Human Resources In Global Environment

GLOBALIZATION
* represents the structural making of the world characterized by the free flow of technology
and human resources across national boundaries as well as the spread of Information
Technology and mass media presenting an ever-changing and competitive business
environment
* Corporate climate today is a far cry from the business world of the yesteryears which was
restrictive and time consuming. Nowadays business decisions are made on snap second
judgments and are not limited to or hindered by the physical geographical boundaries of a
country. In fact we can go so far as to say that the corporate sector of the new millennium has
broken down the geographical barriers that once limited our business sphere
* International environments are changing rapidly. Nothing is permanent, and the cause of
yesterday's success may be the cause of tomorrow's failure. Today's leaders must assume the
responsibility for creating new models of management systems because many of the
assumptions on which management practice were based are now becoming obsolete
* implies accepting that cultural diversity in management composition and management style
contributes to the competitive advantage of the global agency.
* To develop and manage a global organization implies developing and managing people who
can think, lead, and act from a global perspective, and who must possess a global mind as
well as global skills.
* has made the business process not only more efficient and effective, but more streamlined
and modernized as well as businesses now share with each other trade secrets that were once
limited to only those who could afford it. The corporate sector has become more receptive and
reactive as old business methodologies now give way to new and innovative ideas and
opinions such as the outsourcing of labor

GLOBAL MANAGER
* not one, two, or a dozen international specialists, but a multitude of executives, managers,
and professionals are needed to form the core of a global agency
* to develop and manage a global organization implies developing and managing people who
can think, lead, and act from a global perspective, and who must possess a global mind as
well as global skills
* groups of specialized managers must integrate assets, resources, and people in diverse
operating units


OUTSOURCING
* is often viewed as involving the contracting out of a business function - commonly one
previously performed in-house - to an external provider
* has totally altered the way business is done nowadays
* Cheaper labor, more skilled expertise, freer cash flow, a more flexible working environment
and the more effective use of staff has made outsourcing a global phenomenon.
* Today businesses from all across the globe are now outsourcing work so that they can save
more money by getting specialists to work at more affordable rates so that companies can
better utilize their own resources for more productive ventures.
REASONS FOR OUTSOURCING
* Cost savings The lowering of the overall cost of the service to the business. This will
involve reducing the scope, defining quality levels, re-pricing, re-negotiation, and cost re-
structuring. Access to lower cost economies through off shoring called "labor arbitrage"
generated by the wage gap between industrialized and developing nations.
* Focus on Core Business Resources (for example investment, people, infrastructure) are
focused on developing the core business. For example many organizations outsource their IT
support to specialized IT services companies.
* Cost restructuring Operating leverage is a measure that compares fixed costs to
variable costs. Outsourcing changes the balance of this ratio by offering a move from fixed to
variable cost and also by making variable costs more predictable.
* Improve quality Achieve a steep change in quality through contracting out the service
with a new service level agreement.
* Knowledge Access to intellectual property and wider experience and knowledge.
* Contract Services will be provided to a legally binding contract with financial penalties
and legal redress. This is not the case with internal services.
* Operational expertise Access to operational best practice that would be too difficult or
time consuming to develop in-house.
* Access to talent Access to a larger talent pool and a sustainable source of skills, in
particular in science and engineering.
* Capacity management An improved method of capacity management of services and
technology where the risk in providing the excess capacity is borne by the supplier.
* Catalyst for change An organization can use an outsourcing agreement as a catalyst for
major step change that can not be achieved alone.
* Enhance capacity for innovation Companies increasingly use external knowledge
service providers to supplement limited in-house capacity for product innovation.
* Reduce time to market The acceleration of the development or production of a product
through the additional capability brought by the supplier.
* Commodification The trend of standardizing business processes, IT Services, and
application services which enable to buy at the right price, allows businesses access to
services which were only available to large corporations.
* Risk management An approach to risk management for some types of risks is to partner
with an outsourcer who is better able to provide the mitigation.
* Venture Capital Some countries match government funds venture capital with private
venture capital for start-ups that start businesses in their country.
* Tax Benefit Countries offer tax incentives to move manufacturing operations to counter
high corporate taxes within another country.
* Scalability The outsourced company will usually be prepared to manage a temporary or
permanent increase or decrease in production.
* Creating leisure time Individuals may wish to outsource their work in order to optimize
their work-leisure balance.
* Liability Organizations choose to transfer liabilities inherent to specific business
processes or services that are outside of their core competencies

EMPLOYEE OPINION ON GLOBALIZATION AND OUTSOURCING
*While globalization and outsourcing are fantastic opportunities for any business big or small,
they may not always be welcomed by the employees of an organization who fear change as a
loss of job security