International Human Resource Management (HRM) practices must differ from domestic HRM due to the nature of activities involved in each of the two sectors. In international HRM, activities are performed in a wider context and ensure it is relevant to a particular location. Extra training is required at the international level, but structures of domestic HRM are likely to consider training as an expense depending on the business owner’s preferences (Cooke et al., 2019). Domestic HRM involves a narrow perspective like that of a single country (Bao & Xu, 2021). Contrary, managers working at international levels must examine and consider several factors before arriving at a decision on any element. For instance, international HR managers should consider living standards in different locations when reviewing compensation packages to ensure employee needs are covered. Working at the domestic level involves low risks and costs, unlike in the international market (Bao & Xu, 2021). There is exposure and involvement of organizations in employees’ personal lives in international HRM (Sukanti et al., 2021). Lastly, international HR managers must deal with external influences which can change based on location.
References
Bao, X., & Xu, C. (2021). Analysis of knowledge graph on the subject of domestic human resource management practice. In E3S Web of Conferences (Vol. 251, p. 03098). EDP Sciences.
Cooke, F. L., Wood, G., Wang, M., & Veen, A. (2019). How far has international HRM travelled? A systematic review of literature on multinational corporations (2000– 2014). Human Resource Management Review, 29(1), 59-75.
Sukanti, L., Harto, B., & Pramuditha, P. (2021). Analysis of relevance between international HRM and industry demand: A review of scientific literature. International Journal of Business, Economics & Management, 4(1), 199-208.