Host country nationals HCNs ; and They are those employees of an organization who are the citizens of the country in which the foreign subsidiary is located.
Human resource managers in a domestic environment administer HR programmes to employees belonging to a single nationality. Several MNCs must now consider this factor when deciding on international assignments for their employees. For example, government regulations about staffing practices in foreign locations, local codes of conduct, influence of local religious groups, etc.
A major aspect of risk relevant to IHRM today is possible terrorism. Third Country National TCN describes and individuals of other nationalities hired by a government or government sanctioned contractor who represent neither the contracting government nor the host country or area of operations.
This suggests that international HRM is concerned with identifying and understanding how MNCs manage their geographically dispersed workforces in order to leverage their HR resources for both local and global competitive advantage.
First, the complexities of operating in different countries and therefore in different cultures and secondly, employing different national categories of workers. To qualify for the foreign earned income and housing cost exclusions, the individual must have foreign earned income, his or her tax home must be in a foreign country, and he or she must meet either of two tests: One difference is that IHRM has to manage the complexities of operating in, and employing people from, different countries and cultures.
Such a person is also referred to as an expatriate. The HR manager of an MNC must ensure that an executive posted to a foreign country understands all aspects of the compensation package provided in the foreign assignment, such as cost of living, taxes, etc.
International HRM requires greater involvement in the personal life of employees. In recognition of such developments, new requirements of IHRM is to play a key role in achieving a balance between the need for control and coordination of foreign subsidiaries, and the need to adapt to local environments.
If an American organization is sanctioned license by the Indian government to set up its subsidiary in India, the American company is under legal obligations to provide employment to local residents. Third Country Nationals These are the citizens of a country other than the country where the organization is headquartered and the country that is hosting the subsidiary.
These include international taxation, coordinating foreign currencies and exchange rates, international relocation, international orientation for the employee posted abroad, etc. This is most often those performing on government contracts in the role of a private military contractor.
Globalization has brought new challenges and increased complexity such as the challenge of managing newer forms of network organization. Moreover, human and financial consequences of mistakes in IHRM are much more severe than in domestic business.Difference between international and comparative HRM.
Print Reference this. Difference between international and comparative HRM. International HRM has been defined as HRM issues, functions, policies and practices that result from the strategic activities of MNEs (Scullion, ).
Recruitment and selection of international.
In order to carefully study and effectively execute a successful international recruitment and selection criteria, it is of paramount importance for MNCs and IHRM practitioners to understand some of the documented failures of international assignment.
Recruitment and selection vary across different countries, in HRM there are the concepts of international and comparative human resource management, and there is a distinction between Comparative HRM and International HRM. Very little work in the past has focused on the comparative analysis of human resource management (HRM) practices between domestic and multinational enterprises (MNEs).
The majority of the work in this area has instead concentrated on comparing the HRM practices utilised by the subsidiaries of MNEs. International HRM has to deal with more external factors than domestic HRM.
For example, government regulations about staffing practices in foreign locations, local codes of conduct, influence of local religious groups, etc. COMPARATIVE ANALYSIS. OF HUMAN RESOURCE PRACTICES IN CHINA AND JAPAN GROUP 1 INTRODUCTION OLUBUSOLA ABIDAKUN Historical perspective of HRM Practices in China & Japan5/5(1).Download