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Faisol Chowdhury

Globalisation & HRMLecture 1

International Human Resource ManagementHRM 460

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Edwards & Rees 2006; GlobalisationGuide 2002 2

Globalisation

Considered as primarily an economic phenomenon, involving the increasinginteraction, or integration, of national economic systems through the growthin international trade, investment and capital flows.

A global processes in which national cultures, national economies andnational borders are dissolving.

A decoupling of space and time, emphasising that with instantaneouscommunications, knowledge and culture can be shared around the worldsimultaneously.

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Wikipedia 2008; Globalisation Guide2002 3

Globalisation (continues)

A process by which the people of the world are unified into a single societyand function together.

This process is a combination of economic, technological, sociocultural and political forces.

Globalisation is very often used to refer to economic globalisation, that isintegration of national economies into the international economy throughtrade, foreign direct investment, capital flows, migration, and the spread of technology.

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Boehm et al. 1997 4

T apestry of Globalisation

Stone Age /Prehistoric

People

9 00,000 B.C.

Hunters /Gatherers

14,000 B.C.

EarlyCivilisations

Rise of empires

Exploration /Renaissance

Industrial

Revolution /War /Economy

Globalisation/EconomicChallenges

3,000 B.C. 500 A.D.

1400 A.D. 1 9 00 A.D 2000 A.D

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Greenblatt & Lemmo 1999;B

oehm etal. 1997 5

E mergence of Globalisation

R oot of globalisation can be traced back into thousands of years ago, whenthe people of the early ages began forming civilisations in different regionsof the world.

The next step of the emergence of the globalisation took place manycenturies ago by the great explorers like Vasco Da Gama, Christopher Columbus, Ferdinand Magellan etc. when they started exploring the worldfor mainly out of curiosity.

The third step of the growth of globalisation occurred during the beginningof modern time when Arabs, Spanish, Portuguese, Ottoman, Mughal etc.started exploring the regions of the world for trade expansion.

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Boehm et al. 1997 6

E mergence of Globalisation (continues)

The fourth step of globalisation can be recognised during the industrialrevolutions of the late 18 th and early 19 th century.

1900: Industrial revolution1914 1918: World War 11930: The great depression1939 1945: World War 2

1945: Establishment of UN1969: US involvement in Vietnam War

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Greenblatt & Lemmo 1999;B

oehm etal. 1997 7

E mergence of Globalisation (continues)

After the millennium, the world economy has entered into a rapid change of globalisation, technological advancements, knowledge economy,environmental issues, peace keeping for political unrest, political and

economical turmoil and universalism, trade expansions, occupational shift,outsourcing, diversity, etc.

1945 1991: Iron Curtain1980: Fall of Berlin Wall1991: Soviet Union breaks up1991: US involvement in peace keeping virtually all over the world2000: Global terrorism, outsourcing, universalism

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Issues Related with Globalisation

H uman capital (knowledge economy)TechnologyDiversityMigrationPoliticsOccupationEconomy

Environment

Any other issue we can think about?

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Wikipedia 2008 9

Measuring Globalisation

There are four ways of measuring globalisation:

Goods and services: e.g. exports plus imports as a proportion of national

income or per capita of population

Labour / people: e.g. net migration rates, inward or outward migration flows,weighted by population

Capital: e.g. inward or outward direct investment as a proportion of national

income or per head of population

Technology: e.g. international research & development flows; proportion of populations (and rates of change thereof) using particular invention andtechnology (cell phone, internet, motorcar, etc.)

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Edwards & Rees 2006 10

U niversalism

Due to globalisation:

Global Communication international transport, telecommunication,mediaGlobal Market customer segments, sales strategiesGlobal Production outsourcing, production chainGlobal Money credit cards, online banking, common currency

Global Finance foreign exchange markets, banking, insuranceGlobal Organisations FDI, joint ventures, strategic alliancesGlobal Ecology environment, CS R .Global Consciousness solidarity (political & I R settlements),

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Globalisation Guide 2002 11

Criticism of Globalisation

It does not make sense to talk of a world of 6 billion people becoming amonoculture.R ising inequality between rich and poor is the inevitable result of marketforces.Market forces give the rich the power to add further to their wealth.H ence, large organisations invest in poor countries only because they canmake greater profits from low wage levels or because they can get access totheir natural resources.

Controversial role of IMF, WB, ILO, UN, WTO.The World Trade Organisation does not make it possible to block the tradein goods and services that are produced by environmentally damagingmethods.

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Globalisation Guide 2002 12

Criticism of Globalisation (continue)

Transnational companies want to place environmentally degrading industriesin countries that do not have adequate environmental controls.

R esource industries such as forestry, mining and fisheries exploit theresources of poor countries and are destroying the biodiversity of the planetand depriving subsistence farmers of their livelihood.

It is also argued that globalisation is americanisation since one of theconsequences of globalisation is the end of cultural diversity, and thetriumph of large organisations. The world drinks Coca-Cola, watchesH ollywood movies and eats American junk food.

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D essler et al. 2004; Stone 2002 13

HRM Definition

Managing people within the employer and employee relationship.

R efers to the policies, practices and systems that influence employees behaviour, attitude and performance.

Plan, administer and review activities concerned with staff selection,training and development, conditions of employment and other HR issueswithin organisations.

Involves the productive use of people in achieving the organisationsstrategic business objectives and the satisfaction of individual employeeneeds.

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B iz/ed 2008 14

HRM Activities

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HRM Activities

O btaining

Job AnalysisJob Design

RecruitmentSelectionInduction

Basics

HRM introductionStrategic HRM

HR Concept & HistoryLegal FoundationHR PlanningHRIS

Improving

Performance AppraisalTraining

DevelopmentLearning Environment

Rewarding

MotivationCompensationIncentivesO ther BenefitsRewards Management

Managing

IR & ER International HRMCSR DiversityO H&S

Evaluating

Critical AnalysisHRM EvaluationHR AuditHR Assessment

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References

Biz/ed, 2008, H uman R esource Management, [online, retrieved on 25/05/2008], availableat:http://www.bized.co.uk/educators/16-19/business/hrm/lesson/hrm1.htm

Boehm, R ., H oone, C., McGowan, T., Browning, M., & Miramontes, O., 1997, Our Worlds History, H arcourt Brace & Company, USA.

Dessler, G., Griffiths, J., Lloyd-Walker, B., 2004, Human Resource Management, 2nd ed., PearsonEducation, Australia.

Greenblatt, M., & Lemmo, P., 1999, Human Heritage, McGraw- H ill, USA.Globalisation Guide, 2002, [online, retrieved on 10/05/2008], available at:

http://www.globalisationguide.org/01.htmlEdwards, T., & R ees, C., 2006, International Human Resource Management -Globalization,

National Systems and Multinational Companies, Pearson Education, UK.Stone, R ., 2002, Human Resource Management, 4th ed., John Wiley & Sons, Australia.Wikipedia, 2008, Globalization, [online, retrieved on 10/05/2008], available at:

http://en.wikipedia.org/wiki/Globalization

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