Impact of Globalization on HR Department in Retail Industry
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This research aims to evaluate the effect of globalization on the functioning of the HR department in the context of the retail fashion sector firms, with a focus on Zara. It will identify HR practices, determine the positive and negative impacts of globalization, and develop strategies for overcoming challenges.
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Contents INTRODUCTION...........................................................................................................................................3 Introduction to Study..............................................................................................................................3 Background to Study...............................................................................................................................3 Rationale of Study...................................................................................................................................3 Scope of Research...................................................................................................................................4 Research Aim...........................................................................................................................................4 Research Objectives................................................................................................................................4 Research Questions.................................................................................................................................4 Time Frameworks....................................................................................................................................5 LITERATURE REVIEW....................................................................................................................................7 RESEARCH METHODOLOGY.........................................................................................................................9 DATA ANALYSIS AND INTERPRETATIONS...................................................................................................12 RESEARCH OUTCOMES..............................................................................................................................21 REFLECTION AND RECOMMENDATION.....................................................................................................22 CONCLUSION.............................................................................................................................................23 REFERENCES..............................................................................................................................................24
INTRODUCTION Introduction to Study Globalizationisconsideredasaprocedurethroughwhichinteractionsaswellas integration among the people, organizations and government are done at the worldwide level. Globalization is divided into three types i.e. political globalization, social globalization and economical globalization (Amin and et. al., 2014).In a growth of a business unit, globalization plays a crucial role because through it they able to attain number of advantages such as business expansion, customer base growth and many more. For conducting this research Zara company is taken which is operating its business at retail industry. It is founded by Amancio Ortega and Rosalia Mera in year 1975. Its head office is located at Spain and they operate at worldwide level by offering quality clothing range. The aim of conducting this research is to identify impact of globalization on operations and functions of HR department of a retail company. For this research gather effective data as well as information through different methods like qualitative, quantitative, primary and secondary. Background to Study The background of conducting this research or study is to understand globalisation and how it impact on the human resource department of fashion retail industry. This is so because through it researcher able to develop more effective strategies and plan that they advice to retail industry for conducting their business operations and functions in effective manner at the global level(Boella and Goss, 2012). Along with this, it will also help in enhancing knowledge as well as understanding of researcher on the topics of globalisation and its impact on HR department of fashion retail industry. It will also help researcher for developing report on respective topic that will help others in future. Rationale of Study Rationale of conducting this research is developing understanding of globalisation and its effect on human resource department of fashion retail industry. It is essential to understand this because through this researcher can advice to company’s human resource manager that how they can develop more effective strategic plan in order to avoid issues when they expand business at international level(Bondarouk, Parry and Furtmueller, 2017). For fashion industry it is essential
to expand their business at global level because through it they can adopt more innovation as well as creativity which help them in attracting more and more customers that directly leads to generation of high profitability and market shares. Scope of Research The scope of conducting this research is to identify impact of globalisation on the HR department of Retail Company so that they can develop effective decision. In respect of researcher, their purpose of conducting respective research is to gather proper as well as effective information on the impact of globalisation on the HR department(Boxall, 2012). By that they can help fashion retail companies in developing appropriate decision or strategic through which management can conduct procedures accordingly for gaining high profitability in successful as well as impressive manner. It will also help other researcher, teachers and students in future for collecting information related to the globalisations and its impact on HR department of fashion retail companies like Zara. Research Aim To evaluate effect of globalization on functioning of HR department in context of retail fashion sector firms: A study on Zara Research Objectives ToidentifytheHRpracticesthatareperformedinglobalretailfashionsector organizations. To determine the positive and the negative impact of globalization on the HR department within retail fashion sector company. TofindoutwhatalternativeapproachandrecommendationcanhelpZaratobe successful in global market. To develop appropriate strategies for overcoming the challenges faced by HR department due to globalization. Research Questions What are the major practices that are been performed by the Human resource managers within an organization? What are the main positives and the negative factors associated with globalization?
