International HRM manages human resources across national borders to achieve organizational goals globally, while domestic HRM focuses on human resources within a single nation. There are key differences between the two: International HRM is more complex due to managing employees from many countries and dealing with external factors like cultural and institutional differences. Domestic HRM operates within a single national environment. International HRM also involves additional activities like expatriate management and setting up country-specific HR systems, while domestic HRM focuses on limited national activities. Managing risks and addressing issues for multiple nationalities further adds to the complexity of international HRM compared to domestic HRM.

1. TOPIC :
DIFFERENCES BETWEEN
INTERNATIONAL &
DOMESTIC HRM

2. WHAT IS INTERNATIONAL HRM?
• IHRM can be defined as set of activities aimed
managing organisational human resources at
international level to achieve organisational
and achieve competitive advantage over
at national and international level.

3. WHAT IS DOMESTIC HRM?
• Domestic HRM is the process of procuring,
allocating and effectively utilising the human
resources in local countries. 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.

4. Domestic &
international
activities of the
HRM function
The cultural environment
The industry within
which the
multinational is
primarily involved
Complexity
involved in
operating in
different countries
and employing
different national
categories of
employees
Attitudes of
senior
management
Extent of reliance of the
multinational on its
home- country
domestic markets

5. DIFFERENCE BETWEEN INTERNATIONAL &
DOMESTIC HRM
INTERNATIONAL HRM
1. IHRM is done at
international level.
DOMESTIC HRM
1. Domestic HRM is
done at national
level

6. • IHRM is concerned
with managing
employees belonging
to many nations.
• Domestic HRM is
concerned with
managing
employees
belonging to one
nation.

7. • IHRM has concerned with
managing additional
activities such as
expatriate management.
• IHRM is very complicated
as it is affected heavily by
external factors such as
cultural differences and
institutional factors.
• Domestic HRM is
concerned with
managing limited
number of HRM activities
at national level.
• Domestic HRM is less
complicated due to
influence from the
external environment.

8. • Human resource managers
working in an international
environment face the
problem of addressing HR
issues of employees
belonging to more than one
nationality. Hence, these HR
managers need to set up
different HRM systems for
different locations.
• Human resource
managers in domestic
environment administer
HR programmes to
employees belonging to
a single nationality.

9. • International HRM requires
greater involvement in the
personal life of employees.
The HR manager of an MNC
must ensure that an
executive posted to a
foreign country understands
all aspects of the
compensation package
provide in the foreign
assignment, such as cost of
living, taxes, etc.
• In the domestic environment,
the involvement of the HR
manager or department with
an employee’s family is
limited to providing family
insurance programmes or
transport facilities in case of
a domestic transfer.

10. • International HRM has to
deal with more external
factors than domestic HRM.
• Domestic HRM has to
deal with less external
than IHRM.
• There are more risks
involved in IHRM than in
the domestic HRM.
• There are fewer risks
involved in domestic
HRM than in
international HRM.