Contemporary HR Challenges For Globalization

Overview of Globalization and Technological Revolution

Write about the Contemporary HR Challenges for Globalization.

The effect of technology and globalization in the contemporary work environment are enormous. Globalization has impacted enterprises because they can exploit the global markets through marketing, but human resources required in those new markets present significant challenges. HR faces challenge of cultural diversity, recruiting and retaining talent on the global context. (Sparrow et al. 2016). Technology has disrupted how HR functions in the organization such as employee’s recruitment, evaluation and monitoring in the workplace. The challenge has been to switch to the system and training employees to develop the required capability (Caganova et al. 2015; Bloom et al. 2014). The forces of technology and globalization present enormous challenges to HR which requires them to be innovative and creative in dealing with activities and processes in the organization. The paper explains the concept globalization and technological revolution in the context of business environment, challenges caused by globalization and technological changes to human resource management and the core competencies required by employees in the contemporary business environment.  

Globalization in the context of leadership and business environment refers to the integration of firm’s processes, operations, and strategies. The consequences of globalization include several products, technologies, employees, ideas, and services. There is a heavy emphasis on diversity which means there is a significant influence the way managers handle the staff and clients (Koster & Wittek, 2016). There is need for management to understand the ways in which globalization affect human resources activities because it can help in predicting how to handle the issues and tools required in the increasingly globalizing environment.

On the other hand, the evolution of technology and the related process has led to enormous changes in the business climate in many ways such as communication, marketing, and others. Besides, in the information age, the use of computers and internet has had a significant influence on many business functions. Nowadays employees handle many tasks and responsibility using computer technology, and this has transferred to many activities and areas including human resources management, marketing where it continues to impact on the on HR practices (Sparrow et al. 2016; Stone & Deadrick 2015).

The current organizations are increasingly becoming global thanks to the development of technology and globalization. The changes bring diverse challenges as the HR tries to build productivity, cohesion in the workforces spanning across many cultures, regions, countries and religions (Stone & Deadrick 2015). The paper explores the pitfall that accompanies managing employees in an increasingly globalizing business environment. In the developed economies, there is a dwindling youthful population which causes skills shortages that are filled by the older generation who are women and immigrants. It is important to state that the changing demographic and the evolving cultural continues to characterize and shape the global workforce (Caganova et al. 2015).

HR Challenges Caused by Globalization

In the wake of globalization, HR professionals face complexities due to mergers and acquisitions which have become very familiar. Therefore, this means integrating of differing cultures that cause a lot of resistance from some quarter (Thite et al. 2014). For instance, in the U.S. there was a merger of Swedish Pharmacia AB and pharmaceutical Upjohn which caused a lot of resistance in the workplace. In the merger, the management did not envisage the situation of resistance to policies such as smoking, alcohol-testing that incurred substantial costs and a slowdown in launches of products and sales (Javaid 2013)

Companies have found opportunities to expand to another market due to the availability of the right technology. For instance enterprises in the west such as U.S. UK, have to expand their operations in the new markets especially the third world countries and undeveloped regions. The HR encounter challenges such as dealing with locally acceptable values and the legal, regulatory issues in the country. In this case, the challenge facing HR is to gain a detailed understanding of the accepted norms and accepted business practices and establish the protocols customized for the new markets and communicate through the structures (Morgeson et al. 2013). On the other hand, there are labor laws which can be a significant challenge to the HR. For example, in Indonesia the laws do not recognize the difference between full-time and part-time workers and that all are entitled to similar rights which may be different in other regions and countries (Koster & Wittek 2016).

The emergence of technology and globalization climates in the business environment has led to changes in the way human resources management function. One of the biggest challenges arises due to an elevation of the HR department activities to a central strategic role in the organization. The core problem affecting human resource in the contemporary business environment is having the right employees at the right time in the workplace (Bloom et al. 2014). The rise and spread of globalization and technology have leveled the playing field for companies about availability of finance, technology and the access to information. In the recent decades, assets such as land and other forms of capital were the differentiating factors in the organization and therefore was the most value source of competitive advantage.

However, talents and skills have been affected in the wake of globalization and technological revolutions. Although the availability of labor surpass that the vacant positions, the difference in the contemporary environment include the supply of sufficient talent which is scarce in the organizations. There is increased competition regarding how the managers source and recruit the required talents to make the firm competitive and this remain one of the biggest problems facing human resources (Bloom et al 2014). Globalization and technology make the firms knowledge-centric, and this depends on the capability of human resources department to recruit and retain the talents. Therefore the HR has to deal with the challenges of maintaining qualified talent through costumed remuneration packages, autonomy and improving the working conditions.

