In present time, many companies seek to expand their business abroad, regardless of the company size, to make better profit for the company. This phenomenon is called globalization, which enable the company to expand their business to many countries. But if the company expand their business abroad, they will also need to recruit more workforce to do business and adapt in the target country. This will force company HRM to evolve into Global HRM, which will help company to manage and prepare their employee to work and adapt in now multi-national company.
In Global HRM, usually there are 3 core activities / features, which are:
- Recruitment
If the company expand their business to other countries, of course they need more employee to handle the company at that country, but the company must carefully recruit their employee based on the company policy and external situation. Usually it can be ethno-centric (based on parent company), poly-centric (local management), regino-centric (based on region), or geo-centric (use best strength with no concern of ethnic or region).
-Salary
Company will also need to pay their employee of course, but there are some aspect that will make a difference, such as using local currency for the base salary, giving foreign service premium for employee that work outside of their home country, and giving allowances based on the employee status and needs.
-Training
To make sure the employee ready for their job, company will need to train their employee with various method that can be customized accordingly or using standard measure. This can also help employee to adapt to their job and environment more easily especially for people that work abroad or work together directly with other co-worker in different countries. But the company will also need to analyze the employee performance of course to make decision such as giving more training.