HRM used to be only influenced by the domestic market. However, as the market evolved and companies started expanding globally, the HR activities have become more complex. Following globalization, HRM has to evolves into a global context. This leads to higher degree of diversity and complexity in HRM. It involves dealing with culturally diverse workforce, managing global talents pool, management of global knowledge base, and PESTEL (Political, Economic, Social, Technological, Environmental, Legal) of each foreign countries.
The following are key features about global HRM:
- HR planning. The planning is not confined to one country but extends to various other countries in which the MNC (Multinational Corporation) is operating or plan to operate in future.
- International Recruitment and Selection Policy. The international HR manager must hire the candidates not only with the required skills but also with the ability to adapt to the culture of the other country.
- Training and Development. The International HR managers will provide the training and development to the new expatriate going to the host country.
- Expatriate Remuneration. It needs to be considered that there is a difference in the cost of living of the two countries and even the tax structure differs.
- Performance Appraisal of an Expatriate. To keep expatriates motivated, appropriate and justified performance appraisals should be conducted.
- Repatriation. It is the process of re-entry into the home country. It represents the new challenges because the expatriate now has to face the re-entry shock or reverse cultural shock.