The Concept of Globalization
Globalization is a multi-faceted economic activity that is diverse in its meanings and implications. Since the middle of the twentieth century, after the Second World War, globalization has become increasingly popular due to the associated benefits that it offers participating economies. Globalization may be described as an activity through which countries interact with one other and are able to trade in different commodities across various platforms. It may also be defined as the interaction that exists between governments, countries, and people that involves engaging in international trade, cross-border services and investments. It has a widespread effect on the economy, the culture, and the overall development of an area. Globalization implies international trade and helps countries to become more empowered and generate significant revenue for the development of their local economies. International trade has become increasingly popular across the world due to the difference in natural resources that most countries are endowed with and evolving technologies that are continually springing up (Sims & Sims, 1994).
The Reduction in trade barriers, low tariffs associated with importing goods/services, reduced costs of communication and transportation, have all contributed to making globalization relatively easy. Globalization is aided by the reduction in trade barriers and impediments across the world. Since the end of the Second World War, companies have been implementing free trade policies. Corporations are continually opening up new branches in foreign countries and establishing marketing arrangements with foreign companies and partners (Sims & Sims, 1994).
Technology is one of the most important drivers of Globalization. It has given rise to different innovations and developments in communication, transportation and collaboration. Technology also ensures that new tools for the analysis of foreign markets, monitoring of economic trends, and the discovery of economic opportunities are made available.
Advantages of Globalization
Globalization has many advantages and some of them are centered on the development of third world countries, creation of free trade policies, international peace treaties and policies and so on. Globalization also offers other advantages which include: 1) It encourages investment in developing nations; this ensures that nations are able to grow by utilizing the proceeds of their trade with other countries for the benefit of their country men. 2) Globalization gives rise to an increased interest in world issues and occurrences. 3) It Increases communication between countries; this encourages a rise in the level of cooperation amongst countries and promotes peace. 4) it ensures a reduction of cultural barriers and discrimination against people of different nationalities. 5) Finally, it encourages a balanced exchange of ideas to ensure the economic development of trading partners.
Human Resource Management Challenges posed by Globalization
Human Resource Management (HRM) is at the core of most organizations. It focuses on the recruitment, management and general supervision of people within the organization. HRM comprises a set of strategic approaches all targeted at managing an organization’s general staff who contribute to the achievement of the business’ objectives.
Despite all the advantages and positive implications of globalization, there are certain downsides to globalization that need to be addressed appropriately. Human Resource Management is faced with issues that need to be identified, analyzed and tackled to ensure that they do not spring up and serve as obstacles to the development of the workforce of any country. Organizations are continually implementing strategic plans to extend their resources to people across the world because businesses are now being implemented on a global scale. Companies operating globally or with plans of entering the international market are faced with increasing problems such as learning how to select and retain skilled employees, cultural barriers, understanding how to live and work abroad, training, management development, language training, and the art of technology transfer across different cultures. These are the major Human Resource Management issues faced by companies in the world today (Sims & Sims, 1994).
Globalization gives rise to competition in the labor market. This competition implies that staff and personnel of any particular organization need to be adequately trained and prepared for global competency in order to remain competitive and relevant outside their home country. Workers need to be educated so that they can be culturally sensitive and learn how to interact constructively with people from different parts of the world (Sims & Sims, 1994).
The Need for Research
Human Resource Management faces considerable problems that need to be studied properly in order to proffer long-lasting solutions. One of the major problems is the issue of employment. Globalization has ushered in an era where both skilled and non-skilled jobs are gradually being outsourced to other countries in a bid to retain experts, cut costs and stretch services across international borders. Workers need to constantly focus on improving their skills to ensure that they remain spirited and significant in their own country. Globalization creates a competitive business environment. For countries to grow progressively, they need to be aware of the developments and demands of managing international organizations. Changes taking place in the global marketplace are not being accompanied by a corresponding change in Human Resource Management Practice. This may lead to a significant record failure of firms due to problems arising from people management (Sims & Sims, 1994).
Organizations also need to develop strategic models for implementing effective Human Resource Practices. In order to produce top-notch employees, there’s an increasing need to conduct research on how to educate staff on the benefits of training, personal development, people management, cultural diversities and international best practices. Understanding and accepting corporate differences is one of the first steps towards establishing and maintaining productive trade relationships.
Research methods to be adopted
The research methods to be used will involve substantial field work and experimental approaches. The research will be conducted in a model organization that practices globalization. The organization would be a focal point that will be analyzed based on the effects of globalization of its HRM policies. Questionnaires, interviews and opinion polls will be conducted where answers to proposed questions would be compiled and analyzed.
Sims, R., & Sims, S. (1994). Changes and Challenges for the Human Resource Professional. Quorum Books.