IMPACT OF GLOBALIZATION ON HUMAN RESOURCE MANAGEMENT

Impact of globalization on Human resource management

Introduction

The roles and duties of Human resource Department are converting as modern business face due to globalization. Further there is a notably shortage of high skilled and talented workers for next bossiness generation of globally. Hence the organizations are put extra effort to grab skilled & talented human capital rather than the financial capital due to continues increase of the shortage between demand and supply of talented and high skilled employees of middle and senior management levels.

Factors driving globalization

According to Kapoor B, (2011) there are three main factors to driving to globalization for Human Resource Management.

      Shortage of talent in developed counties

Most of developing countries with large population as Brazil, Russia, India and China may not be able to sustain the surplus of worker with the high skill & talents. Further, Most of developed countries are faced long-term talent shortages due to ageing and the retirement of baby boomers. (Eg: United State, Germany and Japan) The more employees are retiring than entering the new employees in these countries.

      Availability of low cost labor from developing counties

The global population growth is different between developed and developing countries. Hence, the labor cost of the developing countries cheaper than the developed countries such as Brazil, Russia, India and China.

      Technological progress

There is system called “Global human resource information system” that collects and stores large volumes of information from various sources, including external and remote sources. Hence, the system can be used by the human resource peoples to forecast future needs and develop the strategies by analyzing that information.