Discuss how HRM in an organization that is actively international differ from HRM in one that is almost entirely domestic.
Tutor Changed status to publish March 13, 2019
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International HRM
- The International HRM deals with various complex issues and unlike the domestic HRM it does not have a very narrow outline. The international HRM has a very broad scope.
- The international HRM needs to always take into account the legalities of various countries as they are dealing with the work force which is not just limited to one country but involves various other countries across the globe. These legalities effect various functions such as staffing, recruitment, compensation and payroll, employee benefits and rewards, retirement benefits, various health benefits to the employee and to the family members etc.
- Tax issues significantly varies from county to country and from company to company. The HR Professionals cannot be rigid in their approach and have to keep a close check of the tax treaties of various nations and specially off those nations from which employees have come. The HR Professionals are expected to have knowledge about all such basic information and not make any error in it.
- Internal HRM handles three different companies from which varies employees belong, these are:
- Parent Country Nationals (PCN): This is the main company generally where the head office is there. This is the main nation company which has to take care of all the top management level decisions.
2) Host Country Nationals (HCN): This is the company which caters to diverse level of professionals from various spheres of the world. The host country handles all the burden pf hosting employees from the other nations. The HR professionals of host companies are the most burdened one as they look after all the logistics, employee safety and satisfaction, it is there duty to make the employees feel comfortable and friendly.
3) Third Country Nationals (TCN): These are the nations from which various employees go either to the parent company or to the host company. The HR Professionals of these company’s are not very burdened Though they keep a close check of their own employees who are working in various other nations and companies, they keep a check on the amenities provided to them such as safety, transport, medical etc and are they kept a friendly and proper environment. - International HRM faces a lot of problems in terms of the extra burden it has to carry out in terms of the logistics such as the VISA, Passport, Arranging for a buddy, transport and a place to live. Besides the various functions which the HR Professional goes through it also has to take care of these extra burden responsibilities which cannot be ignored at any cost as making the employees from other countries feel very safe and welcome is the soul duty of the HR Professionals.
- The HRM is very much affected by the legal , social and political factors in various countries as these factors differ a lot from the country to country. An instance of this is since Trump has become the president of the USA, the VISA policies have become very strict and this has added a huge burden to the Indian HR professionals to get the employees back
- In International HRM, there are a lot of diversified people involved from varied cultures, countries, regions, languages, races etc. Hence the chances of risks involves. More the number of employees, more will be the risk. So it is advisable for the HR Professionals to keep a close look at all the employees and maintain string security services.
- It is a common human nature that a person makes more careful when someone from outside comes to visit their home. The person takes ultra care about their likes, dislikes, food habits and safety which is of utmost importance. The same is true in case of the HR Professionals who become ultra responsible with employees who come from different countries. The Host organisation also becomes very careful and takes care of these employees. Such as each employee which comes from a different country is assigned an buddy who takes care of all the needs of the employee, makes him well versed with the people of the organization, the rules, regulations, guidelines and strategies of the organization and helps him/her get comfortable. The HRM takes care of the safety of the employee.
- Performance management varies very significantly which depends on the company to company which is directly influenced from country to country, An example of this as follows: In India, there are no payments for any employee working over time. Employees are only given a fixed salary for the entire month which does not specify the mandatory number of hours. Sometimes employees even work on weekends but are not paid for the same. However in UK, the laws are very different and each worker is compensated with an extra amount beyond the salary for even working for an hour extra. Hence the international HRM has to keep in mind the laws and regulations of various countries.
- The industry in which an MNC operates also plays a very vital role in deciding the role of the HRM. The industry also depends on the nation, for instance of the nation has enough resources to provide to the employees or it is hugely affected by the parents organization of the industry and the location of the parent organization.
Domestic HRM
- The formalities, rules and regulations are unique and are way easier to maintain.
- Tax related guidelines and issues generally remain unchanged within a country
- HR Professionals generally offer basic amenities such as transport, health benefits and logistic help.
- Domestic HRM is very Less affected by external factors such as legalities and politics.
- Employees are always more comfortable and can take care themselves much better in the domestic environment.
- It is always easy to track the performance management in the Domestic HRM.
Tutor Changed status to publish March 13, 2019
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