Cultural Diversities and Policies

The traditional HR approach was dominated by the hiring of workers who met the required qualifications criteria or developing their capabilities through training of the employees to make them fit. In the contemporary setting, the enormous challenge includes ensuring the hired employee-employer are fit for the organization. Specifically, the trial includes selecting the workers based on their ability to finish the job. It also involves identifying those who value teamwork and therefore can fit in a team of employees (Crane & Matten 2016). Therefore, in relation to this, the challenge is recruiting employees who have personal values which match the organization values and culture. As such the HR faces challenges in various dimensions of understanding the competencies of the employees and providing them with appropriate and sufficient opportunities to apply the for the benefit of the organization. There is also issues of enhancing adaptability, agility, resilience and market driven approach.

Human resources department is entitled to the roles of managing the employees in the organization. The advance in technology and other related technical changes has created myriads of challenges which must be dealt with accordingly. For example, the agency’s workforce needs to keep up risks challenges brought by tech-savvy rivals (Cameron & Green 2015). In such as case, the role of the human resource manager is critical in helping the workers keep pace with evolving technical changes. Problems caused by technological changes to the HR department includes resistance to change, shortage of skills and training and managing information from various sources.  

Similar to any change in the workplace, the evolution of technology in the organization results in the development of anxiety among employees who also resist these changes (Kim et al. 2014). In the group, technical changes are seen as a huge threat to employees believe that technology aims to replace what they do instead of envisioning the role of machine and computer as making their job cheaper and faster. The challenge is developing strategies that can be used to combat the kind of resistance to change because it is the role of human resources manager to manage the people and technology and other process utilized in the production process. This includes ensuring the anxious employees of their role and that of technology, and this makes them see technology as a helper in their job (Cameron & Green 2015).

Even though there is a high level of unemployment in the market, there is an acute shortage of skilled employees to work for many evolving industries. As a result, HR managers find it hard to recruit workers who have knowledge and skills of using new technology in the manufacture and provision of services. This has a meaning to the HR department and for the organization because the current employees must be trained to impart them with competencies to adapt to technical changes and further bring on board tech-savvy employees who are highly skilled in dealing with different technology (Davenport 2013). Therefore it is the role of HR to facilitate them with education programs, conferences, and seminars to keep them up to date. In this regard, the HR also faces challenges resulting from difficulties in identifying the core areas where the training program are needed and how to carry the activities.

Training the Right Skills and Competence

Anther challenges for HR managers emanate from managing information from diverse sources. The department plays a critical role in ensuring better management of information and guarantee the privacy of the same information. With the advance in technology within the firm, the confidentiality and security of information are highly associated with the technology used in the organization (Modaff et al. 2016). Therefore, to this regard, the HR faces challenges such as conducting training programs to employees on strategies of securing data and preventing privacy required to keep the enterprise information safe. The solution to the problems includes hiring consultants to help employees on how to deal with technical aspects and also recognize other related challenges. 

As seen in the literature concerning the effects of technology and globalization it is evident that the globalization and technological forces have influences on HR activities function. According to scholars, in the wake of technological advancement and globalization, there is fundamental change in the way employees work due to intercultural integration, use of computers, and other aspects in the workplace. Many organization have gone global and used technology means recruitment of new employees, imparting different skills and competencies to help them deal with these changes in the organization. The skills required must reflect on the changing competition landscape and the needs to be creative and innovative when dealing with different issues brought about by globalization and technological advancement (Stromquist & Monkman 2014).

Therefore to thrive in the contemporary environment driven by innovation, the Human Resource managers need to train workers to deal with different challenges which were not there in the past. Other than foundational skills such as numeracy and literacy the workers need competencies such as problem-solving skills, collaboration, and creativity among others such as persistence and curiosity (Child 2015; Stromquist & Monkman 2014). Globalization has led to changes in the labor market which require employees to have these skills. In the current business environment driven by globalization, companies run on creativity, collaboration, and innovation due to heightened competition from rivals. Further employees need to have skills that are centered on addressing unstructured challenges and efficiently analysis of information to make a decision.

Besides, the advent of technology is gradually substituting many roles played by employees such as manual labor because organizations have infused it in all aspects in the workplace (Cascio & Boudreau 2016). Therefore, this has led to the gradual decline of cognitive and manual skills, while there is an increase in jobs that need interpersonal and analytical skills due to digitization and automation of the work processes. Therefore the management needs employees with ICT literacy to help deal with technology in technology-rich environments. Workers also need cultural and civic literacies to enable them to overcome cultural diversity related challenges in the workplace.

HR Challenges Caused by Technological Evolution

Conclusion

In conclusion, the effect of technology and globalization trend has had effects on the way HR functions in the organization. The emerging trends related to managing information, dealing with the multicultural environment, the privacy of information and others. In the future, the daily activities of the organization will be managed, evaluated and monitored through artificial intelligent and computer programs characterized with complicated algorithms. Globalization will change the future organization structure and how management deals with employee’s skills, wages, and systems of awards. This means the firms will face adjustments in all dimensions such as communication, recruitment, and retention of employees in the future. 

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