Earlier HR activities are only influenced by the domestic market. But due to the globalisation it had to evolve and follow a different strategy to carry out HR activities. Globalisation means integration of countries, market and technologies to reach around the world. In global context HR department has to consider the differences in trade restrictions, rules and regulations, culture, and also costs of transport and communication. Eg; HR department has to deal with culturally diverse workforce as global context includes different nationalities. Therefore, the awareness of cultural differences is important.
Also HR activities are based on political, economic, social, technological, legal and ecological aspects. Eg, HR department has to consider different political and economical situations before sending an employee to abroad. Moreover, HR team has to take into account of guidelines of labor laws, taxation and working hours in different countries.
The key features of global HRM are planning, staffing (which includes recruiting, selection and placement of employees), training and development, performance, compensation benefits and employee relations.