Globalisation & HRM

Lecture 1

International Human Resource Management

HRM 460

© Faisol Chowdhury
 Globalisation

 Considered as primarily an economic phenomenon, involving the increasing

interaction, or integration, of national economic systems through the growth
in international trade, investment and capital flows.

 A global processes in which national cultures, national economies and

national borders are dissolving.

 A decoupling of space and time, emphasising that with instantaneous

communications, knowledge and culture can be shared around the world
simultaneously.

Edwards & Rees 2006; Globalisation 2

Guide 2002
 Globalisation (continues)

 A process by which the people of the world are unified into a single society
and 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 is

integration of national economies into the international economy through
trade, foreign direct investment, capital flows, migration, and the spread of
technology.

Wikipedia 2008; Globalisation Guide 3

2002
 Tapestry of Globalisation

Stone Age /
Hunters / Early Rise of
Prehistoric
Gatherers Civilisations empires
People

900,000 B.C. 14,000 B.C. 3,000 B.C. 500 A.D.

Industrial
Globalisation/
Exploration / Revolution /
Economic
Renaissance War /
Challenges
Economy

1400 A.D. 1900 A.D 2000 A.D

Boehm et al. 1997 4

 Emergence of Globalisation

 Root of globalisation can be traced back into thousands of years ago, when
the people of the early ages began forming civilisations in different regions
of the world.

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

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

Greenblatt & Lemmo 1999; Boehm et 5

al. 1997
 Emergence of Globalisation (continues)

 The fourth step of globalisation can be recognised during the industrial

revolutions of the late 18th and early 19th century.

 1900: Industrial revolution

 1914 – 1918: World War 1
 1930: The great depression
 1939 – 1945: World War 2
 1945: Establishment of UN
 1969: US involvement in Vietnam War

Boehm et al. 1997 6

 Emergence 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 Curtain

 1980: Fall of Berlin Wall
 1991: Soviet Union breaks up
 1991: US involvement in peace keeping virtually all over the world
 2000: Global terrorism, outsourcing, universalism

Greenblatt & Lemmo 1999; Boehm et 7

al. 1997
 Issues Related with Globalisation

 Human capital (knowledge economy)

 Technology
 Diversity
 Migration
 Politics
 Occupation
 Economy
 Environment

 Any other issue we can think about?

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 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 and
technology (cell phone, internet, motorcar, etc.)

Wikipedia 2008 9
 Universalism

 Due to globalisation:

 Global Communication – international transport, telecommunication,

media
 Global Market – customer segments, sales strategies
 Global Production – outsourcing, production chain
 Global Money – credit cards, online banking, common currency
 Global Finance – foreign exchange markets, banking, insurance
 Global Organisations – FDI, joint ventures, strategic alliances
 Global Ecology – environment, CSR.
 Global Consciousness – solidarity (political & IR settlements),

Edwards & Rees 2006 10

 Criticism of Globalisation

 It does not make sense to talk of a world of 6 billion people becoming a

monoculture.
 Rising inequality between rich and poor is the inevitable result of market
forces.
 Market forces give the rich the power to add further to their wealth.
 Hence, large organisations invest in poor countries only because they can
make greater profits from low wage levels or because they can get access to
their natural resources.
 Controversial role of IMF, WB, ILO, UN, WTO.
 The World Trade Organisation does not make it possible to block the trade
in goods and services that are produced by environmentally damaging
methods.
Globalisation Guide 2002 11
 Criticism of Globalisation (continue)

 Transnational companies want to place environmentally degrading industries

in countries that do not have adequate environmental controls.

 Resource industries such as forestry, mining and fisheries exploit the

resources of poor countries and are destroying the biodiversity of the planet
and depriving subsistence farmers of their livelihood.

 It is also argued that globalisation is ‘americanisation’ since one of the

consequences of globalisation is the end of cultural diversity, and the
triumph of large organisations. The world drinks Coca-Cola, watches
Hollywood movies and eats American junk food.

Globalisation Guide 2002 12

 HRM Definition

 Managing people within the employer and employee relationship.

 Refers to the policies, practices and systems that influence employee’s

behaviour, attitude and performance.

 Plan, administer and review activities concerned with staff selection,

training and development, conditions of employment and other HR issues
within organisations.

 Involves the productive use of people in achieving the organisation’s

strategic business objectives and the satisfaction of individual employee
needs.
Dessler et al. 2004; Stone 2002 13
HRM Activities

Biz/ed 2008 14
 HRM Activities

Basics – Obtaining – Improving –

• HRM introduction • Job Analysis • Performance Appraisal

• Strategic HRM • Job Design • Training
• HR Concept & History • Recruitment • Development
• Legal Foundation • Selection • Learning Environment
• HR Planning • Induction
• HRIS

Rewarding – Managing – Evaluating –

• Motivation • IR & ER • Critical Analysis

• Compensation • International HRM • HRM Evaluation
• Incentives • CSR • HR Audit
• Other Benefits • Diversity • HR Assessment
• Rewards Management • OH&S

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 References

Biz/ed, 2008, Human Resource Management, [online, retrieved on 25/05/2008], available

at:http://www.bized.co.uk/educators/16-19/business/hrm/lesson/hrm1.htm
Boehm, R., Hoone, C., McGowan, T., Browning, M., & Miramontes, O., 1997, Our World’s
History, Harcourt Brace & Company, USA.
Dessler, G., Griffiths, J., Lloyd-Walker, B., 2004, Human Resource Management, 2nd ed., Pearson
Education, Australia.
Greenblatt, M., & Lemmo, P., 1999, Human Heritage, McGraw-Hill, USA.
Globalisation Guide, 2002, [online, retrieved on 10/05/2008], available at:
http://www.globalisationguide.org/01.html
Edwards, T., & Rees, 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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