ABSTRACT
The most remarkable characteristic of globalization is the integration of national economies into a global economy through the instrumentality of information technology, especially electronic communication. Globalization involves trade, capital flows, mobility of human resources and diffusion of knowledge and technology across national borders. The globalization of business has increased the need to identify and analyse ways in which multinational companies need to operate most effectively both now and in the future. The HR function is not proactive in translating a company's business strategy into HR priorities because many HR managers do not understand globalization and its implication for the HR function. HR specialists need four basic competencies to be able to partner effectively in the strategic management process which is fundamental to fostering competitive advantage. The competencies are: business competence, professional and technical knowledge, integration competence and ability to manage change.
