Globalization Impact On Strategic Human Resource Management
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6953 Downloads I Published: 16 Feb ,2018
Globalization is known to be the very broad term and has different meaning for different people in the world. As this report is prepared on the context of organization and in their perspective globalization is define as commerce without trade, a worldwide market place for the commencement of business, great influence on marketing of products and services for each and every people of the world and at last for organization, globalization is define as the management and delivery of products & services from anywhere to anywhere in the whole world (Budhwar, 2000). Globalization had great effects on number of jobs that are being done and force organization maintains equilibrium in different geographic, culture and legal requirements. Going internationally further considered as the process of operating in international market through broad outlook, resource required, exchange of information and other related stuffs. In more specific and in simple terms, globalization means to interact with global partners for operating in the large, market and intellectual possession. Going globally has a great impact on SHRM which stands for strategic human resource management. It is defined as the process of managing people on work with optimistic manner. It involves several practices that have a direct influence on the employee’s performance (ÇALIŞKAN, 2010). It includes range of activities such as selection and recruitment of individuals together with their performance evaluation and appraisal. It is developed to support the companies in meeting effectively the needs of their employees at the same time promoting goals of business.
Human resource functions like staffing, recruitment, training and compensation are all lined up in so called manner that can be adjust to take into account the difference in global management. Role of SHRM cannot be over emphasized, as the concept of globalization made it necessary and developed the ways through which human resource can be managed easily (Chen, 2009). Business is now focusing on their strength that can be used to survive in the competitive market and can able to sustain in the global market. Term globalization forced organization to stop old practices and system that has been evolved over time. Organizations completely depends on the term quality, cost and leadership but these three things can be achieved through organization effective SHRM. This entails that in every organization staring point is SHRM. This SHRM concept is being changing as per the changing environment of trade globally (Christopher and et.al., 2003). Globalization is said to have a deep impact on the companies in managing their personnel but on the other hand it also helps to managers to manage better equip their organization to step along with change in the global market. Greater influence of globalization that can be seen on SHRM is on the following points sharing below:
Application of law on different business, Influence of globalization on human resource is mandatory for every organization to understand laws of different jurisdiction on a particular business (Kazmi and Ahmad, 2002). To perform globally organization has to comply with the rules and regulation in respect of human resource developed by federal government like number of tax, labor laws etc. In UK hiring of employees and their wage differs from the location to location and tax allowance also differs. Fails to follow such regulation may results in large impact of organization financial position and along with that good will of the firm also hinders (Viewpoint, 2010).
Large focus on training, It is an activity that cultivate professionalism in an employee. Globalization demands for trained and efficient employees and this raise great emphasis on training in all organization operating globally. Training focused on the needs and professional competency of group or an employee (Ali, 2009). Company say for example arrange host language classes training to their employees in its call center to provide an edge in telephonic sales. Moreover training is imparted to teach how to use software in global platform. This training not only brings development in an employee’s but also given competitive edge to organization (Astiz and et.al., 2002).
Reward management, which is also one of the major elements of effective SHRM. Result of globalization helps organization to recruit employees for their organization from all over the world with the help of online recruiting. This free mobility of labor can happen only because of globalization. This mobile labor, their wage and reward will be completely different from the employees of the same nation (Bressie and et.al., 2005).
Future growth opportunity, Globalization influence the organization to push their employees for becoming professional as now they are performing globally which demands for professional employees who perspective is far more better than a normal employees (Carbaugh, 2008). Internationalization provides opportunities for employees to achieve their career goals. Moreover organization show greater interest on employee’s development and for that they provide more professional education or degree to their employees or may sent them to some meeting to learn more about business and for their self development. This is the call of globalization that let organization to perform so (Masahiko, 2005).
Advantage of having diversified recruitment, with the start up of globalization there will be developing a link with the whole world. This rise in globalization allows companies to interact with customers, agencies, stakeholder, get to other culture and language and backgrounds. This further helps managers to hire employees from equally diverse background (Miller and Mchoul, 2008). With the help of these companies recruit different culture and language of employees for different customer of the same background.
Above stated application that can be cultivated in SHRM through globalization is discussed. From the view of researcher, it could be said that role of globalization in SHRM is not just confined to above four applications; moreover it can be used in appraisal of employees, time management of employees, imparting vestibule training to employees and so on. Demand of efficient employees in international market is so high and people are getting higher education so that they can negotiate upon their higher salary with MNC (Nederveen, 2009). So to make their cost low and get talented employees into their organization MNC’s are putting large emphasis on training of their employees, So that they can enter in global market and perform their operation at low cost with existing employees. This is being evaluated by researcher through their research.
