THE EFFECTS OF GLOBALIZATION

We live in an advance and explosive world which is rapidly developing in every sector, organizations are looking to gain more advantages from any given opportunity and they are thinking innovatively to work and communicate.

INTRODUCTION

Globalization is one of the main issues to influence the International organizations diverse from domestic organizations for human resource management (HRM). The HRM policy and practice should differ according to countries and the recruitment methods used to recruit and manage expatriates should be changed. Globalization is a procedure of international economic alliance in the worldwide market. It is the development of single international markets for goods or services accompanied by an increased growth in world trade. Any company that has an interest in the economy or interested in the activities which will extend across a number of international restrictions is a global company. This can trigger out a number of issues because the activities of the organization are not limited to one country. (Armstrong, 2009)

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Shifting clauses of environment and industry trends are now challenging the organizations to expand their international tactics to focus simultaneously on competitive possibilities now requires for global effectiveness, multinational flexibility and worldwide learning. (Bartlett and Ghoshal, 1991)

INTERNATIONAL EXAMPLES

Organizations are recruiting expatriates to expand overseas market for several reasons; some are to manufacture and sell new foreign products and reduce the labor costs. Toyota opened a manufacturing unit for Camry Model in Kentucky, while Dell produces PCs in China and Walmart is opening stores in South America. (Dessler, 2013)

PROS & CONS

Sparrow, Brewster and Chung (2017) pointed out the two most important advantages & disadvantages of Globalization on HRM of organizations.

• Advantages:

o   Gaining knowledge clusters, skills, supplier networks and institutions at the level of an industry or country.

o   Cross-border networks of people that create flows of ideas, technology and organizational routines.

• Disadvantages:

o   Impact on setting the HRM ‘boundary conditions’ in terms of how broadly or rapidly.

o   Distinctive countrywide patterns of HRM might be affected.

CONCLUSION

Organizations need to move people, ideas, products and information around the world to meet local needs for the managers to balance the contradictory demand to think normally and act locally. These days’ political situations, global trade issues, unfamiliar cultures and the exchange rates must be considered when making a strategy. The managers should also be educated in the ways of international customers, commerce and competition than earlier. So to be brief, globalization requires the organizations to increase the ability to learn, cooperate and manage diversity, complexity and ambiguity. (Ulrich, 1998)

REFERENCES

Armstrong, M. (2009) Armstrong’s Handbook of Human Resource Management Practice, 11^th edn. London and Philadelphia: Kogan Page.

Bartlett, C. A. and Ghoshal, S. (1991) Managing Across Borders: The Transnational Solution. Boston: Harvard Business School.

Dessler, G. (2013) Human Resource Management, 13^th edn. Boston: Pearson.

Sparrow, P., Brewster, C. and Chung, C. (2017) Globalizing Human Resource Management, 2^nd edn. London: Routledge Taylor and Francis Group.

Ulrich, D. (1998) 'A New Mandate for Human Resource', Harvard Business Review, January – February, pp. 124-126.