This document discusses several topics related to globalization and international human resource management. Regarding globalization, it summarizes its key impacts on individual states, society, and the environment. It reduces states' sovereignty and influences their politics and economies. For society, it can result in job losses and social issues. For the environment, it enables technology transfers but also causes problems like deforestation. The document then discusses factors that complicate international human resource managers' jobs, such as changing economic environments, cultural differences, government interventions, terrorism, and disease outbreaks like COVID-19. It also summarizes the human resources department's role in performance appraisals and using incentives to address issues like preparing expatriate workers for repatriation
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Section A- Globalisation
Question#1 A)
Over the years and over a century ago, no one knew what was going on somewhere far
away from their home country. However, in the modern world, this has entirely altered due to the
process of international integration that develops from the possibilities of exchanging world
views, products, concepts, and other elements of culture that have become a reality inside
society. This may be attributed only to globalization. Globalization can be defined as the
interdependence of people, organizations, and countries fueled by international commerce, which
is further supported by technological advancements. As a result of the interplay of political,
social, cultural, and economic variables, globalization has been depicted as merely a monetary
phenomenon.
Consequently, the global development of information and communication technology has
sped up unprecedentedly. There are several contributing elements to globalization, including
expanding information and communication technology and the economic and political aspects. In
addition, it promotes the flow of information and technology, providing prospects for global
economic expansion. Thus, globalization has various impacts on individual states, society, and
even the environment.
Impacts of Globalization on the Individual States
Globalization is unquestionably a factor in reducing the extent of the sovereign powers of
states. According to Coeuré (2018), sovereignty power is defined by that state’s political,
cultural, and economic factors. Based on the political sovereignty of a state, governments’
policymaking and political structure have been limited in the capacity to control and influence
the economies of their States, which can be attributed to globalization. A good example can be
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evidenced by how politics today are market-driven. Today, a given state cannot rule its country
but has to “manage” it progressively to avoid losing its market position. A good instance of
globalization can be seen in the League of Nations, where organizations have the power to
dictate what happens in the governance of the member states (Walter, 2020). Such rules include
human rights, where a state has no permission to treat its nationals as it pleases but instead
according to international standards.
Based on the economic sovereignty of a state, economic activity changes in a different
country, for instance, Japan or the U.S., are experienced in nations all around the world.
According to Harrison and Boyd (2020), as financial markets, technology, and other industrial
and service industries become more globally interconnected, they impose additional restrictions
on national governments’ ability to pursue their interests. Aside from that, different limits and
imperatives have been set by establishing organizations like the World Bank and the
International Monetary Fund.
On the other hand, based on cultural sovereignty, as an example, many individuals
throughout the globe now have access to comparable technology, such as automobiles, phones,
and TVs. Technology, such as computer networks, has generated a worldwide culture.
Consequently, it has become more challenging to identify a single-society culture. All
civilizations may gain many advantages via cultural exchange. Different cultures can trade
information, people, manufactured items, and natural resources. Such transactions, however,
have their downsides. Most societies are disrupted by the introduction of cultural elements from
other cultures.
Impacts of globalization on society
To society, globalization has resulted in the loss of employment and other negative
repercussions. According to Zadja (2022), as companies shift their production of goods and
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services to foreign countries in order to manage factors such as cost, many members of that state
lose their jobs. Additionally, as globalization attempts to create jobs and raise economic
positions in developing or emerging countries, it may disrupt the local markets, contributing to
local traders’ losses. Globalization has also resulted in in-migration from rural to urban areas and
even to new countries. As a result, this has contributed to family disruption and increased social
and domestic violence. As many young people leave their home, they leave the old with no one
to take care of them, and this puts stress on them, which drive them faster to their mental
disorders due to loneliness.
Impact of globalization on the environment
Other than the state and society, globalization has also impacted the environment in a
myriad of ways. For instance, as a result of globalization, persons all over the globe now have a
heightened awareness of environmental issues, and a growing number of them understand that
achieving sustainable growth is essential to ensure continued progress in the years to come.
Rahman (2020) contends that globalization has resulted in the establishment of influential lobby
organizations such as Greenpeace and Friends of the Earth, who attempt to influence
policymaking through lobbying influential politicians. Additionally, globalization has allowed
the transfer of environmentally friendly technologies from rich nations to developing ones.
Because of the increased mobility of people and goods, environmentally friendly technologies
such as solar panels, geothermal power, and even nuclear power can be transferred more quickly.
This enables developing countries to skip the highly polluting stage of industrialization, which in
turn helps to reduce the amount of environmental damage caused by industrialization.
However, in terms of the deterioration of the environment, globalization has been
responsible for large amounts of deforestation and other associated problems. Plantations and
industrialization both help the economy’s growth and bring in a larger quantity of money; thus
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governments are willing to let their forests be chopped down for these reasons to entice
transnational corporations to invest in their country (Rahman, 2020). Nevertheless, this comes at
the price of the surrounding ecology. Moreover, due to massive production in factories to export
products, globalization has resulted in air pollution from the emission of factory gases.
