IMPACT OF GLOBALIZATION ON HUMAN RESOURCE MANAGEMENT

 

(Image Source  : https://www.usemultiplier.com/blog/globalization-in-human-resource-management)

 

WHAT IS GLOBALIZATION?

The increasing connectivity and interdependence of the world's economies, communities, and cultures is referred to as globalization. It is a process that has been accelerated by advances in technology, transportation, and communication, which have made it easier for commodities, services, people, and ideas to flow across boundaries. Globalization has resulted in the spread of western culture and ideals, as well as the emergence of a global market economy. It has also sparked worries about inequity, environmental degradation, and the deterioration of local cultures and customs.

 

GLOBALIZATION IN TERMS OF HRM

Human Resource Management (HRM) is concerned with the recruitment, retention, and management of an organization's employees. It is a driving factor behind employee satisfaction, and this type of people management plays a significant part in a corporation's competitive edge.

HRM responsibilities have evolved as the globe has become more connected as a result of globalization. Globalization in HRM means that the HR team controls resources all over the world, and it is their responsibility to make all team members feel as if they are part of a single community. A Global HRM specialist assists an organization in managing its global workforce by being familiar with the country's policies and laws, as well as ensuring that employees have opportunity to advance. (University of Portsmouth, 2022)

 

GLOBAL HR TRENDS

 

(Image Source: https://www.aihr.com/blog/hr-trends/)

Employee wellness and mental health

Companies are increasingly focusing on the well-being of their employees by providing mental health resources and programs to promote wellness.

Diversity, Equity, and Inclusion (DEI)

The emphasis on DEI initiatives will continue to grow, as organizations work towards building diverse and inclusive workplaces.

Hybrid work models

As the pandemic forced companies to shift to remote work, many are now adopting a hybrid model that combines remote and in-person work.

Up skilling and reskilling

Companies are investing in employee training and development programs to help employees learn new skills and remain relevant in a rapidly changing job market.

 

Artificial Intelligence (AI) and automation

As AI and automation continue to advance, companies are exploring how they can use these technologies to improve HR processes such as recruitment, onboarding, and performance management.

Remote hiring

Remote hiring has become more common and will continue to be an essential trend in 2023 as it provides a broader talent pool for companies to choose from.

 

KEY AREAS TO CONCERN FOR AN ORGANIZATION WITH THE IMPACT OF GLOBALIZATION

 

01. Onboard & attract employees from around the world

Recruiting and integrating international personnel entails developing an inclusive work environment that attracts a varied pool of talent and develops a sense of belonging for all employees, regardless of cultural background.

Companies can use a variety of recruitment techniques to attract personnel from around the world, such as posting job openings on foreign job boards and networking with industry professionals. To recruit overseas candidates, they may also consider offering relocation incentives or sponsorship for work visas.

After attracting a wide pool of talent, the organization must focus on integrating these people into the workplace culture. This entails fostering a welcoming and inclusive workplace that values and respects cultural differences. Companies can accomplish this by providing all staff with cultural sensitivity training, facilitating cross-cultural collaboration and communication, and fostering open dialogue and feedback.

(University of Portsmouth, 2022)

02. Navigate both local and international customs and laws.

As previously stated, the majority of employees come from diverse cultures and origins, and it is the responsibility of HRM to ensure that the organization does not insult or make employees feel uncomfortable.

To that purpose, they must be aware of and respect local customs and laws, while also bearing in mind their varied staff. Employees should not feel that one group is being treated better than others; they must all be treated equally, and it is the HRM's responsibility to address any discomfort or cross-cultural challenges in the workplace in a courteous manner. (University of Portsmouth, 2022)

 

03. Handle the shortage of top talent due to global competition

It is only natural that there is fierce competition among organizations for the greatest talent in this day and age as the world experiences globalization on a never-before-seen scale. In order to accomplish this, HRM is tasked with finding the greatest talent for the company and making sure that talent is happy with the way things are done at work. It is their responsibility to make sure that every employee is content with their workplace, and if they aren't, they must listen to their worries with an open mind and seek to allay them in a respectable manner. (University of Portsmouth, 2022)

 

04. Manage a diverse workforce

HRM will have to manage a diverse workforce with a variety of physical and mental abilities, cultural backgrounds, ethnicities, ages, genders, faiths, and sexual orientations as businesses continue to experience rapid expansion.

