Domestic and International Human Resource Management

Question: Discuss about the Domestic and International Human Resource Management. Answer: Introduction Human resource management is an approach that helps business organisations in managing the workforce of a company and improve the work conditions by using human resource management concepts, such as compensation benefits, recruitment and selection, training and development, performance management, etc. Human resource management is generally divided into two categories. The two categories are: Domestic human resource management (DHRM) when the management of human resource is related to a company operating in one country alone International human resource management (IHRM) when the management of human resource is related to a multinational company that operates in multiple countries International human resource management is tougher than domestic human resource management because in IHRM, the managers have to manage the workforce that can belong to different cultures, geographic locations, etc. ("Difference between Global or IHRM and Domestic HRM - what is human resource ?", 2016). Therefore, it is important for IHR managers to be highly competitive as compared to DHR manager. Key Competencies In Hr Director The Human Resource Director of a multinational company is not a small job. It is a job that would come with millions of responsibilities and it would obviously not be awarded to someone who has a lot experience. Let us now discuss some of the key competencies that a Human Resource Director of a multinational company should definitely have: An understanding of the cultures the differences between the cultures of countries in which a company operates can have a huge impact on the operations and the workforce. For smooth operations and management of work operations, it is necessary that the human resource director has complete knowledge about the similarities and dissimilarities between all the cultures so that he can take appropriate decisions during the management of human resource at an international level (Heaps, 2012). Relationship building the human resource director of a multinational company should obviously be very good at building relations with the employees, senior management and other important people because he has to deal with the human resource issues of almost all the countries where the company has its operations going on. Therefore, to work with more efficiency and effectiveness, the director should be able to develop relationships with important people working in different parts of the world for the same organisation (Heaps, 2012). Flexibility the human resource department is burdened with a number of processes and guidelines because multinational companies always strive to achieve standardization across their entire business enterprise. In such a difficult situation, a good and a competitive international human resource manager or director should always understand that having flexibility in the policies is the key to success. A human resource director should be aware of the fact that a single policy would not work for all the countries in which the company operates. Therefore, it is important that there is flexibility in the application of global standards and processes (Heaps, 2012). References (2016). Yourbusiness.azcentral.com. Retrieved 9 August 2016, from https://yourbusiness.azcentral.com/four-competencies-hr-manager-3925.html Difference between Global or IHRM and Domestic HRM - what is human resource ?. (2016). Whatishumanresource.com. Retrieved 9 August 2016, from https://www.whatishumanresource.com/difference-between-global-or-ihrm-and-domestic-hrm Heaps, W. (2012). Seven Characteristics of Highly Effective International HR Professionals. International HR Forum. Retrieved 9 August 2016, from https://internationalhrforum.com/2012/08/12/seven-characteristics-of-highly-effective-international-hr-professionals/