities required to realize survival and differentiate themselves from their competitors. Internationalization of a company suggests that having to adopt a global orientation altogether the functional activities of the corporate, like marketing, finance, production, or human resource practices. Knowing the way to manage and deal in an efficient way with all the problems concerned in IHRM is vital to the success of the corporate.

Domestic Human Resource Management Vs. International Human Resource Management

International human resource management is a set of specific activities. It consists of functions and processes to attract, develop, and retain human resources. The main factor that differentiates domestic HRM from IHRM is the character of the environment in which the company operates. There are also more external factors in international human resource management. Some of them are, the types of government, the state of different economies, and in most cases accepted practices of doing business in the various organizations where a multinational corporation may operate within.

Domestic HRM manages employees which belong to one specific nation. And it is concerned with managing a limited number of HRM activities at the national level. Domestic HRM is not much difficult due to influence from the external environment. Human resource managers in the domestic environment administer HR programmers to employees belonging to a single nationality. When compare with IHRM Domestic HRM has to deal with fewer externals.

Shaking hands
Shaking hands

Main Functions of international Human Resource Management

Globalization is the process of integrating business operations and strategies across cultures, products, and ideas that impact the role of HR managers. Recruitment and Onboarding Process is one of the main functions. Attracting, hiring, and retaining skilled employees is perhaps the most basic of human resources functions. There are some components to this task. Including developing a job description, interviewing candidates, making offers, and negotiating salaries and benefits. On-the-Job Training is another function and companies need to provide some level of on-the-job training even they hire skilled employees. Continuing Professional Development is closely related to the training functions of HR in professional development. Finally, Benefits and Compensation refers to while the management of benefits and compensation is a given for human resources, the globalization of companies in the twenty-first century has meant that human resources must now adapt to modern ways of providing benefits to employees of the companies.

Challenges for International Human Resources Management

Cultural Diversity is a common challenge in IHRM. The salient issue for an international HRM is Understanding and maintaining cultural diversity. There is a need for different changes or any business that plans to work with people from different places and backgrounds. These changes ought to come in terms of modern ideas and style of operations, modern ways of communication. Benefits and Compensation is another challenge and benefits and compensation are the backbone of any HR strategy. But in IHRM, benefits and compensation are even more important in focusing on the work-life balance of employees. Training and Development, training programs usually encompass in-house seminars and meetings. Those are designed to provide employees on-the-job knowledge of skills that are vital to doing business internationally. These are some general challenges for IHRM and when businesses enter the global market these challenges negatively impact businesses. But broad perspectives help to overcome these challenges.

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