Strategic HR on a Global Scale: Navigating the Challenges and Opportunities of Globalization

 

An organization's administrative branch that deals with all employee-related issues is called human resource management. Recruitment, workplace safety, benefits and compensation, policy administration, performance management, training, and other issues are some of these difficulties.

Every organization's HR policy is governed by the government and labor regulations of the nation in which it conducts business. Additionally, as a result of globalization, there has been an unrestricted cross-border movement of technology and people resources, creating a dynamic and competitive corporate environment. It goes without saying that this had an effect on how all organizations run on a daily basis, including HR management.

We must first comprehend the shifting goals in hiring, new benefits, and the difficulties posed by globalization in HR management before we can comprehend how it affects HR management.

Globalization's Effect on Human Resource Management

HR management is gradually moving away from its conventional responsibilities, which included administration, transactional work, and people functions, in the age of globalization. However, as contemporary companies deal with a number of challenging obstacles, their HR departments also need to adapt.

Globalization and competitive trends in human resource management are the direct causes of this change. Businesses today want their HR managers to enhance the strategic use of employee initiatives.

Organizations now have a complex decision-making process due to the intense global rivalry. They require sophisticated HR systems that can analyze data to provide business insights, foresee needs in the future, and come up with plans to meet urgent demands. The problem is made much more difficult by the stark disparity between the long-term need and the global skill supply. Therefore, as the skill gap widens over time, the next generation of businesses will probably struggle with a shortage of highly qualified workers.

Principal Aspects of Globalization's Effect on Human Resource Development

Human resource managers nowadays have to devise strategies that accommodate both local and distant workers as a result of the globalization of the industry. For example, a Germany-based company that hires throughout Europe and Asia needs to make sure that its HR policy is adequate for the local and international requirements while also taking cultural differences into account.

1. Labour Laws        - The effect of globalization on HR administration is closely tied to the labor laws of a nation.

2. Communication - One of the best examples of how globalization is affecting HRM is in communication protocols. The disparity in time zones is a significant challenge for international corporations that conduct business across borders. For example, an office in one country may be finishing up for the day while the regional head office in another country is just getting started.

3. Training                 - Businesses typically provide new hires with comprehensive training that outlines job duties and corporate standards. However, different training modules are required for a global workforce due to the impact of globalization on HR procedures. An employer must train a local employee in accordance with the expectations and culture of offshore employment, for instance, if they are transferred overseas.

Globalization in Human Resource Management: Advantages & Disadvantages

Organizational dynamics and commercial operations have seen a swift transformation due to globalization. The main way that globalization has affected HRM is in how businesses communicate across cultural boundaries. Cultural sensitivity, time zones, labor laws, legislative actions, and regulatory impositions vary throughout nations. Therefore, while developing corporate HR strategy, HR management must always take these factors into account.

Advantages

• New Ideas due to cultural diversity
• Larger Markets
• Ability to tap into a wider talent pool

Disadvantages

• Understanding the various cultural characteristics of a broad labor pool is one of the main challenges of globalization in human resource management.

References

Greengard, S. (1995). "When HRMs Goes Global: Managing the Data Highway". Personnel Journal 76(6), 90-106.

Milliman , J., Von Glinow, M.A. and Nathan, M (1991) Organizational Life Cycles and Strategic International Human Resource Management in Multinational Companies: Implications for Congruence Theory, Academy of Management Review, 16

Prahalad, C.K. (1983) Developing Strategic Capability: An Agenda for Top Management, Human Resource Management, 22: 237-54