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HUMAN RESOURCES MANAGEMENT CHALLENGES IN GLOBAL ORGANIZATION:-
INTRODUCTION:-
Till a couple of years back, HRM in corporate is confined mostly to national boundaries. However, with the fast internationalization of business, this scene is rapidly changing. Convergence in computation and communication technologies has hastened the process of reengineering of organizational structures and business processes leading to breakdown in organizational and national boundaries. Today, international companies are making quick entry through new technologies into national markets and offering stiff competition to the local firms irrespective of their size. The net result is a constant search for new markets by every firm that wants to sustain its growth potential and thus evolve globalization of business. Against this backdrop, this article traces the emergence of globalization, its impact on business, and the emerging need for new techniques of managing human resources in a global context.
WHAT IS GLOBALIZATION?
Globalization, as an ideology, connotes freedom and internationalism. It is expected to help nation states realizes the benefits of free trade, and thus comparative advantage and the division of labor. It is supposed to enhance efficiency and productivity. It is, of course, both an opportunity and a risk. It becomes an opportunity to those who could master the craft of doing business at increased levels of “efficiency”. On the other hand, if the economy is plagued with inefficiencies, there is no risk than globalization. The “wealth spiral” generated by globalization is supposed to bring benefits to all. It supposedly enhances efficiency and productivity. On the one hand it subtly refers to growing interdependence across the world on a number of dimensions that are pretty divergent. On the other hand, it demands globalization of institutions, collectiveness and practices. So what it needed in the current fuzzy world of the globalization is “lifting” or the “disembedding” of structures and activities from local “context” to global context. This thinking has indeed coined a new phrase: “Think globally and act locally”. This phrase is of great importance for business. It simply links the local problems to the global challenges demanding “solutions” from the global players. This is what is most baffling with the globalization. While demanding for homogeneity and uniformity, it also calls for a kind of “uniqueness” about the business to succeed in the global economy. The emphasis is currently shifting to the alternative types of comparative inquiry:” Seeking uniqueness among the uniformities, rather than uniformity among variety”.