Description

Globalization and New Technological Revolution affecting HRM practices

2.1 Globalization

Globalization is a term in business that refers to the integration of an organization's operations,

processes and strategies into diverse cultures, products, services and ideas. Due to its emphasis

on diversity, globalization has a profound impact on the way of managing employee for the

company. In the increasingly global business environment, understanding the effects of

globalization on human resources can help managers to better equip their organizations.

Diversity Recruitment

With the rise of globalization, the customers and shareholders of each company may from all

over the world, whatever the size of the company is small or big. These customers and

shareholders have diverse cultures, languages and social backgrounds. In dealing with this

situation, many human resources managers seek to hire employees from equally diverse

backgrounds. Companies engaging in this diversity recruitment recognize the value of having

people on staff that their customers can relate to, and they know that having a team of diverse

people contributes to the range of ideas and influences within the organization.

Push for Professional Development

A further effect of globalization on HR management is a push for professional development.

Professional development is concerned with providing employees opportunities to achieve their

career-related goals. Some organizations provide resources for their employees to earn a

university degree, others send their employees to conferences or networking events and training

days. Professional development is important to globalization because it creates a win-win

situation. The employees feel as though the organization is concerned with providing a range of

skills and competencies for their employees. Likewise, the organization benefits from the added

skills and connections that the employees who take advantage of professional development

programs acquire.

Greater Emphasis on Training

Similar to professional development, a greater emphasis on training has resulted because of

globalization in human resources management. Training, however, tends to be focused on the

needs and professional competencies of groups of employees within the organization. The

company might, for instance, host language classes to give its call center staff an edge in

telephone sales. It might also teach its employees how to use a new global software platform.

This emphasis on training seeks to give the company a competitive edge in the global

marketplace by honing the employees' diversity emphasis.

Management of Laws Across Jurisdictions

A final effect of globalization on human resources management is the need for businesses to

understand and apply the laws of many different jurisdictions to the particular business. The

federal government sets out a number of tax and labor laws that businesses operating in the

United States must comply with, but there may also be local and regional laws that apply to

companies that operate in different states or different countries. Selling products in Europe, for

example, might mean that a company has to impose a Value-Added Tax on its goods. Hiring

employees at branch locations in different locations might change the requirements on minimum

wage, tax allowances or working hours. Understanding these laws is vitally essential to the

organization because any breach of them will have a serious impact not only on the business's

financial well-being but also on its reputation.