2. Globalization and HRM

• Definition of Globalization:

  • Increasing interconnectedness and interdependence of countries and their economies.
  • Involves the free flow of goods, services, capital, technology, and people across national borders.

• Drivers of Globalization:

  • Technological advancements (transportation, communication)
  • Economic liberalization (reduction of trade barriers)
  • Political changes (regional economic integration blocs)
  • Global competition

• Impact of Globalization on HRM:

  • Increased competition for talent
  • Emergence of global teams
  • Need for international assignments
  • Challenges in managing a diverse workforce
  • Ethical considerations (labor standards, human rights)

• HRM Strategies in a Globalized World:

  • Global standardization: Implementing consistent HR policies across all global locations.
  • Local adaptation: Adapting HR policies and practices to meet specific needs of each local market.
  • Transnational approach: Balancing global standardization with local adaptation.
  • Developing global HR competencies: Equipping HR professionals with knowledge and skills to manage HR in a global context.

• Challenges in Managing Global HR:

  • Cultural differences
  • Legal and regulatory compliance
  • Managing global mobility
  • Building a global HR infrastructure