THE IMPACT OF GLOBALIZATION ON STRATEGIC HUMAN RESOURCES MANAGEMENT OF A MULTINATIONAL COMPANY: - Dissertation Example

The changes in ideology and technology which are associated with the global economy have changed companies especially in their approach to management. BP Oil Exploration Company has also been affected by globalization especially in its strategic management of the human capital. The company has ranked among the top oil companies worldwide due to its strategic management which values its employees and the ability to compete favorably in the global economy. The number of employees in companies has drastically increased due to their response to globalization and hence worldwide expansion.

This has necessitated the need for proper strategic management of human resources by multinational companies. There are many economic, political and social cultural effects of globalization on companies. As a result many studies have been conducted to determine how the rise in globalization affects the strategic management of human capital. The analysis of the study findings illustrate that companies are determined to meet the challenges of globalization through effective strategic management of their staff through proper recruitment, compensation, communication, skill and relations management.

Six research papers have been analyzed in this Model-B dissertation because of their relevance to the research topic, scope, structure, content and the fact that they are authoritative articles which are based on primary research. The case study is used as a basis for illustrating all aspects and concepts of strategic human resource management and the effect of globalization on this process that companies employ to enable them meet their goals and objectives. CHAPTER 1: INTRODUCTION Case Study: BP Oil Corporation BP is an international oil company whose headquarters are based in London.

Among the energy companies, BP is the third largest in the world. This company has a vertical integration and is involved in both oil and gas exploration. In addition, the multinational company deals in energy areas of production, petrochemicals, oil refining, marketing and distribution. The operations of BP are spread all over the world in more than eighty countries. This demonstrates that the company is one of the biggest employers in the world. As a result strategic human management within BP has been impacted by the globalization of world economies which characterize modern day business operations.

The approaches applied in staffing of the company and the compensation mechanisms have been influenced by the global economies and therefore vary within its various subsidiaries in different regions of the world. The exploration and production sector of BP Company has been internationalized into more than thirty countries across the world with a human resource of more than 20 000 employees. Globalization is therefore likely to affect the company more than companies which have not been internationalized.

The complexity of strategic management of BP’s human resource is due to this international reach which