Blog 01 - Globalization and its impact on human resource management

 

Globalization and its impact on human resource management

Globalization affects the amount and kind of employment available, as well as the need for enterprises to manage a complex collection of difficulties connected to managing people across geographies, cultures, legal frameworks, and commercial situations. 

Human resource operations such as personnel, training, and remuneration must be changed to account for changes in global management. (Barney and Wright, 1988; Huselid, et al., 1977; Ulrich, 1989, 1996, Ulrich, et al., 1995; Shome, 2005).

This paper provides an overview of recent trends in the global business environment that affect the practice of HRM, such as globalization, Why Study Human Resources Management, Challenges of Globalization for Managers, Challenges of New Technology, Challenges of Managing Change, Challenges of Human Capital Development, Market Challenges, Cost Containment Challenges, Demographic Challenges, and finally The Partnership of Line Managers and HR. Human resource workers must acquire competences relevant to adopting such strategic HRM policies and practices in order to manage employees for a competitive advantage during an era of globalization (Barney and Wright, 1988; Huselid, et al., 1977; Ulrich, 1989, 1996, Ulrich, et al., 1995; Shome, 2005).

It is really tough to provide a clear cut definition for globalization. But some authors have provided definitions for it. Every successful businessman in the current business world has heard the word "globalization." "Globalization" is more than just increased international trade. It does not merely imply greater travel or better foreign Internet connections. It does not merely imply increased cross-border investment flows. Globalization, according to Bertucci and Alberti (2001); Shome (2005), is a multifaceted phenomena that incorporates a wide range of tendencies and trends in the economic, social, and cultural worlds. It has a multifaceted personality and so does not lend itself to a single description. It may be defined as increased and intensified movements of products, services, capital, ideas, information, and people across nations, resulting in cross-border integration of a variety of economic, social, and cultural activities. It generates both opportunities and costs, and as such, it should neither be vilified nor sanctified, nor should it be exploited as a scapegoat for the world's main issues. Held’s views (1998) supports Saranya and Ashok (2019) on defining Globalization as "the process of uniting the peoples of the world into one society." This process is the result of a convergence of economic, technical, sociocultural, and political forces.

Globalization is characterized by four forms of change. 

For starters, it entails extending social, political, and economic activity beyond political borders, regions, and continents. 

Second, it implies an increase in the degree of interconnection and flows of commerce, investment, finance, migration, culture, and so on. 

Third, the increasing extent and intensity of global interconnection can be related to a speeding up of global interactions and processes as global transportation and communication networks evolve, increasing the velocity of the dissemination of ideas, products, information, money, and people. Fourth, the increasing extensity, intensity, and velocity of global interactions can be related with their deeper influence, so that the impacts of distant events can have far-reaching implications elsewhere, and even the most local changes can have far-reaching global ramifications. In this way, the lines between domestic and international issues may become increasingly blurred.

Globalization have elevated Human resource Management in to a different level. According to Sharma (2019) Traditional personnel, administration, and transactional responsibilities in human resource management are rapidly being outsourced. Because HRM is increasingly expected to bring value to the strategic usage of people and that employee initiatives influence the business in demonstrable ways as a result of globalization, the Human Resources department is modernizing. Modern company faces various and complicated obstacles while also capitalizing on opportunities. Today's human resource revolution is a direct result of the fast changes in business brought about by forces such as globalization. Within the worldwide flat competition Decision making in companies has grown increasingly complicated and confusing in this linked new world. The managers have change their mindset of the way they attend in to matters regarding the Human asset. The thinking pattern have helped to enhance the competencies and strategies to cater the pressing needs. 

 

Reference

Ananthan, K. (2019) A study on Impact of Globalization on Human Resources Management [online]. Available at: https://core.ac.uk/download/pdf/211976939.pdf

Saranya, R. and Asok, A (2019) Globalization and Its Impact on Human Resource Management https://www.questjournals.org/jrhss/papers/vol7-issue4/Ser-2/E0704022124.pdf

Shome, M.K., (2005) GLOBALIZATION AND ITS IMPACT ON HUMAN RESOURCE MANAGEMENT [online]. Available at: https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.1046.8562&rep=rep1&type=pdf

 

 

Comments

  1. Adrian Vansanden2 September 2022 at 12:37

    Globalization has impacted the Human resouce Management in various ways. Gachunga (2008) mentions that With accelerating globalization, organizations have had to change and new trends have set in even in the management of human resources. Globalization has led to changes in organization design and organization structures are leaner thus improving efficiency but having a negative impact on staff numbers which have had to be reduced. Reward management systems have changed and even the human resource planning strategy is to have a leaner staff in the core areas and to hire part time workers in a bid to reduce costs and to enable the business to run profitably and efficiently. The non-core jobs have been outsourced which has led to an increase in independent contractors to service industries. However, the homogeneity that results from globalization has had a major effect in developing countries because of brain drain.

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    1. Aruna Aththanayake15 September 2022 at 07:39

      Thank you Adrian for your Comment. Over the last few decades, two major economic trends have emerged: rapid globalization and rising pay inequality. Developing countries, in particular, have been exposed to the effects of rapid globalisation through international markets and competition, owing primarily to trade and FDI liberalisation, deregulation, and technological progress?—all of which have contributed to lower transaction costs in international economic activities. East Asian nations have been especially prominent in this respect, as they have quickly integrated within the region as well as with the rest of the globe through more liberalized trade and investment regimes, as well as increasing trade and investment flows. In terms of salary and income disparity, many medium and high-income nations have seen an increase in wage and/or income inequality (Goldberg and Pavcnik 2007, IMF 2007)

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  2. Hiranka MBA18 September 2022 at 05:54

    friend i agree thatnGlobalization requires attention to more than conducting business across national borders but also entails expanding com-petition for almost every type of organi-sation presenting management with the challenge to operate in diverse cultural settings, (Edverd,2006).

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