How Globalization Affects HRM
How Globalization Affects HRM
How Globalization Affects HRM
HRM
The term Globalization has invaded the mind of every successful businessman and
the concept of Global Village is a common issue in the modern business world.
What really the globalization is? The answer seems simple "if a firm or an
organization expands its sales or production beyond the national boundaries, then it
is globalization", but it does not cover the real meaning of the term. Globalization
actually means more, much more than that; it is realizing that there is a big world
out there, geographically, that reaches far beyond our small community and that
the world is getting closer to us all the time. Globalization is the realization that,
whether we like it or not, this big world is becoming an ever increasing factor in
our daily lives.
The concept of globalization today has invaded the globe and the national
boundaries have been virtually eliminated. So what is the effect of this? Simple,
the world today has became a small but a very very complex and dynamic
neighborhood. Today we live in a global village and this means that our activities
have crossed the national boundaries to become global.
Globalization symbolizes the structural making of the world characterized by the
free flow of technology and human resources across national boundaries presenting
an ever-changing and competitive business environment. A vital aspect of
globalization is the way diverse challenges are being faced by nations in an
increasingly inter dependent world. No country can meaningfully progress today
without efficiently responding to demands and pressures generated by international
organizations and processes.
When going global, an organization has to reconsider the following factors:
• Employment Laws
• Culture
• Terminology
• Corporate Social Responsibility
Role of HRM
The role of the HR manager must parallel the needs of the changing
organization. Successful organizations are becoming more adaptable,
resilient, quick to change directions, and customer-centered. Within
this environment, the HR professional must learn how to manage
effectively through planning, organizing, leading and controlling the
human resource and be knowledgeable of emerging trends in training and
employee development.
• The impact globalization and information technology have had on each other
has made work more mobile, capable of being performed in different parts
of the world without the need to actually set up physical facilities in other
countries.
The globalization is a HRM Challenge. The HRM Function has to make its
policies, procedures and processes to work on the global level. Currently, most of
the HRM Policies is focused on the concrete country, but the employees have to
start to move from the country to another country and the HRM Processes have to
be able to support such a need in the organization. The globalization has a huge
impact on the HRM Function and the it is usually not ready to take more
responsibility in the movement of the workforce around the Globe.