Globalization and Human Resource

Challenges

• Globalization- many interpretations• Core economic meaning- the increased

openness of economies to international trade, financial flows, and foreign direct investment

• Concerns with globalization center around the unevenness of the process, and risks

• Globalization provides opportunities for businesses to invest in foreign markets and to gain access to new capital.

• Globalization is not new, though. For thousands of years, people—and, later, corporations—have been buying from and selling to each other in lands at great distances.

• Such as through the famed Silk Road across Central Asia.

• increases in cross-border trade, investment, and migration

• opened economies domestically and internationally.

• Technology has been principle driver of globalization.

Human Resource Challenges

Diversity Recruitment• companies of all sizes are now interacting

with customers and stakeholders from diverse cultures, languages and social backgrounds

• Companies engaging in this diversity recruitment recognize the value of having people on staff that their customers can relate to, and they know that having a team of diverse people contributes to the range of ideas and influences within the organization.

Push for Professional Development•  Professional development is concerned with

providing employees opportunities to achieve their career-related goals

• Professional development is important to globalization because it creates a win-win situation.

• 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•  tends to be focused on the needs and

professional competencies of groups of employees within the organization

• his emphasis on training seeks to give the company a competitive edge in the global marketplace by honing the employees' diversity emphasis.

Management of Laws Across Jurisdictions• understand and apply the laws of many

different jurisdictions to the particular business

• Understanding laws is vitally essential to the organization because any breach of them will have a serious impact not only on the business's financial well-being but also on its reputation.

Work Place Flexibility• ‘virtual office’ is characterized by creative

and flexible work arrangements.• there will be an increase in emphasis on

performance and results as opposed to the number of hours worked.

• In addition, off-site employees can expect to attend fewer meetings.

language capabilities• in order to recruit employees from other

cultures, HR managers will either have to learn new languages or else they will certainly have to have foreign speakers on staff.

• It will increase their cost of business.

Global Business• concept world trade knew a major growth

during the last years • They will be required to develop and manage

an international workforce• keep top management informed of the costs

of not paying attention to the transnational issues and provide their services to a variety of locations world wide.

Cultural Differences• Organization must take into account cultural

differences that shape managerial attitudes, when developing multinational management programs.

• They must be familiar with and understand other cultural norms to promote organization diversity.

• With increasing globalization and competition within the market, a diverse workforce is conducive to attracting and retaining a strong client base

                     

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