Effect Of Globalization On HRM, Human Resource Management
Effect of Globalization on HRM
Whenever any organization is going global then there are many internal and external factors affecting it which must be properly dealt in order to sustain in new market conditions. Expanding a business house is not every organization’s cup of tea; instead many factors are to be undertaken while performing this task. Factors ranging from laws prevalent within the organization to the cultural practices of the new nation are to be made accountable so that any risk or thereat hat may be possible can be easily worked out. As the globalization impact the human resource within the organization, so it also affects the management techniques of the human resource. Some of the factors which the organization must take care of are:
? Employment laws – Employment laws are deeply associated with the management of the organization. More employees friendly the law is, more will labor contribute to the organizational goals. If any organization is about expand its business in another country then it must undertake the employment laws prevailing in that nation so that formulation of policies in accordance with the country and nation can be crafted. There are number of factors that impact the management policies either internally or externally but maintaining the proper decorum juxtaposing with the employee demands is the prior aim of Human Resource Management (Sparrow et.al, 2004). No doubt when business house globalizes then there need to be some changes in the prevalent HRM methodology but adaptation too such situation help increasing the sustainability of an organization.
? Culture – Place where the organization is presently working impacts the policies of the organization a lot. This impact is because most of the people working in that organization are from the nearby region and have same cultural background, so synchronizing the company ethics with that culture is of great advantage to the company. When a business house is in its globalizing phase then it must undertake the cultural factors like their customs, traditions and many more code of ethics of that nation or country which might facilitate them in devising proper rules for them .
? Corporate Social Responsibility – Corporate Social Responsibility (CSR) is a self regulating mechanism where business is monitored and its international norms, ethical standards are evaluated and compared with the standard law suit. The prime goal of this CSR is to enforce the organization to work in accordance with the environment, employees, stake holders and consumers. If any business house is to expand and globalize its unit then proper social cordial relations must be maintained otherwise the sustainability of the organization can be on stake (Budhwar and Debrah, 2004).
Posted by Lavena | Posted Date: 8/22/2011 10:05:20 PM