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How Is Globalization affecting HRM?

Do the geographical and the national boundaries limit a business in the world of the 21st century? The answer is simply "NO". The term Globalization has invaded the mind of every successful businessman and the concept of Global Village is a common issue in the modern business world.

What really the globalization is? The answer seems simple "if a firm or an organization expands its sales or production beyond the national boundaries, then it is globalization", but it does not cover the real meaning of the term. Globalization actually means more, much more than that; it is realizing that there is a big world out there, geographically, that reaches far beyond our small community and that the world is getting closer to us all the time. Globalization is the realization that, whether we like it or not, this big world is becoming an ever increasing factor in our daily lives.

The concept of globalization today has invaded the globe and the national boundaries have been virtually eliminated. So what is the effect of this? Simple, the world today has became a small but a very very complex and dynamic neighborhood. Today we live in a global village and this means that our activities have crossed the national boundaries to become global.


Globalization is a process that is drawing people together from all nations of the world into a single community linked by the vast network of communication technologies. This aspect of globalization has also affected the HRM in the business world of today. HR managers today not need to rely in a small limited market to find the right employees needed to meet the global challenge, but today they can recruit the employees from around the world. Besides that the effective data based which is being used globally today also has made HRM a simple but effective task. Thus due to globalization to some extent HRM has became more efficient and effective, but relatively a simple task.

The global business environment today is a multi-cultural one. While general business considerations are essentially the same the world over, business styles differ greatly from country to country. What is customary and appropriate in one country may be considered unusual or even offensive in another. The increasingly competitive environment calls for an individual approach to each national market. The success of any venture outside the home market depends largely upon preparation and training within the company. The American style of business in not universally accepted. Yet they send our employees, executives, salespeople, technicians to negotiate or carry out contracts with little or no understanding of the cultural differences in the ways people communicate and do business with each other. Thus due to globalization HRM has to be more dynamic in terms of recruiting, training and developing the employees to assure that they can function effectively anywhere around the world.

It doesn't mean in anyways that the HR are proactive only, they are sometimes reactive too, and they have to be. No person in the world is able to explain what will happen next and predictions are never 100%. If they were only proactive the situation would have worsen. As a conclusion it can be said that the HR of today is Proactive in the issues of globalization, they know what may come next and are well prepared for that, but besides that they are reactive too they are dynamic in nature and are highly flexible according to the situation.

Today we do not need to rely on the products produced in our native place or look for a job in the hometown, but we think and act globally in terms of consumption or selling of our services. So is the case of producers or organizations of today, most of the big firms have already became the multinational giants. They may have there factory any where around the globe, they may sell their products and services in any markets and the most important thing is that they may hire qualified personnel from any corner of the world. This is all because of globalization and this all has become possible because the huge world of the past has turned into a global village today.

What is the most important factor that these organizations are made up of? People, and since HRM is the set of activities which deals with the people factor present in any organization, this change has affected The Human Resources Management itself a lot. Human resources manager of today must ensure that the appropriate mix of employees in terms of knowledge, skills and cultur

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Approximate Word count = 2190
Approximate Pages = 9 (250 words per page double spaced)


  

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