Managing human resource is considered to be the toughest task in managing the enterprise even in domestic business. The success and failure of an organisation depends to a large extent on how the dynamic human resources are selected, trained and motivated to bring out the best result.
Fundamentally, Domestic Human Resource Management and International Human Resource Management have the same processes and objectives. International Human Resource Management differs from Domestic Human Resource Management in terms of its scopes and it's objectives. Some of the factors that differentiate International Human Resource Management from Domestic Human Resource Management are:
1. The scope of human resource activities are larger because the organisation deals with multiple countries and employs from several culture.
2. International workforce requires greater involvement of management at a personal level.
3. The approach is complex because of the potential cultural mix in the workforce.
4. Expatriates are subject to tax at home and the host country. Hence, tax policy has to be decided in a way that they don't penalise the employee for moving to another country.
5. Relocation of staff involves providing immigration and travel services, providing housing, medical and training, international allowance and so on.
6. The laws in the host country vary from those of the parent country. The human resource department must be equipped to deal with all potential issues and ensure that the newly relocated employees and their families are able to function properly in the foreign country.
7. Differences in government policies of foreign countries require the human resource team to ensure that all the expatriates employees adhere to the norms set by the government.
Areas of concern for an international firm are adopting of staffing policies which specify the nationality of the managers for key possession at corporate office and foreign subsidiary, treatment of expatriate managers and maintaining cordial labour relations.
An international firm has wide choices as it can choose prospective candidates from home country, host country or even a third country. Apart from placing premium on the competency of the person, the stuffing policy should fit into the corporate culture of the firm and confirm to the local regulations of the foreign centres.