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How a globalization affects the HR department in developing the strategies? Time Frameworks Work Breakdown Structure- Word breakdown structure is define as a method which is adopted by a researcher or project manager in which they divide whole work into small portion so that they can accomplish them effectively that lead to successfully attainment of goal in proper manner(Chung, Sparrow and Bozkurt, 2014). This is so because small works are conducted in effective manner as well as it will also help in ensuring quality work of project. Moreover, according to The Project Management Body of Knowledge, work breakdown structure is defined as deliverable oriented hierarchical structure of activities that are executed by project or research team. This will also help in development of quick and effective schedule which help employees in conducting activities in effective ways. WBS also aid in resolving issues effectively because at every level evaluation of work are done which help in identifying problem at right time. Gantt Chart- Gantt chart is developed by Henry L. Gantt in year 1917. It is a bar chart which is adopted by ad project manager of a research in order to project schedule of work so that each and every activities will accomplish in time(Clegg,Kornberger and Pitsis, 2015). Along with this, modern Gantt chart also shows dependency relationship among the activities as well as current schedule status of project. There are numbers of benefits get by a project manager by develop Gantt chart of their research such as maintain clarity related to work, motivate employees to complete work, conduct effective time management and many more.
LITERATURE REVIEW What are the major practices that are been performed by the Human resource managers within an organization? As per the perspective of Ruth Mayhew, 2019, there are number of practices which are performed by human resource manager of a company so that can attain their desire goal as well as target in effective manner in a year (Functions & Practices of Human Resource Management, 2019). In respect of Zara, their human resource manager also plays conduct various practices, from which some major, are given below:- ◦Conductrecruitmentandselectionpractices:Inacompanyrecruitmentand selection process is based on their goal as well as culture. In respect of this HR manager conduct recruitment and selection practices so that they can hire right person at the right job. ◦Achieving work life balance:It is also one of the major practices of Human resource manager according to which they conduct different activities so that they can create as well as maintain proper work life balance in their employee’s life. ◦Training and development practices:According to this practice HR manager of a company conduct proper training and development practices according to staff’s requirement so that they can conduct their work in effective manner. ◦Compensation and benefits practices:In respect of this practice human resource manager will conduct compensation as well as benefits activities so that employees feel motivated and encourage to do work for attaining desire goal(Cook, MacKenzie and Forde, 2016). ◦360 degree feedback practices:It is also one of the main practices which are conducted by HR manager of a company. According to this, manager will provide proper feedbacks to their staffs so that they can enhance their work accordingly by overcoming issues. What are the main positives and the negative factors associated with globalization? According to the perspective of Hitesh Bharin, 2017, globalization is defined as an economic concept which helps a government, country or person to easily move goods and services from one place to another across borders (What is globalization? What are the positives and negatives
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of Globalization?,2019). Along with this there are various positive and negative factors which are associated with globalization, from which some are given below:- Positive factors of globalization: oGlobal market:By adopting globalisation a company can enhance their business at global market through which they can earn more and more profit and market shares. oUnderstanding of new culture:If a company adopt expand business at global market through globalization they able to enhance understanding of new culture which help them developing creative decision. oEnhance in customer’s base:According to this when a firm adopt globalisation they able to expand their customer’s base which directly lead to increase in profit. Negative factors of globalization: oDevelopfearofjobinsecurity:Thisissobecausewhenacompanyadopt globalisation they able to get more option of manpower, which leads to job insecurity among the employees. oEnhance competition:It is one of the main negative aspects of globalization because when a company expand its business at international level it will directly lead to enhancement in competition(Cooke, 2014). How a globalization affects the HR department in developing the strategies? As per the view point of Eisabeth Natter, 2018, when an organization at international level, then globalization will impact on the human resource department when they develop strategies because they need to consider number of aspects or factors. These practices are related with the hiring,traininganddevelopment,workplace,interactionandmanymore(Effectsof Globalization on Human Resources Management,2019). Below some of the main factors are givenwhichshowshowglobalizationimpactonhumanresourcedepartmentwhichthe development of strategies:- Need to do globalisation of human capital: According to this when an organization expands their business through globalization they need to develop decision related to hiring of human capital of respective place. This is so because that will help in developing more effective decision according to reliable need and demand. Various employment and tax legislation:Every country have their own employment and tax legislations so it is necessary for a firm HR manager to develop strategies by
considering all nation legislations in effective manner. This is so because that will help them in conducting work in more impressive way. Long distance communication issues: This is one of the main factor which impact on the decision making of a company HR manager because every there will be language difference as well as long distance communication is also a major issue which impact on decision. These are some of the main factors which impact on the human resource department decision making procedure when they adopt globalisation in order to expand their business at global level. RESEARCH METHODOLOGY Research methodology is referred as concept of systematic investigation in order to conduct or perform research for positive results. There are various types of sociologists who focus on defining number of methods such as quantative and qualitative, observations, experiments, survey research, secondary source for collecting data and information(Croucher and et. al., 2012). Here, research methodology is regarded as essential section of overall research part that assist in gathering of relevant data and information by using different tactics, tools and techniques.Moreover,objectivesofresearchareimportanceforanalysingquestionsand reachingatconclusioninaneffectiveandefficientmanner.Thejustificationincludes instruments, research strategy, instruments, design, data collection techniques, validity with recommendation which assist researcher for selecting most appropriate techniques to perform researchwork.Theconductingofresearchworkhelpsorganisationtoidentifybusiness opportunities in effective way through relying on tactics and strategies used by them. This processstartsfromallocationofresourcesinordertofindbestmethodsforenlarging opportunities of business. Frameworks that are used by business for conducting research are described below: Research Philosophy-This is referred as gathering of beliefs that mainly focus on reality that is investigated or evaluated in best possible way(Hunter and Katz, 2012). The research philosophy is measured in two positions such as interpretive as well as positivism. In this research work, researcher has used positivism philosophy in order to gather relevant content and information. This helps in selecting best method for entering into market for grabbing opportunities and achieves set goal and objectives in an effective and efficient manner.
