Globalization's Influence on IHRM: A Detailed Analysis

This essay critically evaluates the statement that globalization leads to increasingly similar behaviors and values, particularly in organizations, and that IHRM will be globally conducted. The essay explores the impact of globalization on human resource management, emphasizing the interconnectedness of the world and the importance of effective communication in a global environment. It discusses the influence of globalization on foreign direct investment, economic growth, and the changing dynamics of the workplace, including the rise of performance-based payment systems. The essay highlights the need for cultural proficiency, cross-cultural communication, and the importance of understanding cultural differences in business. It argues against the idea of uniform behavior, stressing the importance of cultural acceptance and the need for nuanced approaches in international human resource management, emphasizing that while globalization has increased awareness, cultural understanding is key to successful global business practices.

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STUDENT NAME:
STUDENT ID:
TOPIC: GLOBALIZATION
DATE: 27-04-2019

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‘With globalization, people’s behaviour and values are increasingly becoming similar, and
especially so in organizations. Therefore, in about ten years’ time, the IHRM of
multinational organizations will be conducted globally.’ Critically evaluate this statement
and to what extent do you agree or disagree with the statement.
Introduction
The concept of globalization impacts human resource management and planning especially in
large organizations. Globalization has made everything possible and the world seems small. With
newer requirements, the needs of customers are fulfilled at any place and the requirement is
fulfilled as per the knowledge of suppliers and manufacturers. Human beings have a similar
tendency to accept the culture and interest of people with a particular point of change in the
business environment. Training and development have made easy for employees to focus on
selection recruitment program. Training and development policies tend to work on providing
HRD programs for employees (Brambilla, Lederman & Porto 2012). In the global environment,
the importance of communication is effective with the challenge in the business.
There are several examples of business sectors, example of the improvement in international
business. The impact of globalization leads to an imperative seeking cultural effects in the
business (Broner & Ventura 2016). The business tends to have a competitive advantage with the
globalization concept which has reached for economic upliftment. The recent economic
challenges tend to develop internal communication with the help of monitoring and controlling
business activities (Park 2017). The society is globally connected which seems that there are
cultural boundaries that present the increasing prominence and impact in the business (Suci,
Asmara & Mulatsih 2015). The ability to communicate is easy while society gains prominence in
business communication and tends to reflect the organization’s mission in terms of achieving
business value.
With the use of technology and tools, organizations have consequently felt the benefit of
globalization in the business as the present obstacles in the business are reduced in order to
compete in the market. competitive advantage is felt to increase market share and increase the
profit of the business. Cultural proficiency is felt in the business while addressing cultural

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nuance and working on market activities. The importance of cultural proficiency is to understand
the impact of culture and not to memorize the cultural activities. It is important to listen and
communicate with people rather than memorizing cultural nuance. There are global companies
who have engaged in cultural acceptance while the essay consists of providing importance to
culture and moving in the direction of IHRM. People’s behavior becomes similar is not an
accepted truth (Small-Clouden, 2016). The critical analysis is conducted while providing the
importance of cultural acceptance and not working on international human resource management
globally. Culture is an accepted truth, while the ten-year concept of IHRM of multinational
organizational is not a real situation that may be predicted so soon (Clark & D’Ambrosio 2015).
Globalization
Globalization has reduced the barriers and increased cultural awareness among countries. The
procedure of globalization effects the foreign direct investment which ensures stock investment
for FDI. The consequent nature of the financial flow of the business tends to ensure business
performance and considers business strategy. The new managerial change tends to work on
establishing new project of the business with ensured emphasize on productivity improvement
(Baylis, Smith & Owens 2013). The most considerable point that the globalization aspect is clear
about the enhanced business competition while paying attention to competing perspectives
(Minner 2015). There is a rapid growth of business with an economic model that translates the
recent transformation of the business with high-quality standards that are maintained in the
business operations.
The impact of globalization leads to the ensured economic growth of the country is emphasizing
drastic change in the union density of the country. The drastic change in business covers the
collective agreement and the coverage of union emphasizes on world economic growth rate
(Chakraberty 2013). The managerial authority and the responsibility is divided with operated
business and efficient management of HRM practices. Globalization speeds with the level of
competition in the country while it encourages production market and ensures competition with
increased business pressure. The change in the innovation and technologies have led a world to
have a better place where people communicate with each other while ensuring cultural
differences. The awareness about cultural differences have made a change in the business
thinking and ensures management of the business with an increased level of customer

