Analyzing HR and Globalization: Effects on MNCs and Future Trends

This essay examines the effects of globalization on multinational corporations (MNCs), focusing on benefits such as access to cheaper labor and new markets. It discusses the expected evolution of HR practices over the next 15-20 years, including increased flexibility, social media integration, and mobility. The essay identifies countries poised to benefit from these trends and analyzes the impact of HR outsourcing on MNCs. Furthermore, it addresses the concept of alignment within firms, strategies for improving it, and considerations for reward and compensation strategies. The document is available on Desklib, a platform offering a wide array of study resources for students.

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HR AND GLOBALIZATION
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Table of Contents
Section A....................................................................................................................................2
Section B....................................................................................................................................3
References..................................................................................................................................5

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Section A
1. Effect of Globalization on multi-national corporations
1. Access to labors at a cheaper price is one of the major positive effect that is gained by the
MNCs due to globalization. Offshoring and outsourcing help business organizations to hire
from different countries where the labor cost and real estate cost are considered to be lower
than that of the business home country (Morozova, Popkova & Litvinova 2019). This will
ensure that there is a decrease in cost and hence wise increase in profit in business.
2. Access to new market is another benefit that will be received by MNCs due to introduction
of globalization. With the help of access to internet, globalization provides a proper business
access to the markets that were difficult to invade in the past. This ensures that the processing
of the business management will be getting easier as transportation of goods that are required
can be easily gained and hence wise flourishing of the business will be easier.
2. Expected evolution of HR practices in next 15-20 years
There are 3 major areas that will see the highest amount of change and evolution in
the next 15-20 years. The evolving phases are as follows: -
 HR functionality will be getting flexible. In this section the main focus lies in the
working hours of the HR’s. It is often seen that there are administrative issues in the
day offs of the HRs. This issue is to be mitigated with the help of work from home
strategy of the HRs. This work from home objective will be performed with certain
objectives being followed. This will be increasing the availability of the HRs (Noe et
al 2017).
 HR functionality will be getting social. In this section, usage of internet and social
platforms will be made. HRs will be using the social media platform for promoting

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online collaboration. It is also expected that performing social awareness on digital
platform of the business organization will also be a job role of the HRs in next 15-20
years. Another major role that social media will be playing is analyzing the employees
of the organization via the activities that they perform on different social media
platforms.
 HR will be gaining higher mobility. In this case the major objective that will be
observed is that the functionality of HR will be gaining mobility. It can be stated that
in next 15-20 years usage of digital platform will ensure that the availability of HR
personnel are 24*7 (Cascio 2015). Recruiting process will also see a huge change.
Recruitment is considered as an important job role of the business organizations. In
this case, it is expected that screening of resume will be performed by the digital
platform and hence wise also accepting of resume will be performed throughout the
day.
a. The countries that are already flourishing and are expected to flourish in the HR
department on the above stated trends include Luxembourg, Switzerland, Australia and US.
b. Yes, outsourcing on HR functions in MNCs will be having a positive effect. An increase in
diversity of employee recruitment and decrease in cost incurred in operation of the company
can along with higher profits earned will be enjoyed be enjoyed.
Section B
Alignment
Alignment in business is considered as a common way to demonstrate the technology
strategies that are implemented for proper assessment of the objectives that are already set.
Creation of alignment with the proposition of technological strategy will ensure that the goals
of the organization is very well achieved.

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Steps that are to be taken by leaders to improve alignment in different levels of a firm are as
follows: -
 Increase efficiency in communication process. It is seen that miscommunication has
been one of the major reasons of failure in business organizations. It is important to
communicate with the employees so that they understand the basic objective and goal
of the organization, leading to better alignment in business (Bratton & Gold 2017).
 Leaders need to create a bridge in between the long term goals and the short term
goals. The goals are needed to be strategized in a manner that on performing the short
term goals with higher accuracy reaching the long term goal gets easier (Noe et al
2015). This will also be increasing the alignment process.
 Creation of alternatives in strategies also act as an important aspect. This ensures that
in case one of the strategy fails to function, the alternative strategy will be functioning
in a proper manner.
Strategies dealing with reward and compensation
The strategies are as follows: -
 Budget allocation: Helps in estimating the budget that can be allocated for paying
salaries and incentives to the employees.
 Develop salary ranges as per the benchmark of similar jobs is to be performed.
analyzing of different websites and portals will help in gaining a competitive edge.
 Performing salary audits in regular basis. Salary audits will ensure that with change in
market proper update in salary will be made.
No, the organizations are not providing enough details about compensation

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References
Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. Palgrave.
Cascio, W. F. (2015). Managing human resources. McGraw-Hill.
Morozova, I. A., Popkova, E. G., & Litvinova, T. N. (2019). Sustainable development of
global entrepreneurship: infrastructure and perspectives. International
Entrepreneurship and Management Journal, 15(2), 589-597.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2015). Human resources
management. Instructor, 2015.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill
Education.
Samara, E., Galanakis, K., Bakouros, I., & Skalkos, D. (2018). Effectiveness of Regional
Innovation Actions: Cases from Small, Low-Innovative Regions. Journal of the
Knowledge Economy, 1-34.