Research Approach-This is defined as way to conduct research in order to collect data information in deductive as well as inductive method. Here, researcher has used deductive research that initial at small level and expand at particular hypothesis based on data and information. This approach is related with quantitative research which is helpful in gathering relevant content for research work. Research Strategy-It is defined as process of research onion where researcher identifies work to be carried out in order to collect data that are used by large number of people while doing research work(Perry, 2012). Here, researcher has used both quantitative as well as qualitative strategy for gaining of potential results Research Choices-This is the part of research onion that helps in identifying different types of methods for conducting research work such as mixed, mono and multi method. In given researchwork,researcherhasusedmixedmethodforgatheringofdataaswellas information. Time Horizons-It is defined as time period or limit in order to finish project work. This is very important for researcher to complete given project work on time basis so that positive outcomes are achieved in an appropriate manner. In order to complete given research work, researcher has used longitudinal time horizon where data and information are collected on repeated basis over extended time period Research Design-This is referred as structure or plan that helps in identifying list of different activities and actions used in order to coordinate work in appropriate way(Perry, Wood and Fernie, 2015). The different types of research design include exploratory, descriptiveandexperimentalwhichareessentialforresearchertogatherdataand informationinmostappropriatemanner.Therespectiveresearchworkisbasedon descriptive design as it helps to do in depth study to evaluate figures, facts and statistics in appropriate manner. Sources of Data-The sources of data are collected in two ways such as primary as well as secondary. Here, primary research means data and information are collected for first time by researcher which are expensive and time consuming(Slavich, Cappetta and Giangreco, 2014). This is collected through different techniques such as questionnaire, interviews, online and others. On the other hand, secondary research means data and information are collected from already existing source which is less expensive and takes less time. The
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techniques of collecting data are journals, government records, financial reports, articles, newspaper and many more. In presented source of data, researcher has used both types of methods such as primary as well as secondary in order to collect data and information to maintain validity of record for longer time period. Data Collection Techniques-In order to collect data and information, various types of tools as well as techniques are available at marketplace such as interview, survey, questionnaire, observation and many more for positive outcomes. In order to choose data collection techniques, researcher should possess proper knowledge and information for gathering information. Here, out of many techniques, researcher uses questionnaire for respective research,wheretheyaskappropriatequestionstorespondentandcollectdataand information about given research work. Research Sampling-Sample is defined as conducting research in group of individuals with help of probability as well as non probability sampling method. Under these, sub type includes systematic, judgemental and stratified sampling(Sparrow, 2012). Here, researcher has used stratified as well as judgemental sampling in order to get right number of samples. The stratified indicates equal presentation of particular segments and judgemental sampling represents fully utilisation of resources as well as time for collection of important data and information. In order to gather data and information, sample size taken for respective research is 20. Data Presentation Techniques-This is essential to gather data as well as information in accurate manner by using different data presentation techniques such as bar charts, tables, line graphs for achievement of objectives in best manner. Data analysis Techniques-This is important to use data analysis techniques such as inductive, regression and deductive. The respective research has used inductive analysis in order to analyses data and information in potential way. Research Ethics-This means to conduct research study in ethical as well as appropriate manner through ensuring outcomes in relevant manner as per terms and conducts. Principles followed during research ethics are authenticity, confidentiality, anonymity and many more (Sparrow,Brewster and Chung, 2016). It is very important for researcher to conduct their research work in ethical manner so that set aim and objectivesare achieved. Here,
anonymity means collecting information through all participants which is not connected with primary researcher for remaining competitive at marketplace. Limitation of Research-While conducting research work by researcher, different kinds of limitations has to faced by them in terms of formulating aim and objectives, building sample size,implementingdata,statistics,choosingtechniques,methodsandmanymore (Srinivasan and Chandwani, 2014). Research reliability and validity- The validity as well as reliability of research results are very important while conducting carrying out research work. This depends on questionnaire prepared by them and answer given by respondents. It helps business to gather data, knowledge, and information about given subject for positive results. DATA ANALYSIS AND INTERPRETATIONS Questionnaire Name: Age: Phone no.: E-mail ID: Q1. Are you aware about the concept of globalization? Yes No Q2. What are the major advantages of globalization for an organization? Maximization of customer base Enhance market share of firm Help in business expansion All of the above Q3. What can be the major disadvantages of globalization? Enhance political influence Create issue of manpower All of the above Q4.WhatarethemajorHRpracticesthatareperformedinglobalretailfashionsector organizations?
