1.What are the main similarities and differencesbetween domestic and international HRM?The equality in human resource management and international human resource management is based on its extensive scope wherein both have a risk-based approach to personal management which emphasizes on labor and employment, discipline, training and development, and increases.
There are 6 different factors between domestic human resource management and international human resource managers such as: -1. International HRM have more human resource activities as compared to domestic HRM.2. There is a need for a broader perspective in international HRM.3. International HRM have more involvement in employees personal lives as compared to domestic HRM.4.
Changes in emphasis as the workforce mix of expatriates and locals vary5. Risk exposure is more in international HRM as human and financial chances of failure are more as compared to domestic HRM.6. Broader external influences are higher in international HRM as it depends on factors such as type of government, state of economy etc.2.Define these terms: international HRM, PCN, HCNand TCN.
1. International HRM: IHRM is concerned with HRM issues that cross national boundaries or are conducted in locations other than the home country headquarters.2. PCN (Parent-country nationals) are employees whose nationality is the same as that of the firm headquarters.3. HCN (Host-country nationals) are employees who have the same nationality as the local subsidiary. 4. TCN (Third-country nationals) are employees whose nationality is different from that of either the headquarters or the subsidiary office.
3.Discuss two HR activities in which a multinationalfirm must engage that would not be required in adomestic environment.A multinational firm will be required to deal with more human resources activities than when it operates within a domestic environment. It has to deal within taxation issues regarding its employees, there will be activities of relocating and orientation of employees brought from the host country, it will be forced to deal with an extra load of expatriate administrative services, forging new relations with the host government, and in some instances, the human resources may be required to seek translation services.
The human resources department in a multinational firm will be more involved in an employee’s personal lives than one that is domestic. This involvement will include duties such as organizing healthcare services, housing arrangements, increased compensation (cost-of-living allowances, taxes, and premiums), seeking schools for the employees’ children and organizing visa requirements for employees. Discuss two variables that moderate differences between domestic and international HR practices4.Why is a greater degree of involvement inemployees’ personal lives inevitable in manyinternational HRM activities?Involvement in employees personal life is necessary for selection, training and effective management of both PCN and TCN employees.
HR department needs to ensure that expropriate employee understand housing arrangements, health care and all aspect of compensation package provided for the assignment (cost of living allowances, premium, taxes etc.)5.Discuss at least two of the variables that moderatedifferences between domestic and international HRpractices.1.CULTURAL ENVIRONMENTa.
Culture encompasses the values, behavioral norms, and patterns of behavior of country.b.Culture shock: moving to a new environment requires many adjustments in short period of time. This can challenge the frame of reference of the expatriate and their national identity. People can get psychological disoriented because they miss or misunderstand cues which leads to resentment of the host country lower performance and higher rates of failure.2.
INDUSTRY TYPEa.Global industry: Performance/competitiveness in 1 country is influenced by the firm’s position in others (eg. Bombardier and Apple produce different parts for their products all around the world, hence have a very globally integrated strategy).b.Multidomestic industry: Competitiveness is independent of the firm’s position in other countries (retail, insurance, banking etc.) so IHRM is a series of domestic strategies.Q2) How can Hofstede study help HR director to design management style when Disneyland would like to invest in your home country