Effects of Globalization on Human Resources Management

 

   Effects of Globalization on Human Resources Management

                                            


  Figure 1: Globalization in HRM

Source: (Multiplier, 2023)

Globalization has a substantial effect on the management and development of human resources when a company expands its operations into other nations. To be able to employ, train, retain, and support a workforce that is frequently dispersed across numerous nations with frequently differing cultural identities, businesses must take a wide variety of practical adaptations into consideration. Departments of human resources must change the way they think and behave to account for technological advancements, international laws, and cultural variations. The Human Resources department will need to boost assistance for its present employees when they take on new roles abroad as part of its role in globalization. It will be necessary to provide assistance with visas, work permits, and housing, as well as instruction on cultural challenges and maybe language learning. Additionally, it is important to find and nurture fresh local talent. The capacity of a corporation to fill labor shortages with qualified candidates will determine its ability to enter new markets. Local workers could be qualified in certain circumstances, but in others, they might be more interested in transferring talented and experienced people to the new site abroad. In this case, the willingness of workers to become mobile could be a key factor to productivity (Natter, 2020).

Impact of globalization on HRM

Globalization represents the unrestricted transfer of technology and human resources across international borders, creating a dynamic and aggressive commercial climate. People from all over the world are coming together as part of the process of globalization, which is facilitated by the extensive network of communication technology. This feature of globalization has also impacted HRM in the modern corporate world. HR professionals no longer need to rely on a narrow, constrained market to discover the right candidates. A company's ability to manage a varied pool of individuals that can contribute cutting-edge ideas, thoughts, and viewpoints to their job will determine its level of success in the future. A HR manager must thus exercise caution and, in the majority of cases, adopt a "Think Global, Act Local" mentality. Many local HR managers must go through culturally based human resource management training to improve their capacity to inspire a team of highly skilled but culturally varied professionals. The HR expert must also reassure the local professionals that these foreign skills do not pose a danger to their ability to grow in their careers.(Sharma,2019).

                          


         Figure 2: Challenges arising from Globalization for Human Resources

Source: (HRM Hand Book, 2023)                                                                                                                                                       

Challenges of globalization in HRM

Since globalization brings numerous global tenets together, modern businesses face multiple challenges. HR departments must tackle these issues efficiently to help businesses flourish and stay competitive. Some of the major challenges of globalization in human resource management include:

 ·      Attracting and retaining talent

Today's employees prefer companies with great work cultures and pro-employee policies since there are so many options for entrepreneurship and employment. Therefore, in this era of globalization in human resource management, the greatest method to draw talent is to understand their workplace expectations during the interview. HR departments must develop strong engagement strategies; provide workers with plenty of room for advancement, and aid in finding a work-life balance in order to keep people on board

·     Privacy and Security

The HR department is in charge of the company's staff and data. The volume of data collected each day grows tremendously as nations operate across boundaries. This forces HR teams to closely monitor their intellectual and human resources and safeguard them from security breaches. They must put in place sufficient security safeguards and create carefully thought-out confidentiality contracts for contractors.

·      Conflict management

Companies currently employ people from a variety of socioeconomic and cultural backgrounds. Due to cultural sensitivity, managing a diverse staff can become difficult and even cause conflicts in the workplace. HR executives must distinctly define appropriate workplace conduct and promote open communication channels as a result of the influence of globalization on HR practices in order to prevent problems at work.

·       Managing diverse workforce

Because of workforce globalization, there are now a variety of remote and on-site teams made up of people of many ages, genders, and cultural backgrounds. As a result, it is essential to address the needs of a varied workforce, which necessitates a global HR policy. Employees must learn to appreciate their coworkers while upholding workplace boundaries through HR standards that permeate several organizational sectors.

·   Performance management

Adapting creative evaluation strategies to the globalization of human resource management is necessary to maintain employees' motivation and attention. Instead of yearly evaluations, HR teams might develop a positive feedback system for frequent reviews. Another illustration of how globalization is affecting human resource management is the increase in enrollment for performance management certification.

·      Compensation package

Creating fair benefits and pay structures for all employees across international borders is difficult for businesses. In order to prevent fines and other legal issues, a company's HR department must establish a clear structure while taking into account the labor laws of the nations in which it conducts business (Multiplier, 2023).

Conclusion

The discipline of HRM has been profoundly influenced by globalization as well. Through the growing variety of the workforce, globalization has had a significant influence on HRM. HR professionals must be ready to manage and assist a workforce that is culturally and linguistically diverse as businesses extend their operations abroad and draw from varied talent pools. HR practitioners must be able to adjust HR processes to meet the demands of a diverse workforce, which necessitates a profound grasp of cultural variations.

References

Sharma, J. K., 2019. Impact of Globalization on Human Resource. Impact of Globalization on Human Resource, 4(2), p. 6.

HRM Hand Book, 2023. HRM Hand Book. [Online]
Available at: https://hrmhandbook.com/agenda/hr-challenges/globalization/
[Accessed 19 April 2023].

Multiplier, 2023. Multiplier. [Online]
Available at: https://www.usemultiplier.com/blog/globalization-in-human-resource-management
[Accessed 19 April 2023].

Natter, E., 2020. CHRON. [Online]
Available at: https://smallbusiness.chron.com/effects-globalization-human-resources-management-61611.html
[Accessed 19 April 2023].

 Figure 1: Globalization in HRM

Figure 2: Challenges arising from Globalization for Human Resources. 2

                                            

       


Thank you and appreciate your support.

D M Nilushi Thushantha Dayarathna

00174809 


 

Comments

  1. SatheeshApril 19, 2023 at 6:28 PM

    Hi Nilushi,
    Very nicely written and really very impressive in terms of art of writing and subjects/meanings. This shows that you are a professional writer/author. Weldone and great work. Only one matter, always the fulstops to be put after the citation closing brackets. (Check 《 .Sharma, 2019). 》
    Overall for me its good job. Weldone dear.

    ReplyDelete
  2. Dakshini MBA blogsApril 19, 2023 at 8:06 PM

    nice article..I was able to know some things that I missed. thank you..!

    ReplyDelete
    Replies
    1. NilushiApril 22, 2023 at 10:39 AM

      Thank you and appreciate your comments Dakshi.

      Delete
  3. L.D.NilukasajeewaniApril 20, 2023 at 11:56 AM

    Thank you for sharing the above content & yes, HRM is a rapidly growing discipline that requires professionals to effectively manage and assist a diverse workforce of different cultural and diverse backgrounds.

    ReplyDelete
  4. Srimali MBA 2023April 25, 2023 at 6:51 PM

    Hi Nikushi.I could able to have the knowledge about the things you mentioned in the post.Good job

    ReplyDelete
  5. NilushiMay 2, 2023 at 12:17 PM

    Thanks a lot Sameer

    ReplyDelete
  6. NilushiMay 2, 2023 at 12:17 PM

    Thank you Rubi

    ReplyDelete
  7. MOHAMED RAHMATH RALLYMay 3, 2023 at 8:34 PM

    well explained on HR globalization

    ReplyDelete

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