Impact of Globalization over Human Resource Management

With the development of businesses and the different needs and wants of the people, it is identified that the business organizations are trying to capture a better market through the existing limited resources. In that sense, the limited supply of the resources are driving towards the globalization where the business organizations are focused over expansion of their operations into different geographical locations with the aim of having better accomplishments in terms of the profitability and long term sustainability. In that case, it is identified that the availability of the labor, skills and other resources are creating more incentives over becoming multi national organizations.(.M.Fapohunda, 2011)

The multinational organizations are mainly focused over establishing processing plants, operational centers and factories in different geographical locations in order to get a better advantage mainly from the labor cost(Adewoye & Obasan, 2012). However, it is identified that the managers who involve with the human resource management will experience many significant challenges when it comes to the management of the people. Differences of the cultures, languages and social status are creating major challenges when it comes to the management of the people in a globalized environment. It is identified that there could be different people segments and groups which do not showing a clear matches between other groups while creating major issues in terms of accomplishing the goals and objectives of the business. Furthermore, the training and development also could create a major challenge for the multinational corporations. In this case, the skills and capabilities of the people could not see in a similar format where the people may required to undergo with many courses and programs to improve their required skills and capabilities to support the organizational success.(Allen, et al., 2013)

In addition to the above, the legal barriers have been identified as another key issue where the people management could be significantly affected. In this case, the organizations required to understand the fact that the compliance with the given legal framework and governance requirements are essential which is a inherent risk for the business(Ali, 2013). Hence, management of the required level of compliance with the business and its legal requirements will be difficult when it comes to the globalized human resource management function. Accordingly, the development of a formalized and standardized operational procedures for the human resource management and development would be difficult for the organizations. (Bahuguna & Kumari, 2010)

Based on the above discussion, it is identified that the people management in the globalized environment would be challenging task for the human resource management professionals in the multinational corporations.

References

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Adewoye, J. O. & Obasan, K. A., 2012. The Impact of Information Technology (IT) on Human Resource Management (HRM): Empirical evidence from Nigeria Banking Sector. Case Study of Selected Banks from Lagos State and Oyo State in South-West Nigeria. European Journal of Business and Management, 4(6), pp. 28-37.

Ali, A., 2013. Significance of Human Resource Management in Organizations: Linking Global Practices with Local Perspective. Researchers World, 4(1), p. 78.

Allen, M. R., Ericksen, J. & Collins, C. J., 2013. Human Resource Management, Employee Exchange Relationships, and Performance in Small Businesses. Human Resource Management, 52(2), pp. 153-173.

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