Difference Between HRM and IHRM


Management is the efficient operation of a business or organization towards the achievement of its goals and objectives. It involves the management of its financial, capital, and human resources which comprises its financial value.

It has several branches such as: financial, marketing, strategic, production, operations, service, information technology, human resource management, and in the case of organizations that hire expatriates, international human resource management.

Human Resource Management (HRM) is defined as a management function that deals with the recruitment, management, and development of employees in order to maximize their potential and roles in the company or organization.

Not only is it utilized in personnel management but also in manpower, organizational, and industrial management. It is previously referred to as personnel management. Its functions include:

Job analysis and planning, determining the specific personnel needs of a certain job.

Personnel and workforce planning, choosing whether to hire contractors or independent employees.

Recruitment and selection, hiring the best candidate for the job.

Induction and orientation, making sure that the employees are aware of the organization’s goals and policies.

Wage and salary regulation, making sure that employees are properly compensated.

Training, development, and performance appraisal in order to enhance employees’ potential and utilize his expertise in the achievement of the organization’s goals.

Benefits administration, to make sure that employees get what are due to them.

Resolving labor disputes, making sure of good relations between the management and employees.

HRM strategies always pursue the achievement of the organization’s goals and objectives. It cooperates with senior management in developing corporate strategies and in the proper management of its personnel.

International Human Resource Management (IHRM), on the other hand, is defined as a management function which deals with the management of personnel who are stationed in other countries or who are citizens of other countries that are hired to work in the organization.

Like HRM, its functions also include recruitment, planning, training, performance appraisal, and compensation. Unlike it, however, IHRM functions involve cross-cultural training such as orienting employees with different cultural, ethical, and religious values.

It also involves global skills management. While HRM is affected only by internal factors, IHRM is affected by both internal and external factors because it involves the management of employees that come from several countries.

Leave a Reply

Your email address will not be published. Required fields are marked *