Recruitment/Hiring Organizing/Directing Monitoring/Controlling All of the above Q5. Whatare the impactsof globalization on the HR Department of Zara? Positive impact Negative impact Q6. What are the appropriate strategies for overcoming the challenges faced by HR department due to globalization? Create coordinating activities in different locations Effective adoption of continual change Development of multicultural HR team Q7. Is there any requirement of conducting training session for employees at the time of globalization? Yes No Q8.What are the other departments which are affected by globalization at Zara? Finance department Production department Marketing department All of the above Q9.What are the positive aspects which are gain by Zara’s HR department through globalization? Get more skilled employees Adopting diverse culture at workplace All of the above Q10. Any recommendation for further improvement in HR practices.................................. ………………………………........................................................................................................ .
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Theme 1: Concept of globalization Q1. Are you aware about the concept of globalization? Frequency Yes12 No8 12 8 ·Yes ·No Interpretation:By conducting analysis of above data it can be determine that there from 20 respondents most of the peoples are know about the globalization but some are not know about it. This is so because from 20 peoples, according to 12 they understand the concept of globalization whereas 8 do not understand concept. Theme 2: The major advantages of globalization for an organization Q2.Whatarethemajoradvantagesof globalization for an organization? Frequency Maximization of customer base4 Enhance market share of firm6 Help in business expansion3 All of the above7
4 6 3 7 ·Maximization of customer base ·Enhance market share of firm ·Help in business expansion ·All of the above Interpretation:Byabovedataitcanbeevaluatethattherearevariousadvantagesof globalization, as according to 4 it will help in maximizing customer, 6 says it enhance market shares of firm. Other 3 are in favor of globalization because it helps in business expansion and according to left over 7 these all benefits are gain by company through globalization. Theme 3: The major disadvantages of globalization Q3. What can be the major disadvantages of globalization? Frequency Enhance political influence10 Create issue of manpower4 All of the above6
10 4 6 ·Enhance political influence ·Create issue of manpower ·All of the above Interpretation:According to 20 respondents there are several disadvantage of globalization such as according to 10 respondents it leads to enhancement in political influence. On the other hand in respect of 4 it develop issues of manpower but according to left 6 respondents both issues are arise through globalization. Theme 4: Themajor HR practices that are performed in global retail fashion sector organizations Q4. What are the major HR practices that are performed in global retail fashion sector organizations? Frequency Recruitment/Hiring4 Organizing/Directing6 Monitoring/Controlling4 All of the above6
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4 6 4 6 ·Recruitment/Hiring ·Organizing/Directing · Monitoring/ Controlling·All of the above Interpretation:AccordingtodifferentrespondentstherearedifferentHRpracticesare conducted in fashion retail sectors such as recruitment/ hiring and monitoring/ control gets equal votes of 4 peoples each. Along with this organizing/ directing get 6 votes and according to left over 6 respondents all these practices are performed by HR at global level. Theme 5: The impactsof globalization on the HR Department of Zara Q5. Whatare the impactsof globalization on the HR Department of Zara? Frequency Positive impact15 Negative impact5 15 5 ·Positive impact ·Negative impact
Interpretation:In respect of data collated by respective research project manager globalization impact on HR department of Zara in different ways. In respect of this according to 15 respondents it impact positively whereas according 5 it will affect negatively. Theme6:TheappropriatestrategiesforovercomingthechallengesfacedbyHR department due to globalization Q6. What are the appropriate strategies for overcomingthechallengesfacedbyHR department due to globalization? Frequency Createcoordinatingactivitiesin different locations 9 Effective adoption of continual change5 Development of multicultural HR team6 9 5 6 ·Create coordinating activities in different locations ·Effective adoption of continual change ·Development of multicultural HR team Interpretation:According to different respondents there are different strategies which can be adopted by HR department in order to overcome issues which they face while globalizing business. In respect of 9 respondents they can develop coordinating activities in different
location whereas 5 think that effective adoption of continual changes will help HR. moreover in respect of 6 they may develop multicultural HR team in order to avoid global issues. Theme 7: Therequirement of conducting training session for employees at the time of globalization Q7. Is there any requirement of conducting training session for employees at the time of globalization? Frequency Yes15 No5 15 5 ·Yes ·No Interpretation:According to data gather by respective research project manager, it is essential for companies to provide training and development sessions to their employees when they adopt globalization. It is so because 15 respondents are in favor of providing training session but left over 5 are not. Theme 8: Theother departments which are affected by globalization at Zara Q8.What are the other departments which are affected by globalization at Zara? Frequency
