Human Resource Globalization

Human Resource Globalization

Introduction

The world is shrinking and means of communication travel and trade are increasing with rapid growth. The brands once use to be limited to a country are not being imported and exported to countries possessing different culture, languages and mind set. It is all because of globalization that today we see international brands on the street of our own country. Globalization is a process where integration of culture, organization, languages and countries takes place across the globe. Globalization has become a mean to making world closer to each other for commercial and ethical purpose. Globalization today is not an option valid for the company to opt for preferably is has become a fact for a company to go for if they want to earn a profit. Globalization has resulted its impact on culture, infrastructure, trade and proliferation of communication, free market on local, regional, and national economies.

Transformation phase of Human Resource department is taking place all over the world as the modern businesses are coming across intricate challenges, and try every mean to exploit opportunities. Human resource transformation in today's era is a direct call for coping with the changes taking place in businesses due to the factors like globalization. Where global competition has increases consisting of connected and flat new world, making decisions in the organization has become very complicated (Pfeffer, 1994; Prahalad, 1983). Due to globalization there has become a pool of talent for working ranging from excellent to marginal, and from permanent workers to fluid. It is evident that talent lying within the organization is one of the substantial sources of competitive edge over competitors and can place considerable impact on the performance of the organization like survival, performance of employee, customer satisfaction, and profitability.

There exists a shortage of the global supply of talent from the prospective of long term demand, where the gap is creating challenges for every employee around the world. This shortage of demand and supply of talent is probable to continue its increasing trend, especially for high skilled workers and senior and middle leaders. Factors that are playing imperative role in driving globalization includes (1) shortage of talent in developed nations; (2) availability of workers at low cost from emerging countries like Russia, China, Brazil, and India; and (3) progression of technology. It is reported that by 2020 for every five retiring employees, there will be only four employees to join labor force in most developed nations.

Discussion

The function of human resource in the past was characteristically considered as an administrative overhead and cost center. The department was responsible for visualizing short term goals and savings. They typically focused on the activities and efficiency of administration, where they invested in acquiring talents from the market. Today, the modern role of human resource department is to focus on the long term objective of organizations. The modern human resource department takes a broader approach rather than just focusing on internal is sure pertaining to human resources. Emphasis is placed by modern human resource department on ...