Nowadays world lives in a time of permanent changes. Things that were innovative yesterday – today becomes outdated. Time flies and technological progress lead world to new milestone of development. It is obvious that this process has an impact not only on the some technological issues but also humanity at all. Progress is necessary for this stage of development and one of the major points in this process is globalization. Globalization is considered as a process of global integration of the country; to vanish the economical and political borders between countries. Of course, globalization has an impact on all spheres of human entity. However, it has more dramatic influence on the business area, in particular on human resource management. In the past, recruitment officers had a strict geographical frame for hiring new staff. In consequence of this, people stay in their workplace much more longer period of time than nowadays. Their skills were demanded for a long period of time. In our time, market demand new products and services in a dramatically shorter time than in the past. Product changes and employes should keep in-touch with new product, be more flexible, be innovative and proactive to keep their place in the labor market. Current employe should have great compatibility to save his position in front of other people, who pretend on his place because specialist that has been educated two years before has not got some knowledge that get current alumni. Anyway, globalization influenced workplace and labor market and it is not certain – is it good or not for employes themselves.
What globalization means for the whole business at all? Companies that pretend to compete on the global area faced with the problem of new demand not on...
... middle of paper ...
...e loyal to the company and have less wish to change or quit their jobs or be redundant (R. Blundel, L. Dearden, C. Meghir and B. Sianesi, 1999).
On the onther hand, from the point of view f the company, it considers that the fast and effective introducing of new technologies requires support of highly-qualified technical specialists. The existing skills of company’s workers show not only the type, variety and quality of the product itself but also task flexibility and speed of production(R. Blundel, L. Dearden, C. Meghir and B. Sianesi, 1999). If the level of manpower skill is low, it is found to negatively affect firm productivity, the types of machinery, the ways of usage of machinery, and introduction of new technology. There are strong links between human capital of workers and its innovative capacity (R. Blundel, L. Dearden, C. Meghir and B. Sianesi, 1999).
The Global Financial Crisis (GFC) led to the collapse of many leading financial institutions in the USA and Europe in 2007 and 2008. This was caused mainly due to subprime lending, which in simpler terms mean that many of these financial institutions were unable to repay their creditors and depositors due to reduction in the value of their assets they were holding. Without getting into the details of how the financial crisis occurred due to some other factors such as subprime mortgages and property price appreciation, we can say that during this period there was a massive loss of confidence in the financial system globally, which not only affected the foundations of the economy of a country but also harmed the social and political structures of many of those countries affected directly or indirectly (Zagelmeyer and Gollan, 2012). This lead to the increase in demand, rise in unemployment, more debts and whole lot of other social and economic concerns for companies and governments. The relation of this crisis with human resource management (HRM) is relevant because it ultimately affects the way people are managed within organizations. As mentioned by many authors like Gunnigle et al (2013); Edwards & Rees (2011), the key functions of a human resource manager (HR) role is understood to be managing employees, such as recruitment, selection, pay and benefits, industrial relations and the HR function. The approach they take, the policies they implement and the practices they employ are what contribute to employment and unemployment figures. There are a number of factors that affect how the HR department acts, whether they change or implement new practices, as a result of the global financial crisis. Another issues at hand is that, it ha...
De Wit and Meyer (1998) refer to market tendency towards homogeneous variety and tighter international linkages as globalization. The need for global strategy is outlined by the fact that companies are subject to global forces and consumer demands. As a consequence, firms are faced with a challenge of modifying their existent strategies to gain and sustain their competitive advantage in a rapidly changing environment. A well-designed global strategy can help a firm to gain a competitive advantage, that as identified by Sumantra Ghoshal of INSEAD can arise from Efficiency, Strategy, Risk, Learning and Reputation (Appendix1). Therefore, to create a successful global strategy, managers first must understand the nature of global industries and the dynamics of global competition.
‘As current markets become saturated, new ones must be found. With globalization, companies would require to provide standardized goods to all countries rather than customized products for individual countries.’ as stated by Theodore Levitt (1983).
