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Difference between HRM and IRM
Jul
14
2011
What is the Difference between HRM and IRM?
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Answer #1
HRM, or Human Resource Management, basically refers to the over-all administration of a business organization’s workforce. Every business group or company that is in need of a big enough number of workers make use of HR manager and staff to aid them in staffing, training of workers, and in managing salaries and benefits of the employees to name a few.
In the case of International Human Resource Management (or IHRM), it primarily resembles the nature of work and responsibilities that a domestic HRM has but with the consideration of additional office function that are specifically designed for foreign operations within the company’s department. On one hand, while HRM is viewed as management of people, IHRM, on the other hand, is management of people with international standard.
In terms of staffing, HRM and IHRM are different from each other in a manner that the former deals with company employees hired domestically, whereas the latter not just deals with company employees that are hired domestically but with the inclusion of outside (or foreign) service providers.
In IHRM, there are additional competency and accountabilities required due to off-shore operations as compared to regular HRM. The extra knowledge usually consists of language proficiency especially in businesses with non-English speaking members or workers. Also included are the familiarity in national and international laws that oversee business operations established in a foreign country, currency rates, professional outlooks, etiquette and ethics expectations of overseas business contracts, and foreign business incentives and benefits.
Due to the continuously increasing trend toward international business operations, the demand for IHRM is also growing rapidly. And due to differences in customs, beliefs, language, and tradition, IHRM staffs are required to take additional scholastic unit in psychology and other subjects that deal with the study of various cultural principles in relation to business in foreign nations.