Analyzing the Impact of Globalization on HRM in Business Organizations

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This essay discusses the transformation of Human Resource Management (HRM) in the context of globalization, technological advancements, and innovation. It defines HRM and its critical roles in staffing, compensation, and employee development. The paper highlights how globalization has shifted HRM's focus from long-term to short-term training and the importance of HRM in managing increased labor demands and diverse labor laws. It emphasizes the need for HRM teams to adapt to changing employee expectations and prepare replacement strategies. The essay concludes that HRM has become more crucial than ever, requiring HRM teams to recruit, train, and plan for employee turnover in a globally competitive environment. Desklib offers this essay along with a wealth of resources for students.
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Running head: BUSINESS AND HRM
Business and HRM
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1BUSINESS AND HRM
“Human resources are like natural resources; they're often buried deep. You have to go
looking for them, they're not just lying around on the surface. You have to create the
circumstances where they show themselves.”
The above quoted lines of Ken Robinson give an overview of the changing role of the
“human resource management” team in the present day context. The “Human Resource
Management” has undergone much transformation in the present times on the score of
various factors like the “advent of globalization, the recent developments in the fields of
technology as well as innovations” and others (Brewster, Mayrhofer & Smale, 2016). The
changing nature of the business world has made the role of the “human resource
management” teams a very important one in the present day context (Brewster, Mayrhofer &
Smale, 2016). Furthermore, the condition of the present day labor market has made the role
of the HRM in the present day context one of significance (Brewster, Mayrhofer & Smale,
2016). This paper will discuss about the changing nature of the HRM in the present day
context on the score of various factors like globalization, advancements in technology and
innovations and others.
“Human Resource Management” can be defined as the “formal systems devised for
the management of people within an organization. The responsibilities of a human resource
manager fall into three major areas: staffing, employee compensation and benefits, and
defining/designing work” (Bratton & Gold, 2017). In other words, the “human resource
management” is the “management of human resources and is primarily concerned with the
management of people within organizations, focusing on policies and on systems” (Bratton &
Gold, 2017). Therefore, it can be said that the HRM plays a significant role in the “overall
growth as well as the development of the various business organizations as well as the
companies” (Brewster, Mayrhofer & Smale, 2016). The HRM is not only imbued with the
role of recruiting fresh as well as experienced individuals for the business organizations and
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2BUSINESS AND HRM
their effective selection of the candidates who will be very useful for the business but also for
the process of induction (Jiang et al., 2012). It is significant to note that it is during the
process of inducted which is generally conducted by the HRM teams of the various business
organizations that the employees are provided the relevant information not only about the
business organization which they have joined but also about the various job roles which they
need to perform (Jiang et al., 2012). It is significant to note that it is at this particular stage
that the “HRM team tries to align the individual goals as well as the objectives of the
individual employees with the overall goals and the objectives of the concerned business
organization or the company which is likely to not only improve not only the individual
performance of the employees but also the overall performance of the organization as well”
(Bratton & Gold, 2017). Furthermore, the HRM teams related to the various business
organizations in the present times is also imbued with the role of providing effective training
to the various new employees of the concerned business organization (Jiang et al., 2012). It is
significant to note that effective training is very important for the new employees who have
just joined the business organization as that would give them the required kind of skills which
is necessary for the completion of the job (Brewster & Hegewisch, 2017). Moreover, the
HRM is also imbued with the role to provide effective advanced level training to the existing
in a bid to upgrade their skills so that they have the required kinds of upgraded skills which is
necessary for the completion of their job roles (Brewster & Hegewisch, 2017). In addition to
these, it is also seen that the level of stress faced by the various employees has increased
exponentially due to the increased amount of work which they need to do and also the extra
amount of labor that they need to put to get their job completed (Brewster & Hegewisch,
2017). Therefore, it is one of the most basic functions of the HRM team to not only improve
the environment of the workplace but also reduce the level of stress felt by the various
employees related to the business organization (Berman et al., 2012). Thus, it is often seen
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3BUSINESS AND HRM
that the various HRM teams take the help of diverse kinds of recreational as well as fun
activities in a bid to not only “enhance the level of engagement of the employees but also to
reduce the level of stress faced by the various employees in the workplace on the score of the
workload which they need to handle” (Berman et al., 2012). Furthermore, the job of
motivating the various employees related to the business organization is also one of the major
functions of the HRM teams of the various business organizations (Berman et al., 2012).
Therefore, it would be apt to say that the HRM in the present times has become an
indispensible part of the various business organizations.