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satisfaction and high employee involvement in structuring the business with its capabilities and
skills (Cseh, Davis & Khilji 2013). The performance-based payment system tends to revolve
around business performance in the globalized world.
Globalization has a positive relationship with HRM practices as it ensures a higher degree of
accepting different culture and the importance of diverse culture. There is notable research
carried out with the impact of globalization in the business. the high-performance work practices
ensure business and competitive advantage that the business provides with increasing
productivity and facilitates internationalization with several variables in the business. Human
resource management tends to ensure effective results of the business with radical changes and
business performance in the HRM system (Barry 2010). An increased level of HR policies and
business tend to work on performance measures. The change In the traditional HRM system is
expected by the business while accepting the HR policies of different countries when dealing
with them. The new HR policies in different countries tend to realize the importance of
performance-based promotion and incentive provided to HR.
Globalization and its impact
Globalization has an impact on business operations with the increasing importance of human
resource management. The human resource management approach is a major factor that attracts
the business and tends to work on several reasons for effective business practices. With the
widespread of the industrial unrest, the growing concept of management and human resource
practices tend to reflect the business operations. The growing trade has increased the importance
of managing relationships and communication among people at various levels. The increased
awareness about growing conflicts results in managerial effectiveness and acceptable human
resource practices. The change in human practices and management thinking leads to business
and culture awareness. Convincing workers and the concern of management has led to a broader
aspect of better performance (Mendenhall 2013). The concept of humanization and the change in
the business environment had led to acceptable practices approach towards manpower planning.
This is a consistent movement that the organization takes into account (Starmans, Sheskin &
Bloom 2017).
Human resource

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The change in the business environment tends to reflect the approach towards manpower and
works on technological change as other countries prominently ensure the growth of the business.
There are quick communication systems with the help of facsimile and satellite. The major
transformation and manufacturing operations of the country tend to reflect the areas of the
business. There are operational efficiencies and human resource practices that tend to have a
revolutionary change in the business. The technological importance and change tend to receive a
higher approach to manpower while focusing on ensured business concepts (Mikalauskiene,
Streimikiene & Mulagalejeva 2016).
Globalization of business is a change aspect that is an important concept which reflects in the
business with necessitating human resources and engaging business environment with manpower
planning. It is not the only concept that ensures the business performance of firms, while it even
reflects the economic condition of the country (Van Paasschen 2015). Multinational companies
ensure experts and professional services that foster the need for development and ensure
deliberate information with different perspectives. International firms tend to reflect international
emerging trends and cultural acceptance. A human resource approach is generally a major
approach that has a significant change in the business with management practices. The
widespread feeling majorly influences the data that collects information towards human
resources and the emerging global tendency to ensure management practices with technological
development. There is widespread importance of machines and human jobs that influence
cultural awareness among people. For example, highly skilled equipment tend to replace CNC
machine tools which is an improvement in technological advancement.
Communication
Communication is an important criterion that reflects business performance and is effectively
examined while ensuring the sale of products or services. Companies that tend to work together
with different areas need to be aware of the cross-cultural importance. While the companies that
have the skill to communicate with cross culture concept leads to a successful business venture.
There are several resources and capabilities that the companies need to focus on as the cross-
cultural effects need a better understanding of each component that differs from country to
country. Communication is an effective tool that works towards the business functions and tends
to offer a major understanding of communication gap and involving several communication

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boundaries. There is specific consideration of holding cultural understandings while ensuring the
communication gap between the companies. This is specifically measured under the cultural
understanding of the business while ensuring prejudices and personal biases to prevent in the
business (Aurangzeb & Haq 2012). It is important to understand and illustrate the significance of
communication in business. building a relationship with suppliers and customers is an important
aspect to be understood with the core aspects of business understanding and considering the
major change of culture in terms of language or communication between two countries
(VanderPal 2014).
The relationship between the two countries tends to reflect the major importance of cultural
differences and language change which needs to be understood in the business. There are cultural
change considerations that are considered in the business which reflect the need for
understanding cultural differences (Comin & Mestieri 2013). Due to globalization, the concept of
cultural change is addressed with effective systems and understanding the established business
conditions of the business. The development of technologies and understanding advanced
commerce and trade promotions will tend to reflect the business importance. There is significant
difference created between two countries that regards to commerce, trade, industry, and financial
matters. For example, the trade between Japan and the US will have a different aspect of trade in
which both countries have different trade policies, language difference, and financial matters are
different (Li & Zhou 2015). Thereby, for effective trade practices, it is important that business
communication tend to reflect the importance of culture for both countries. The organizational
change aspects and the supported consideration of communication strategies will lead to
effective trade management. Cross-cultural communication mainly addressed the need for
understanding business ideas and reflecting the importance of communication in the business.
There are business ideas and concepts that tend to reflect on a single culture but this might not be
advisable. On the other hand, it is important that exposure to different culture and acceptance of
different culture in the business is advisable (Wittmann 2014).
Knowing business needs and cross-cultural behavior tends to reflect a successful consideration of
communication and positive outcomes of the business. The exposure to communication and
culture would accept a diverse culture and would help in communication. The ability to
familiarize with cultural change for the business would positively ensure the growth of the

