Firstly, country’s legal system can strongly influence human resource management. To overcome the challenge in legal-political system, every firm that operates in the global economy must match with the diverse employment laws in each country as well as abiding by international standards. Besides that, this is importance for the international firm which operate very differently compare to the local firm. For example, during the mergers and acquisitions process, human resource has to coordinate with the right business intelligence to conduct cultural, organizational and legal system such as training, compensation and so on (SHRM Foundation , …show more content…
Human resource professionals especially top management must understand how people lead, how to coach leaders and how to lead their own teams in order to provide clear direction for their employees to achieve organization vison and mission with a good strategic plan. They play significant role in the human capital development, so they should have the confidence and the leadership experiences to interact with senior business professionals. Thus, a good management of human capital development can helps the organizations to carry out a good strategic plan. For example, the human capital not only includes employees but also top management. So, the top management is playing the role in setting and planning the strategic plan in organizations. The infusion of human capital enhancement in organizations promotes innovativeness and improves firm performance. The understanding of firm performance in relation to human capitals is transforming the entire workforce as the most valuable assets in order for the organization to pave ways for greater achievements via innovativeness and creativity. Hence, companies should come up with some effective plans especially in investing the various aspects of human capital as