International human resource management can be defined as the set of activities involved in hiring, managing performance, compensation, training and relations with employees hired to manage internal operations of a company, with a view to ensure the success of their international business and strategies.
International human resource management differs from domestic human resource management primarily in terms of the complexity associated with managing people across national boundaries.
International human resource management deals with at least three types of employees based on their country of origin:
1. Parent-Country Nationals (PCNs) – Employees belonging to the country where a company’s headquarters are located are called as parent-country nationals or home country nationals.
2. Host-Country Nationals (HCNs) – Employees belonging to country where the company has set up a subsidiary or a manufacturing facility are called host- country nationals.
3. Third-Country Nationals (TCNs) – Employees who work in the home or host country facility of the company but are not nationals of either are called third- country nationals.
International HRM also means dealing with issues related to different countries, expatriation, repatriation, cross-cultural issues etc.