Human Resources Management in the Global Context of Business
Human Resources Management and Leadership * HRM in the Global Context of Business
“The increasing interconnectedness of national economies around the world”.
“The inexorable integration of markets, nation-states, and technologies… Jobs, knowledge, and capital move across borders with far greater speed than was possible just a few years ago”.
Major shifts:
From
Closed markets/protectionism
Manufacturing-based economy
Unipolar world (West)
Home country markets
Consistency/slow change
Home country manufacturing
To
Open markets/liberalization
High-tech, info.-based economy
Multipolar world (BRIC + others)
Home and global markets
Innovation, agility
Outsourcing, offshoring
About the Outsourcing: Of production, services, and non-core labor to lower-cost suppliers who provide their own operations , as IT, customer support (e.g., help desks), manufacturing, security, maintenance, accounting, payroll, employee benefits
Growth in outsourcing: public services, R&D for medical, product testing. * Disadvantages: * No employment bond between outsourced workforce and home organization; * Potential backlash from customers, community, and current employees; * Possibility of losing control of proprietary technology, client data base, key processes; * Reliability and quality issues of local contractor; * Human rights issues (e.g., sweatshops, working conditions); * Slower growth due to global economic downturn; * Implications
Wage inflation (e.g., China) making outsourcing less economically attractive; * Mounting unemployment in Europe and USA pressuring companies to move operations back home (“inshoring”).
About the Offshoring:
When a company moves its factories from its home country to lower-cost countries. * Sending jobs abroad to places where labor is cheap; popular destinations: China, India, Mexico, Philippines. * Practice of offshoring not going away
“The increasing interconnectedness of national economies around the world”.
“The inexorable integration of markets, nation-states, and technologies… Jobs, knowledge, and capital move across borders with far greater speed than was possible just a few years ago”.
Major shifts:
From
Closed markets/protectionism
Manufacturing-based economy
Unipolar world (West)
Home country markets
Consistency/slow change
Home country manufacturing
To
Open markets/liberalization
High-tech, info.-based economy
Multipolar world (BRIC + others)
Home and global markets
Innovation, agility
Outsourcing, offshoring
About the Outsourcing: Of production, services, and non-core labor to lower-cost suppliers who provide their own operations , as IT, customer support (e.g., help desks), manufacturing, security, maintenance, accounting, payroll, employee benefits
Growth in outsourcing: public services, R&D for medical, product testing. * Disadvantages: * No employment bond between outsourced workforce and home organization; * Potential backlash from customers, community, and current employees; * Possibility of losing control of proprietary technology, client data base, key processes; * Reliability and quality issues of local contractor; * Human rights issues (e.g., sweatshops, working conditions); * Slower growth due to global economic downturn; * Implications
Wage inflation (e.g., China) making outsourcing less economically attractive; * Mounting unemployment in Europe and USA pressuring companies to move operations back home (“inshoring”).
About the Offshoring:
When a company moves its factories from its home country to lower-cost countries. * Sending jobs abroad to places where labor is cheap; popular destinations: China, India, Mexico, Philippines. * Practice of offshoring not going away