International HRM is defined as the interplay among three dimensions of human resource activities, types of employees, and countries of operation (Dowling 1990). Whereby human resource activities are: Human resource planning, Staffing, Training and development, Compensation and Benefits, Labor relations and Performance management are expansion of procurement, allocation, and utilization in international HRM.
Types of employees vary in the sense that domestic HRM deals with employees from the same country, while international HRM have diversified workforce: HCNs (host-country nationals), PCNs (parent-country nationals) and TCNs (third-country nationals) (Welch, Schuler and Dowling 1999).
For example, IBM employs Australian employees as HCNs in Australia based operations, may send US employees as PCNs to other nation like Asia-Pacific nations on assignments and sometimes send Singaporean workforce as TCNs to Japanese operations (Von Glinow 2007). Countries of operation involved in international HRM include; host-country where subsidiary may be located, home-country where the firm is headquartered and other” countries that may be the source of labor or finance. These vast of operation are opposed to domestic HRM that have all its operation in the home-country and majorly use PCNs, although HRM activities may be similar. Definitional differentiation can be best demonstrated by Morgan model (Kamoche 2007; Von Glinow 2007) in the figure below.
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