How HRM Evolves into a Global Context
HRM has shifted from a domestic focus to a global scale due to globalization, technological advancements, and the growth of multinational enterprises (MNEs). Companies expand internationally to access new markets, requiring HR to manage diverse, geographically dispersed workforces and comply with varying labor laws. This evolution introduces greater complexity in staffing, training, and employee relations.
Key Features of Global HRM
- Core HR Functions in a Global Setting – Recruitment, training, performance management, compensation, and employment relations.
- Internal Challenges – Managing cultural diversity, global talent, and expatriates.
- External Challenges – Adapting to different political, economic, legal, and social conditions across countries.
- Knowledge Management – Ensuring intellectual capital is shared across subsidiaries.
Global HRM requires balancing standardized corporate policies with local adaptations to enhance efficiency and compliance.