Back In 1990, there were about 3,000 multinational companies in the world, and in the 25 years, this number has grown to 70,000 and continues to grow. Each country and region has its HR department and it is making HR activities more complex.
Globalization has made it easier for companies to enter foreign markets. This was facilitated by the deregulation of trade restrictions, services, and capital movements. It enabled individuals and companies to reach out to the world and integrated the markets and technologies of each country.
What are the key features described about global HRM.
To deal with core HR activities, companies need to tackle internal and external challenges in a global environment. There are many key featurers.
For example, recognizing and managing cultural differences becomes much more important, depending on the culture of the employee's hometown. Their needs vary, including value for money, working hours, and perceptions of their work.
In addition, recruiting qualified workers in foreign countries. it is necessary to send employees abroad to gain international experience. It is called Expat.
Moreover, there are external issues including political, economic, social, technological, legal, and ecological aspects. Various political and economic circumstances need to be considered to decide whether certain employees can be sent to other countries.
The HR team must comply with various national guidelines regarding labor laws, taxation, working hours, and many things. Since individuals are the holders of their knowledge, Global knowledge management also should be done individually.