Globalization is “the process by which businesses or other organizations develop
international influence or start operating on an international scale” (Brewster, Chung &
Sparrow, 2016). The concept of “globalization is a very traditional one and it is significant to
note that the various ancient civilizations of the world used to take the help of this particular
concept to conduct trade relations with the other nations of the world” (Brewster, Chung &
Sparrow, 2016). However, the process of globalization in the real sense of the term began in
the 1850s with the introduction of the steamboats and the development of the telegraph
system (Rupert & Smith, 2016). It is significant to note that not only the way of transacting
the business operations of the various business organizations but also the role of the HRM in
the present times “post the advent of globalization” has undergone much transformation in
the present times (Rupert & Smith, 2016). It is a reflection of this the HRM in the present day
is not only imbued with the above mentioned responsibilities but also with other significant
ones as well. Therefore, the HRM teams in the present day need not only to take into
consideration the “challenge to labour demand and supply posed by globalization, and
environment and demographic changes” but also the changing nature of the labor market as
well (Alfes et al., 2013). It is a reflection of this particular fact that the various HRM teams
in the present times think about the various short term goals of the organizations instead of
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4BUSINESS AND HRM
the long term ones as it used to do in the earlier times (Alfes et al., 2013). There was a time
when the HRM teams of the various business organizations needed to take into consideration
the long term training processes so that the employees would stay with the concerned
organizations for a longer period of time (Brewster, Chung & Sparrow, 2016). However, in
the present day context the various HRM teams need to focus on the short term training
process as it is generally seen that the various employees who join the business organizations
do not stay with the organizations for a very long time (Rupert & Smith, 2016). It is a
reflection of the fact that now the job opportunities available to the employees are more than
the earlier times as the number of business organizations operational in the various parts of
the world has increased exponentially and they constantly require extra number of employees
to do the surplus amount of work which is necessary to produce the surplus amount of the
products or the services which these business organizations provide to the customers (Rupert
& Smith, 2016). This can be seen as a reflection of the fact that “post the advent of
globalization most of the business organizations in the present times are operational on a
global basis and thus they constantly need extra number of employees to “cater to the needs
as well as the requirements of the customers in the most effective manner” (Brewster, Chung
& Sparrow, 2016). Therefore, it can be said that the role of the HRM teams of the various
business organizations in the present day context has become important than ever as they
need to the cater demand of the various business organizations for the surplus number of
labors to produce the surplus amount of products or the services offered by them to the
customers (Alfes et al., 2013).
The HRM teams of the various business organizations also need to take into
consideration the changing labor requirements as well as the labor laws which the various
nations in which the business organization is operating (Brewster, Mayrhofer & Smale,
2016). It is a reflection of this that the various business organizations in the present day also
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5BUSINESS AND HRM
need to “focus on internal replacement charts and succession planning” (Brewster, Chung &
Sparrow, 2016). This becomes significant as with the increase in the number of options which
are available to the various employees they have become more choosy about the companies
or the business organizations with which they are related or working with ands also the kind
of salary and other facilities which they are being provided with (Kaufman, 2016). It is a
reflection of this that the various HRM teams of the business organizations also needs to
chalk out the replacement strategies in case the various employees related to them decides to
leave their organization on the score that they are getting better growth as well as economic
opportunities from the other business organizations (Brewster, Mayrhofer & Smale, 2016).
To conclude, the HRM teams related to the various business organizations in the
present times have undergone a drastic transformation in the present times. This is generally
seen as a reflection of the “advent of globalization and the recent developments in the fields
of technology as well as innovations”. Therefore, it can be said that the role of the various
HRM teams related to the business organizations have not only undergone a drastic
transformation but have in a way become more important than ever on the score of the above
mentioned factors. Thus, the various HRM teams not only need to recruit as well as provide
effective training to the various employees but they also need to prepare the various scenarios
in which the various employees related to them leaves on the score of the diverse
opportunities which they get from the other business organizations. Therefore, it can be said
that globalization and other factors have considerably affected the concept of “human
resource management”.
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6BUSINESS AND HRM
References
Alfes, K., Shantz, A.D., Truss, C. & Soane, E.C., (2013). The link between perceived human
resource management practices, engagement and employee behaviour: a moderated
mediation model. The international journal of human resource management, 24(2),
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Berman, E.M., Bowman, J.S., West, J.P. & Van Wart, M.R., (2012). Human resource
management in public service: Paradoxes, processes, and problems. Sage.
Bratton, J. & Gold, J., (2017). Human resource management: theory and practice. Palgrave.
Brewster, C. & Hegewisch, A. eds., (2017). Policy and practice in European human resource
management: The Price Waterhouse Cranfield survey. Taylor & Francis.
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Jiang, K., Lepak, D.P., Hu, J. & Baer, J.C., (2012). How does human resource management
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7BUSINESS AND HRM
Kaufman, B.E., (2016). Globalization and convergence–divergence of HRM across nations:
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Rupert, M. & Smith, H. eds., (2016). Historical materialism and globalisation: Essays on
continuity and change. Routledge.
Warner, M. ed., (2013). Human Resource Management ‘with Chinese Characteristics’:
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