The Global Context of HRM - Week 8

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The Global Context of HRM



What is Globalization


Globalization is the process in which people, ideas and goods spread throughout the world, spurring more interaction and integration between the world's cultures, governments and economies.

The term is most frequently used in reference to creating an integrated global economy marked by free trade, the free flow of capital and corporate use of foreign labor markets to maximize returns. However, some use the term globalization more broadly, applying it to the movement of people, knowledge and technology across international borders; some also apply it to the free flow of cultural, environmental and political discourse (Haider, M 2010).

The importance of globalization

(a) Proper use of Resources: Globalization leads to expansion of markets and this enable organization to make proper use of available resources.

(b) Multiple choices: No country is self-sufficient and every country depends upon other countries. Globalization has solved this problem and people can have a better choice to satisfy their need.

(c) Foreign Exchange: Globalization encourage exports and discourage imports. This help to earn foreign exchange.

(d) Creates Employment: Globalization helps to provide employment to a large number of people. Multinational companies such as Business Process Outsource popularly known as Call center employs and appoint a large number of personnel with high pay scale and other benefits.

(e) Government incentives: Government also provides various incentives in taxes, customs duties, pre-shipment finance, post-shipment finance and many more. This is done to encourage globalization.

(f) Technology: Technology is the latest and fruitful outcome of globalization. It is the best even gift. Technologies not only increase efficiency but the organization and everyone having a little knowledge can update one and can stand by the world. Globalization not only enables competition but also very much helpful for the profit of maximization.

(g)Spreading of Risk of Loss: Business thy name is a risk. There may be different types of losses in every business. Various losses which may be in domestic market can be easily compensated from the international market.

(h) Benefit to the consumers: Globalization encourages free and fair competition at world level. Due to this, organizations try to supply quality goods and that also at a reduced price. This benefits consumer (Haider, M 2010)

History of Globalization

Globalization as a term came to prominence in the 1980s. Although many consider this process a relatively new phenomenon, globalization has been happening for millennia. The Roman Empire, for example, spread its economic and governing systems through significant portions of the ancient world for centuries. Similarly, the trade routes of the Silk Road carried merchants, goods and travelers from China through Central Asia and the Middle East to Europe and represented another wave of globalization. European countries had significant investments overseas in the decades prior to World War I, prompting some economists to label the prewar period as an earlier golden age of globalization (Haider, M 2010).

Advantages of globalization

1- Market diffusion2- Great ideological diversification3- Transmission of cultural values4- Language exchange5- Unification of moral values6- Decreased social tensions7- Greater human sensitivity

Disadvantages of globalization


1- Threat to local and national economies2- Imposition of foreign ideas3- Transculturelization
4- Extinction of minority languages5-Universal morality6-Tolerance, but for convenience7- Neo-imperialism and neocolonialism ( Lorecentral. 2016)

Reference



haider, M 2010, indiastudychannel, importance of globalization, May 21 2018,<http://www.indiastudychannel.com/resources/127540-Importance-Globalization.aspx>


Lorecentral. 2016, 14 main advantages and disadvantages of globalization,May 21 2018,<https://www.lorecentral.org/2017/10/14-main-advantages-and-disadvantages-of-globalization.html>

theshinning gem, 2017, globalization and jingoism always coexist, May 21 2018, <https://theshininggem.wordpress.com/2017/07/09/globalization-and-jingoism-always-coexist/>


Comments

  1. OCUSL.modelJuly 16, 2018 at 1:04 AM

    There are advantages as well as disadvantages of globalisation. So it is like a sharp knife that has two cutting edges. It's very difficult task for multinational corporations to integrate cultures.

    ReplyDelete

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