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.
Furthermore, with speedily increasing globalization, international business has become a popular trend and has drawn the attention of business executives, related officials and academics. International business is different from the local or domestic business. As far as the international level, the globalization of the world economy and the differences between countries present both opportunities and challenges to the international businesses. The Forces behind the globalization 1. Increase in and Expansion of Technology 2.
Today’s world of rapid increase in and expansion of technology is the reasons for recent International Business growth. The rapid growth in international business makes an understanding of organizational behavior all the more important for contemporary managers. Businesses have expanded internationally to increase their market share, as the domestic markets were too small to sustain growth. Business transactions are also becoming increasing blurred across national boundaries. Companies engage in international business to expand sales, acquire resources, diversify their sources of sales and supplies, and minimize competitive risk.
Globalization has affected every aspect of the business community in one way or another. Globalization in a simple sense is a business’s movement from one country to another. This is done for a number of reasons; amount of readily available resources, labor market, increased number of customers, and to ultimately become more profitable. There is a decisive advantage for a business to move overseas, but there are a number of drawbacks globalization creates on the local economy. When businesses become an international entity the home country experiences increased unemployment rates, the human resource department now has to manage across borders, prices of goods fluctuate, and forcing wages to decrease for unskilled workers and increase for skilled ones.
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.
It is the result of growing incorporation of economies in the world, predominantly through the movement of labor, technology, knowledge, services, merchandise and investments across international borders. Globalization also has a direct effect on the social, environmental and political aspects of the economy (ibid). Enhancement in technology is the key driving force of globalization. Advancement in technology especially the growth of internet and telecommunication infrastructure has facilitated an easy method of communication and conducting business globally and creating global markets. Moreover the interconnections of economies will increase both opportunities for the business and competition among them.
Global marketing is more than merely selling a product internationally. Rather, it includes the entire method of forecasting, manufacturing, placing, and endorsing a company’s product in a worldwide market. Large businesses usually have offices within the foreign countries they market to; however with the growth of the web, even small organisations will reach customers throughout the globe. As overall rivalry increases, multinational corporations must transform how they manage and modify their organizational arrangements accordingly. The eventual goal is to improve their current position to take benefit of opportunities prevailing in the global market.
Globalization is the tendency of investment funds and businesses to move beyond domestic and national markets to other markets around the globe, thereby increasing the interconnectedness of different markets. (“Globalization,”) It also has had the effect of not only increasing the international trade but the cultural exchange. However, when it comes to globalization both its advantages and disadvantages have been greatly scrutinized and heavily debated in the past few years. People who believe in globalization say that it helps the developing nations “catch up” to the much faster industrialized nations. This happens through increased employment and a great amount of technical advances.
Globalization started some several centuries ago but has become an important strategic element of many businesses in the modern economy (Lechner 2009). This is due to the huge competitive advantages, which it offers to an organization. Globalization also allows expanding the market niche, reducing costs by moving the operations to places with low overheads, and expanding the business access to skills (Scholte 2005). Many businesses are taking advantage of technologies such as the internet, video-conferencing, and fast transport, to expand their operations internationally. Globalization has changed the world economies, hence the global politics, which are anchored upon the economic muscles of the different nations.
Globalisation vs Regionalism By-Devika Rajeev Introduction The advent of international trade has helped economies all over the world. Be it a developed country which is looking for the best option in terms of skilled and unskilled labour, natural resources etc, or a developing country looking to increase employment opportunities, investments etc. Not only has this helped economies, but has helped to share popular culture around the globe. This started with the process of globalisation but recently there is increasing trend of regionalism in place. Even though technically both lead countries to open up it’s economies for trade there are some important differences between the two which will be identified here.