One of the universal issues that draw growing concern is how to choose the human resources management approach in terms of people management (PM), human resource management (HRM) and international human resource management (IHRM). Most of people think that the concept of PM is the same as HRM. Moreover, as a new member of human resource management approach, IHRM will attract firms’ attention. Therefore, this essay will lead to understand what is the differences between PM and IHRM.
This essay will first consider a brief background of PM, HRM and IHRM, and then justify the difference between HRM and IHRM, finally the distinct differences between PM and IHRM will be discussed.
First of all, it had better to examine the evolution of PM, HRM and IHRM. As Berridge mentioned, the origins of human resource management has been PM since the 1940s, which is represented an influence by welfare and occupational health and scientific management (Berridge, 1992). Under normative model, the definition of PM is ‘responsibility of all those who manage people, as well as being a description of the work of those who are employed as specialists’, and ‘it aims to achieve both efficiency and justice, neither of which can be pursued successfully without the other’ (Legge, 2005). Then, during the 1980s, HRM came into prominence with a change in terms from personnel to human resources in managerial functions. Mahoney and Deckop (1986) have argued that ‘It signifies a shift from human relations focus on people as such to people as resources in an employing organization.’ Finally, with the increasing competitiveness of global business, a large amount of multinational enterprises (MNE) emerged. Therefore, as the worldwide management in human resource, IHRM which has broader field than HRM, become a beneficial and essential approach for multinational organizations over the past decade.