They must respect cultural differences, have the ability to adapt to diverse behaviors, and maintain a good attitude toward these variations. They need to figure out how to bring this various workforce under one roof and make sure everything runs smoothly on a daily basis. (University of Portsmouth, 2022)

 

05. Meet global social requirements & responsibilities

It is also the responsibility of the global HRM team to perform their practices ethically, such as when outsourcing to nations with lower wages or employing candidates to fill quotas.

Other examples include determining what it means to have 'fair working conditions' and what a fair termination implies - all while ensuring that their actions are not biased. (University of Portsmouth, 2022)

 

ADVANTAGES AND DISADVANTAGES OF GLOBALIZATION FOR THE ORGANIZATION

 

ADVANTAGES

 

01. Access to a wider talent pool

When you effectively utilize globalization, you are no longer limited by the talent available in your city. Your global staff may now work from anywhere in the globe with an internet connection, giving you access to the brightest and greatest prospects the world has to offer.

02. Cultural diversity & new ideas

Managing an international workforce entails managing teams that work in different places, employees who travel and move nations for work, a variety of diverse work ethics and practices, and even religious differences. All of these can be problems, but they are largely beneficial in the workplace since they bring together new ideas, insights, and views.

03. Wide Market

The expansion of markets due to globalization provides additional chances for firms to offer their products and services, potentially increasing sales and profits. Depending on the company, it may present additional options for managing, marketing, and distribution of these products and services.

 

DISADVANTAGES

 

01. Potential for IP theft

There is a chance that intellectual property and ideas could be duplicated, stolen, replicated, and sold for less elsewhere when goods are manufactured overseas in factories on behalf of a corporation established in another nation.

02. Confusions with supply chain

Businesses that are devoted to ethical business practices can discover that they can't always guarantee that these standards are upheld across their supplier chain and business operations. For instance, there can be vendors, farmers, manufacturing workers, or logistics professionals who are abused or do risky jobs.

03. Corruption

Different standards are used in various countries, and corruption is rampant in many developing countries.

(Duncan C, 2018)

 

CONCLUSION

Finally, globalization has had an enormous impact on human resource management (HRM). Because of the expansion of worldwide company, there is a greater demand for HRM practices that are more diversified, flexible, and adaptable to multiple cultural situations. Globalization has also resulted in labor market developments, such as the advent of the knowledge economy, greater competition for skilled labor, and the expansion of the gig economy.

Furthermore, globalization has had an impact on HRM activities like as recruiting, selection, training, and development. To guarantee that their firms stay competitive in the global marketplace, HR professionals must adapt to the challenges and opportunities posed by globalization.

Globalization has provided both obstacles and possibilities for human resource management. While dealing with cultural differences and managing a diverse workforce are problems, opportunities include accessing a larger pool of talent and growing into new markets. Effective human resource management techniques that consider the impact of globalization can help organizations prosper in a quickly changing global economic environment.

REFERENCES

 

Duncan C (2018) The Advantages and Disadvantages of Globalization for the Workplace. Deskalerts [Online] Available at https://www.alert-software.com/blog/the-advantages-and-disadvantages-of-globalization-for-the-workplace Accessed on 22nd April 2023.

 

University Of Portsmouth (2022) What Is The Impact Of Globalization On Human Resource Management? studyonline.port.ac.uk [Online] Available at https://studyonline.port.ac.uk/blog/what-is-the-impact-of-globalisation-on-human-resource-management Accessed on 22nd April 2023.

 

Vulpen E V (2023) 11 HR Trends for 2023: Seizing the Window of Opportunity. Academy to Innovate HR [Online] Available at https://www.aihr.com/blog/hr-trends/ Accessed on 22^nd April 2023.