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business as the communication and cultural differences are sorted out in the business operations.
There is a high-level communication problem that is relatively assigned with a business growth
of an organization. The cultural boundaries reflect with the collective problem of the business
which needs to be solved in the business (Czaika & Haas 2016). The organizational ability tends
to work with absorptive capacity and ensure to recognize and identify business information. The
need for business operations is analyzed and the importance of external and internal information
is relevant in the business with core competencies.
Cross-cultural communication model
The major purpose of cross-cultural communication model is to have knowledge and ideas of
connection with people while ensuring communication output. The first step in the
communication model is to work on the cultural and values aspects while learning the
communication loop. The receiver in the communication process tends to receive the message
while constructing an identifying the communication message. From an organizational context,
certain barriers tend to impeded in the communication process. These hindrances need to be
analyzed as such it includes language, culture, technology, environment, and workforce. The
major purpose to study the model ensures that the customs and traditions of the culture do not
impact the work that is carried on by the employees working in a different country with a major
aspect of assuring business success. There are certain traditions and culture that influence the
procedures and policies of the business which enhance the business operations. Technology is
where the company needs to focus and touch its mediums to ensure advanced techniques that are
presented in the business while communicating within the organization. At the time of lack of
experience, the organization does not function well due to its certain consistency and particular
technological features. The new and advanced technology ensures that people are aware of the
culture change in different countries and tend to focus and reach the medium of communication.
The language barrier and the company process may have difficulty in engaging with the
company at a different location. There are language and consistent culture gap that pays a huge
tribute to cultural communication model (Ilyin & Rozanov 2013). If the language of the
company is consequently different, it is important to learn the language each other’s language to
solve the communication problem. On the other hand, a new language can be accepted by both
the companies which are common and can solve the problem of communication. There are

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cultural differences in different countries but these are now studied by the companies because in
order to work on a specific objective, the cultural change is learned consequently and the internal
structure tends to affect business and organizational goals. With the new language that is
accepted by two different companies located in two different regions, managers need to pay
attention towards creating awareness about diverse culture acceptance which would engage the
employees of both the companies to function well and achieve a common standard goal (Abdul
2011).
There are few companies to mention that have accepted the cross-cultural model in the business
while working with diverse culture. These are HP, IBM, Infosys, Toyota, etc. Workforce and
environment factors need to be analyzed effectively. The workforce consists of human resource
working in an organization such as managers, employers, experts, leaders, etc. Environment
refers to the factors that affect the company and are not controllable at some point. There are
certain factors that ensure business leaders to work on such as culture and value acceptance of
other companies in order to make sure that the obstacles of the business can be removed while
working on cross-cultural communication. There are barriers to communication that are
experienced in terms of reduced conflict, innovation and better dissemination of information
(Ghasabeh, Soosay & Reaiche 2015). These can be successfully analyzed in order to work on
global corporation communication which is critical to the business communication factor
(Aswathappa 2015). Without effective communication, it is not possible to work with companies
that are located in different places. As such these factors are challenging. With the impact of
globalization, the culture and values of an organization are presented with cross-cultural
communication. The challenge for business organization tends to focus on communication goals
and addressing the culture of the business (Karadagli 2012).
Culture and values
The threat of cultural uniformity analyzes the impact of globalization in the world economy. The
development of trans-national markets and worldwide generation leads to the acceptance of local
culture and the extinction of ethnic diversity in the culture (Daniel, Cieslewicz & Pourjalali &
2012). However, it is important to know that culture acceptance has engaged positively the
companies with a paradoxical effect in order to construct a business with two-dimensional
impact. There are endless sources that present the business debate while these are a global

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process that has their roots in the business with trans-national firms (Kose, Otrok & Prasad
2012). The local connections in the business tend to happen due to localization. The relocation of
globalization has created a different concept of addressing cultural traits with different
dimensions of the business that which is even called as glocalization.
A difference of attitude is created with world-system theory that ensures sociology and tends to
reflect the key elements that help in learning cultural change and acceptance. Individuals and
organizations have learned the aspect of cultural acceptance and thereby it is relevant to
understand that cultural change is accepted and ensure a change in the conceptions of identities
of the two companies. Cultural globalization leads to a sense of change that an organization feels
while accepting media attention and working on inter-dependency with the aim of humanity and
acceptance (George 2015). The world horizon presents cross-cultural change and the dialectical
importance of particularism with connection to the centralization of ideas while balancing
cultural acceptance. Cultural flows studies are impacted by different landscapes that tend to
affect the system and business operations. Cultural change is accepted in the business while
working on the ever-changing effects of technological change and the movement of people in
cross cultural boundaries.
Culture is a process of cultivation of ideas and inner strength and beliefs of a country.
Individuals are now aware of the values and ethics when they enter a different country (Derungs
2011). Thereby it is important to accept the cultural change or address comprehension of the
surroundings that impact the business with social action and importance of underestimation.
Culture acceptance is a universal phenomenon that has now been accepted by different countries
to ensure the impact of globalization.
World citizenship
The concept of world citizenship is partially addressed with an initiative of topics that ensure
cultural acceptance. Globalization includes the topics of identity, culture, politics, and
economics. These are interesting with the importance of conceptual term while mentioning the
connection and issues of globalization. There is an exact meaning to the issue of globalization.
Focusing on national governance and working on the aspects of business leads to awareness
about cultural differences that are now similar to the contexts of the other countries. The term

