Human Resource Management & Globalization
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Human Resource Management & Globalization
What is Human Resource Management
& Globalization?
Human
Resource Management (HRM) is a crucial component of business operations, and
globalization has brought significant changes to HRM practices worldwide. Therefore,
Understanding HRM in the globalization context has become vital in all academic
and business operations platforms.
This
blog will examine diverse viewpoints on HRM globalization and compares various
citations to provide a comprehensive understanding of the topic.
According
to one perspective, globalization has resulted in the standardization of HRM practices
across different countries. Multinational corporations (MNCs) have carried out
a significant role in carving the global HRM landscape by moving best practices
from one location to another (Dowling & Welch, 2004).
However,
another viewpoint suggests that globalization has led to increased diversity in
HRM practices across different countries. The institutional context of a
particular country, including labor laws, industrial relations systems, and
cultural norms, significantly shapes HRM practices (Edwards & Kuruvilla,
2005).
Moreover,
the impact of HRM globalization varies in different regions of the world. HRM
practices in developed countries focus on employee rights and well-being, while
HRM practices in developing countries concentrate on cost-cutting and
efficiency (Farndale & Kelliher, 2014). Hence, cultural and institutional
contexts should be considered when developing HRM practices (Budhwar &
Sparrow, 2002).
Facts
Current
MBA programs around the globe reflect the impact of HRM globalization. The
curriculum at the Harvard Business School includes courses on Managing Human
Capital in Global Organizations and Leadership and Organizational Behavior in
the Global Context.
New HRM practices that have emerged due to globalization
1. Across-cultural training: Adler, N. J. (2002) As organizations expand their operations globally, it is crucial to provide cross-cultural training to their employees to enable them to work effectively in diverse settings.
2.
Virtual teams: (Kabamba, N.K.W. and Chen, W.X., 2023) With
globalization, many organizations have adopted virtual teams to facilitate
collaboration among employees working in different locations. HRM practices
such as telecommuting and video conferencing have enabled virtual teams to work
efficiently.
3. Global talent
management: Scullion, H., & Collings, D. G. (2011).
As the competition for talent has become
global, organizations have adopted new HRM practices such as global sourcing,
global recruitment, and global talent development to attract and retain the
best talent worldwide.
4. Expatriate
management: Tung, R. L. (2008). As organizations expand globally, they need to
manage their expatriate employees effectively. HRM practices such as expatriate
training, support, and compensation have become critical in ensuring the
success of expatriate assignments.
5. Diversity and
inclusion: Cox, T. (1994). With the diversity of the workforce increasing due
to globalization, organizations have adopted HRM practices such as diversity
training, mentoring, and affirmative action to ensure that all employees feel
valued and included.
The
above new proven HRM practices have become indispensable in enabling
organizations to navigate the challenges and opportunities presented by
globalization. Organizations can attract and retain the best talent, facilitate
collaboration across borders, and operate effectively in diverse settings, By
adopting these practices.
Below
is a good theory that elaborates more on the importance of adopting Globalization
practices in HRM.
Institutional Theory
Institutional
theory suggests that organizations' actions and practices are influenced by the
norms, rules, and values of the institutional environment in which they
operate. This theory is relevant in the context of globalization as HRM
practices are shaped by the cultural, political, and institutional context of
the countries in which MNCs operate. The institutional theory highlights the importance
of adapting HRM practices to the institutional context of the host country to
ensure organizational legitimacy and effectiveness. Therefore, understanding
the institutional environment of the countries in which MNCs operate is crucial
in developing HRM practices that align with the local context.
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As a perfect example, MAS Holdings in Sri Lanka, An apparel
manufacturer based in Srilanka has implemented HRM practices to navigate
globalization. The company focuses on employee engagement, diversity and
inclusion, and sustainability. MAS Holdings provides wellness programs,
training, and career advancement opportunities to engage employees. The company
also implements diversity and inclusion initiatives and sustainability
strategies to ensure environmentally friendly and socially responsible
operations. These practices have enabled MAS Holdings to attract and retain
talent, operate effectively in diverse settings, and maintain a competitive
edge in the global marketplace.
