By managing international human resources (IHRM) correctly, it can enable a business to
compete more successfully in the world market place. The last two decades have seen a
gradual transition in style and substance from personnel management to human resource
management, and recently to international human resource management. Human resource
managers could consult local representatives of an overseas business regarding: local culture,
employment aspects, safety, customs and traditions in order to operate in harmony with a
local company’s procedures; different ethical and business standards can also lead to negative
experiences. Because of various changes in socio-economic and legal-political requirements
that differ from country to country designing remuneration packages could be different from
‘domestic-based’ human resource management. Doing business globally is a critical and
important step because of the possible incompatibility of perceptions or standards in the
company’s human resource’s policies and practices. It is not easy to manage pay packages of
staff in a large multi-national company who are all earning at different rates; employees are
more satisfied if they feel they are being paid what they are worth, especially those who are
seconded to work overseas for a specific period.