IMPACT OF GLOBALIZATION ON HUMAN RESOURCE MANAGEMENT

NAME: RACHANA SHILPAN VYASROLL NO: HPGD/AP14/1326

SPECIALIZATION: HUMAN RESOURCE

WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT AND RESEARCH

YEAR OF SUBMISION: March 2016.

INTRODUCTION

Have you ever thought what if things like whatsapp, Facebook, Gmail and all other means of connectivity available today, could have existed in earlier centuries? How would the entire international trade, people, good & supplies would have been sold and bought??

Or how efficient would people like Subhas Chandra Bose, Hitler, Mahatma Gandhi etc be, if only they had mobiles, tables, laptops, desktops to check news updates, whether conditions, radio frequencies etc to help them overcome the hurdles while fighting for our Independence.

This is what we call going ahead with globalization. Like using a laptop which is manufactured in USA, or having a chocolate which comes from Belgium.

Various Definitions of Globalization:

David Harvey – Globalization is the compression of time and space.”

Charles U.L Hill defines globalization as “the shift towards a more integrated and interdependent world economy.

Kenichi Ohma e, The Borderless World: Power and Strategy in the Global Marketplace (London: HarperCollins, 1992)- “…globalization means the onset of the borderless world…”

Emergence of Globalization (brief history of how globalization started)

The first episode began around the mid-19th century and ended with the commencement of World War I (WWI).

In both these episodes of globalization, rapid trade and output growth went together with major shifts in the relative size of the economies involved

In the 1990s, trade expanded again more rapidly, partly driven by innovations in the information technology (IT) sector. The most dynamic traders in the 1950-73 period were the west European countries and Japan.

Despite the small contraction of trade caused by the dotcom crisis in 2001, the average expansion of world merchandise exports continued to be high – averaging 6 per cent for the 2000-07 period

DRIVERS OF GLOBALIZATIO

N

GATT: General Agreement on Tariff & Trade: was a multilateral agreement regulating international trade.

EUOPEAN UNION(EU): Europen Union- is a politico economic union of 28 member states.

NAFTA: The North American free trade Agreement-  creating one of the world’s largest free trade zones and laying the foundations for strong economic growth and rising prosperity for

ASEAN: The Association of South East Asian Nations - is an alliance promoting economic and political cooperation by fostering dialogue among its ten members

Multinational

Transnational

International

TYPES OF GLOBAL ORGANIZATIONS IN THE CURRENT CENTURY

Newspaper Ads

Telephonic interviews

Use of banners for

vacancy

Prefernce to internal hiring

OLD CONCEPTS OF HUMAN RESOURCE MANAGEMENT IN RECRUITMENT

HR PAST AND PRESENT:

8

TRENDING CONCEPTS IN HRM DUE TO GLOBALIZATION

Reducing Manual efforts

Use of Information Technology

Diversity in

workforce

Work – life

Balance

Specialized

Application

International division of labour in Globalized World

Ethno Centric Approach: primary positions are held by citizens of home country

Poly Centric Approach:primary positions are filled by nationals from host country

Geo Centric Approach:best qualified individuals are hired at home and abroad regardless of any nationality

Geo Centric Approach:best qualified individuals are hired at home and abroad regardless of any nationality

WAGES (OLD AND NEW COMPONENTS)

OLD COMPONENTS

Minimum wages :A minimum wage was one that had to be payed by an employer to his worker irrespective of his ability to pay.

Living wages: A living wage is one which should enable the earner to provide for himself and his family not only the bare essentials of food , clothing and shelter but a measure of comfort including education, health protection, social needs etc.

Fair wages: A fair wage is something that is above the minimum wage but below the living wage.

NEW COMPONENTS

Basic salary - amount paid to an employee before any extras are added or taken off

Hose Rent Allowance(HRA)- paid to an employee to meet the rental expenses

Medical allowance - provide employees with tax benefits in case they have had to spend on medical procedures

Employee Provident Fund(PF)- an investment fund contributed to by employees, employers

Employee State Insurance (ESI)- a self-financing social security and health insurance scheme for Indian workers

INTERNATIONAL HUMAN RESOURCE MANAGEMENT

Meaning

So along with the globalization of trade & economy, there was one more thing that went global- HUMAN RESOURCE.In simple and straight words it is characterized by increased complexity of HR activities, awareness of the culture and building strong relationship with the employees and their families too, also trying to meet their expectation as much as possible as you are dealing with people across the Globe.

So along with the settlement of people, trade and economies, there was a culture of International organizations like: MNC , TNC, Parent Company , Host Company so on and so forth. so before going ahead we will first understand meaning of these organizations which are important terminologies associated with International Human Resource

USE OF TECHNOLOGY

IN HUMAN RESOURCE

MANAGEMENT

Video Conferencing for

interviews and interaction with

employees

Use of chartrooms/

emails/ instant messages in HR

Online RecruitmentUse of Social

mediaUse of IT

Software's in IHRM

Language

Training

Practical

Training

Cultural

Training

INTRODUCTION OF VARIOUS TRAINING PROGRAMMES IN INTERNATIONAL HRM.

Areas of concern while handling

international human resource

management

Area’s of concern in International Human Resource Management