The Role Of Globalization In HRM

Globalization has increased the level of cross border activities. It is expanding rapidly and this makes it important for MNCs to manage its human resource management. HR is responsible to analyze and manage the human resource needs of organization in such a way that it can achieve its strategic goals (Hellriegel, Jackson, Slocum and Staude, 2009).HRM is a planned approach to make people perform effectively. It creates an open, flexible and caring management style so that staff can give their best (Michael C. C. SZE1, 995). HRM has to adapt to local conditions the most as compared to other management functions because it is highly dependent on local labour market. (Ferner, 1997). Four new objectives of HR according to Lengnick-Hall & Lengnick-Hall

Students in America preferred promotion and interesting work whereas China and Chile students preferred promotion and bonuses which may be a trait of their cultural conditions. (Corney & Richard , King & Bu, 2005).Cultural diversification also influences the way people negotiate and its outcomes (Brett 2001, Gelfand & Brett 2004). Japanese, Russian and Hong Kong negotiators gain high joint gains by sharing information indirectly while negotiators in US have the strategy to share information directly also ending with high joint gains. Employees’ satisfaction of job and pay also vary due to cultural diversity (Diener et al. 2003). Eastern and socialist developing nations show less job and pay satisfaction than Western and capitalist ones. (Vernick 2003) that means people with same cultures and languages share similar job satisfaction (Liu et al. 2004). The areas of HR that can be affected due to cultural diversity are: swiftness to accept international assignments, face to face feedback system, approach to organizational structure and strategies, pay systems and different concepts of social justice (Sparrow and Hiltrop

It says to motivate people and make employees willingly productive and design policies in such a way that makes system flexible. This approach emphasizes on the human side and cares about human relations (Storey 1987). Contrary to this, there is ‘hard’ approach to HRM that focuses on the controlled resources. It treats employees like any other production factors are treated. The system under this approach is formal. The hard HRM emphasize on the resource side of human resources and place firm control in the hands of management (storey 1987). It views human resource merely as factor of production or a variable cost of business (Tichy et al. 1982). Human resources are passive, to be deployed as numbers and skills at right price under this approach (Legge, 1995). The soft version HRM had long term impacts for organization associated with highly skilled and committed employees (Beer et al. 1985). It stressed on human aspect of HRM with leadership style, performance management, quality of work life and motivational techniques. The two approaches provide management with two alternatives to achieve goals of