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Block 2 Steps in Human Resource Management

Unit 4 Globalisation And Changing Economy And Their Effects On HRM

1) Define globalisation.

• Globalisation is the integration of business activities across geographical and organisational boundaries.
• It also means doing business with a worldwide focus, rather than just domestically.
• It symbolises a structural change in the world, with free flow of technology and human resources across national borders, creating a competitive business environment.

2) What factors should one consider when going global?

Factors to Consider When Going Global

• When expanding internationally, an organisation needs to consider:
  • Employment Laws
  • Culture
  • Terminology
  • Corporate Social Responsibility
  • It must also be aware of varying work norms, values, and beliefs across different cultures.

3) What is the meaning of globalisation at business level?

Meaning of Globalisation at Business Level

• At a business level, globalisation means participating in the emerging global economy and establishing a presence in foreign markets.
• This often includes adapting products or services to meet the linguistic and cultural needs of customers.
• Companies may also use the internet to establish a virtual presence in the international marketplace.

4) What are the driving factors? Elucidate the same

Driving Factors of Globalisation can be divided into four groups:

• Market drivers, such as global customer needs and the presence of global channels.
• Cost drivers, including economies of scale and sourcing efficiencies.
• Competitive drivers, such as new markets and increased trade.
• Government drivers, including reduced trade barriers, privatisation and the creation of trading blocks.

5) Discuss the impact of globalization on the functions of HRM. What are the challenges that the HR manager faces due to globalisation?

Impact of Globalisation on HRM Functions and Challenges for HR Managers

• Globalisation has increased the importance of HRM development.
• It has led to significant changes including the transfer of work abroad, the e-enablement of HR processes, greater sophistication in HR IT, and greater competition for talented staff.
• HR managers now need to address issues like new methods in hiring practices, training, compensation, and motivational strategies.
• They also have to manage a more diversified workforce and provide training for employees working with foreign collaborations.
• HR needs to manage the balance between globally coordinated systems and sensitivity to local needs and cultural differences.

6) Discuss the role of HRM in changing environment.

Role of HRM in a Changing Environment

• The role of HRM is expected to transform drastically due to globalisation.
• Workplace flexibility is increasing, with more employees working off-site, making performance and results more important than hours worked.
• HR needs to manage a virtual workforce and find ways to manage corporate culture, socialisation, and employee orientation remotely.
• Organisations need to develop and manage an international workforce, maintaining policies that can be applied across different cultures.

7) What are the expected changes in HRM?

Expected Changes in HRM

• There will be a move towards a more decentralised model of HR, with management spending more time managing cross-functional teams.
• HR managers will need to adopt new skills such as language capabilities and tolerance towards other cultures.
• HR professionals will need to provide cultural sensitivity training for employees and managers.

8) What competences are required for HR Managers?

HR professionals need a range of competencies to deal with these changes:

• Flexibility and teamwork
• Communication and leadership skills
• Strategic planning and network building abilities
• Client service orientation and organisational awareness
• Self-confidence and expertise sharing
• Global and cultural understanding
• Multiple language competencies
• Technological skills, data compilation skills, and analytical abilities

9) Discuss the dilemmas faced by HR manager.

Dilemmas Faced by HR Managers

• HR managers face challenges in aligning HR strategies with business needs, particularly in international business.
• They need to balance globally coordinated systems with sensitivity to local needs and cultural differences.
• They also need to manage employee performance effectively and promote a performance culture.
• HR departments must find a way to incorporate all sub-systems of HR, to achieve the overall goal of exceptional performance.

10) How do we align HR to business?

Aligning HR to Business

• HR needs to be involved from the stage of defining the business strategy, to resourcing, recruiting, retaining, retraining and restructuring.
• Flexibility is key, with an ability and willingness to modify job structure, classification and organisational structures, as needed.
• HR must ensure that its strategies support the growth of the business, improve employee performance, and control costs.
• The HR strategy must align with the real goals of the business and the business's approach to achieving them.

11) What is the role of Training and development in HR challenges?

Role of Training and Development in HR Challenges

• Training and development are crucial to ensure employees adapt to new environments and cultures.
• Organisations must provide training for international assignments, including areas like work motivation, negotiating skills, and cultural sensitivity.
• Training also needs to address language barriers and cultural differences in the workplace.

12) What factors affect HRM in global market?

Factors Affecting HRM in the Global Market

• Several factors impact HRM in the global market:
  • Culture: Organisations need to respect and understand differences in values and work norms across cultures.
  • Economic systems: Economic differences between countries may affect HR practices.
  • Political systems: The legal frameworks of different countries also affect HR practices.
  • Human capital: Differences in skills and education levels across countries influence workforce management.

13) What kind of a role would the HR manager play in future due to globalisation?

Future Role of HR Managers Due to Globalisation

• The role of HR managers is shifting from administrative to strategic.
• They need to be strategic partners who contribute to the business plan, are employee advocates who create a positive work environment, and are change champions who can implement successful change strategies.
• They need to prove their effectiveness and ensure their initiatives contribute positively to the bottom line of the organisation.
• They must also understand international business practices, promote cultural diversity, and be partners with line managers.

14) What are the dilemmas faced by HR manager?

Dilemmas Faced by HR Managers

• HR managers face the challenge of aligning HR to business, and integrating all HR sub-systems to achieve exceptional performance.
• They need to manage the performance of the employees and create a performance culture.
• HR professionals also have to cope with the increasing importance of technology and the need to keep up with new technological advances.
• HR departments must often work to justify the financial impact of their practices and deal with the possibility of fraud in e-commerce.