Effects of Globalization on HRM Dissertation - Introduction

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1. Introduction

Businesses and related entities have been able to cross the national boundaries these days, during the twenty first century. Several famous business entities are doing their business activities outside their domestic countries. These types of activities take the form of global joint ventures, subsidiaries and sales offices on the foreign countries. For remaining competitive in this ever growing business environment which is characterised by intense rivalry amongst the peer firms, it is critical for the organisations to always ‘learn’ and stay efficient and effective with respect to various factors like global transfer of knowledge, different types of soft as well as hard skills and expertise related to the previously mentioned business activities (Bender & Fish, 2000). Managers of several organizations have said that they have become more aware of the important factor of human resource management practices which influences the profitability of the business operation of the company to a huge extent. The design and implementation of human resource management (HRM) in a firm which has got its operation spread over more than one country, which is better known as multinational corporations (MNC) is termed as the international human resource management (IHRM). Scullion (cited in Morley & Collings, 2004, p.489) defines international human resource management as “the HRM issues and problems arising from internationalisation of business, and the HRM strategies, policies and practices which firms pursue in response to the internationalisation of business”. This particular study will start with a brief introduction to globalization as well as human resource management. It will then concentrate on two most important points discussing the ways a HR professional can help his organization in coping up with the challenge which is present in particular recruitment and selection strategy so that it can be effective. The other point which will also be discussed at length is the particular recruitment and selection strategy and practises which tend to be effective in firms which are practising globalization. The other points which will also be discussed within the frameworks of the study are:

  • What are the major effects of globalization on HRM?
  • What are the common approaches HR strategies in adopting to cope with the above challenges?
  • What might be the new directions and practises which may have in HR?

1.1 Globalisation

For the purpose of defining globalization, values can plan an instrumental role. The process of globalization can be defined as "Americanization" or a very famous term "McDonaldization". Many academicians and previous researchers have defined globalization as a process driven by American consumer culture that rolls over other cultures. On the other hand, a different definition given by other group of academicians highlighted the cross-cultural impact of the globalization as an ongoing and slow process. This particular definition took into account the particular nature of globalization through which different geographically dispersed cultures communicate with each other and learn different positive aspects of the varying cultures from one another. A famous website which deals with the topic of globalization, namely, Globalization101.org has endorsed this second approach as the definition of globalization. Persons who believe in this school of thought have termed the process of globalization as something which encourages interaction and integration amongst the different cultures.

1.2 HRM

Human Resource Management (HRM) can be defined as the function which takes place inside an organization and concentrates on various processes like recruitment of, management of, and making guidelines for the persons who are working in that particular company. The line managers can also perform the tasks related to human resource management. Human Resource Management can broadly be termed as the organizational function that looks after the factors and issues with respect to the workers of the company. Amongst these issues are compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training.

It has been increasingly considered by the practitioners that human resource management has became a very significant contemporary development in the world of business and business management which is currently reshaping employment relationships and in future will continue to do so (Beardwell, Holden, and Claydon, 2004). Many researchers have said that the tool that is named as human resource management have efficiently and effectively started playing other business management traditional roles of Personnel Management (PM) and Industrial Relations (IR), (Sisson, 1993). Another driver is to analyse a bundle of best practices (Purcell, 1999) such as high commitment management and their impact on employment relationships

1.3 Globalisation and HRM

Heralding globalisation inside a particular organization is a huge task for it. For implementing an effective and efficient globalization process the company must possess a well defined strategy which will help the cause of the firm by expanding the range and the presence of it. It is imperative for the company to understand and identify who are the global customers for this company. Further, it must also evaluate the way they are going to position the product offered by the company in that particular alien market which includes the strategies regarding promotion, distribution and pricing. The decision to become global will be followed shortly by a country analysis to identify a target country. In moving forward the organisation must revisit the corporate mission to ensure compatibility with the global project (Hall, n.d). According to the resultant situation the human resource management department will certainly feel the pressure of getting aligned with the overall strategy of the organization as well. The HR department must educate itself about the social and cultural aspects of the target country to ensure that the organisation can adapt and blend itself into a new community. McDonald & Gands (cited in Hall, n.d) have put a stress on the this new role which human resource management professionals may play in the process of globalization inside a particular organization in the following statement:  “Organisations which aim to establish a firm global footing will need to utilise traditional sources of competitive advantage: financial strategic, and technological, but they will also need to establish organisational capability: the ability to generate commitment from the people in the organisation”.

1.4 Structure of dissertation

This particular study focuses upon the Effects and impacts of Globalization on HRM in Recruitment & Selection and its coping strategy. Chapter 1 which is titled as Introduction will give a general understanding of the details related to the conceits of human resource management as well as globalization. The next chapter will be the Chapter 2, which is the current chapter. This particular section will provide the nuances of the methodology which will be followed for this particular study. Chapter 3 will be dedicated for the literature review section. This section will try to analyze and understand the literatures which are existent on the particular topic which is the focal point for this study. Chapter 4 will give the detailed analysis of the topic under study. Finally, chapter 5 will summarize all the analysis and findings which was carried out in the course of this study. It will also serve the purpose of drawing conclusion and proposing recommendation connected to the topic under study.

1.5 Chapter Summary

This particular chapter helps in giving an overall view of the topic which will be discussed in detail in this particular study. A general understanding of the fundamental topics which are at the cornerstones of this dissertation, namely, human resource management and globalization, have been given in this chapter. A brief description of the objectives of this study has also been given in this chapter for the convenience of understanding the issues that this report aims to address. Finally the structure of the dissertation along with the description of the following chapters has also been added to this introductory chapter.

Explore the second part, Literature Review of Dissertation