Globalization is usually defined as an international integration arising from the interchange of products, semi-products, ideas, and views. It used the benefits of lowered legislation and trade barriers introduced in the 70s of the 20th century. A decrease of protective policies in countries was the required condition. It was powering the economic growth during last decades as more nations were able to join all industrial and financial processes. Large corporations have been opening branches and factories in countries around the Globe. It has become a real challenge for Human Resources because it has an enormous impact on HR practices and policies.
Right now, there is a belief that globalization is over. It applies to the operations and factories. It is not true for the global mobility of the workforce. The challenge for Human Resources will continue for decades. Employees from developing countries will move to the West. On the other hand, many Western employees will move East.
Employees in the West enjoy many benefits resulting from globalization. They can move across different countries freely. They can apply for dream jobs in other nations, and they are not limited by the citizenship. On the other hand, they are under pressure that their job can disappear. It can be moved to a country with lower labor costs. That is also the HR challenge.
Building the Global HR Team is an excellent example of the strategic management of Human Resources. Human Resources has to solve the issues with data privacy and working across multiple labor legislations. Some countries are more protective than the others. It has to solve all procedures for the global workforce mobility and allow employees move across countries. It also has to update the expatriate procedures and policies to make sure that organization spends the money efficiently.
Human Resources has to introduce the global HR governance. Most performance driven organizations support the internal equity and the fair approach to employees. The HR Team has to make sure that the conditions for employees are equal, everywhere. It is a challenge because the team has to work across different cultures. These national cultures and habits are always stronger than the corporate culture. The business needs to support the workforce diversity, but it should highlight the leading national culture, as well.
A diverse corporate culture is always a good start, but it is hard to design and introduce one. The team can discover that the proposal is fluffy as it tries to please all. In the end, the leadership team has to make a difficult call. It has to choose one culture that will be used as the leading one. In general, most employees join the American business because they want to enjoy the American approach to work. They do not want to spend time in the international culture nobody can understand. On the other hand, the German corporation should stay a German one in the USA.
Human Resources will have to design policies and procedures for remote teams. Most managers are not able to manage employees overseas. They have to see them, and the have to provide them a direct feedback. Working in remote teams over different cultures is a real managerial challenge. The HR Team has to design tools for managers to make their life easier. Without these tools, the productivity and performance will suffer.
The modern HR Management is strongly impacted by globalization. There are just a few corporations that handle Human Resources in the Global World efficiently. Others implement various global policies and procedures. However, it is always a great beginning to start with a global talent management system.
Human Resources has to incorporate globalization into its strategic HR agenda. It has to support the learning strategy because employees can discover their ways how to live in the truly global organization.