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Finance department5 Production department4 Marketing department6 All of the above5 5 4 6 5 Finance department Production department Marketing department ·All of the above Interpretation:In Zara there are also different departments which are impacted by globalization such as according to 5 peoples finance get affected. In respect of 4 production department will get impacted through globalization and 6 thinks that marketing department is affected through it. Moreover in respect of leftover 5 respondents it all department are get impacted through globalization. Theme9:ThepositiveaspectswhicharegainbyZara’sHRdepartmentthrough globalization Q9.What are the positive aspects which are gainbyZara’sHRdepartmentthrough globalization? Frequency Get more skilled employees10 Adopting diverse culture at workplace4
All of the above6 10 4 6 Get more skilled employees Adopting diverse culture at workplace All of the above Interpretation:Accordingto10respondentswhenZaraadoptglobalizationtheirHR department able to get high skilled employees whereas in respect of 4 they able to adopt diverse culture at their workplace. Moreover, in context of leftover 6 respondents it will leads to both the positive aspects. RESEARCH OUTCOMES By conducting evaluation of above data it can be determine that there from 20 people some are aware about the globalization but some are not. So it is responsibility of companies to conduct practices in order to generate awareness about the globalization at the multinational fashion company. Along with this, there are some peoples thing globalisation is effective similarly several are not in favour of it, in order to this it is essential for companies to conduct proper evaluation before adopt globalization at their workplace. Furthermore, globalization also impact on the human resource department of a fashion retail company in both positive as well as negative manner. So, it is essential for them to develop proper decision so that they can acquire positive aspects by avoiding negative one at the workplace.
REFLECTION AND RECOMMENDATION Reflection I am very happy that I get chance to do my initial research project on such a huge topic that is impact of globalisation on HR department of fashion retail industry because through it I am able to enhance my number of skills, knowledge and capabilities. Along with this I also able to know my major weaknesses which are essential to be overcome because that may impact on my future. For example when I was working in a team, I release that I am not much comfortable while working with them so it is essential for me to enhance my team working skill because in future I have to work in team or group. In addition to this, skills that are my strength are decision making, creativity, self motivated, communication skills and many more. These skills are my strengths; I get to know when I was working in team on respective project. Recommendation By conducting all the analysis on the topic i.e. impact of globalisation on human resource department of fashion industry, there are some recommendations which are given to Zara by project manager. From which some main recommendations are given below:- It is essential for respective company human resource department to conduct proper analysis of market because that will help them in understanding about the labour market then accordingly they can plan for expansion. Respective company HR department must also train their employees so that they effectively conduct their work in international market which leads to attainment of high profitability and market shares. GlobalisationimpactonrespectivecompanyHRdepartmentinbothpositiveand negative manner so it is essential for HR manager to conduct proper analysis so that they can grab opportunities by avoiding negative impact. These are the main recommendations which are given by project manager of respective research to Human Resource department of Zara so that they can adopt globalisation in successful manner.
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CONCLUSION By conducting evaluation of all above discussed topics it can be summarise that now a day it is essential for each and every company to adopt globalisation so that they can grow their business in effective manner as well as it will also help in gaining high profitability. Along with this, globalisation also impact on different departments of a company such as finance, marketing, human resource and so on. From all these it will majorly impact on the human resource department because they have to hire manpower accordingly as well as their decision making is also based on it. So it is essential for them to conduct proper analysis before expanding business operations and function on international location as that will help in development of effective decision. Through which they can earn high profitability as well as market shares at the target marketplace.
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