Impact of Globalization on Transnational Corporations - Assignment Example

? Research Proposal on the Impact of Globalization on the Human Resource Management of Transnational Corporations (TNCs) Introduction Globalization is a worldwide process that has resulted to the international integration of humans located in distant regions for the purpose of exchanging ideas, cultural aspects, commodities and services. This process is mainly facilitated through different transportation and telecommunication infrastructures like the internet which eventually end up creating interdependencies among trading transnational corporations. In regards to this process, the human resource departments found in many transnational corporations typically address issues that relate to the diversity, skills along with qualifications and the demographics of their workers. This is carried out with a view of ensuring that these corporations are able to counter the challenges they experience in achieving their set objectives and remain competitive in their trade activities. This research proposal intends to utilize the following academic publications on assessing the impacts of globalization on the human resource management of transnational corporations. Key Academic Publications 1. Kayode, O 2012 ‘Impact of globalization on human resource management,’ Science Journal of Business Management, vol. 2012, no. 3, pp. 1–4. The science journal by Kayode on the impact of globalization examines the impact of the work force on the human resource department of an organization with offices that are local or based in other countries. It discusses different issues that drive the aspect of globalization within the workforce along with the challenges that confront these departments on the global scene. The author, Kayode, begins by giving an introduction to the current trends of globalization and also provides the definition and the roles of the department. He suggests that it is in charge of managing the human resources in a transnational corporation. Kayode goes further to expound on the factors that drive globalization and its benefits and finally offers a conclusion on the subject (Kayode, 2012). This article will be significant to my research because it will give me more insight into the current trends that human resource departments found within the transnational corporations. It will also help my research by highlighting the benefits, challenges and other issues that are affecting these departments. 2. Hunter, LW & Katz, HC 2012, ‘The impact of globalization on human resource management and employment relations in the US automobile and banking industries,’ The International Journal of Human Resource Management, vol. 23, no. 10, pp. 1983-1998. The authors, Hunter and Katz, discuss the effects of globalization on employment relations and its differential impact throughout the different types of capitalism. They suggest that globalization affects different industries in specific ways. In addition, the journal discusses issues like job security, work organization, remuneration systems, and enterprise governance within transnational corporations in the US. It specifically addresses the issues which affect the transnational organizations that are headquartered in the US. The article additionally makes a comparison of the changes that occur in these two industries and their nature of correspondence to the American liberal economy (Hunter and Katz, 2012). The article will help my research by providing more insights into how employment relations in transnational corporations have been affected by the issue of globalization. 3. Friedman, BA 2007, ‘Globalization implications for human resource management role,’ Employee Responsibilities & Rights Journal, vol.1, no. 19, pp. 151–171. The article discusses the influences that globalization has on transnational corporations competing for customers who have very high expectations as regards the cost, quality and performance of the products they buy. It highlights the pressures that the globalization process has imposed on their human resource departments, as their organizational needs continue to change on a daily basis. It additionally provides various models that can be utilized by various human resource departments in ensuring the corporation’s employees are controllable and efficient. The article additionally explores the issues of globalization and its effects on the dynamics of transnational corporations, their cultural sensitivity, employment practices, innovations, technical skills along with business knowledge (Friedman, 2007). The article will be vital to my research because it will enable me to evaluate how the transnational corporations currently operating in the markets are being affected by globalization in regard to the above stated issues. 4. Kapoor, B 2010, ‘Impact of globalization on human resource management, information systems & decision sciences,’ viewed 6 Jul 2012, http://www.jimsjournal.org/6%20Bhushan%20Kapoor.pdf. The article by Kapoor expounds on the role of the human resource departments found in transnational corporations in the transformation of the modern businesses which are under constant pressures due to globalization. It stipulates that transnational corporations frequently experience a deficiency in the supply of qualified talents and states that the effects of this trend are increasingly being felt among them. The author states that this type of organizations needs to lay a greater emphasis on the attraction of human capital and not a financial one. Kapoor states that there are major differences in culture and skills for people in different areas of the world. He concludes by suggesting that only transnational corporations which adapt to the changes occurring to the labor markets will have the ability to retain and attract the effective performers with the spread of globalization. He also concludes by suggesting that those transnational corporations that are able to foresee the needs of their workforce and business will gain a decisive advantage against their competitors (Kapoor, 2010). The article will be vital for my research as it will enable me to ascertain the different roles and duties that transnational corporations should play to ensure they remain competitive in the global market. 5. Gachunga, HG 2008, ‘Impact of globalization on the human resource management function in developing countries: a case study of Kenya public corporations,’ African Journals Online, vol. 1, no. 1, pp. 1–16. The author, Gachunga, examines the impact that human resource departments in various transnational companies located in developing countries encounter due to the process of globalization. He specifically examines Kenya and the homogenization of organizational strategies, their processes and structures along with consumer choices. In addition, the article states that the globalization process has brought about changes within the corporations in order to improve the efficiency of their operations. The author claims that these changes have led to the retrenchment of many employees from the corporations. Many corporations, according to the journal, have in turn adopted the use of leaner staff in addition to employing temporary workers. The article concludes by suggesting that the globalization process has either negative or positive impacts on a developing economy such as Kenya (Gachunga, 2008). This article will facilitate the making of comparisons between the effects of globalization on the operations of a corporation in the developed and developing countries. Theory