Globalisation is the integration of countries, technologies and markets to enable individuals and companies to connect around the world. In the past, HRM in companies are usually influenced by the local markets, but the reduction of trade restrictions, regulation around the capital movements and servers as well as transportation and communication costs influenced HRM in companies to go globalise more easily in the recent era.
The differences in the workforce in other countries such as in the aspects of currency, working hours and employees' benefits are one of the key components the IHRM should take note of. Besides, the IHRM should be aware and attentive to the selection of candidates and expatriates from the global pool of talents while also providing the appropriate training, developing the candidates and supporting them and their families while being abroad. In addition to that, IHRM must be attentive to the political and social situations as well as comply with the legal guidelines of the foreign countries before sending the expatriates abroad as it could reduce the expatriate failure.
Therefore, IHRM is responsible for managing the core activities, from selecting the right candidates to providing proper training, and overcoming the internal and external challenges that regard the foreign countries and expatriates, hence it defines the essence of Global Human Resource Management.