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International human resource management can be defined as a set of activities which helps in managing human resources at an international level.

The process of attracting, hiring, retaining the human resource in international business to achieve organizational goals and get an upper hand in competition at national and international level. So, IHRM is concerned with managing human resources in MNC’s i.e. Multi-National companies.


IHRM manages three types of employees and they are:

  • Home Country employee: Such Employees are recruited who are from the same country where the headquarter of the company is situated as they easily connect to the motives and objectives of the company. Example: An Indian working in an Indian MNc’s whose headquarters is situated in India only.
  • Host country employee: Such employees are recruited who are from the country where the company is doing their business. Example: An Indian working in Google as NRI In California (US).
  • Third country employee: In this, across the globe, the best suited potential candidate is hired irrespective of his nation. He is not compulsory to be from home country or host country. Example: An Indian working for German MNC whose headquarters are in America.

Difference between IHRM and HRM

HRM has many similarities at both the national and international level but they do have some differences too. Some of them are:

One of the major difference is that HRM is practiced at the national level and IHRM is practiced between two or more countries i.e. internationally.

IHRM includes more HR activities as compared to HRM as they have to manage a relatively large workforce.

Domestic HRM is only concerned and manages the employees of one nation whereas IHRM manages the workforce of home, host country along with the third country.

The external factors like cultural differences, different labor laws, different values, and attitude immensely influence IHRM whereas such factors do not have any impact on domestic HRM.

At last, we can say that despite similarities and differences IHRM and HRM both have their own relevance and they add to the improvement of a nation in a joined way.

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