GLOBALISATION & STRATEGIC HR FUNCTION

Globalisation has influenced the Evolution towards a more Significant and Strategic Human Resource Management Function

Globalisation has influenced the Evolution towards a more Significant and Strategic Human Resource Management Function

Introduction

Globalisation is forcing businesses to reassess and review their future strategies. It is acknowledged that the change is essential for the growth and survival of the organisation. Globalisation has a vital impact on almost all businesses and human resource functions are not an exception. One significant challenging opportunity faced by human resource manager is to keep up with the pace of transformation and change. Nowadays, HR has a leading role along with core functions of business in creating internal capabilities and essential momentum. Both HR researchers and practitioners are concerned about the change globalisation brings to business and people management, as well as consequential influences on strategic human resource management functions. This evolution of human resource functions to strategic human resource management functions is essential for the development of the functions in SHRM systems to fit the personnel needs of international businesses.

The purpose of this paper is to examine the influence of globalisation on the evolution of strategic human resource management function. This essay sheds light on two functions of SHRM (strategic human resource management): Employee and labour relations and information systems, and examines how globalisation impact and changed these SHRM functions.

Discussion

Globalisation can be defined as process if global integration that arise from the exchange of world ideas, products, views, and other cultural aspects. In other words, globalisation is the process that increases global interchanges of cultural and national resources. Advancement in infrastructure of telecommunication and transportation that include the increase of telegraph and its new technology such as Internet, are key reasons in globalisation, to generate further interdependence of cultural and economic activities (Salkey, 2004, pp.2-12).

Globalisation evolution in the marketplace brought several challenges such as endless reorganisation, widespread competitive wars, rapid technological change, diverse global competitors and uncertainty. Human resource functions drastically influences due to globalisation because it drives SHRM functions from domestic to global and hard to soft HR functions. Globalisation increased business opportunities, as well as challenges and complexities that necessitate knowledgeable, skilled, competent and experienced employees to meet globalisation challenges. Thus, SHRM currently not only limited to tradition HR functions of recruitment, training, performance appraisal and compensation, but also socialisation; communication systems; planning, resourcing and retention; diversity management; and employee relationship management.

It is often argued that globalisation is the most significant factor presently shaping the economy of the world. Even though, the globalisation wave or phenomenon can be mapped out back to 80s, the change is rapid and spread widely and provides companies much greater impacts in terms of social, economic and business than ever before. In HR context, companies going global offer them easier access to the talent pool of employees across the globe, which shifts demographically (Hansen, 2006, p.59).

The growth of the global pool of talent and the increasing operational cost of business are most considerable drivers ...