Impact Of Globalization On Hrm Essays

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Impact of Globalization on Human Resource Management
Bhushan Kapoor, Professor and Chair, Information Systems & Decision Sciences, Cal State University, Fullerton, USA

ABSTRACT The roles and responsibilities of Human Resources departments are transforming as the modern business faces pressures of globalization. The global supply of talent is short of its long-term demand, and the gap is a challenge for employers everywhere. The shortage between the demand and supply of talent is likely to continue to increase, notably for high skilled workers and for the next generation of business executives. Now organizations need to place greater emphasis on attracting human capital rather than financial capital. Global staffing and management of a…show more content…

We discuss the changing roles and responsibilities of human resources due to globalization in section 4. In section 5 we discuss global human resource information system and its major components. We summarize and conclude the paper in section 6. FACTORS DRIVING GLOBALIZATION The increasing prevalence of globalization is driven by a number of factors, including shortage of talent in developed countries, availability of low cost labor and growing consumers in developing countries, and technological progress. Shortage of Talent in Developed Countries Despite the current economic downturn and unemployment, most developed countries, including the United States, Germany and Japan will face long term talent shortages mainly due to ageing and the retirement of baby boomers. There are more workers retiring than entering the labor force in these countries. By 2020, for every five retiring workers, only four new workers will join the labor force in most developed countries. According to one estimate the United States will need to add 26 million workers to its talent pool by 2030 to sustain the average economic growth of the two past decades (1988-2008) unless a technological breakthrough replaces manpower, while Western Europe will need to add 46 million employees (World Economic Forum, 2010). The shortage of workers is predicted across most industries, including manufacturing, construction, transport and communications, trade, hotel and

...Question 1 Analyse how BASF, by adopting a strategic approach to humanresourcemanagement, seeks to proactively provide a competitive advantage, through the company’s HRM practices. Every organisation is concerned with competing effectively in the global market. BASF’s mission and values are set out in the case study (Mancosa 2014:38) as follows: Mission: To increase the satisfaction of customers, employees and shareholders. BASF makes sure that they add value, innovate to make customers more successful, drive sustainable solutions and forms the best team.“Each of these companies strives to make their customers more successful…”(Mancosa 2014:38). Values: The values stated in the case study (Mancosa 2014:38) are Creative, Open, Responsible and Entrepreneurial. It is clear that two strategies are being used in BASF namely Overall Cost Leadership as well as Differentiation. Description Impact on HR practices Overall Cost Leadership (Noe et al,2012) defines Overall Cost Leadership as “…becoming the lowest cost producer in the industry” Skills requirement and investment in training (Mancosa,2014) states “…BASF Holdings (Pty) Ltd have invested approximately R3 million in training initiatives.” Promote internally (Mancosa,2014) notes “…aim to promote pools of talent allowing it to fill positions from within…” Differentiation (Noe et al,2012) defines Differentiation as “…creating a difference between...

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