I. Introduction to IHRM

Defining IHRM

• Harzing & Pinnington: IHRM is concerned with the management of human resources in an international context. It encompasses all HRM functions (e.g., recruitment, selection, training, compensation) but considers the complexities introduced by operating across national borders.
• Peter & Denice: IHRM focuses on the management of people in a global context, emphasizing the interplay between HRM practices and the international environment.

Key Differences between Domestic HRM and IHRM

Feature	Domestic HRM	IHRM
Complexity	Relatively straightforward	Significantly more complex due to factors like:
Environment	Homogenous, stable	Diverse, dynamic, and often unpredictable
Employees	Primarily domestic employees	Diverse workforce with varying cultural backgrounds, legal frameworks, and work practices
Stakeholders	Primarily domestic stakeholders	Multiple stakeholders with diverse interests (e.g., host country governments, unions, international organizations)
Risk Exposure	Lower	Higher, including political, economic, and cultural risks
Geographic Scope	Confined within national boundaries	Spans across multiple countries
Currency	Single Currency	Multiple Currencies