Question 1#B
Based on the question above, various forces are associated with globalization, and some
of these factors an organization cannot resist. For instance, the issue of culture has been the
biggest driver of globalization. According to the previous discussion, cultural exchange has
enabled many organizations worldwide to access the latest technology in machinery, mobile
phones, laptops, and even new methods of doing things. As such, organizations have embraced
these cultures, which has translated to better results and performance. Today, it may be hard for
such organizations to resist such changes as it may send them back to the initial way of doing
things.
On the other hand, on the issue of economic forces, organizations benefit from
globalization as it enables companies to specialize and expand their innovations and capital in
their outputs. Globalization allows companies to compete with others internationally, thus
improving the trade sector. As such, it may be difficult for the organizations to resist
globalization as it facilitates the maximization of economic efficiencies such as utilization and
distribution of resources which translates to economic growth.
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Question#1C)
Deglobalization is caused by a complex interplay of many different factors. To start, one
of the primary contributors to the process of deglobalization is the tendency of developed nations
to take advantage of the abundant resources of less developed countries. In addition to this, Garg
(2021) contends that the benefits of globalization are not equally distributed, contributing to
inequality. Not only that, but employment rates have decreased due to individuals offshoring
jobs or employing people from other organizations (outsourcing) to execute their work, which
has led to people reducing the number of employees they engage or paying certain employees
less. In other words, the workers’ earnings remain the same during the whole of their
employment. The gradual expansion of an economy over an extended period is another factor
that contributes to the process of deglobalization. According to Shaimardanova (2020), there is
also a great deal of rivalry amongst firms that hire foreign labor. The refugee issue is another
aspect that contributes to the argument that globalization should be reversed. A significant
refugee problem has arisen as a direct result of the ongoing conflict in western Asian countries
and the civil war in Syria. The vast majority of people from these countries have sought asylum,
either lawfully or unlawfully, in the nations of Europe.
Further, the election of Donald Trump as the 45th President of the United States made the
public lean toward anti-globalization as he fed the people’s minds with negative information
about foreigners taking their jobs. The public now has a more negative attitude toward
globalization as a result of his efforts to convince them that jobs are being taken away from the
United States by developing countries (Munteanu et al.,2020). In addition to this, each terrorist
assault in these wealthy nations garners the support of an increasing number of citizens for
deglobalization.
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Question#4A)
International Human Resource Management
International Human Resource Management (IHRM) has long been recognized as an
essential part of management studies. Globalization and internationalization have made it
necessary for businesses to compete worldwide. Firms must create and establish a more
substantial response capacity than their rivals to sustain competitiveness. To put it another way, a
well-managed workforce may help companies survive and distinguish themselves from their
competitors. However, various factors infuriate and confound international human resources
managers.
Firstly, the shifting character of the economic environment on a global scale complicates
the job of IHRM. The shifting patterns of FDI location in the global economy help explain some
of these trends. According to Cantwell (2017), FDI flows have generally focused on
industrialized countries. Still, recent years have seen a move to new destinations such as EU
accession countries, notably those in Central and Eastern Europe. India and China have also
become ‘hot zones’ for inbound FDI. For example, China was the world’s most significant
beneficiary of FDI, with a 4 percent increase to $163 billion in FDI going to the Asian
powerhouse. There was an 11% growth in high-tech industries in 2020 and a 54% increase in
cross-border M&As, primarily in the ICT and pharmaceutical sectors (Ou-Yang and Kim, 2020).
Therefore, there are several ways in which the fast rise of these developing economies has
ramifications for IHRM jobs and the landscape of global business, well beyond their potential as
destinations for outsourcing low-value portions of multinational corporation activity.
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Second, understanding and adapting to a new culture and social structure is an essential
part of international human resource management (IHRM), which is why the concept of culture
is such a necessary part of the field. However, different cultural practices in other nations
complicate the job of international human resource managers. According to Bhatti et al. (2022),
the rapid globalization of markets and consuming activities requires managers to grasp decision
making, intercultural negotiation, and cross-cultural communication. Take, for instance, the
automotive business; it’s one of the most booming industries of our century. It’s a rapid,
comfortable, flexible, and affordable mode of transportation and status symbol. However, the
automotive industry employs more than 1.7 million people, each with its own distinct culture. As
a significant consumer of other industries’ products and services, the industry supports over 8
million jobs in the United States economy today (James et al., 2022). Therefore, healthy culture
in the auto industry could result in disloyalty to human resource management, complicating the
IHRM job.
Further, government intervention is the third factor that complicates international human
resource managers’ jobs. According to Chan and Hui (2022), Human Resource Management
(HRM) includes responsibilities related to workers’ social security. Through various social
security programs and directives, the government provides assistance to workers working in both
organized and unorganized sectors. These social security programs and directives in some
industries keep changing, forcing the human resource system to be changed. According to
Toledano et al. (2022), the number of workers needed is constantly evolving in industry,
agriculture, mining, and public works. The changes of workforce necessity from different nations
complicate the job of international human resource managers in a multinational firms.
