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Increasingly, companies are being wooed to expand into foreign lands and ‘globalisation’; a word so commonly hear nowadays till it seems to be a facet of modern business model. Some underlying reasons for companies to go global are technologies advancement, cost efficiency and trade specialisation. The above mentioned are just the tip of an iceberg as there are much more incentives which attract companies to globalize. However, as organisations reach outward for the market, many failed to recognise the importance of international human resource management (IHRM). Those organisations which hold little regard or no importance for IHRM often suffered setbacks and ‘chain effect’ consequences.According to Stening et al (1997), while internationalisation of business has increased opportunities for organisations and staff, it has inevitability created a myriad of Human resource management (HRM) challenges related to multicultural workforce that is diverse. More then often, these challenges prove to be much complex and subtle in nature. In this essay, we will first look into the disparity between domestic and international HRM, the factors and elements that impetus the importance of IHRM and the knowledge and skill that are so relevant, yet scarce in our modern organisations structure. On top of that, we will be looking into the areas of problems and challenges that HR managers and the expatriates constantly faced.


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