1. What is meant by the globalization of human capital? Is this inevitable as firms increase their global operations Globalization of human capital is where, human resources are sook after by companies from all over the world. Due to the increased demand for skills at a lower cost, companies will tend to look for employees to work in their premises from all over the world (Webforum, 2015). In this regard, since companies are extending their operations the entire world over, human capital globalization is inevitable since they will need to work with people from these countries for them to successfully exploit global markets.
Companies contending on a global basis have to deal with choosing in terms of resource distribution, the equilibrium of power among the main headquarters and business elements, and the extent that products and services are modified with the purpose of accommodating likes and preferences of local markets (E-Business Juncture, 2015). When using a global approach, the objective is to unite the principles of international and multidomestic approaches. The International approach consists of a high level of focus on assets and competences at the main office and centralization of power with the intent of exploiting possible balance and culture economies. The multi-domestic approach, is an approach that a company tries to attain maximum local approachability
The trend toward a single global economy is expanding markets and providing opportunities to managers.today, countries are going to work together as more of a global economy. Globalization is a process of interaction and integration among the people, companies and governments of different nations. Globalization not only has effects on the economy, but also the political systems, environment, culture and law. Globalization can help to expand a company's market. Expanding the market where an organization does business and promotes its products opens up a larger customer base and possibly greater profit margins.
The dynamic workplace causes to leaders who have to cope with many complex issues change their strategies to lead and motivate a diversified group of people while they have to work across the organisational boundaries (William, 2015). Global leadership is claimed to be a major issue in the literature of world business by Chuang (2013). Punnett (2004) demonstrates that efficiently leader is an essential key component of all organisations in this century to gain more business performance through using the benefits of globalisation and technology development. Chand (2014) states that leaders are key human resource in the organisation who are able to influence the subordinates to generate their high performance and bring the organisation achieve its goals. Leadership states to be an issue in this century because of extending economy by technological advances.
To understand the impact of globalization on human Resources you must understand what globalization is and what it does. Globalization is a “process by which the experience of everyday life, is made clear by the dissemination of goods and ideas, is becoming consistant globally. Aspects that have also added to globalization include increasingly sophisticated communications and transportation technologies and services, mass relocation along with the movement of peoples, a level of economic activity that has outgrown national markets through industrial combinations and commercial groupings that cross national frontiers, and international agreements that reduce the cost of doing business in foreign countries. Globalization offers huge potential profits to companies and nations but has been complicated by widely differing expectations, standards of living, cultures and values, and legal systems as well as unexpected global cause-and-effect linkages (Encyclopedia Britannica).” Globalization is a word in business that indicates the incorporation of an organization's operations, processes and strategies into various cultures, products, services and ideas. While globalization has evolved, the responsibility of human resource management should not be understated.
Analyzing and serving the consumer International marketing is an important factor in serving organizations to develop into becoming globally competitive. Companies who operate within domestic markets purely are having difficulties competing with a global organization. Therefore, what does it take to move an organization globally? According to Cateora, Gilly, and Graham (2013), “international marketing is the performance of business activities designed to plan, price, promote, and direct flow of the companies goods and services to consumers of users in more than one nation for profit” (p. 10). International marketing strategies and its effectiveness assists in the expansion of an organization.
Decision-Making in Global Organizations In today's business environment, there is sustained pressure for companies to maximize productivity in order to be competitive in the marketplace. Many businesses are moving a variety of activities, such as manufacturing and product development, to countries with low labour costs. They are also opening up sales channels in many new markets. The resulting global organizations need to structure themselves, so that they can effectively manage operations across numerous locations. This paper looks at how the organizational structure of a global company influences decision-making at the regional level, and how this can affect the business performance.
The demand for managers with skilled information regarding international awareness is growing since multinational companies employ half the world’s population. The rise in technological development in communication and transportation and the ability of managers to internally leverage technologies resulted in the high growth of recent globalization. It is a manager’s duty to understand which methods are to be applied internationally and which ones are to be applied locally customizing to every countries’ taste, fashion and culture. The trick is to detect prospective trade opportunities in this overwhelmingly rising international economy with a clever way of localizing avoiding any negative aspects. This will enable effective managers to get a humongous share of the world market.
Globalization is changing the way of doing business in the world today. It is the new era of business opportunity. For many major companies, going global is a matter of survival, and it means radically changing the way they work. Economic globalization changes both spatial dimension of MNE’s (Multinational Enterprises) and creates a need for more flexible production of marketing systems and new forms of organization. Firms trying to position themselves as global players face problems such as the cost of building a simultaneous presence in several product areas and foreign markets.