IMPACT OF GLOBALIZATION OF

HUMAN RESOURCE MANAGEMENT

 INTRODUCTION
What Is Globalization?
• Globalization is the spread of products, technology, information, and jobs across national borders and
cultures.
• In economic terms, it describes an inter-dependence of nations around the globe fostered through free trade.
• On the upside, it can raise the standard of living in poor and less developed countries by providing job
opportunity, modernization, and improved access to goods and services.
• On the downside, it can destroy job opportunities in more developed and high-wage countries as production
of goods moves across borders.
• Globalization motives are idealistic, as well as opportunistic, but the development of a global free market
has clearly benefited large corporations based in the Western world.
• Its impact remains mixed for workers, cultures, and small businesses around the globe, in both developed
and emerging nations
Definition of David Harvey
• Globalization is a compression of time and space.
Impact on HRM:
Because of its emphasis on diversity globalization also has a deep impact on the ways companies manage
there employees
Understanding the effects of globalization on human resources can help managers to better equip there
organizations for the increasingly global business environment

COMPETITIVENESS
• Business environment has become more competitive because of globalization
• More focus on increasing competitive strengths for long term strategies
• Competitors can easily duplicate competitive advantage obtained via better technology and products but it is
hard to duplicate competitive advantage gained through better management of people

DIVERSITY IN RECRUITMENT :
• Increase in interaction with customers with diverse cultures has led to managers seeking to hire people from
equality diverse background
• Customers can relate to such employees
• Contributions of a range of ideas and influences by these employee
Push for professional development
• Providing employees opportunities to achieve there career related goals
• Some organizations provide resource for their employees to earn a university degree, others send there
employees to conferences or networking events and training days
• 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
• Training tends to be focused on the needs and professional competencies of groups of employees within the
organizations
• 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
Management of laws
• Importance of understanding and applying laws of different jurisdictions in the business
• Tax laws. Labor laws, etc. are different for different states and countries
• Understanding these laws is vitally essential to the organization because any breach of them will have a
serious impact not only on the business financial well being but also in its reputation
  IMPACT ON HRD

• Globalization is a non economic process individuals, companies or governments are always on the lookout
for new processes or innovations
• The HRD includes not only economic development and workplace learning but it is also committed to the
political, social, environmental., cultural, and spiritual development of people around the world

Factors that affect HRD

• Cross – cultural communications
• Value awareness
• ‘survival confidence about living and working in different countries
• Handling cultural shock
• Customer employee relationship
 Recruitment Potential Grows Substantially:
• Human resource professionals are no longer bound by the physical boundaries of their local area when their
company moves into the global playing field. As a result, HR’s recruitment efforts become easier and more
diverse.
• They have a wider pool of talent from which to draw. The larger employee pool is especially notable in the
higher-skilled categories where there often is a gap between supply and demand.
• Businesses may thrive with competitive products and services, but cannot survive globally without the right
mix of talented employee.
 Challenging Cultural Differences
• One of the most challenging aspects of globalization on human resource professionals is the need to discover
and learn the cultural differences at play with their new global workforce.
• They need to learn how best to communicate company goals and missions, integrate diverse value systems
into their companies and coordinate the activities of all their employees to achieve their goals.
• HR in the home office must build working relationships with frontline managers to communicate company
policies, ensure new hires understand the parameters of their employment and translate company directives for
workers.
• They need to develop an understanding of the living conditions and training processes in other countries and
follow foreign employment regulations, labor relations laws and organized labor issues, as well as figure out
how to create effective performance appraisals.
DEFINITIONS:

INTERNATIONAL HRM:
Business must procure motivate retain and effectively utilize services of the people both at the corporate
offices and the foreign plants. The process of procuring allocation effectively utilizing human resources is an
international business is called international human resources management.

 TRANSLATIONAL HRM
In some ways, transactional HR is similar to the administrative functions once handled by the personnel
department. Transactional matters include benefits administration, revising and publishing workplace policies,
and investigating workplace issues. Process-oriented matters generally are transactional activities. Human
resources specialists and generalists manage the transactional activities through all the stages of the
employment relationship -- from recruitment and processing new employees to processing terminations and
conducting exit interviews.
OLD CONCEPT OF HRM IN RECRUITMENT

News paper ad

Telephonic interviews

Use of banner for vacancy

Preferences to intern
THANK YOU…