This chapter discusses key issues for multinational companies (MNCs) as they face these human resource management (HRM) challenges in emerging markets. It also duscusses labor relations and trade unions as an important aspect of international HRM. The chapter presents the unique HRM challenges facing multinationals as they hire expatriates in many emerging markets. It provides the necessary background to examine these challenges and implement practices to address such challenges. The chapter examines the basic HRM functions, including recruitment and selection, training and development, performance appraisal, compensation, and labor relations. Training and development refer to the efforts of the MNC to provide education and other programs to better equip its employees to do their job. Furthermore, the chapter shows that compensation will remain extremely critical in emerging markets. It emphasis on selection and recruitment, which is arguably one of the most critical steps.