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citizenship leads to enhance the importance of passports nationally and internationally. These are
the aspects of the business that imply the change that is affluently managed with global
governance while working on a political view.
World citizenship leads to territory matter in which an individual can work on a cross-cultural
basis. Although an individual can travel to different places, he can even have a business
transaction or work with some companies globally. With the aspect of world citizenship, when
an individual focuses on considering the business aspects, there are several theories and concepts
that an individual needs to understand. Awareness about the cultural change and acceptance of
the cultural change leads to a major impact in the business as the business flourishes with
diasporic and citizenship engagement.
This is more than a concept of status, but firms can work with different companies that are
associated in different countries. The major influence is towards the ethnic consideration of
several movements that impact the business and the national identity (Faijgelbaum &
Khandelwal 2016). There are several aspects of the business that are understood with the
national state and the new spaces that enact the business influence of an organization.
Globalization has considerably helped individuals and organizations to understand different
cultures and languages. Thereby, communication is easy in this context. With the holistic levels,
the attitudes and actions of the business consider the effective implementation of business
concepts to achieve success and growth in the business.
Recommendations
There is a drastic change with the help of globalization in the economy. People’s values and
behaviors have economically been similar, the acceptance of the business culture has impacted
the business operations widely. Critically, it is important to know that the business values and
culture at some places are not similar while the business does not flourish while accepting
cultural change. This is the most important measure that is taken in order to ensure the critical
importance of globalization. The human resource management has now become a major function
to enhance in a multinational organization. To work with the best standards, it is important that a
single IHRM can be conducted globally. This may or may not be a major change in the business.
International Human Resource Management can be conducted globally as there are chances that

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with the effect of globalization, the concepts and standards may be equally accepted by all the
countries and a particular standard is to be maintained economically.
Culture awareness is important to learn when an organization accepts the culture of different
companies and people. To work globally, it is more or less important to study the change in the
system, process and cultural difference that are conducted in the business. There are critical
measures taken by organizations to understand the culture change and acceptance of a particular
common language for communication purpose. This is a sensitive topic, whereas it is important
to know that the change in the culture creates a wide difference. Suppose, the culture in the US
and the Indian culture when compared has a wide difference (Dave and Dave 2013). The cultural
beliefs, organizational structure, workforce, processes, etc. are different. It may be possible in the
long run that the IHRM of MNC’s can be globally conducted while not assuring the time period.
The human resource strategies and process are different and cannot rely on the difference of
acceptance of different culture by an organization. It becomes difficult to ensure the statement
that in ten years time, IHRM would be globally conducted among MNC’s.
Conclusion
The essay concludes with the disagreement of the statement that is provided. There are critical
arguments that are conducted which ensures the normal ways of ensuring cultural background
and acceptance of different culture. The essay focuses on both aspects such as acceptance of
globalization and working on cultural acceptance. On the other hand, it is difficult to work as per
the cultural difference that is created in different countries. With globalization, the impact of
value, behavior, and culture has now been similar but it is arguably difficult to say that IHRM
would be conducted globally. The statement evaluates the importance of globalization that an
organization needs to enhance and accept while working in different countries. The importance
of cross-cultural communication model is reflected to ensure that it is important to work on
language matter rather than working on certain criteria. With the effects of cultural change, the
acceptance of cultural change is a global initiative that is focused on maintaining the difference
between the countries globally. Globalization and technological advancement have ensured
business change and it is important to know that people have become aware of the change in the
culture in different countries.

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A successful organization must seriously focus on the objectives of the company that is socially
and politically responsible. Innovation and technological advancement tend to reflect the
importance of new gadget and several sustainable measures taken by organizations to match the
gap of cultural difference. With globalization, social responsibility tends to increase business
impact. While there are longer operations that work on cultural acceptance and affect the
business with a longer and sufficient profit to be attained with legal aspects.