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The impact of globalization on HRM in multinational organizations - Assignment Example

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In order to provide valid examples of the theoretical underpinnings, Apple Inc has been chosen as it is a company that operates in various countries of the world thereby coming in contact with…
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The impact of globalization on HRM in multinational organizations
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"The impact of globalization on HRM in multinational organizations"

Download file to see previous pages It has brought about an integration of the companies all over the world and has facilitated trade by way of reducing transportation costs and doing away with the barriers to trade. Globalisation has also facilitated a free flow of goods and service, knowledge, skills, capital and labour. During a strong economic growth period world exports shot up in various countries thereby contributing heavily to the Gross Domestic Product (GDP). Previously, human resource management (HRM) was typically concerned with the cost cutting activities and the administrative activities, focusing on bringing about efficiency in the system and the minimised the cost. However in the present world the role of HRM has changed and focuses on an organization’s long-term objective.
The companies’ business strategies were affected by globalisation in a large manner. The companies had access to a large variety of markets and could market their products in global markets. The emerging markets of the developing countries are of lucrative content to such MNCs who are looking to diversify. Due to the emergence of new markets the external financing sources of the companies also increase. A very important source of financing is Foreign Direct Investment (FDI) that has opened avenues for the MNCs to invest in the developing countries. FDI has a dual benefit to both the country and the company. There is a global market for the products of the MNCs. Moreover due to abundance of labour resources in the developing countries the MNCs often shift their production processes to such countries such that they can carry out production at low costs. Also the political stabilisations across the globe and the favourable relations between the countries have made positive impacts on the strategic positions of the companies. The socio-political globalisation has given rise to regulatory bodies that govern the different policies that mark the path of trade between various companies. The most ...Download file to see next pagesRead More
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