Friday, October 28, 2011

Globalization of business and its impacts on SHRD

Globalization, an inevitable and irreversible force, has significantly affected the
workplace and the community, in ways both good and bad. Human resource development's
(HRD's) response and impact has been minimal and at a mostly micro level.
Although the future of the field of human resource development (HRD) cannot be precisely
foretold, trends and analyses provide us with insight into the challenges likely to be faced by
professionals in the field.
Few HR trends that are changing the face of business after globalization are given as
The Changing Role of the HR Professional
The War for Talent
Outsourcing of HR Functions: The Virtual HR Organization
The Healthy Workplace: Wellness, Work-Life Balance
The Diverse Workforce
The Impact of Technology
Talent Management: Leadership Development
Talent management: Succession Planning

Globalizing HR Processes

Global staffing and global leadership development are the two components of global
human resources with the greatest potential for powerful leverage for global firms. In both
the areas, a major paradigm shift is required in comparison to the traditional perspective.
Global Staffing: While it may be obvious that global firms will need more and
more employees with “global brains”, translating this attractive vision into
operational reality is not simple. Most managers are not born global; they acquire
global brains through a series of experiences, many of them at a substantial cost to
the organization. Making a rational business case concerning the future need and
use of global managers is one of the critical decisions the global HR function and
business leaders must make together.
Global Leadership Development: One of the principal tasks of global leadership
development should be to create and support an environment where global
mindsets can flourish. It will focus on providing a broad spectrum of employees
with opportunities to acquire and enhance their global leadership skills and
capabilities, often using nontraditional developmental techniques such as crossborder
job swaps or assignments to multicultural task forces and project teams.
Let us see the changes is HR Myth before and after globalization

Before globalization Myth After globalization realities
People go into HR because they
like people
HR departments are not designed to
provide corporate therapy or as
social or health-happiness retreats.
HR professionals must create the
practices that make employees
more competitive, not more
Anyone can do HR HR activities are based on theory
and research. HR professionals
must master both theory and
HR deals with the soft side of
business and is therefore not
The impact of HR practices on
business results can and must be
measured. HR professionals must
learn how to translate their work
into financial performance.
HR focuses on costs, which
cannot be controlled
HR practices must create value by
increasing intellectual capital within
the firm. HR professionals must add
value, not reduce costs
HR’s job is to be the policy
police and the health-andhappiness
The HR function does not own
compliance, managers do. HR
practices do not exist to make
employees happy but to help them
become committed. HR
professionals must help managers
commit employees and administer
HR is full of fads HR practices have evolved over
time. HR professionals must be see
their current work as par of an
evolutionary chain and explain their
work with less jargon and more
HR is staffed by nice people At times, HR practices should force
rigorous debates. HR professionals
should be confrontative and
challenging as well as supportive
HR is HR’s job HR work is as important to line
managers, as are finance, strategy
and other business domains. HR
professionals should join
The skill set change which any HR manager has to make if they have to lead the work force
into the future after globalization are as follows:
Vision and foresight:
HR professionals have been making the transition over the years from administrators
to business partners to leaders of change. The next logical step in the transformation of the
HR function will involve the ability to see around corners. This skill encompasses the vision
and foresight to anticipate future trends globally and the business savvy, credibility, and
leadership skills to influence and shape these trends on a global basis. HR people will focus
increasingly on turning human resource and organization capability into a strategic
competitive advantage for the business. The quality of people and people-related practices is
exceedingly difficult to imitate for the competitors. These are embedded in the culture of the
External focus:
Managing By Wandering Around (MBWA) is not a strategy only for the line
managers. It has to be practiced by HR professionals in equal, if not greater measure. They
tend to concentrate on the internal issues most of the time. However, HR people should
partner with customer more than ever before on joint HR initiatives, such as training and
moving people across company boundaries. HR professionals will be responsible for
determining and meeting customer expectations of organization capabilities – the capacity to
respond to customer concerns and act on their behalf. As part of this process, customers will
be more directly involved in issues such as the selection and assessment of individuals in key
assignments. This kind of interaction with customers will cause HR people to venture out
beyond traditional organization boundaries.
Future Workforce:
Organizations must continuously create a more flexible workforce. Professional
development initiatives including major commitments to training, global development
assignments, and modern day apprenticeships programs have to be put in place to keep pace
with changing technology. Further, organizations should promote and deploy flexible,
family-friendly workplace practices. Flexible work schedules and time-off family/personal
leaves and sabbaticals, job sharing, telecommuting, and remote work locations, employee
assistance counseling, child and elder care, financial consulting, and on-site convenience, like
casual dress, etc. are some of the propounded concepts, though none of them are new. “They
will be, by necessity.” Finally, a more open workplace through access to information,
exchanged seamlessly across organizational, functional and geographic boundaries, will
become increasingly commonplace.


The future role of HR will be to create organizational cultures that unambiguously
confront realities and make the inner workings of the organization much more transparent to
the typical employee. The employees should be trusted with sensitive information, which
should not be hidden from them for fear of competition gaining access to such knowledge. It
is the HR function’s job to convince others of this truth. Also, HR can challenge outmoded
policies and practices that have a detrimental effect on employee morale and productivity.
The logic and assumptions behind policies should be examined. If there is any lacking on part
of management in maintaining transparency, the HR people must take up the matter in their

Competitive Weapon:
As organizations strive to become seamless, the emphasis on collaboration across
business units, functions, countries, cultures, and companies will increase significantly. HR
professionals have a major role to play in making seamlessness a competitive weapon. It is
the job of HR to define the kinds of sharing behaviors expected of people. Benchmarking and
sharing practices are not enough. Real value comes from implementing these practices fully
and quickly than everyone else and building on them to create a unique advantage.

Scoring performance:
Organizations continue to struggle to strike a balance between shorter term,
financially driven objectives and long-term qualitative goals. It will increasingly involve the
issue of accountability for employee satisfaction and organization capability and of
measuring these priorities with the same degree of rigour used to measure financial
performance. HR and organizational capability audits should be as commonly accepted, as
are financial audits. HR should believe in the adage, “What gets measured gets done”.

General Challenges for Global HR Function
Functions such as operations, sales, and marketing have generally made great progress in
adapting to the global reality. However, the HR function has typically lagged behind in
developing policies and structures that support globalization. The top challenges HR faces in
the globalization process include:
Coordination of activities in many different locations.
Understanding the continual change of the globally competitive environment.
Building a global awareness in all HR departments/divisions.
Creating a multicultural HR team.

Globalization has its positive side as well as its negative side. In order to survive and
prosper in the new global competition, companies are embracing global integration and
coordination, but at the same time they must push for local flexibility and speed. Global
companies have to nurture global organization learning by stimulating creativity, innovation
and the free-flow of ideas across boundaries, but also advocate a disciplined and methodical
approach to global continuous improvement. To succeed in global competition requires an
open and empowered organizational climate, but also a tightly focused global competitive
culture. If global organizational capability, intrinsically linked to people issues, is the
principal tool of competition, it is only natural that HR in the future should become the
pivotal partner in the globalization process.

By Sheila M. Rioux, Ph.D., Paul R. Bernthal, Ph.D., and Richard S. Wellins, Ph.D.
Muhammad Aminu Bawa, Dr Juhary Ali
By Dave Ulrich, Michael R. Losey, Gerry Lake, Editors
Hazel Gachoka Gachunga

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