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The rising influence of global terrorism is a fourth prominent concern that might have an
impact on IHRM. This is particularly visible in high-profile occurrences like 9/11 in New York
and 7/7 in London, but there are other worldwide trends in terrorism that might complicate IHR’s
position and activities. Among them are recent occurrences in the oil-rich nation of Nigeria,
which saw high-profile corporations like Royal Dutch Shell, Agip, and Total, among others,
become the targets of attacks by terrorist organizations. Royal Dutch Shell had a vehicle bomb
put in one of its premises, and armed terrorists assaulted a Total oil facility, killing three police
officers. Shell has evacuated 400 dependents of expat workers in Nigeria as a consequence. In oil
industry these rising global terrorism complicate the job of international human resource
managers by forcing human resource system of international companies close their branches in
most attacked nations.
Lastly, another factor that complicate the job of international human resource managers
in the recent year is outbreak of diseases. COVID-19 is a health disaster that has shook the globe,
causing terror and uncertainty. It has affected economies, society, workers, and businesses. In
every industry, the pandemic has a played a major role in complicating the job of international
human resource managers. For example, due to COVID 19 restriction measure deployed,
employees from a variety of industries needed to be able to work from home and pick when and
where they worked (He et al., 2022). With the help of HRM practitioners, managers and
supervisors need to revise and re-align their performance management systems in order to better
reflect the realities of businesses and their people.
Question#4B)
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The department of human resources plays a significant responsibility in both the
development and administration of performance appraisal. In reality, the HR staff serves as a go-
between for managers and employees who are tasked with conducting performance reviews. It is
the duty of the human resource staff to guarantee that the evaluation process is carried out in a
timely and efficient manner (Sakka et al., 2022). The performance appraisal is a formal
procedure that is used to evaluate the efficiency with which personnel carry out their duties. A
manager is able to discover issue areas in which an employee needs to improve and places in
which extra training is necessary with the assistance of appraisals. Evaluations of employees’
performances are almost often carried out on a yearly basis. Managers evaluate employees’ work
by contrasting their actual accomplishments with the goals they had previously set together. As
such, the HR is tasked with various responsibilities and sometimes, various factors make their
work even more complex.
For instance, the issue of non-comparable results develops as a result of disparities in
economic, political, legal, and cultural factors. For instance, the company should not penalize a
management of a subsidiary because the worker productivity there is only half as high as that of
operations in the home nation. The senior management team has a responsibility to take into
consideration the working conditions of the employees, the manufacturing equipment, and any
other elements in a cooperate subsidiary that may contribute to lower levels of productivity.
Secondly, Due to the physical and temporal separation between headquarters and
overseas units, there is a possibility that some information will be missing. It is common for
personnel at headquarters to be unable to immediately see workers operating in international
subsidiaries. In order to find a solution to this issue, the managers of subsidiary companies can
be evaluated by two different people: one from headquarters, and another from overseas.
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Finally, it is possible that the age of international operations will have an effect on
performance results. It’s possible that relatively young subsidiaries won’t be able to reach the
same degree of success as older subsidiaries that have staff members with more expertise. When
evaluating the performance of overseas subsidiaries, affiliates, and workers, management has to
be sure to take into account any one-of-a-kind situations that may be present. This will help
prevent erroneous or biased evaluations. Given the inherent difficulties of working in a foreign
country, many multinational corporations provide additional benefits to their expatriate staff. The
incentive functions similarly to a bonus and is designed to encourage the worker to put in
unusual efforts in order to ensure that the firm meets its objectives in international markets,
especially those that are relatively new. The payment is normally made entirely at once, in one
amount.
On the issue of using incentives on compensating employees, counseling (as an
incentive) international workers on the many challenges they may experience upon returning
home is one way in which international human resource managers may contribute to the
reduction of repatriation issues. The company is able to keep track of the expatriate’s salary and
career progression even though they are working outside of the country. Following the
completion of the repatriation process, the company is able to provide counseling services in
addition to bridging loans and other forms of short-term financial support, with the goal of
meeting the client’s professional as well as psychological requirements. It is the responsibility of
the company to guarantee that the expatriate maintains a professional position that is comparable
to or superior to the one they had before to leaving the country.
In addition, Many companies provide career development programs that give high-
potential workers the chance to obtain experience both at the company’s headquarters and in the
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firm’s global operations. This is because the business’s sales and profits are increasingly coming
from outside the nation, and it requires people who are fluent in needed languages to manage the
company’s global business. This method increases the number of qualified candidates for
management jobs from across the world and makes it clear that the company’s senior executives
are committed to a global approach. Employees at Unilever, for example, cannot develop
professionally unless they have extensive experience working abroad. There are many different
positions and places that managers are cycled through early in their careers. There is a searchable
database of workers at Unilever that highlights their worldwide skill sets and potential to support
the company’s global objectives, which can be searched by location. It doesn’t matter where a
candidate is located inside Unilever’s worldwide network; human resource managers scan the
database for the candidate with the perfect qualities. For final selection, managers are presented
with a shortlist of the greatest worldwide talent.
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