Essay about Impact of Globalization on Human Resource Management

4648 Words Apr 13th, 2013 19 Pages
Impact of Globalization on Human Resource Management
Bhushan Kapoor, Professor and Chair, Information Systems & Decision Sciences, Cal State University, Fullerton, USA

ABSTRACT The roles and responsibilities of Human Resources departments are transforming as the modern business faces pressures of globalization. The global supply of talent is short of its long-term demand, and the gap is a challenge for employers everywhere. The shortage between the demand and supply of talent is likely to continue to increase, notably for high skilled workers and for the next generation of business executives. Now organizations need to place greater emphasis on attracting human capital rather than financial capital. Global staffing and management of a
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We discuss the changing roles and responsibilities of human resources due to globalization in section 4. In section 5 we discuss global human resource information system and its major components. We summarize and conclude the paper in section 6. FACTORS DRIVING GLOBALIZATION The increasing prevalence of globalization is driven by a number of factors, including shortage of talent in developed countries, availability of low cost labor and growing consumers in developing countries, and technological progress. Shortage of Talent in Developed Countries Despite the current economic downturn and unemployment, most developed countries, including the United States, Germany and Japan will face long term talent shortages mainly due to ageing and the retirement of baby boomers. There are more workers retiring than entering the labor force in these countries. By 2020, for every five retiring workers, only four new workers will join the labor force in most developed countries. According to one estimate the United States will need to add 26 million workers to its talent pool by 2030 to sustain the average economic growth of the two past decades (1988-2008) unless a technological breakthrough replaces manpower, while Western Europe will need to add 46 million employees (World Economic Forum, 2010). The shortage of workers is predicted across most industries, including manufacturing, construction, transport and communications, trade, hotel and

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