As businesses expand internationally, Human Resource Management has to evolve to meet the requirement of global employee base. It includes devising a strategy that can incorporate cross border issues, multicultural environment and different legal and social framework.
The shift from domestic to global HRM comprises of 6 main functions such as:
1.Planning: Devising a strategy which is adaptable and easy to implement across countries.
2. Staffing & Recruitment: Selecting and placing employees from a diverse talent pool and making sure that process is legally compliant in each country.
3. Training & Development: Introducing and addressing varied competencies to ensure teams are well collaborated.
4. Performance Management: Structuring evaluation procedure that are applicable to different regions and environments.
5. Compensation & Allowances: Creating appropriate compensation program that includes local cost of living and other requirements.
6. Employee Relation: Nurturing a healthy and positive relationship with conflict resolution while providing fair and consistent treatment ensures low labor turnover.
Other than that, external challenges such as: political, economic, legal and social factors must be carefully considered to ensure effective implementation of global HRM policies.