Understanding Business Environment Globalization

Question: Discuss about the Understanding Business Environmentfor Globalization. Answer: Introduction There is a functional linkage of proper human resource management and workforce productivity at a global level. There is a strong desire by developed countries to gain greater decision making at this level showing the magnitude of vested political and economic interests (Stone, and Deadrick 2015). The focus is shifting from an entirely economic development to entail social development of the people. Globalization has increased the volume of production and trade (Jackson, Schuler, and Jiang 2014). The roles and responsibilities of human resources departments are being transformed to accommodate the modern style of doing business as a result of pressure exerted by globalization. Many empirical studies have shown that the global supply of skills and talent is inadequate yet the demand is high (Baltzan and Phillips 2016). This gap that is created as a result of this shortage is a major challenge to many employers. It is believed that the existing shortage in supply and demand will continue well into the future more so for high-skilled labor (Lapi?a, Maur?ne, and Stari?eca 2014). There is the need for organizations and businesses to lay greater emphasis on the attraction of human capital as opposed to only focusing on financial capital. It is imperative to note that doing business at a global level requires the companies adapt to the cultural factors which are inherently different in each country. Today, political stability among countries differ, as a result, it is important that human resource manager develops systems that can conform to these changes (Schuler and Jackson 2014). Additionally, it is important to note that rules and regulations that govern human resource management differ between countries. In this regard, human resource managers should always purpose to come up with strategies that will bring appropriate changes (Koster, and Wittek 2016). There is robust economic growth across the globe touching on sectors various sectors. It is worth noting from the outset that political instability has been the greatest risk to growth and development and proper implementation of human resource activities (Lapi?a, Maur?ne, and Stari?eca 2014; Baum 2015). The world is witnessing substantive changes in manufacturing, distribution and consumption patterns as a result of the introduction of new paradigms. This is well covered by the gradual evolution trends in the human resource and management trends (Adeniji et al. 2013). The issue of when the global economy came to be can be traced back to the eighteenth century when industrialization occurred necessitating the global division of labor. Global economic meltdown hit Asia during this while the United States emerged as world leading economy. It is vital to point out that globalization has been playing a critical role in advance economic growth across countries (Baltzan and Phillips 2016). With the advent of globalization, the roles of human resource manager have changed tremendously. Before the second world war, manufacturing was only concentrated in four countries constituting 70% of the total production while contributed only 3.5%. This was greatly altered by the start of the second world war that destroyed industrial capacities of many countries (Stone, and Deadrick 2015). The available evidence indicates that several factors drive prevalence of globalization. Some of these factors are associated with the shortage of skilled laborers in developed countries. Additionally, there is readily available cheap labor (Koster and Wittek 2016). Additionally, lately, there has been an increasing number of consumers in developing countries. There is also evidence that that enhanced technological progress has driven human resource managers to rethink the course of human resource management (Schuler and Jackson 2014). Several studies have suggested that despite the economic downturn facing some developed countries such as Germany, Canada, Japan, and the United States of America will face a shortage of skilled labor. This shortage is thought to result from the retirement of the aging employees (Lapi?a, Maur?ne, and Stari?eca 2014). There is a plethora of literature that suggests that more workers are retiring more that the new ones are recruited. Today the human resource management has undergone several changes (Baltzan and Phillips 2016). It is important to note that negation of the condition of employment and being considerate of taking up full-time work that compromises ones skills are the usual patterns relating to professionals who are accomplished. Nowadays, individuals do find new freedoms and are in a position to explore their capacity (Alhejji and Garavan 2016; Schuler and Jackson 2014). Some organizations and businesses are considering ways and means of adapting to these inevitable changes without hampering their success.it is vital to note that these two human resource needs are not compatible (Baltzan and Phillips 2016). Ideally, the manufacturing industries where hands-on work is mandatory, flexibility to accommodate these changes may not be realized. Many organizations and companies have realized the importance of knowledge transfer and the need to instill best practices to remain competitive (Lapi?a, Maur?ne, a nd Stari?eca 2014). The need to achieve the competitive advantage over companies and organization has seen employees send to foreign subsidiaries. Many multinational companies have been striving to increase the number of expatriate managers because they have the capacity to bring modern skills and concepts of management. Hiring expatriate managers is key is enhancing efficiency and effectiveness in the management system. It is imperative to note that in selecting expatriate managers, maximization is paramount. It is vital that organizations and companies conduct thorough research regarding culture, geopolitical inclinations of various regions, and trade regulations of a given country before hiring an expatriate. The business environment today is heavily characterized by plurality. There is need to train employees on cultural competency as to remain productive (Adeniji et al. 2013). There are some changes are faced by the human resource managers, employers, employees, and recruiters. These changes have caused complications in the employment market for the