How Is Globalization affecting HRM?
Do the geographical and the national boundaries limit a business in the world of the 21st century? The answer is simply "NO". The term Globalization has invaded the mind of every successful businessman and the concept of Global Village is a common issue in the modern business world.What really the globalization is? The answer seems simple "if a firm or an organization expands its sales or production beyond the national boundaries, then it is globalization", but it does not cover the real meaning of the term. Globalization actually means more, much more than that; it is realizing that there is a big world out there, geographically, that reaches far beyond our small community and that the world is getting closer to us all the time. Globalization is the realization that, whether we like it or not, this big world is becoming an ever increasing factor in our daily lives.The concept of globalization today has invaded the globe and the national boundaries have been virtually eliminated. So what is the effect of this? Simple, the world today has became a small but a very very complex and dynamic neighborhood. Today we live in a global village and this means that our activities have crossed the national boundaries to become global.
While general business considerations are essentially the same the world over, business styles differ greatly from country to country. He may be well equipped, trained and ready to face the situation, but he acts according to the challenges and the requirement of the situation as it comes. Globalization of business has increased the international competition rapidly. The organizations of today have become increasingly heterogeneous due to globalization. Some actually welcome change and the opportunities it presents, while others are reluctant to give up familiar ways of doing things. The human resource or the workers are proactive in finding out what skills and qualifications will be required to be an employee of demand in the coming situations. Thus globalization has increased the requirement of skill among employees and managers drastically. Thus we have no doubt that the roles of HRM have been affected largely by the globalization. To analyze whether HR is reactive or proactive in these issues first we should be able to what do Proactive or reactive meant in these context. Human resources manager of today must ensure that the appropriate mix of employees in terms of knowledge, skills and cultural adaptability is available to handle the global assignments. Are they ready to face the challenges? How effective have the change in the role of HRM became in terms of result? Is HR reactive or proactive in the issues of globalization and the change in their role and the working environment? The answer to all these questions are not easy to find since they are different with every unit of the human resource together i. So is the case of producers or organizations of today, most of the big firms have already became the multinational giants. This aspect of globalization has also affected the HRM in the business world of today. Globalization has resulted in drawing people of various backgrounds together in same workplace and the change is happening very quickly. HR of today's world are aware what may be happening next and they were already prepared for the today's situation yesterday.
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