Introduction
Globalization can be defined as the ongoing
economic, technological, social, and political integration of the world that
began after the Second World War. It is seemingly shrinking the planet
as barriers to trade are dismantled, transport and communications costs fall,
and world production systems are formed and managed by huge multinational organizations.
“As a company extends its base to a foreign shore, the impact
of that globalization on HR procedures will extend to current workers and also
to new employees” (Natter, 2018). When catering to a wider range of audiences
across the world, companies need to adapt their thinking and practices based on
cultural differences, foreign regulations, rules and technological
developments.
Challenges to HR
“When
companies expand into new markets especially into developing regions business
practices that are acceptable locally may be at odds with the values of the
company and the laws of its regulatory agencies” (Wilkie, 2015). The challenge
for HR is to gain complete understanding of the new environment and its
accepted business practices. Protocols need to be customized for each region
and be communicated appropriately right throughout the organization and other divisions.
There
are many human resource management issues that are related to the globalization.
1.
Staffing
policies
2.
Selecting
and retaining talented employee
3.
Encouraging
employees to be innovative and creative
4.
Culture
barriers
5.
Legal
frame work
6.
Understanding
the challenges of living and working overseas
7.
Performance
appraisals from a distance
8.
Training and
management development
9.
Compensation
packages and
10. Labor relations and organized labor laws.
Training for globalization of business
Organizations when competing in a global market place, it has to survive and prosper in the modern world of rapid change. So the organizations need to be more flexible, faster-moving and faster-learning than ever before. Thus the organizations are implementing special global training programs, the reason for doing to avoid lost business due to cultural insensitivity, improving job satisfaction and retention of overseas staff and enabling a newly assigned employee to communicate with subordinates overseas. Providing training for employees not only helps them develop their skills and knowledge, but also it motivate and it helps to organizational success.
Conclusion
The speeds of technological developments,
rapidly changing statistics, and the huge increase in information technology
have resulted in a business environment that changes constantly. To remain
competitive in such a dynamic environment, businesses must continually improve
their human resource management systems and organizational changes.
References
Natter, E. (2018). Effects of Globalization on Human Resource Management. [online]
Available athttps://smallbusiness.chron.com/effects-globalization-human-resources-management-61611.html
[Accessed 1 May. 2021].
Wilkie, D. (2015). Globalization Presents Complex Challenges for HR Managers. [online]
at https://www.shrm.org/hr-today/news/hr-news/Pages/Globalization-Presents-Complex-Challenges-for-HR-Managers.aspx
[Accessed 1 May. 2021].
HR has to handle many challenges like; change management, conflict management, managing multi generational workforce, workforce diversity, globalization, striking work life balance, succession planning etc. HR has to play a well balanced role with strategic plan to overcome the situations.
ReplyDeleteThe biggest challenges facing HR Departments today are Recruitment, Retention & Motivation, Leadership Development and Corporate Culture. Along with the changing role of HR is a move to more strategic issues and outsourcing some functions so they can best manage and grow their company cost effectively.
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