Differences Between Domestic and International Hrm Essay

2472 Words Jul 17th, 2011 10 Pages
Differences between domestic and international HRM

1. Introduction With the development of globalization, the blending and collision of domestic enterprises and foreign enterprises is becoming more and more fierce (Xinqi, 2004). More and more foreigners are sent out of their own countries and work in another country. It is probably no exaggeration to say that every day in every country in the world, there are people being sent out and sent in. And the increase of expatriates between one country and another country inevitably bring new challenges to human resource management, such as culture shock and the differences between domestic HRM and international HRM. Many firms underestimate the complexities and problems involved in
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We are living in global village. Information is very easily to get. If an employee has misbehaviors and most probably these misbehaviors would damage the company and the guilty employee (“Personal Life Matter Company,” 2010). Another is that in order to get a better performance from employees, knowing more about the personal lives of employees and involved more will help company to meet the employees’ demand and provide the required level of support. Consequently, in the international environment, the human resource department involved in housing arrangements, health care, transportation, education, entertainment for expatriates and local staffs, and all aspects of the compensation provided for the assignment (cost-of-living allowances, premiums, taxes, etc.). Most of these activities will only occur in the international assignment, and in the domestic assignment these activities will be done by employee themselves instead of the human resource department of the company (Dowling, et al. 2008).

2.3 International HRM has higher level of risk than domestic HRM. As a resource risk, domestic human resource risk not only has mutual risks of general resources (shortage risk, backlog risk, loss risk, etc.), but also has its own unique and proprietary risks (value-added risk, confidential risk, competitive risk, etc.). And these risks are in the daily work of human resource management (Nengyuan, 2011). Apart from these

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