GLOBAL ISSUES IN HUMAN RESOURCE MANAGEMENT

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 Human Resource Management (HRM) 

People are the most valued asset of the organizations, who contribute individually or collectively to achieve the organizational goals. The strategic and coherent approach of managing people is defined as HRM (Armstrong, 2014).

Globalization 

Al-Rodhan (2006) defines “Globalization as a process that encompasses the causes and consequences of transnational and transcultural integration of human and non-human activities.”

Globalization and HRM  

In the current era customers are having high expectations for quality, performance and cost. Globalization influences organizations to compete in attracting and retaining the customers. At the same time, it exerts pressure on HRM function to adopt to changing organizational needs and add greater value (Freidman, 2007). 

Global HRM Issues 

The global HRM challenges include globalization and immigration, skills shortage, talent management, shifting demographics and it’s impact on diversity and labour availability, increasing healthcare cost, work life balance, managing inter-generational and inter-cultural work groups, Influence of new technologies and greater reliance on metrics to asses human capital and the effectiveness of human resource departments.

Effects of Globalization on HRM 

1. Diversity Recruitment –  Recruitment is done from diverse backgrounds, since they are interacting with customers and stakeholders from diverse cultures, languages and social backgrounds.  

2. Professional Development and Training – Since professional development creates a win- win situation for both the employees and organizations most organizations encourage the employee to be qualified in the relevant field through degrees and various professional studies. Training focuses on professional competencies of groups of employees within the organization.  

  

3. Management of Laws - Organizations should understand and act according to operating laws of each country. Each country sets a number of labour laws that business must comply with.

Global Example

At HSBC to conquer full commitment from employees they use different HRM policies and practice. Conversely organizations need to be conscious of cultural diversity of people as it has circulated branch network among number of countries with different culture backgrounds. Hence their practices are supposed to be different from region to region. 

 References 

Armstrong, M., 2014. Armstrong's Hand of Human Resource Management Practice. 13th ed. Philadelphia: Kogan Page.

Al-Rodhan, R. F., 2006. Definitions of Globalization: A Comprehensive Overview and a Proposed Definition.. [Online]
Available at: http://hr.fas.harvard.edu/files/fas-hr/files/recruiting_for_diversity.pdf Accessed on 19th June 2018.
[Accessed 19 June 2018].

Freidman, B. A., n.d. Globalization Implications for Human Resource Management Roles. [Online]
Available at: https://www.academia.edu/7650842/Globalization_Implications_for_Human_Resource_Management_Roles
[Accessed 19 June 2018].

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