In the last decades, small national companies have grown in amazing scale all around the world. Companies that once were family owned have become huge multinational corporations. Corporations, which by the side of globalization, have expanded all around the world. International business has become one of the most important areas of business due to the need for companies to expand to markets outside their borders. Companies have had the need to adapt to another cultures and business systems. At the same time the way human resource management works has changed. Multinational corporations have had to adapt to new human resource requirements in order to be more effective and efficient. The business melting pot that surged in the last decades has forced corporations to develop a diverse workforce with the ability to expand their businesses.
Globalization, in the business sense, is to make a product or service available in the global market. Any investment that is across national borders is also part of globalization. Many companies in the United States (US) have taken their product, service, or investment opportunities to other countries. This affects the global economy. Just as the economy of the US affects many Americans, the global economy affects the citizens of the world. As any company that does affects the global economy, positive or negative affects may be realized.
Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange. Globalisation has increased the production of goods and services. The biggest companies are no longer national firms but transnational corporations with subsidiaries in many countries. Globalisation has been taking place for hundreds of years, but has speeded up enormously over the last half-century due to the constantly growing companies controlling the marketsMany companies make you believe there are winners in their industry and that is you, however this is not the case as i am going to show in my first example
In dynamic, global competitive markets, successful organizations are likely to be staffed with managers capable of adapting to constantly evolving roles, and with the capacity to achieve and sustain optimal levels of performance. The global market place has currently impacted the practice of human resources management in the United States and will continue in the next ten years.
Globalization creates a platform for competition for all of the countries in the world. Every country has tries to take a place ahead compare to other countries .To compete with other countries in this global village most of the countries focus on their business, specially industrialization.
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.
In today’s continuously changing world, many experts say that globalization is what every business, organization, and nation should seek and welcome as a positive change. However, many people are unaware of the main focus and meaning of Globalization, especially in comparison to Localization. A large number of people believe that globalization is just another common word used to refer to changes and differences that cannot be explained or accounted for. Therefore, many different activities or changes are improperly labeled to be a part of or caused by globalization.
At current time, it is, without a doubt, essential for a company looking to expand its scope and compete on the world stage of business to, through globalization, incorporate its products and services in the markets of different countries across the world. In doing so, it transcends the breadth of domestic business and starts participating in the realm of international business. This calls on the company to do a total evaluation of its current business outline and prospects by means of globalization to ensure a smooth transition to international business. As a result, in order for a company to maximize the efficiency of its expansion, it is important to find a nexus between globalization and international business by which they
A company is “global” when there is a connection between countries, and a strategy is “global” when it is integrated among different countries. It’s important to note that a global strategy should not be standardized products or a global manufacturing, but a flexible combination of many elements. In a global market strategy, a company treats the world as one singular market and one source of supply with barely any local variation.
Globalization remains a pivotal topic in many schools of thought, and continues being a topic of controversy even in local economies today. Perhaps the reason for this is integration and competitiveness the world over. Conceivably, even more than integration, is the competitiveness of organizations, has possibly facilitating the fascination and misconception about of globalization. Nevertheless, globalization has brought about a number of effects influencing the design and geographical location of the organization. However, globalization has effectively placed the world in a bubble, or maybe one could equate the changes to being placed in an envelope.
Globalization’s history is extremely diversified and began during the beginning of civilization. Now we live in a world that is constantly evolving, demanding people to use resources in locations that are very difficult to obtain certain resources. This could make it completely impossible to operate in these specific parts of the world. However, globalization allows people across the world to acquire much needed resources. Globalization creates the opportunity for businesses to take advantage and exploit the ability to take part of their business to a different country. Nevertheless, globalization is part of today’s society and will be involved in virtually all situations.
Throughout the essay, I will be evaluating how globalisation and technology may influence future offices being paper-less and people-less and how communication is heavily influenced by technology.