What is the Difference Between IHRM and HRM?
🆚 Go to Comparative Table 🆚International Human Resource Management (IHRM) and Domestic Human Resource Management (DHRM) are both essential components of managing employees within an organization. However, they differ in scope, complexity, and the factors they need to consider. Here are the key differences between IHRM and DHRM:
- Scope: DHRM focuses on managing employees within a single country, while IHRM deals with managing employees across multiple countries, involving different cultural, socio-economic, and political backgrounds.
- Complexity: IHRM is more complex than DHRM due to the diverse factors it needs to address, such as international taxation laws, employment protocols, language proficiencies, work visas, and permits.
- Cultural Sensitivity: IHRM requires adapting HR practices to cater to cultural differences, from work ethics to communication styles, which is not as significant a factor in DHRM.
- Compliance: Unlike DHRM, which primarily deals with local/national compliance, IHRM must also monitor and comply with international regulations and laws.
- Talent Management: IHRM involves strategizing how best to capitalize on global talent pools, while DHRM focuses on managing talent within a single country.
In summary, while both IHRM and DHRM share common features in performing HRM activities, IHRM is more complex and requires a broader understanding of international laws, regulations, and cultural differences.
Comparative Table: IHRM vs HRM
Here is a table comparing the differences between International Human Resource Management (IHRM) and Domestic Human Resource Management (DHRM):
Aspect | IHRM | DHRM |
---|---|---|
Scope | Manages employees across multiple countries. | Manages employees within a single country. |
Complexity | More complex due to diverse cultures, languages, and legal systems. | Less complex as it deals with a single culture, language, and legal system. |
Legal Compliance | Must comply with international taxation laws, employment protocols, and regulations of multiple countries. | Mainly concerned with local/national compliance. |
Working Style | Different management norms due to varied cultural backgrounds and working conditions. | Similar management norms as employees share the same cultural background and working conditions. |
Employee Recruitment | Deals with diverse employee backgrounds and nationalities. | Deals with employees from a single nationality. |
Challenges | Greater exposure to risks and consequences of mistakes in international assignments. | Limited exposure to risks and consequences of mistakes in domestic assignments. |
In summary, IHRM is more complex and challenging compared to DHRM due to the diverse cultural backgrounds, legal systems, and working conditions it has to deal with. IHRM must navigate the complexities of managing employees across multiple countries and comply with various international laws and regulations, whereas DHRM focuses on managing employees within a single country with a shared cultural background and legal framework.
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