How does Globalization impact on Human Resource Management Practices across Borders?

The History of Globalization 

In the early 1919 and 1939, the international businesses developed during the period of Worlds War(I) and World War (II). There were restrictions on imports and exports because of unhealthy relations and several countries faced a downside in economies as well. Then, sometime later, the world war countries gathered and found the need for trading globally with the use of international cooperation. Moreover, this formation led to International Monetary Fund (IMF) and World Bank. Further, their attempt in collaboration with advanced countries led to GATT (General Agreement of Trade & Tariffs) and in 1995, they were gradually replaced by WTO (World Health Organization). So, in the overall, during the 1990s, efforts from IMF, World Bank & WTO led to globalizations in businesses. 

Globalization simply means doing a business in more than one country and expanding and operating the business around the world. Further, it helps to encounter facilities of manufacturing and distribution in any part of the world. Moreover, globalization also must follow the global organizational structures and strategies for a business that is planning to go globally.

The Impact of Globalization on Human Resource Management

Nowadays, HR managers are trying to shift from being traditional and move into to a modernized business world that face several complexities in which the HR department should try to adapt. There is a need for advanced HR systems to interpret and deliver business data and insights for future goals and to cater the necessary needs for the business. 

However, challenges could be faced since there is a shortage in the supply of global talent and the organizations in the next generation will have to face difficulties due to lack of highly skilled workers. Therefore, companies must focus on investments in human capital rather than financial capital. To become a global leader, effective HR management is required.

What could be the challenges of Globalization in Human Resource Managment?

1. The impact of globalization is related to country's labor laws as minimum wage differs from country to country and some countries stick to country specific labor laws. Therefore, HR management should be deeply look into domestic and international labor laws in certain countries and avoid any legal issues.

2. Foreign recruitment can also be a challenge as different countries have different unique evaluating criteria for educational qualifications and certificates. Therefore, HR should be aware of the country's educational qualifications and evaluation criteria to hire individuals. 

3. Different time zones for multinational companies affect operation in different countries which can be really challenging. Therefore, HR department should create proper communication strategies which will be able to synchronize and coordinate with head offices. 

4. Managing diverse workforce can be another challenge since candidates come in different culture, locations, ages and genders. Therefore, HR must learn to teach their employees to maintain boundaries in the workplace and also to treat their co-workers. 

5. Employees can be kept focused and motivated by devising into performance management of employees through innovative measures in evaluation. The rise in performance evaluation is another example to influence human resource management. 

How can we discuss on the Pros and Cons of Globalizations?

Globalization can lead to increase in job opportunities in the case of outsourcing from other countries. Further, there will be reduction in international barriers between countries that foster relations. Another advantage is that it helps to avoid much competition in just one place from market saturation. 

In addition, companies can get the chance to approach to many markets that will help to develop organizations further. Organizations get a chance to fill diverse ideas, perspectives and insights into the culture of their work with globalization. With globalization, companies have the ability to access into a wider talent pool of individuals by hiring through internet facilities.

On the other hand, globalization can have downsides too. There could be huge gap between poor and rich countries. Also, a country that goes through economic depression can also trigger unfavorable reactions. For the small companies, globalization could affect them as there is a greater competition of companies globally. Further, another major disadvantage would be learning differences in culture when diverging with the pool of employees. 

For more information on globalization, please click on the video below.

In conclusion, I think that companies must consider on investing in human capital and rather financial capital. Further, companies must learn to diverse and to hire and train individuals and support workforce in several countries. HR department should also learn to adapt new thinking and practices that include foreign regulations, differences in culture and developments into technologies. 

Globalization helps to develop a global mindset for companies and individuals to observe and make sense of the world that we live in.

References 

Ganeshkumar (2023) Globalization in human resource management, Multiplier. Available at:https://www.usemultiplier.com/blog/globalization-in-human-resource-management#:~:text=Expatriation,%2C%20retaining%2C%20and%20motivating%20expats. (Accessed: April 9, 2023).

Globalization & Diversity: The impact of cultural differences (2014) YouTube. YouTube. Available at: https://www.youtube.com/watch?v=45-Gbk2OoFM (Accessed: April 9, 2023).

Natter, E. (2020) Effects of globalization on Human Resources Management, Small Business - Chron.com. Chron.com. Available at: https://smallbusiness.chron.com/effects-globalization-human-resources-management-61611.html (Accessed: April 9, 2023).

Online, U.P. (2022) What is the impact of globalisation on Human Resource Management?, Home - Study Online - University of Portsmouth. Available at: https://studyonline.port.ac.uk/blog/what-is-the-impact-of-globalisation-on-human-resource-management (Accessed: April 9, 2023).

Spirit of HR (2015) Globalisation & HRM, Spirit Of HR. Available at: https://spiritofhr.wordpress.com/globalisation-hrm/ (Accessed: April 9, 2023).