A1 The Impact of Globalisation on Human Resource Planning
Globalisation refers to the integration of the different economies around the world. Firms are increasingly operating in different countries and recruiting staff from overseas. This has an impact of HR planning.
Cultural norms are the expected rules, behaviours and conduct shared by a group of people. In the context of globalisation and HR, managers may find that staff from other countries have different norms when it comes to working hours, punctuality, dress codes, levels of formality and relationships with superiors. A good place to start when trying to understand the differences in cultural norms in different countries is Hofstede’s power distance index. If an employee comes from a country with a higher power distance index, they will be used to and likely more comfortable with a more formal relationship with their superior. https://clearlycultural.com/geert-hofstede-cultural-dimensions/power-distance-index/
Mobility of labour refers to how easily workers can move between different jobs. Geographic mobility refers to the ease to which workers can move to jobs in different locations and occupational mobility refers to how easily workers can move to jobs in another industry. Globalisation has made it easier for people to move between countries. This is due to governments easing regulations on who can work in their country, multinational companies operating from different locations and improved international travel and communication making it easier for people to stay in touch with friends and family in their home country. HR managers may consider induction of staff into a new country as well as induction into the company itself when they relocate.
The location of a business has been affected by globalisation. Firms may decide to locate different parts of their operations based on the benefits that different countries offer. They may consider locating different offices and manufacturing based on the skills of staff in the area, cost of staff, cost of rent, transport routes and availability of raw materials.
Language differences in HR planning must considered with globalisation. When recruiting staff internationally, it may be necessary to request proficiency in the language of the organisation through an assessment or through an interview to ensure that all staff can communicate effectively.
Work visas are permissions given by the government of one country to citizens of another country to enter and work. There are different regulations in different countries in terms of who can be offered a work visa. For example, in many countries a work visa will only be offered to an overseas worker if a suitably skilled local worker cannot be found. Firms need to consider the regulations of their local governments in recruitment as well as the cost of work visas they may need to pay for when recruiting from overseas.
Regional employment legislation differs from country to country. When operating internationally, firms need to be aware of the differences in employment law to ensure that they adapt their company policies and procedures to adhere to them.
