Let's Invite International HRM through Multinational companies for Domestic HRM

 


What is Multinational company (MNC)

A multinational company (MNC) is one that has a business presence in different countries. Well-known multi-national companies include Apple, Amazon, Unilever, etc., but they can also be classified as MNCs if they have subsidiaries in two or more countries. Generally, multinational companies are managed from the 'parent' or home country where it is headquartered, but will operate from various international locations. (What is International Human Resource Management, 2023).

They have great recognition and power internationally. Their brand is very popular all over the world. They will move ahead with globalization very fast. Innovation is their key strategy. There is almost no competition for them. Buyers are chasing their products. But in the same field, it creates a fierce competition between them.


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HRM

“Human resource management is the management of people in an organization or company in a structured and holistic manner to achieve the goals and objectives decided by the management of the company.” (Sethna. J., Thakur. M, 2023).

Ø DHRM & IHRM




Human Resource Management (HRM) is an integral part of any organization regardless of whether the company operates domestically or internationally. Because employees are an asset to an organization. Human management is essential. Domestic HRM & International HRM are parts of Human Resources Management.

 

Domestic HRM

Domestic human resource management (HRM) is the management of human resources within a country or region.

The definition of local HRM includes all aspects related to human resource management in a local context such as recruitment, selection, training, performance appraisal and compensation and benefits administration. Local HR also focuses on labor relations and compliance with applicable laws and regulations to ensure employers are in compliance with national standards.

 

International HRM (IHRM)

The definition of international HRM encompasses both the management and oversight of personnel within a multinational environment. International human resource management (HRM) is an essential component of any company looking to do business in countries other than its home country. A good example of this is how multinational companies manage human resources. All aspects of HRM are practiced here, but it should be considered internationally.

·        Recruiting and recruiting staff worldwide

·   Training employees on new systems or procedures, implementing appropriate compensation packages,

·        Developing accounting performance assessments for individual cultures

·        Dealing with employee grievances or disputes across borders

·        Managing remote teams spanning multiple continents

In addition, employers should understand the unique cultural background of each country and consider the religious beliefs of their employees when making decisions about their working conditions and practices. To comply with changes in government regulations and labor laws (Human Resource, 2023).

IHRM manages employees of the three nationalities categories. Those are:

Parent country nationals (PCNs)

A parent-country national is a person working in a country other than their country of origin.

Host country nationals (HCNs)

They are those employees of an organization who are the citizens of the country in which the foreign subsidiary is located.

Third country nationals (TCNs)

These are the citizens of a country other than the country where the organization is headquartered and the country that is hosting the subsidiary. (Learnful, 2023).

There have emerged certain norms regarding basic characteristics in international staffing:

·        Cultural adaptability

·        Strong communication skills

·        Technical competence

·        Professional experience

·        Global experience

·        Inter-personal skills

·        Family flexibility

·        Country or region-specific consideration (INDIAFREENOTES, 2021).

This process (IHRM) can be seen very well in multinational companies (MNC).

It can be done by studying multinational companies and their processes as examples. The human resource management in their process is very well known to the world.

 

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How to combine these two concepts and launch:

It can be done by studying multinational companies and their processes as examples. The human resource management in their process is very well known to the world.

Thus, precisely through the integration of IHRM into DHRM, local organizations tend to think internationally. Through this, local organizations will launch their goals forward. Through that, there will be more space to compete side by side with multinational companies in the market. Also, globalization will be a ladder for local institutions to advance.



References:

(1).Clip(1). https://youtu.be/Hv-C1ZK3J_8 Accessed on 14th August 2023.

(2).Clip(2). https://youtu.be/r1WzcxtEUps Accesses on 14th August 2023.

(3).Fig(1).   https://www.hrmexam.com/wp-content/uploads/2022/12/Human-Resource-Planning-Meaning-Objectives-Importance-730x410.jpg Accessed on 14th August 2023.

(4).Fig(2).  https://www.dreamstime.com/ihrm-international-human-resource-management-hrm-symbol-words-ihrm-international-human-resource-management-cubes-white-image241666385 Accessed on 14th August 2023.

(5).Human Resource (2023). Difference between Global or IHRM and Domestic HRM. Whatishumanresource.com. [Online]. Available at: https://www.whatishumanresource.com/difference-between-global-or-ihrm-and-domestic-hrm Accessed on 14th  August 2023.

(6).INDIAFREENOTES. (2021). Limitations to IHRM. indiafreenotes. [Online]. Available at: https://indiafreenotes.com/limitations-to-ihrm/ Accessed on 14th August 2023.

(7).Jena. S. (2020). Difference between IHRM and DHRM.GeeksforGeeks. [Online]. Availabel at: https://www.geeksforgeeks.org/difference-between-ihrm-and-dhrm/ Accessed on 14th August 2023.

(8).Learnful (2023). Key Difference Between Domestic and International Human Resource Management. Learnful.ie. [Online]. Available at: https://learnful.ie/articles/international-human-resource-management/#:~:text=Domestic%20HRM%20refers%20to%20the,from%20diverse%20countries%20and%20cultures. Accessed on 14th August 2023.

(9).Sethna. J., Thakur. M. (2023). Domestic HRM vs International HRM. EDUCBA. [Online]. Available at: https://www.educba.com/domestic-hrm-vs-international-hrm/ Accessed on 14th August 2023.

(10).What is International Human Resource Management? (2023). Manchester Metropolitan University. [Online]. Available at: https://globalonline.mmu.ac.uk/news-and-events/what-is-international-human-resource-management. Accessed on 14th August 2023.

Comments

  1. B. Abeywardana (MBA/HND Supply chain)14 August 2023 at 19:14

    Thats true, by excuting this people n organizations can get benafited with foreign exposure

    ReplyDelete
  2. Duminda Saman Kumara14 August 2023 at 19:28

    In today’s scenario where most organizations have transformed digitally, conducting online training through courses, webinars, etc. is no longer difficult. However, it is part of an IHRM professional’s job to streamline such pieces of training and execute them in a structural manner. You have well explained it.

    ReplyDelete
  3. Lilan15 August 2023 at 05:54

    inviting International HRM through multinational companies can be a valuable opportunity for domestic HRM to enrich its practices, enhance skills, and foster a more competitive workforce. Careful consideration and adaptation will be key to successfully integrating these practices into the local context.

    ReplyDelete
  4. Rinosh Dilshan17 August 2023 at 05:27

    International HRM is trending amidst the globalization. Specially in Europe with the growing concern of labor shortage owing to increase of elderly population, has to adopt with international HRM as they will need to recruit candidates out of Europe. The process and practices from screening talent to termination has to be done precisely, in accordance with the international labor law.

    ReplyDelete
  5. Shiran Mudannayake18 August 2023 at 11:17

    Inviting international HRM through MNCs for local HRM is a good approach to advance the development of local HRM.

    ReplyDelete

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