Globalization In Human Resource Management

Introduction

Human Resource Management (HRM) deals with the formal systems for managing people at work, along with producing and overseeing the organization’s work culture. HRM has strategic impact as they create value for the organization, as people are a source of competitive advantage due to their skills, knowledge and abilities, in an increasingly neoliberal economy where there is the importance of human capital due to the knowledge economy. HRM oversees the recruitment and selection of employees, outplacement, training and development, performance appraisal, rewards system and the maintenance of good labor relations in an organization (Snell, 2012). There is a gendered characteristic where there is an inclination of females in HRM. There

This has allowed for increased trade, migration and investment. As a result, there is an increment in international labor mobility which has brought about diverse labor originating from different backgrounds (Hurn, 2014), and easier access to consumer markets and distribution networks (Choy, 2007). Global integration thus effected constant change of the macro-environment, creating a persistent environmental uncertainty. With globalization, there is intensified economic competition on a worldwide scale. Corporations have to conduct their operations more viably and feasibly in order to not lose out to their competitors. There is a push for operations on a free market premise where the value of an organization is placed in its ability to produce, compete and profit from its operations, bringing forth the emergence of neoliberalism. There is hence an emphasis on cross-border exchanges due to free trade. In addition, neoliberalism had perpetuated the notion of rationality, where its principles guide the behaviors of individuals and a person’s credentials legitimizes the position he or she holds in the organization. Neoliberalism delivers the importance of a knowledge economy and the focus on human capital due to the economic shift to service sectors (Powell & Snellman, 2004). HRM has an imperative capacity in attracting, directing, retaining, maintaining

Diversity causes many problems and can result in conflicts. Due to stereotyping, a lack of contact and low familiarity, there can exist mistrust and tension among people of different backgrounds (Snell, 2012). There can be lower cohesiveness due to the lack of similarity in language, culture, experience. Miscommunication can occur due to different languages spoken, causing misunderstandings and inaccuracies. There might be attitudinal differences due to the difficulty to see the world from the perspective of a person that is dissimilar. All these problems diminish productivity, causing inefficiencies and errors in the work process, resulting in a need for HRM to manage diversity. HRM faces the challenge to help manage diversity to ensure smooth operation of people coming from a wide range of cultures. Managing a culturally diverse workforce comprises of two principles: understanding and tolerating differences, as well as the utilization differences to the organization’s advantage. This works by recognizing the characteristics common to specific groups of employees, and support and nurture their differences to increase individual workers’ motivation and loyalty to the organization (Snell,