simple reason that it through a lot of confusion (Baum 2015). This confusion is as a result of re-calibrating and redefining the employment market. Some of these changes have been extensively discussed in the following paragraphs. There are changes relating flexibility in working hours (Purce 2014). Each and every individual involved in management, entrepreneurship and other forms of formal employment want flexibility in working hours (Koster, and Wittek 2016). Some organizations have allowed for flexibility within certain defined parameters. Similarly, other organizations allow for these changes to be effected but with prior approval. It is evident that several firms and businesses are working towards offering flexible working hours (Adeniji et al. 2013). They are focusing more on outcomes as opposed to time as the only measure of performance. Several studies have shown that it will be hard for organizations that do not allow for flexibility in working to attract good employees (Jackson, Schuler, and Jiang 2014). It is vital to point out that employment branding ought to be clear on the issue of time requirements for a particular job description. In the current work environment, there is the issue of multiple jobs. According to the United States Bureau of Labor Statistics, multiple jobholders are individuals who are paid on hourly basis or workers who earn a salary and hold two or several jobs (Hayes 2014). Additionally, workers who are self-employed and get paid on an hourly basis are also defined as multiple workers (Lapi?a, Maur?ne, and Stari?eca 2014). For instance, in the United States of America, it is estimated that about five percent of the workers hold multiple jobs. It suffices to point out that numerous organizations still seek and expect loyalty from their employees even though they often pay less attention to employees. Studies have revealed that organizations and companies that do not allow their employees to hold multiple jobs reduce their candidate pool as well as the quality of that pool (Punnett 2015). The concept of virtual work is fast growing among many organizations and companies. Nowadays, it is common to have employees who work from their home (Schuler and Jackson 2014). It is worth noting that more employers are accepting virtual work. This fact is supported by converging reasons that include the shortage of skills, a global workforce, increase the amount of time required for traveling to work, and the need to save energy among others (Schuler and Jackson 2014). From the available literature, several organizations and companies have been encouraging the adoption of virtual work (Baltzan and Phillips 2016). Most people find it comfortable to work in collaborative workplaces. It is argued that virtual working is cheap, convenient, and practical. Virtual employment is expected to grow rapidly because most employers realize its benefits in the attainment of goals and objectives (Hayes 2014). In the current work environment, many employers are interested in employing temporary employees (Schuler and Jackson 2014). In the past, many employers used to hire employees on a temporary basis and later convert them into permanent employees when the economy improves (Tung 2016). There has been a big shift from this paradigm as there has been a significant surge as far as temporary hiring is concerned though very few of these employees are converted to regulars (Stone, and Deadrick 2015). Both employers and employees are often wary of commitment arising from the nature of hiring that is implemented in an organization or business. It suffices to point out that employers are never convinced that the prevailing economic recovery may be sufficient enough to sustain employ workers on a permanent basis (Schuler and Jackson 2014). On the other hand, potential employees may not be sure that the jobs they will get may last longer. In this regard, some employees would be happy to have two or more temporary jobs that they can spread their risks (Wilson 2014). There has been rapid generational mindset as far as work is concerned. It is important to note that differences in attitudes about time and work (Lapi?a, Maur?ne, and Stari?eca 2014). These differences are evident in the three generations that exist a workplace. Those employees who are above the age of forty-five years (baby boomers) are traditional in their reasoning. The baby boomers are much more comfortable with presenting themselves physically at the workplace. Baby boomers are additionally comfortable with working for eight hours in a day (Hayes 2014). On the other hand, those employees are between thirty to forty-five years find it comfortable to work in traditional ways though they tend to be much more open to virtual (Schuler and Jackson 2014). Additionally, this generation of workers often demands flexible working times so as to accommodate family time (Stone, and Deadrick 2015; Baltzan and Phillips 2016). Employees whose are under thirty years are deemed to be change agents. This group of employees is not interested in working for any organization. This generation of employees enjoy virtual work and possesses multiple jobs and often hardest to retain (Lapi?a, Maur?ne, and Stari?eca 2014). It is imperative to point out that this generation of employees are crucial because they represent the future of the organizations and companies. The use of internet in carrying out international business activities is much more evident nowadays as compared to the past. Most human resource managers have been forced to change their strategies to fit into the globalized world (Lapi?a, Maur?ne, and Stari?eca 2014). Even in the internet business transactions, human resource managers are supposed to adhere to the rules and regulations required for conformity (Koster, and Wittek 2016). Many scholars have argued that even with the changes in human resource management, machines will not replace human beings in the attainment of business success. In this regard, it is paramount to state that much emphasis ought to be laid down for proper management of human resource (Schuler and Jackson, 2014). Additionally, the use of the Internet in recruitment, business transactions, and advertisement has revolutionized how organizations and companies do business (Baltzan and Phillips 2016; Hayes 2014). In conclusion, several changes are witnessed in human resource management. 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