Through globalization, many domestic companies are internationalizing themselves, entering into foreign markets. Thus human resource management of the parent company will have to adapt to changes across cross cultural boundaries to manage their diverse workforce. This involves diversifying HR planning, their staffing process (recruitment and selection), training and development also compensation and benefits package.
The key features of global HRM include
1. culturally diverse workforce - employees from different cultures and nationalities are gathered to work together towards the same goal of the company. Managing this unique workforce involves adapting to different cultural expectations and beliefs of the employees.
2. global talent pool - global HRM involves recruiting employees from host country or third country national and also sending parent country employees over to host country. It is important to have a clear international recruitment and selection policy in order to show equality. Expatriate remuneration should be provided to parent country employees/expatriates to help ease their adaptation to the new country.
3. management of global knowledge base - training and development is important to ensure a strong knowledge base of the company, their mission, vision and also knowledge on the job so that all employees (no matter foreign or domestic) are able to perform on a similarly high standard.
4. adaptation to foreign environment - global HRM takes into account the PESTEL factors that can differ from one country to another.