The Pros and Cons of Globalization on Human Resources Management
Question
Task: What are three significant pros and three significant cons of globalization on Human Resources Management?
Answer
Globalization on Human Resources Management has undergone tremendous change as a result of globalisation, both for the better and for the worst. Three key benefits and three big drawbacks of globalisation on HRM may be found using information from the Hofstede Insights articles, the LinkedIn Learning course, and the eText.
Three Significant Globalization on Human Resources Management:
1. Globalisation has increased the reach of HRM practises, enabling businesses to access a broad and highly qualified workforce pool from around the world. The training offered by LinkedIn Learning emphasised the significance of talent acquisition methods in a global setting. To capitalise on specialised capabilities for technological innovation, international firms like Google and Microsoft, for example, hire experts from other nations (hofstede, WHY IS MANAGING CULTURAL DIVERSITY IMPORTANT?, 2020).
2. Improved Knowledge Sharing and Learning: Cross-border sharing of the finest HRM practises has been made easier by globalisation. The eText discussed the flow of information and expertise across subsidiaries inside multinational organisations. This encourages a culture of lifelong learning and progress. For instance, the "Kaizen" method to continuous improvement popularised by Toyota has been adopted by organisations all over the world, highlighting the value of employee input and creativity in HRM procedures.
3. The Hofstede Insights essays emphasised the advantages of managing cultural diversity and inclusion. HRM must possess cross-cultural proficiency due to globalisation. Innovation and creativity may be fostered by organisations that appreciate diversity and manage it well. For instance, IBM encourages diversity through its open-minded policies, creating a more dynamic workforce that recognises and meets the demands of a variety of clients.
Three Significant Cons of Globalization on HRM:
1. Cultural clashes and communication barriers: As a result of globalisation, employees from various cultural backgrounds are brought together, which can result in misunderstandings and disputes. The articles from Hofstede Insights covered the difficulty of managing cultural diversity. For instance, teamwork and productivity may be hampered by misunderstandings brought on by language hurdles or disparate communication styles.
2. Loss of Local Identity and Autonomy: The eText made note of the possibility that local identity may be lost if subsidiaries of multinational firms experience with Globalization on Human Resources Management. The significance of tailoring HRM practises to regional circumstances was covered in the LinkedIn Learning course. For instance, McDonald's adapts its menu options based on regional tastes and preferences while still upholding its worldwide trademark (hofstede, HOW DOES AN ORGANISATIONAL CULTURE DEVELOP?, 2023).
3. Exploitation and Inequity: In terms of labour costs and worker rights, globalisation may result in a race to the bottom. The danger of exploitation in international supply networks was underlined in the eText. Aspects of HRM including pay, working conditions, and occupational health may suffer as a result of certain firms prioritising cost-cutting over ethical labour practises. The tragic events at Rana Plaza in Bangladesh highlighted the grave effects of this type of abuse in the apparel sector.
In conclusion, the practise of HRM has been impacted by globalisation in both positive and negative ways. The advantages include the promotion of cultural diversity, improved information exchange, and access to a global talent pool. Contrarily, disadvantages include the possibility of exploitation, cultural incompatibilities, and a possible loss of local sovereignty. Organisations should develop a balanced strategy that maximises the benefits of globalisation while minimising its drawbacks in order to navigate its effects on HRM efficiently. This entails appreciating and comprehending various cultural perspectives, adjusting HRM plans to local conditions, and sustaining moral labour standards throughout the whole global supply chain.
Bibliography
hofstede. (2020, January). WHY IS MANAGING CULTURAL DIVERSITY IMPORTANT? Retrieved 08 5, 2023, from hofstede-insights: https://news.hofstede-insights.com/news/why-is-managing-cultural-diversity-important
hofstede. (2023). HOW DOES AN ORGANISATIONAL CULTURE DEVELOP? Retrieved August 05, 2023, from hofstede-insights: https://news.hofstede-insights.com/news/how-does-an-organisational-culture-develop Globalization on Human Resources Management
