Difference Between Similar Terms and Objects

Difference Between IHRM and Domestic HRM

IHRM vs Domestic HRM

“HRM” stands for “human resource management ” of which there are two primary types: the International HRM or IHRM, and the Domestic HRM or plainly HRM. So how do these two management systems differ?

By the name itself, you should already have an idea that IHRMs work internationally or beyond national borders, whereas its domestic counterpart works within the set, local, national borders. In this connection, it is also expected that the IHRMs follow not just more rules and regulations but also more stringent international policies like those related to taxation at the international location of work, employment protocols, language requirements, and special work permits. For local HRMs, the rules and regulations to be followed are just regarding local taxation and ordinary employment-related issues.

IHRMs have a broader perspective because international organizations cater to three different employee types or categories: HCNs, PCNs and TCNs. HCNs, or host country nationals, are employees who are still citizens of the nation where the foreign auxiliary branch of the organization is currently based. PCNs, or parent country nationals, are the expatriates who work in another nation aside from their original country. Lastly, TCNs, or third country nationals, are mostly those who are government or military contracted personnel. The contracted personnel are neither representing the contractor (the government) nor the host nation.

Because IHRMs frequently deal with expatriates, the IHRM manager should advise the latter to engage in special socio-cultural immersion sessions and training that will help them adapt to the alien country. This is contrary to the traditional HRM setting where this type of training is no longer required. The expatriot may also be given more attention like schooling for his or her children as well as special job opportunities for the spouse.

There are also more risks involved in IHRM because there are more external factors involved. The management needs to be ready to face the consequences if the expatriot is underperforming. Other factors like diplomatic ties between the country of origin and thehost country may also affect the working conditions. The benefits of the PCNs and TCNs may also be under fire if the currency exchange rates become suddenly unfavorable.


1.An IHRM operates beyond national borders while domestic HRMs operate within the borders.
2.IHRMs have more functions and are subject to more stringent international rules and are more exposed to a wider array of activities as opposed to domestic HRMs.
3.In an IHRM, there’s constant change for a broader set of perspectives.
4.In an IHRM, there’s more attention given to the associate or expatriot employee’s personal well-being.
5.There are more risks involved in IHRM than in the domestic HRM.

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1 Comment

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