Differences and Similarities Between International and Domestic Human Resource Management

Scientific Essay from the year 2010 in the subject Leadership and Human Resources - Miscellaneous grade: 10 University of St Andrews course: Managing People in Global Markets language: English abstract: The primary cause of failure in multinational ventures stem from a lack of understanding of the essential differences in managing human resources in foreign environments (Desatnick & Bennett 1978).The world has become more globalized competitive dynamic and uncertain than ever before. As more and more firms operate internationally the search for the elements of global competitive advantage is a prominent theme in the management literature (Dickman & Müller-Camen 2006: 580). There is a clear need to develop an understanding of how to compete successfully on the global playing field. A major component of this understanding appears to be the field of human resource management and in particular the field of international human resource management (IHRM) (Schuler et al. 1993: 419). The effective management of human resources in an international context is increasingly seen as a key source of competitive advantage in international business; and the quality of management seems to be even more critical in international than in domestic operations (e.g. Monks et al. 2001). Due to the importance of the topic there has been a significant amount of research on IHRM in recent years. Some of the major debates are concerned with the development of models and concepts of strategic international human resource management (SIHRM) (e.g. Schuler & Tariq 2007) and the question whether successful domestic HR strategies can be applied in a global context (e.g. Schuler & Jackson 2007: 162).The aim of this essay is to compare domestic human resource management (DHRM) with the concept of IHRM. After briefly defining the key terms the author with outline both concepts and identify all major similarities and differences. At the end some final conclusions will be draw