Globalization and Its Impact Essay

Globalization has a major impact on the management of human resources in developing countries like India. The roles and responsibilities of Human Resource Departments are transforming as the modern business faces pressures of globalization. With accelerating globalization, organizations have had to change and new trends have set in even in the management of human resources. Globalization has forced organizations and their human resources to redefine their strategies. It is necessary for the management to invest considerable time and amount, to learn the changing scenario of the Human Resource Department in the 21st century. Now organizations need to place greater emphasis on attracting human capital rather than financial capital. In order to survive the competition and be in the race, HR Department should continuously update itself with the transformation in HR. Suitable HR Policies that would lead to the achievement of the organization as well as the individual’s goals should be formulated. The prime objective of the paper is to identify issues related with Globalization and its impact on Human Resource Development. The paper focuses on a number of outcomes of globalization, which promotes human resource development. It also states about several factors that inhibit the human resource development. Finally, the paper provides few strategy recommendations to develop human resources of developing countries in a changed situation of political economy of trade liberalization. Several articles of the renowned thinkers and practitioners are consulted to get a clear concept of the topic in respect to objectives mentioned above. Besides, different other publications were also consulted to make the paper informative and objective oriented. Keywords: Globalization, Human Resource Development, Management of Human Resources, HR Challenges, HR Policies ; Strategies. INTRODUCTION: Globalization is the closer integration of the countries and peoples of the world brought about by the enormous reduction of costs of transportation and communication, and the braking down of artificial barriers to the flows of goods, services, capital, knowledge, and human resource across borders. Globalization as an effective instrument of international exchange of goods and services has to have a human face, based on ethical consideration rather than on cut throat competition. It should play a positive role in reducing economic and social disparities within and among, the nations. It should be also effective tool for improving sustainable development. In the era of globalization, with the increasing competition, locally or globally, organizations must become more adaptable, resilient, agile, and customer-focused to succeed. And within this change in environment, the HR professional has to evolve to become a strategic partner, an employee sponsor or advocate, and a change mentor within the organization. In order to succeed, HR must be a business driven function with a thorough understanding of the organization dig picture and be able to influence key decision and policies. In general, the focus of today’s HR mangers is on strategic personnel retention and talents development. In today’s aggressive global market it has become necessary for organization to expand internationally to gain competitive advantage. Globalization has forced organization and their human resources functions to redefine their strategies. It is necessary for the management to invest considerable time and amount, to learn the changing scenario of the Human Resource Department in the 21st century. In order to survive the competition and be in the race, HR Department should continuously update itself with the transformation in HR. Suitable HR Policies that would lead to the achievement of the organization as well as the individual’s goals should be formulated. HR Practitioners of every organization and also for those who have significant interest in the area of Human Resource Management should realize the growing importance of human resource and understand the need to build up effective HR strategies. Peoples are important assets. Placing this value on employees, requires the organization to emphasize on human resource practice, including reward for superior performance, measures of employee atisfaction, careful selection of employees, promotion from within, and investment in employee development. Just taking care of employees would not be enough; new HR initiatives should also focus on the quality needs, customer-orientation, productivity and stress, team work and leadership building. The researcher has thrown light on the emerging HR trends and discusses HR issues in various industries like Financial Services, IT, Power, Healthcare etc. It is valuable for practicing HR managers of every organization and also for those who have a significant interest in the area of Human Resource Management, to realize the growing importance of human resource and understand the need to build up effective HR strategies to combat HR issues arising in the 21st century. INCREASING IMPORTANCE OF HRM The human resources management approach which has been gaining the attention of management professionals during the last decade has become the need of the hour due to various reasons. Widespread industrial unrest, growing trade union influence on work force, strained worker management relationship, increasing gulf between management and their people, emergence of militancy in trade unionism, and the growing conflict in the industrial relations scene have resulted in the workers getting out of gear of the management in many organizations in India. This has made the managements to think in terms of carrying their workers with them. Convincing the workers of the management’s concern for them may, perhaps, go a long way in getting along with them and ensuring their better performance. This has naturally resulted in the present human resources movement. Humanization of work environment in countries like Japan, quality of work life movement in countries like United States, and the quality circles approach in India itself have initiated action to attain better organizational commitment among the work force. The human resources approach is in consistency with these movements. Changes in business environment have substantially affected the approach to manpower. Technological changes are prominent among them, computer revo1ution, introduction of microprocessor, CNC machines in manufacturing operations, mechanization and automation of office operations, quick communication systems like satellite communication and facsimile introduction or robots, electronic revolution, and such other new developments have revolutionized the vital areas of business. Operational efficiency or manpower must cope with such a revolutionary change in the technology which necessitated a new approach to manpower. Globalization of business is another important aspect of change which takes place in the business environment of today necessitating a human resources approach to manpower. It is not only those Indian firms operate and compete abroad, but they have to compete with multinationals and foreign firms in India itself. Business philosophy, skills, expertise, efficiency and particularly global corporate citizenship philosophy fostered by internationally successful firms necessitate Indian firms to deliberately update their perspective to suit the internationally emerging trends. In conformity with the human resources approach emerging globally, Indian managers must also foster a human resources philosophy to guide their management practices. A widespread feeling now influences at least some management practitioners that the technological development has gone to the extent of machines taking over the human jobs. For example: highly skilled milling, grinding and lathe machines are replaced by CNC machine tools which can take over, not only manual functions but even the intelligent human functions and Robots can lake up human functions in place of real human beings. Increasing influence of illusions tend to reduce the importance of human role. In fact no machine can replace man. The more the technological development, the greater would be the dependence on man. One simple error a computer makes can lead to havoc, where skill and intelligence of man are indispensable. Greater the technological development, greater skill and technical capability are required of people who operate. Obviously greater human approach to people would be required. Moreover installation, monitoring of machines, production, operation, maintenance and controlling the operations need large number of trained and skillful people. Technicians, repairers and service people are also necessary. The more the technical development and automation, the more would be the dependence on human beings. There would, therefore, be greater need for humane approach to manpower. Similarly use of more capital intensive methods would result in greater productivity of men necessitating greater motivating and greater human resources approach of management. Large scale production, increasing effects of recession, technical and technological developments and so on have opened up new training needs for the people at work. Human resources development programmes have therefore; become the need of the hour. Government policy of importing technology has also necessitated introducing new facilities and avenues for training and development. Fresh initiatives and emphasis on research and development in the realm of industry also led to a new policy of human resources development to cope with the increasing demand for technically capable people. Resultantly a need arose for a new approach to human resources.