Globalization and Their Impact on the HR Function
Globalization has influenced various dimensions in many aspects human resource operations. Companies have focused to incorporate the concept of globalization in every developmental process in order to become truly responsive and adaptable in modern inconsistent community. One sector that is affected greatly by globalization is the economy (Ali, 2005). In order to adapt and survive the pressure of globalization, many human resource departments have engaged in diversifying their corporate policies. Moreover, various companies have developed approaches in terms of business management and human resource in order to cope up with the changes brought about by economic globalization (Bawa, and Ali, 1999). New business strategies and human resource practices are indispensable to satisfy the demands of globalization.
Ali (2005) described globalization as the process of rapid economic, cultural, and institutional integration among countries brought about by the merger or reliance among nations (Ali, 2005). This occurs in terms of trade and investment, the technological developments and market competition within the international setting. According to Mihir (2008), globalization reduces the barriers between countries which will result in “intensification of economic competition among nations, dissemination of advanced management practices and newer forms of work organization, and in some cases sharing of internationally accepted labor standards” (Mihir 2008, p. 73). With the global impact of international reliance for survival and economic development, it is important to focus on the influence of globalization on the Human Resource function as a vital component of corporate success.
Prilleltensky, (2012) argues that globalization refers to “transmission of persons, processes, and products from one part of the world to another” (Prilleltensky, 2012, p. 612). In this respect, through globalization there are three essential elements that are involved - persons, processes and products, which are all linked to one another (Ali, 2005). Globalization increases employment competitiveness as professionals can be hired in different parts of the world. Therefore, people’s ability of searching employment is one important element of globalization (Bawa, and Ali, 1999). Secondly, process/processes are gaining wide recognition in the globalized world. Improvement and developmental processes is the norm in the global business (Prilleltensky, 2012). Th