Elaine Stewart
Professor Keith Lipscomb
BUS 325: Global Human Resource Management
May 4, 2014
HRM in an MNE
Compare and contrast two main differences between domestic and international HRM
There are two main differences between domestic (HR) and international human resource management (IHRM). Domestic HRM has responsibilities for the planning, recruitment, and selection of staff including the development, training, and rewards to employees only in one nation such as the US. International HRM has all of the same as the domestic HRM but more.
First, there are the complex issues of operating in different countries and secondly, employing staff for the different types of departments though similar international employees are a different category of workers due to their home cultures. IHRM has to compile all of the domestic HRM and integrate it with three countries, which are comprised of the parent company, which has its headquarters in the original country. Then the host country is where the new business is, and finally yet importantly, the other countries that the recruits are from to fill the positions of finance, labor, and research personnel. This brings in different types of employees to be sure that the right person is a good fit for the position. A parent-country national is called an expatriate as the person is working in another country other than their country of origin. In the case of a U.S., expatriate residing overseas will still owe taxes for his or her worldwide income. The US has income tax treaties with over 35 other countries. The IRS and the foreign taxing authorities can exchange information on their citizens living in the other country. (http://www.whatishumanresource.com/difference-between-global-or-ihrm-and-domestic-hrm)
Culture plays a vital role when dealing with the work environment and operational activities. As far as domestic human resource practices are concerned, it is feasible for