How Globalization effects on HRM

Globalization

Figure 1- Poverty and the Impacts of Globalization on the
African Economy (Owusu, 2014)

Globalization is the trend of increasing interaction between people or companies on a worldwide scale with the development in transportation and communication technology. In other words, if a firm or an organization expands its sales or production beyond the national boundaries, it's globalization.

According to Onday (2016), with globalization, people are now part of a worldwide economy with competition coming from every continent. Due to this reason, profit and nonprofit organizations need diversity for being creative & open to change in order to maintain the competitiveness in global market.

Sparrow (2004) stated that globalization is often represented as a new stage in world development.

Connection between the Globalization & HRM

Nowadays HR managers don't not need to rely on a limited market to find the right employees that are needed to fight with the global challenge, rather they can recruit the employees from all around the world meaning that due to globalization to some extent HRM has became more efficient, effective and simple.

Figure 2-The State of Diversity in Today’s Workforce (Burns, 2012)

The most important factor is that these organizations are made up of People, and since HRM is the set of activities which deals with the people in any organization, this change has affected the human resources management itself a lot. Human resources manager must ensure to recruit the appropriate mix of employees in terms of knowledge, skills and culture.

Bamber (2004) stated that best practices are not universal & adaptations required to use them effectively. Customizing the HRM techniques is the responsibility of the management body

Some of the challenges that HR managers are facing in terms of globalization are : Managing diversity of workforce, Managing pressures for more labor rights in third world countries, More part-time and temporary work, Coping with flexible working hours, Managing productivity and Quality.

With a population of only four million in Singapore, they have striven towards a knowledge-based economy & high level of technology, mainly due to the foreign talents are absorbed to share their experience which is a very good example for managing the diversity of workforce within the country.

Referances

* Bamber,G. Ryan,S, & Wailes,N. (2004). Globalization, employment relations and human resources indicators in ten developed market economies

*Burns,C. Barton,K. and Kerby,S. (2012). The State of Diversity in Today’s Workforce

*Onday,O. (2016). Global Journal of Human Resource Management

* Owusu, D. (2014). Poverty and the Impacts of Globalization on the African Economy 

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*Sparrow, P. Brewster, C. and  Hillary, H. (2004) Globalizing Human Resource Management Routledge London and New York