The globalization of businesses is making it more important than ever to understand how multinational enterprises (MNEs) can operate more effectively. A major success of effective operation appears to be the field of human resource management and, in particular, the field of global human resource management. Human resource management must adapt as the business environment in which it operates changes. This paper outlines the challenges facing human resources managers as they move from simply handling personnel issues to making strategic contributions to the future directions, survival and development of an organization. Once HRM departments were considered as "mechanical" agents, helping the organization to hire and f ire employees. The HRM department was an administrative necessity, but little more. Over the last 20 years, the importance of a highly skilled, well-motivated, flexible workforce has become clear. HRM departments are now expected to "add value" to the organization, not simply incur cost.