According to previous research, the globalization of the operations of transnational corporations has led them to enjoy competitive advantages along with greater profit margins over other similar organizations. Globalization has greatly influenced the operations of transnational organizations in order to compete for the customers who have very high expectations of getting high quality and affordable goods. The proposal will be responsible for addressing the following questions through research. Research Questions Why and how do the human resource departments within these transnational corporations adapt to the pressures found in the economies they are operating in? Which factors affect the movement of commodities and funds by transnational companies around international borders? Why has there been an increase in the free zones created in the European, American and African continents and how has globalization been facilitated by the reduction in the costs of labor, transportation and the technological advancements that are found in the developing countries? Research Objectives The main objective for the research will be determining what the impacts of the globalization process on the human resource departments of transnational corporations. It will ascertain how these departments have adapted to the changes that occur in their operations in order to overcome their pressures. The research will also aim at ascertaining the global trends of the globalization process and the effects of the process in corporations located in the developed and developing countries. In addition, it will attempt to ascertain how the pressures and impacts of the globalization process affect the operations of the human resource departments found in transnational corporations. Finally, the research will determine whether the process of globalization has had either negative or positive effects on the operations of the transnational corporations (Kothari, 2008). Original Contribution This research will examine the impacts of globalization on various human resource departments found in transnational corporations located in developing and developed countries. It will also highlight the various challenges or barriers that the human resource departments in different transnational corporations have encountered in regard to the spread of globalization. The research will take into consideration any previously carried out studies concerning transnational corporations with the aim of attaining more insight into any problems that their human resources departments have encountered. It will also provide recommendations for the different authorities that are lagging behind in attaining the full benefits of globalization. Methodology This section outlines the methodology and procedures that will be used to obtain the research data and design, population, sampling methods, instruments along with the procedures for data collection. The resources and facilities that are available will also be highlighted along with the ethical issues and the researches limitations. This research will be conducted on the transnational corporations that are located across many continents to determine the impact of the globalization process on their activities. This will be a descriptive and cross-sectional study that will aim at determining the impact of the globalization process on the activities of transnational corporations (Kothari, 2008). The research will only dwell on those transnational corporations that have taken advantage of the globalization process and have opened branches across different continents (Hayek and Buzas, 2010). However, the transnational corporations that have not opened up branches and/or have not taken advantage of the globalization process will not be included in the research (Kothari, 2008). Fischer’s formula will be used in calculating the sample size. The minimum size that will be used will be at 95% confidence levels and calculated by using the formula below. The formula one will be utilized when calculating a sample size that consists of no more than 10 transnational corporations. Formula One Thus, n= the desired sample sizes with populations that have greater than 10 transnational corporations. N=the standard normal deviations at confidence levels of 1.96. A pilot study will be conducted with the transnational corporations that will, in turn, be chosen randomly across different continents. A minimum of five questionnaires will be administered to the managers and employees of these corporations in order to obtain the first-hand information from them concerning their experiences with the globalization process. The feedback will then be used in perfecting the questionnaires prior to the actual data collection (Kothari, 2008). Self-administered questionnaires will be distributed to the managers and employees of transnational corporations chosen at random to answer and will be returned to the researcher once they have finished filling them. After the explanations from the research assistant are received and the consent of the research subjects is obtained, the questionnaires will be issued to them. The researcher will then scrutinize the questionnaires for completeness before receiving them (Kothari, 2008). The data collected will be examined for completeness, consistency and reliability and will be analyzed through the use of scientific calculators and computer packages. The data will then be presented in the form of frequency tables, pie charts and graphs for easier interpretation (Hayek and Buzas, 2010). The proposal will then be presented to the University Academic Board for review, advice and subsequent approval. Participation in the data collection processes will be voluntary and an informed consent will be sought from every transnational corporation that wishes to participate in the research. No money or any form of compensation will be paid to the respondents for their participation (Kothari, 2008). The information obtained will be treated with the highest degree of confidentiality throughout the research study. There will also be no naming of the respondents or discussion of the information obtained from them without their direct permission. The research studies will be intended to neither physically nor psychologically harm the research subjects. The research findings and recommendations will be forwarded to the University Education Board for approval. References Friedman, BA 2007, ‘Globalization implications for human resource management role,’ Employee Responsibilities & Rights Journal, vol.1, no. 19, pp. 151–171. Gachunga, HG 2008, ‘Impact of globalization on the human resource management function in developing countries: a case study of Kenya public corporations,’ African Journals Online, vol. 1, no. 1, pp. 1–16. Hunter, LW & Katz, HC 2012, ‘The impact of globalization on human resource management and employment relations in the US automobile and banking industries,’ The International Journal of Human Resource Management, vol. 23, no. 10, pp. 1983-1998. Hayek, LAC & Buzas, MA 2010, Surveying natural populations: quantitative tools for assessing biodiversity, Columbia University, Columbia. Kapoor, B 2010, Impact of globalization on human resource management, information systems & decision sciences, viewed 6 Jul 2012, http://www.jimsjournal.org/6%20Bhushan%20Kapoor.pdf. Kayode, O 2012, “Impact of globalization on human resource management,” Science Journal of Business Management, vol. 2012, no. 3, pp. 1–4. Kothari, CR 2008, Research methodology: methods and techniques, New Age international, New York. Read More