21st century is posing distinctive challenges to businesses, especially to those that are operating across national boundaries as multinational organizations. Centralization of Human Resources Practices and empowering employees to certain limit is becoming vital to improve global competitiveness. The biggest challenge for multinational companies in order to succeed in international markets is to understand the global corporate culture differences and how to invest in human resources. There are certain issues regarding human resource management in global businesses like staffing the right people for jobs, training and encouraging employees to be more innovative, more knowledge about the cultural, legal differences and overcoming the barriers. Organizations are required to respond in a strategic manner to the changes taking place in whole business horizon to survive and progress. Therefore, HR managers are expected to change their roll accordingly and need to play their specified roles and develop competencies to support these roles. Workplace Diversity include age, ethnicity, gender, educational background and work experience but this diversity should not be limited to these parameters only. Workplace flexibility is expected to be on the top of all requirements, and a collaborative team which is committed to attain highest possible goals. Organizations need to include people from different cultural backgrounds to develop a creative team, with more emphasis on performance and results and less concentration on the hours worked. HR managers must be familiar with and understand other cultural norms to promote organization diversity. HR managers should not be considered only functional requirements of organization yet they are the partners or business facilitators. A strong HR team should be developed from the stage of defining the business strategy as they are responsible for resourcing and recruiting the right talent, training and retaining the employees. The responsibilities do not end over here with finding the right talent but also how to manage the performance of new employees. HR managers should develop a performance based environment in the organization, and performance should result in some form of incentives. HR managers will ensure that the employees who will be participating in the plan, their performance will be evaluated by gain-sharing formula. Therefore every employee will be motivated towards it. Consequently, it is clear that HR manager must integrate his role parallel to the needs of organization. As the roll will be changed from the administrative side towards more strategic side, and continuously prove their effectiveness and existence.
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