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Global Challenges of H

Globalization has both positive and negative impacts on human resource management. Positively, it has increased trade, investment, and economic growth. However, it also increases inequality and environmental issues. Managing diversity, outsourcing, temporary/part-time work, productivity, downsizing, and flexible hours are challenges for HR managers in a global context. HR must help organizations adapt to changes and focus on customers by effectively planning, organizing, leading, and controlling human resources.

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Preethi Gowda
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158 views2 pages

Global Challenges of H

Globalization has both positive and negative impacts on human resource management. Positively, it has increased trade, investment, and economic growth. However, it also increases inequality and environmental issues. Managing diversity, outsourcing, temporary/part-time work, productivity, downsizing, and flexible hours are challenges for HR managers in a global context. HR must help organizations adapt to changes and focus on customers by effectively planning, organizing, leading, and controlling human resources.

Uploaded by

Preethi Gowda
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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GLOBAL CHALLENGES OF H.R.M

Definition:

Global HRM refers to Human Resource Management practices that deal with managing a diversity of


workforce from all around the world.

Impact of globalization
 

Positive impact: Globalization is the new catchphrase in the world economy, dominating the globe since the
nineties of the last century. People relied more on the market economy, had more faith in private capital and
resources, international organizations started playing a vital role in the development of developing countries. The
impact of globalization has been fair enough on the developing economies to a certain extent. It brought along with
it varied opportunities for the developing countries. It gave a fillip for better access to the developed markets. The
technology transfer promised better productivity and thus improved standard of living. 

Negative impact: Globalization has also thrown open varied challenges such as inequality across and within
different nations, volatility in financial market spurt open and there were worsening in the environmental situation.
Another negative aspect of globalization was that a majority of third world countries stayed away from the entire
limelight. Till the nineties, the process of globalization in the Indian economy had been guarded by trade,
investment and financial barriers. Due to this, the liberalization process took time to hasten up. The pace of
globalization did not start that smoothly.

Economic integration by 'globalization' enabled the cross country free flow of information, ideas, technologies,
goods, services, capital, finance and people. This cross border integration had different dimensions - cultural, social,
political and economic. More or less the economic integration happened through four channels -

1. Trade in goods and services


2. Movement of capital
3. Flow of finance
4. Movement of people

Benefits:

The continuing global tendency towards the free flow of business and monetary infusions across nations describes
globalization which helps in the formation of international financial system. It provides economic independence and
triggers competition stimulating globalization to elevate the living standard of people in the nations that offer
themselves to the world trade. 

Benefits of globalization:"We have moved from a world where the big eat the small to a world where the fast eat
the slow", as observed by Klaus Schwab of the Davos World Economic Forum. All economic analysts must agree
that the living standards of people have considerably improved through the market growth. With the development in
technology and their introduction in the global markets, there is not only a steady increase in the demand for
commodities but has also led to greater utilization. Investment sector is witnessing high infusions by more and more
people connected to the world's trade happenings with the help of computers. As per statistics, everyday more than
$1.5 trillion is now swapped in the world's currency markets and around one-fifth of products and services are
generated per year are bought and sold. 

Buyers of products and services in all nations comprise one huge group who gain from world trade for reasons
encompassing opportunity charge, comparative benefit, economical to purchase than to produce, trade's guidelines,
stable business and alterations in consumption and production. Compared to others, consumers are likely to profit
less from globalization. 
2

Another factor which is often considered as a positive outcome of globalization is the lower inflation. This is
because the market rivalry stops the businesses from increasing prices unless guaranteed by steady productivity.
Technological advancement and productivity expansion are the other benefits of globalization because since 1970s
growing international rivalry has triggered the industries to improvise increasingly. 

Some other benefits:

 Commerce as a percentage of gross world product has increased in 1986 from 15% to nearly 27% in recent
years.
 The stock of foreign direct investment resources has increased rapidly as a percentage of gross world
products in the past twenty years.
 For the purpose of commerce and pleasure, more and more people are crossing national borders. Globally,
on average nations in 1950 witnessed just one overseas visitor for every 100 citizens. By the mid-1980s it
increased to six and ever since the number has doubled to 12.
 Worldwide telephone traffic has tripled since 1991. The number of mobile subscribers has elevated from
almost zero to 1.8 billion indicating around 30% of the world population. Internet users will quickly
touch 1 billion.
Challenges of H.R.M:

The following challenges are being faced by HR managers in terms of globalization:


- Managing diversity of workforce.
In order to effectively manage workplace diversity, a HR Manager needs to change from an
ethnocentric view ("our way is the best way") to a culturally relative perspective ("let's take the
best of a variety of ways"). This shift in philosophy has to be ingrained in the managerial
framework of the HR Manager in his/her planning, organizing, leading and controlling of
organizational resources.
- Managing pressures for more labor rights in third world countries.
- Managing Outsourcing of employees.
- More part-time and temporary work 
- Managing productivity and Quality
- Downsizing the workforce
- Coping with flexible working hours

Conclusion

The role of the HR manager must parallel the needs of the changing organization. Successful organizations are
becoming more adaptable, resilient, quick to change directions, and customer-centered. Within this environment, the
HR professional must learn how to manage effectively through planning, organizing, leading and controlling the
human resource and be knowledgeable of emerging trends in training and employee development.

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