IHRM and HRM: Two Sides of the Same Coin?

By Andries J. Du Plessis, Fred Venter and Nithin Prabhudev.

Published by The Organization Collection

Format Price
Article: Print $US10.00
Article: Electronic $US5.00

The internationalisation of business has led to the creation of numerous challenges to organisations in terms of management, organisational structures, cultures and workforce utilisation. Globalisation is currently the buzzword in business circles due to the shrinking of distances brought about by the explosion in the usage of the internet, quest for new markets and increasing profit margins, slowing of domestic trade, resource requirements and related factors. The globalisation trend in today’s marketplace is prominent: the issue that needs to be contemplated from a HRM perspective is its effect on the various functions of HRM. IHRM issues that a global organisation inevitably faces are such as the debate over the selection, recruitment, compensation, legal and regulatory requirements of the emerging ‘global workforce’. This paper will address issues such as the factors influencing IHRM policies, practices, approaches, similarities and differences between HRM and IHRM, pros and cons of the standardisation of compensation packages and related issues such as validating the effectiveness of standardising pay packages for the global workforce. The main objectives are to provide the reader with a clear understanding of the various features and aspects of IHRM. The paper is divided into two main parts: firstly, covering issues related to IHRM such as its purpose, requirements, approaches and the development of IHRM models, similarities and differences with regards to HRM. The second part will deal with the standardisation of compensation debate including its pros and cons while providing suitable alternative IHRM methods of determining compensation. Aspects regarding IHRM through the observations made by eminent experts and through the provision of suitable case scenarios will be elucidated. The debate regarding the standardisation of pay packages will be dealt with from a neutral position through the usage of suitable arguments.

Keywords: Globalisation, International, Compensation, Standardisation, Global Workforce

The International Journal of Knowledge, Culture and Change Management, Volume 7, Issue 4, pp.59-68. Article: Print (Spiral Bound). Article: Electronic (PDF File; 663.653KB).

Dr. Andries J. Du Plessis

Senior Lecturer, Unitec Business School, Unitec New Zealand, New Zealand

Senior Lecturer in under- and postgraduate programmes in Unitec Business School. Lecturing HRM, Strategic HRM, Employment Relations (ER), Strategy and Change, Organisation and Management. Joined Unitec 8 May 2002 in the School of Management and Entrepreneurship. PhD major in Employment Relations and Employment Law (dispute resolution mechanisms). Twenty eight years experience in practice in HR, ER, dispute resolution and negotiations. Research interests in Organisational Development, Change Management, Cultural differences,IHRM Diverse Workforces and the managing thereof.

Prof. Fred Venter

Professor, Department of Business Management, North-West University, South Africa, South Africa

DCom in Cost Management Accounting and Phd in Business Management degrees. Professor in Business Management,North-West University, South Africa. Lecturing post-graduate degrees in Entrepreneurship, Management, HRM, Cost Management Accounting and Marketing. As Principal Supervisor of Masters and PhD degrees has delivered 39 PhDs and 27 Masters degrees sucessfully. Author of numerous accredited National and International Journal publications and two text books for under-graduate level.Currently involved in several international research projects across disciplines in HR, HRM, Marketing and entrepreneurship.

Nithin Prabhudev

Student, School of Management and Entrepreneurship, Unitec New Zealand, Auckland, New Zealand

Final year BBus student majoring in Human Resource Management in the School of Management and Entrepreneurship at Unitec New Zealand. Joined Unitec in 2004. Working part-time as a Residential Assistant at the Unitec Residential Village.

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