The Global context for HRM - Week 8

Source: conatusnews

Impact of globalisation on Human Resource Management

Thanks to technology developments the world is becoming one place without any boundaries. The world is changing and adapting to a new era. The world is moving towards one culture. There is no more local and global, now it is all about glocal.


Globalisation has taken over every aspect of human life. Businesses have to think in a global perspective as the needs and demand are changing and consumers are expecting new products and services in global standards.

"Gone are the days when companies created products at home and shipped them abroad “as is.” With the rapid expansion of global markets, managers are struggling to balance the paradoxical demand to think globally and act locally. That imperative requires them to move people, ideas, products, and information around the world to meet local needs" (Ulrich, 1998).



When businesses going global the Human resource management has to think and go global. Human resource management has to change according to the global needs. Companies go global for various reasons. Organisations go global for business expansion, looking for new talents, natural resources, technologies, and cheap labours etc.

According to the Israeli Ministry of Foreign Affairs,(2017) more than 70 multinational giants have opened their Research and Development department in Tel Aviv and these are the names of few companies Visa, Renault, Bosch, MasterCard, Google, Facebook, Amazon, Coca-Cola, Microsoft, AOL, Samsung, Siemens, Paypal, Deutsche Telekom, Citibank, Intel, Yahoo, Barclays, IBM, Apple and other multinational companies.

Globalisation requires that organisations increase their ability to learn and collaborate and to manage diversity, complexity, and ambiguity (Ulrich, 1998).

Advantages and disadvantages of globalisation for HRM

Table: 1

Advantages	Disadvantages
Qualified Personnel	Different labour laws to comply with
Skilled Labour	Cultural difference
International exposure	Attitude
Cross-cultural experience	Political pressure
Low-cost Labour	Language barriers
Committed staffs	communication barriers

(Dolan, 1996)

Conclusion

Human resource managers should have the ability to manage people from various cultures and countries. Being able to manage well between cultures will give a competitive advantage to the organisation which will help to retain talented employees and achieve its goals. Failure to evolve according to the globalisation perspective in HR will make the organisation unable to compete with others. Effective HR strategies must be developed to utilise a multinational workforce (Dolan, 1996).





References:

Dolan, S.L., 1996. Human resource management in an international context. International HRM, 96(3), p.20.

MFA, 2013. Israel Ministry of Foreign Affairs. [Online] Available at: http://mfa.gov.il/MFA/InnovativeIsrael/DoingBusiness/Pages/Tel-Aviv-Israels-RD-hub-for-corporate-giants-4-September-2017.aspx [Accessed 21 September 2018].

Ulrich, D., 1998. A New Mandate for Human Resources. Harvard Business Review, (January - February).

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