 In this topic, we are going to talk about the differences between domestic human resource management and international human resource management. Domestic meaning the human resource management, which are confined to one country, to one national boundary and international human resource management, which is carried out in various different countries. So what are the differences between domestic human resource management and international human resource management? The basic difference between international human resource management and domestic human resource management is that IHRM is much more complex. There are a lot many factors affecting IHRM than domestic HRM. What could be the sources of this complexity? The sources of this complexity are coming from, number one, there are more HR activities to perform. Secondly, there is a need for a broader perspective. Obviously, if you are confined to one national border, you will not have to have a wide range of perspective. But if you are going international, you will have to broaden up your perspective so that you can manage a wide range of activities. The third complexity comes from more involvement in employees' personal lives. The fourth source of complexity is changes in emphasis because of the workforce mix. Obviously, when you are working in international domain, you will have people coming from various different countries, from various different cultures, with various different backgrounds. Definitely, you will have to have a mix of those people and you will have to manage them. Then the next source of complexity is risk exposure. There is obviously more risk in going international, we will discuss about that. Then the last one is broader external influences. Now we will discuss each one of the source of complexity in detail. Now how do we have more HR activities in international human resource management? When you are going international, when you are paying people in an international context, you need to have understanding about international taxation. You need to understand the taxation management system of the country and the foreign country's taxation management system. Secondly, international relocation and orientation. When you are sending people from your own country to a host country or you are bringing people from host country to the parent country, you will have to carry out the activity of relocation and obviously it is not so simple when you move one person from one country to another country, you need to conduct some orientation, you need to tell them what type of culture is there and many other things which are related with the new environment. So that is an additional HR activity which takes place in IHRM and does not take place in domestic HRM. The third one is administrative services for expatriates. You need to administer, you need to carry out administrative activities for the expatriates. Then you have to carry out host government relations. You need to make relations with the host country government and then you need to have language translation services, so more HR activities. International relocation then it involves arranging for pre-departure training. You have to do training before you send someone out. Providing immigration and travel details. What are the requirements for immigration and how will you get a visa and all these details. Then you have to send your people out, so you have to provide housing, shopping, medical care, recreation and schooling information. So there are more activities involved. Then you have to finalize compensation details such as delivery of salary overseas. How will you give them a salary if you are sending a person to another country? Is there a bank account there or does it go into the bank account of your parent country to transfer all these details? Then determination of overseas allowances. Obviously in international assignments there is more pay given to people. And then taxation treatment, how are those people going to be taxed? Do they have to give tax to their country or foreign country or how will you manage it? So compensation details are very much complex. Then you need to go for a broader perspective in which you need to design an administration of HR policies to fit the need of a broad employee base. Obviously you have a lot of people coming from different countries, so you need to have a broader perspective. Your HR policies cannot be fit to only one culture. And then there are equality issues. Parent country nationals are usually treated with some kind of favoritism or with some more relaxation or margin than host country nationals which creates equality issues that needs to be dealt with. Then you need to be more involved in employees' personal lives. You need to be more involved in the process of selection, training for both parent country nationals and host country nationals. Then you have to make clear communication of housing arrangements, healthcare and compensation. You may also need to establish an international HR services section in which you provide international HR services to your employees who are coming from one country to the other. Then you also need to be more involved with the employee's families because when you are sending people from one country to the other, people obviously have families with them. They have spouses, they have children who will be moving from one culture to the other. So you need to be more involved with them. You need to know how many children does that person have, is he married, not married, what type of dependence does that person have. So you need to know the family mix and responsibilities of that person so that you can make a selection as well as easy transfer of a person from one place to the other. Then you need to communicate host country requirements for accompanies, accompanying families. How do you get their visa issued, what requirements are there, what documents do you have to provide. Do you have to provide children's certificates, marriage certificates, all these things. So you have to tell you all these details. And then housing and schooling options and then recreational programs in certain locations you need to develop specific recreational programs in places which are less developed and particularly which are at risk. Then another source of complexity is the change in emphasis as the workforce mix of PCNs and HCNs varies. As an organization grows, as it becomes more embedded in a foreign country, definitely the mix of parent country nationals and host country nationals will change. Just as an organization will be established in a country, the workforce will have more employment in that organization. Your proportion change will continue, so you will have to live in a continuous change process to understand your human resource. Then another source is risk exposure. There is definitely more risk of cost in sending people to other countries because there is more chances of failure. There is possibility that a person may not get adjusted to the new environment. He may not be as functional as he was in the parent country. So you need to have a contingency plan for such type of risk. Another type of risk is terrorism. That has taken over the entire globe and everybody is concerned about that. So when you are sending people to other countries, you need to have a check on what type of terrorism issues are being faced in that country and how you are going to ensure the security of your employees over there. So that is risk exposure. That is another source of complexity. And then there are broader external influences. There are influences from the government and there are influences from the labor market. If you are going from a developing country to a developed country, there will be more labor regulations and you will have to work with that. People will be more concerned about their rights and obligations. In developing countries, there are lesser boundaries. There are lesser rules and regulations. The labor market is easier. So if you are moving between developing and developed countries, you will need to make sure that you are following the right type of rules and regulations. So you have to take into account many broader external influences in managing your international human resource function.