The Global Context for HRM

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What is Globalization?

With the development of technology especially Information technology and Transport Technology made the cross border between countries become more easy and fast. It made the world become smaller. The social and economy between countries are becoming more interconnected and interdependent. These things make the world as whole which we can consider as globalization.

Globalization is “All those processed by which the peoples of the world are incorporated in to a single world society” (Albrow & King, 1990).

According Robertson, (1992) Globalization is “The understanding of the world and the increase awareness of the world as whole”.

Globalization is a “process of shrinking the world, shortening the distance and closeness of things. It allows the increased interaction between any persons in the world, in order to benefit.” (Larsson, 2001)

Globalization refers to an increasing level of interdependence among the country by a number of ways like free flow goods and services, free movement of labor different sectoral and political openness, military alliance, etc (Fazul et al., 2010).

How Globalization impacts HRM

Globalization in HRM refers to the combination of an organization operations, process and strategies into different culture, products, services and ideas. Because of it emphasize in diversity, globalization also has a deep impact on the way company manage their employees (Bradley, 2018).

Globalization provides for opportunity for business to invest on foreign market and gain access to new capital. A key concern in achieving a financial result through globalization is the effect on your business. Bringing employees together distances and cultural differences is a challenge company management and Human resources professional must tackle (Bradley, 2018).

Ø  Vast area of Recruitment and Selection

Globalization had broadened recruitment process in HRM which has a larger pool of applicants to select the right candidate for the right job. It increases the chances to select the talented people for the organization.

The new global world has widened the talent pool for excellent and marginal workers and permanent and fluid workers. An organizational talent can be the source for a sustained competitive advantage and can affect important organizational outcomes such as survival, profitability, customer satisfaction level and employee performance (Pfeffer, 1994).

Ø  Broadening the Training and Development

In Global Context “The world become an important source for new knowledge as well as new markets” (Tallman & Fladmoe-Lindquist, 2002). The training and development are needed in vast arrears to the employees when the organization wants to compete in the international market. Therefore HR had to adopt to increase the knowledge of theirs and the workers of their organization. (E.g.: If a consultant company wants to spread their branches in other countries it should give the training on languages to their employees)

Ø  Managing Diversity

In Globalization of HRM is a process of managing diversity of workforce all around the world. According to Chaudry (2018), the following challenges are being faced by HR Managers in terms of Globalization

ü  Managing diversity of Workforce

ü  Managing the pressure for more labor rights in third world country

ü  Managing of outsourcing employees

ü  More part time and temporary work

ü  Managing productivity and quality

ü  Downsizing the workforce

ü  Coping with flexible working hours

References 

Albrow, M. & King, E., 1990. Globalization, Knowledge and Society. Sage: s.n.

Bradley, J., 2018. Effects of Globalization on Human Resources Management. [Online]
Available at: https://smallbusiness.chron.com/effects-globalization-human-resources-management-61611.html
[Accessed 14 09 2018].

Chaudry, K., 2018. How Globalization Affects HRM. [Online]
Available at: https://www.scribd.com/doc/24364806/How-Globalization-Affects-HRM
[Accessed 17 09 2018].

Fazul, K. R., Mohammad, M. H. & Faud, H., 2010. Globalization and Human Development-Realities and Recommendations for Developing Countries. Asian Affairs,, 30(1), pp. 32-49.

Larsson, T., 2001. The Race to the Top: The Real Story of Globalization. DC: Cato Institute.

Pfeffer, J., 1994. Competitive Advantage Through People. Boston Mass: Harvard Business School Press.

Robertson, R., 1992. Globalization : social theory and global culture. London: Sage.

Tallman, S. & Fladmoe-Lindquist, K., 2002. “Internationalization, globalization and capability-based strategy. California Management Review, 45(1), pp. 116-135.

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