Disadvantages of Globalization in HRM
One
of the key challenges of globalization in HRM is the need to learn the variable
cultural differences of a diverse collection of employees. HR departments must
continuously stay updated with the labor laws of different countries, devise
communication strategies, integrate value systems, and thoroughly coordinate
the activities of all employees to achieve company goals. They must have an in-depth
understanding of foreign labor laws and requirements and employment regulations
to plan accurate and sustainable employees. This can be a highly time-consuming
and complicated process for an organization to bare during the initial setup. Nankervis, A. R., Compton, R. L., & Baird, M. (2011).
Conclusion
In an overall view, Globalization has transformed
the way organizations operate globally and HRM practices have had to evolve to
keep up with these changes. The appearance of new HRM practices, such as
cross-cultural training, virtual teams, global talent management, expatriate
management, and diversity and inclusion, has become essential in enabling
organizations to direct the challenges and opportunities open by globalization.
By embracing these practices, organizations can attract and retain the best
talent, also facilitate collaboration across borders, and operate effectively
in diverse settings. Eventually, the adoption of these HRM practices can lead
to increased organizational effectiveness and success in the global market
platforms. As organizations continue to expand their operations globally, it is
crucial to stay tuned to these developing HRM practices and implement them
effectively to achieve the desired global business objectives.
References:
Budhwar,
P.S. and Sparrow, P.R., 2002. An integrative framework for understanding
cross-national human resource management practices. Human Resource Management Review, 12(3), pp.377-403. [Online] [Access date 17.4.2023].
Dowling,
P., 2004. International
Human Resource Management: Managing People in a Multinational Context: Managing
People in a Multinational Context. Thomson. [Online] [Access date 17.4.2023].
Edwards,
T. and Kuruvilla, S., 2005. International HRM: national business systems,
organizational politics and the international division of labor in MNCs. The International Journal of Human Resource
Management, 16(1), pp.1-21. [Online] [Access date 17.4.2023].
Farndale, E., & Kelliher, C.
(2014). Employee well-being through human resource management: Theoretical
perspectives and empirical evidence. Routledge. [Online] [Access date 17.4.2023].
Adler,
N.J., 2006. The arts & leadership: Now that we can do anything, what will
we do?. Academy of
management learning & Education, 5(4), pp.486-499. [Online] [Access date 17.4.2023]
Kabamba,
N.K.W. and Chen, W.X., 2023. Impact of Virtual Teams on Supervisor-Subordinate
Guanxi (SSG): Case Study on Jiangsu Hengli Group. [Online] [Access date 17.4.2023]
Collings,
D.G., Scullion, H. and Vaiman, V., 2011. European perspectives on talent
management. European
Journal of International Management, 5(5), pp.453-462. [Online]
[Access date 17.4.2023]
Tung,
R.L., 2008. The cross-cultural research imperative: The need to balance
cross-national and intra-national diversity. Journal of International Business Studies, 39, pp.41-46. [Online] [Access date 17.4.2023]
Cox,
T., 1994. Cultural
diversity in organizations: Theory, research, and practice. Berrett-Koehler Publishers. [Online] [Access date 17.4.2023]
Great attempt! Similarly, HRM and globalization are closely intertwined concepts. As organizations operate in a globalized environment, HRM must adapt to the changing needs of a global workforce, including recruiting and retaining talent from different cultural backgrounds, managing remote teams, and navigating the complexities of different labor laws and regulations. HRM must also address diversity, equity, and inclusion issues, and adapt to new forms of work, such as virtual teams and freelance work.
ReplyDeleteThank you for the feedback!
DeleteIt's interesting how MAS has adopted globalization and set an example for other companies. It's also worth noting that technology has further facilitated globalization, allowing companies to access talent from around the world and enabling remote work arrangements. However, this presents challenges for HRM, such as ensuring data privacy and security in a global workforce (Budhwar & Debrah, 2009).
ReplyDeleteYes Praveen! Thank you for your time and the feedback.
