2. Understanding Globalization..
• “IF a firm” or an organization
expands its sales or production
beyond the national boundaries,
then it is “globalization”.
• ‘Globalization’ means integration of economies and
societies through cross country flows of information,
ideas, technologies, goods, services, capital, finance
and people.
3. Globalization and Human Resource
Management (HRM)
• When going global, an organization has to reconsider
the following factors Employment Laws · Culture ·
Terminology · Corporate Social Responsibility.
•Globalization is a process that is drawing people together
from all nations of the world into a single community linked
by the vast network of communication.
•Global HRM refers to Human Resource Management
practices that deal with managing a diversity of workforce
from all over the world.
4. Effects on HRM
•Recruit the employees from around the world.
•Effective database used globally makes HRM a simple
but effective task.
•Globalization influences organizations that compete for
customers with high expectations for performance,
quality, and cost.
•Globalization also exerts pressure on the Human
Resource Management (HRM) function to adapt to
changing organizational needs and add greater value.
5. Globalization Of Business
• The world has become a global village and business has
become global in character.
• Organizations are venturing beyond national boundaries
in the pursuit of business opportunities.
• Toyota Motor Corporation makes cars in USA and India,
Mc Donald's sells burgers in India and hamburgers in
China, and Marks and Spencer's sells products in India.
6. Human Resource Challenges
• Managing a global workforce.
• Ensuring availability of employees who have the
skills for global assignments.
• Focusing increasingly on employee productivity to
ensure competitiveness.
• Ensuring legal compliance when conducting
business abroad.
7. Human Resource Challenges
• Political and legal differences.
• Cultural differences.
• Economic differences.
• Differences in the currency unit.
• Differences in the language.
8. Human Resource Challenges
• Differences in the business infrastructure.
• Trade restrictions.(Standards, testing, labeling &
certification)
• High costs of distance.
• Differences in trade practices.
