Globalization & Human Resource Management

Globalization, the unprecedented process of growing interdependence and integration of the world’s economies, population, technology, cultures, information, communication, investments, ideas etc. has cross bordered the trade of goods and services which has brought the global interactions. Globalization symbolizes the structural makeover of the world characterized by the free flow of technology and human resources across national shores by presenting a competitive business-related environment.

So, the role of HRM is essential and vital for the effective human capital management with the existing work practices and efficient system management in an international boundary. Managing human resources and application of coherent human resources management principles and methods under the shade of globalization is a significant challenge.  

These days, it is a practice that the companies hire foreign employees to have a cost-effective advantage. So, the human resource management is playing a vital role of absorbing and peering a framework of multiculturism, for recruiting, selecting, training, appraising, and compensation diversified pool of employees.

Globalization can affect the business in four phases where HRM should address them accordingly. They are Education human capital, Culture, Legal and political environment, and economic system. These each important fact should be answered properly for a win-win situation.

Considering of effect of globalization in HRM role, a company can be expanding in any four stages in the global life cycle. They are domestic, international, multinational, global or transnational levels.

In a domestic level business’s products or services are being introduced in foreign clients. But it can be a branch out and shift location for the international market at the international level.

In multinational scale establishing locations around the world where employee recruitment in the host country or undertaking them as expatriates from the parent country. Going transnational is implying in diversified workforce and clients in a complex and changing nature of the global environment. These can be in complexion or a mix of ethnocentric, polycentric, geocentric or regio-centric mechanisms.

A vital aspect of globalization is a way of diverse challenges are being faced by nations in an increasingly interdependent world. No country can progress the drastic changes without efficiently responding to demands and pressures generated by international organizations, people and processes. As a company extends its base to a foreign shore, perhaps the greatest resource available to any company is the workforce it acquires and retains.

As a reason of continuously growing migration into the developed cities, diversified set of people of different countries, ethnic groups and people with different cultures and religions are common. So, what makes human resource management to rethink their task is to best use of these differences for the betterment, and prevents the occurrence of age differences, differences in the organization.

With the effect of globalization technology is outdated day by day. Managing the information-based activities and processes that adds value to the core business will be initiated to HR systems and policies and creating the ability of staff to be more competence and efficient throughout their work schedule which will be more flexible and confirm them for a great place to work while achieving an advantageous work-life balance in the workplace.

HRM should be a bench for building leadership by creating organizational capabilities and enhancing knowledge transfer by leveraging technology into a greater extent. HR’s proactive strategic role in a global entrepreneurial position and understanding the implications in global operating skills, business finance and deep HR savvy, change management skills with a strategic vision, critical thinking in a shorter period and problem solving will be the succession keys.

Apart from running the payroll, administration and employee benefits HR professional have to be involved in strategic planning and developing programs to train and improve the labor force which will play a significant advantage in both personnel and professional development.

Continuous tracking of employee legislation, social policy development, cross cultural communication and ensuring employee security are critical but essential tasks which should be addressed by HRM.

References

Bohlander G, Snell S – Principles of Human Resources Management - Part 06 – Expanding Human Resources Management Horizons: Chapter 16, Integrated Human Resources –Cengage Learning, 16^th Edition

Chaudhry K, Scribd, Available from: https://www.scribd.com/doc/24364806/How-Globalization-Affects-HRM

Jahanian R, Euro – Asian Journal of Economics and Finance, Available from: https://www.academia.edu/30399154/The_Impact_of_Globalization_on_Human_Resource_Management? [January 2016]