DeleteThis blog article provides valuable insights into the impact of globalisation on human resource management practices worldwide. While some argue that globalisation has led to the standardisation of HRM practices across different countries, others suggest that cultural and institutional contexts should be considered when developing HRM practices. The emergence of new HRM practices such as cross-cultural training, virtual teams, global talent management, expatriate management, and diversity and inclusion have become indispensable in enabling organisations to navigate the challenges and opportunities presented by globalisation. Institutional theory highlights the importance of adapting HRM practices to the institutional context of the host country. However, one of the key challenges of globalisation in HRM is the need to learn the variable cultural differences of a diverse collection of employees. (Dowling & Welch, 2004; Edwards & Kuruvilla, 2005; Farndale & Kelliher, 2014; Adler, 2002; Kabamba & Chen, 2023; Scullion & Collings, 2011; Tung, 2008; Cox, 1994; Nankervis, Compton, & Baird, 2011)
ReplyDeleteThank you Lasni! Your ideas are very valuable. Thank you for taking the time to read my article!
DeleteThe article creating a conductive work environment that promotes organizational success Chathura . Globalization has a most important implication for human resource management practice in general. For some, globalization creates pressures for taking best, a transferable set of HRM practices that can spread around the world. It is a force that touches the lives of people living in all countries of the world. Globalization has aided deforestation and the huge consumption of non-renewable fossil fuels and natural resources. Globalization places a strong focus on commerce, including import and export. If the demand exceeds the supply, exporting might lead to deforestation. Issues include global competition for products and services, global talent management, risk and privacy, understanding global diversity and cultural issues, flexible reward systems, leadership challenges, and managing international assignments. Globalization in HRM means that the HR team manages resources across the world, and it's their duty to help all team members feel like they belong to a single community.
ReplyDeleteYes Nilushika, I totally agree! Thank you for the valuable feedback and taking your time read my post.
DeleteHi Chathura! Your article provides an in-depth review of how practices in HRM have been affected by globalisation. It offers a number of insights on the standardisation vs diversity of HRM practises across nations, as well as the differing effects of globalisation on HRM in industrialised and developing nations. The topic is strengthened by examples and tried-and-true HRM techniques connected to globalisation, including cross-cultural training, virtual teams, global talent management, expatriate management, and diversity and inclusion. To complement the material offered, it would be helpful to provide more detailed references for the theories and practises described. Additionally, going beyond cultural differences to discuss the drawbacks of globalisation in HRM would provide a more fair viewpoint. The paper successfully emphasises the importance of appreciating and adapting HRM practises to the global context of organisations in its entirety.
ReplyDeleteHi Hashmith! Understood and thank you for the suggestions.
DeleteConducive work environments that foster organisational performance are the focus of this study. To speak with Chathura. Human resource management as a whole has crucial implications due to globalisation. Some people believe that globalisation increases the need to adopt the finest human resource management practises (HRM), which may then be exported to other countries. It's a factor that affects individuals in every nation on Earth. Deforestation and the massive use of nonrenewable fossil fuels and natural resources have both been encouraged by globalisation. The import and export industries are given special attention by globalisation. Deforestation might result from exporting if demand is higher than supply. Challenges include worldwide product and service rivalry, global personnel management, risk and privacy, cross-cultural understanding, variable compensation, difficult leadership tasks, and international assignment management. Because of the global nature of human resource management, HR professionals are responsible for coordinating the efforts of staff members in different locations throughout the globe while encouraging a sense of unity among them.
ReplyDeleteVery interesting
ReplyDeleteHuman resource management and globalization is very famous topic you selected. It is very important because globalization refers to an open flow of information, technology, and goods among countries and consumers. This openness occurs through various relationships, from business, geopolitics, and technology to travel, culture, and media.Because the world is already so connected, most people don’t notice globalization at work every single day. But the world is getting smaller, and companies need to understand what this means for the future of doing business. Companies that don’t embrace globalization risk losing a competitive advantage, which allows other businesses to take over new opportunities in the global marketplace.
ReplyDelete