1. IMPACT OF GLOBALIZATION ON HUMAN RESOURCE MANAGEMENT
NAME: RACHANA SHILPAN VYAS
ROLL NO: HPGD/AP14/1326
SPECIALIZATION: HUMAN RESOURCE
WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT AND
RESEARCH
YEAR OF SUBMISION: March 2016.
2. 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.
3. 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…”
4. 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
5. DRIVERS OF
GLOBALIZATION
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
9. TRENDING CONCEPTS IN HRM DUE TO GLOBALIZATION
Reducing
Manual
efforts
Use of
Information
Technology
Diversity in
workforce
Work – life
Balance
Specialized
Application
10. 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
11. 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
12. 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
15. Areas of
concern while
handling
international
human resource
management
Employee
Satisfactio
n
Employee
Benefits
(Monetary
/Non -
Monetary)
Employee
Retention
Work Life
Balance
Area’s of concern in International Human Resource Management