SHRM is again broad concept and use different tools and techniques when used globally. Tools that are being used in global market for achieving effective SHRM are Merit pay, it is one of the best way to cultivate SHRM in an organization. This is based on role play (Orozco and Hilliard, 2004). Person based, under this tolls what employees take from the organization in terms of knowledge, skills, experience which further encourage them. Result based pay, this tool is completely based on the rewards system of an organization. Moreover it is been said that effective SHRM can generate with the help of effective implementation of recruitment and selection programme, training and appraisal methods. Globalization also put emphasis to reduce carbon footprints done by organization (Smeral, 1998). Globalization pushes SHRM to assess this issue seriously and plan out some education session to how to lower down the carbon footprints. The main aim of developing such capabilities can be grabbed through establishment of conventional amenities of human resource supervision and through better performance along with comprehensive anxiety (Williamson, 2002).
People are known to be the most valuable and important asset for every organization. As the trade and industry base of many economies of country have largely headed to supplier of people for the production of value and quality goods into an organization. Still the main focus is on plant and machinery as it reduces the human efforts. This installation of machinery let them to go for merger and acquisition (Armstrong, 2008). Employees are the person who is sound with strategy; know more about the company’s stake holder, their assumptions, views and attitude. Their strategy helps business to inculcate change and helps in accomplishment of objective. Brand of a company is being valued as positive or negative by its employee’s behavior towards stake holder. They represent the value of brand. They are also responsible for the relationship between present value and the business ethics. Moreover it depicts the problems that are arising in present financial and management issue. To overcome this issue they should consider their employees as specific employees and should develop their performance in upcoming years (Bhattacharya, 2009).
Researcher again have studied in-deapthly this concept and have present their views that along with Globalization SHRM satisfies four conditions that is vital to sustain a competitive advantage are human resource is valuable and have the priority on top as compare to other resources in an organization. Secondly, human resources are very rare because organization can’t hire any people for their operation (Connor and Hernandez, 2009). Third is that human resources are imperfectly imitable because every person is completely unpredictable and can’t be judged correctly. They may act different in different situation. Last but not the least is that no other resources can replace humans, there doesn’t exist any substitute for these resources.
Globalization, along with the opportunity brings challenges at the same time. It is been seen that from the last 20 years many reforms has taken place but has very few impact of change in the area of trade (Cooper and Burke, 2012). But as the globalization came into existence, they have completely transformed the governance, role of Government and work done by public sector institution. To manage the human capital globally like in UK there they have develop a European union which is known as one of the great achievement after globalization came into existence. This union is based on the progressive economic integration, democratic principles and human solidarity (Haines and Bandt, 2002). So buy this example it is being clearly stated that globalization is affecting and pushing world towards the development of human resource and for their rights globally. The role of human resource management is to provide responsibility to all employees at all levels in an organization. Effective super vision in an organization can be achieved with the help of proper harmony which stated in human resource standard they are preparing employees for all condition for adverse situation so that in future they may not able to face any problem. In this competitive and changeable environment, organization demands for a culture which is sustainable to the surrounding (Objectives of human resource management, 2006). Listings of employees and providing open jobs are mandatory so that new outlook can be crafted that can able to deal in surrounding that is required.
In relation to our chosen topic a case can be discussed on British airways where they have found problems in managing their human resources. To operate internationally, British airways merged with Iberia airlines. Later on, the employees of BA started making conflicts and stress at workplace. This is due to the insecurity, uncertainty and fear of job changing or losing. This has lead to absenteeism and decrease in the performance level of manpower (Scott, 2013). The organization found challenge regarding employee’s relation with their employer, due to the modifications in terms and conditions and becoming a part of global organization venture. Due to such negative impacts on the business, BA has decided to make its HR planning and resourcing more decentralized and international than it was in the preceding years, for the reason to reduce the issues or conflicts of manpower and making them well adoptable with latest changes (The four main approaches, 2012).
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After analyzing the above case studies it can be concluded that strategic human resource management is one of the significant process within an organization that helps in the effective management of manpower. Individuals in a company are required to be managed properly for getting adequate performance and best result from the activities and globalization has a great influence on for fronting the SHRM globally (Cooper and Burke, 2012). Moreover, human resource planning is essential tool nowadays in an organization to perform internationally with their full efficiency, as specialized workforce is required with their proper placement at correct place to cope up with rising competition in the market. With this case it is being analyzed that HRM ways of doing work help organization in making change in the process of work. IT is always a major concern that the issues of employees should not be taken as lightly, there have to have some sortof strategy that can help to solve the disputes and thus helps in developing a positive environment which helps an organization to retain large number of employees for longer period of time (Connor and Hernandez, 2009).
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