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IMPACT OF GLOBALIZATION ON HUMAN RESOURCE MANAGEMENT
NAME: RACHANA SHILPAN VYASROLL NO: HPGD/AP14/1326
SPECIALIZATION: HUMAN RESOURCE
WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT AND RESEARCH
YEAR OF SUBMISION: March 2016.
INTRODUCTION
Have you ever thought what if things like whatsapp, Facebook, Gmail and all other means of connectivity available today, could have existed in earlier centuries? How would the entire international trade, people, good & supplies would have been sold and bought??
Or how efficient would people like Subhas Chandra Bose, Hitler, Mahatma Gandhi etc be, if only they had mobiles, tables, laptops, desktops to check news updates, whether conditions, radio frequencies etc to help them overcome the hurdles while fighting for our Independence.
This is what we call going ahead with globalization. Like using a laptop which is manufactured in USA, or having a chocolate which comes from Belgium.
Various Definitions of Globalization:
David Harvey – Globalization is the compression of time and space.”
Charles U.L Hill defines globalization as “the shift towards a more integrated and interdependent world economy.
Kenichi Ohma e, The Borderless World: Power and Strategy in the Global Marketplace (London: HarperCollins, 1992)- “…globalization means the onset of the borderless world…”
Emergence of Globalization (brief history of how globalization started)
The first episode began around the mid-19th century and ended with the commencement of World War I (WWI).
In both these episodes of globalization, rapid trade and output growth went together with major shifts in the relative size of the economies involved
In the 1990s, trade expanded again more rapidly, partly driven by innovations in the information technology (IT) sector. The most dynamic traders in the 1950-73 period were the west European countries and Japan.
Despite the small contraction of trade caused by the dotcom crisis in 2001, the average expansion of world merchandise exports continued to be high – averaging 6 per cent for the 2000-07 period
DRIVERS OF GLOBALIZATIO
N
GATT: General Agreement on Tariff & Trade: was a multilateral agreement regulating international trade.
EUOPEAN UNION(EU): Europen Union- is a politico economic union of 28 member states.
NAFTA: The North American free trade Agreement- creating one of the world’s largest free trade zones and laying the foundations for strong economic growth and rising prosperity for
ASEAN: The Association of South East Asian Nations - is an alliance promoting economic and political cooperation by fostering dialogue among its ten members
Multinational
Transnational
International
TYPES OF GLOBAL ORGANIZATIONS IN THE CURRENT CENTURY
Newspaper Ads
Telephonic interviews
Use of banners for
vacancy
Prefernce to internal hiring
OLD CONCEPTS OF HUMAN RESOURCE MANAGEMENT IN RECRUITMENT
HR PAST AND PRESENT:
8
TRENDING CONCEPTS IN HRM DUE TO GLOBALIZATION
Reducing Manual efforts
Use of Information Technology
Diversity in
workforce
Work – life
Balance
Specialized
Application
International division of labour in Globalized World
Ethno Centric Approach: primary positions are held by citizens of home country
Poly Centric Approach:primary positions are filled by nationals from host country
Geo Centric Approach:best qualified individuals are hired at home and abroad regardless of any nationality
Geo Centric Approach:best qualified individuals are hired at home and abroad regardless of any nationality
WAGES (OLD AND NEW COMPONENTS)
OLD COMPONENTS
Minimum wages :A minimum wage was one that had to be payed by an employer to his worker irrespective of his ability to pay.
Living wages: A living wage is one which should enable the earner to provide for himself and his family not only the bare essentials of food , clothing and shelter but a measure of comfort including education, health protection, social needs etc.
Fair wages: A fair wage is something that is above the minimum wage but below the living wage.
NEW COMPONENTS
Basic salary - amount paid to an employee before any extras are added or taken off
Hose Rent Allowance(HRA)- paid to an employee to meet the rental expenses
Medical allowance - provide employees with tax benefits in case they have had to spend on medical procedures
Employee Provident Fund(PF)- an investment fund contributed to by employees, employers
Employee State Insurance (ESI)- a self-financing social security and health insurance scheme for Indian workers
INTERNATIONAL HUMAN RESOURCE MANAGEMENT
Meaning
So along with the globalization of trade & economy, there was one more thing that went global- HUMAN RESOURCE.In simple and straight words it is characterized by increased complexity of HR activities, awareness of the culture and building strong relationship with the employees and their families too, also trying to meet their expectation as much as possible as you are dealing with people across the Globe.
So along with the settlement of people, trade and economies, there was a culture of International organizations like: MNC , TNC, Parent Company , Host Company so on and so forth. so before going ahead we will first understand meaning of these organizations which are important terminologies associated with International Human Resource
USE OF TECHNOLOGY
IN HUMAN RESOURCE
MANAGEMENT
Video Conferencing for
interviews and interaction with
employees
Use of chartrooms/
emails/ instant messages in HR
Online RecruitmentUse of Social
mediaUse of IT
Software's in IHRM
Language
Training
Practical
Training
Cultural
Training
INTRODUCTION OF VARIOUS TRAINING PROGRAMMES IN INTERNATIONAL HRM.
Areas of concern while handling
international human resource
management
Area’s of concern in International Human Resource Management