Discuss the challenge of the global economy for organisation and its implications for HRM.
to succeed in global market place the challenge for all organisation is to understand cultural differences and invest in human resource
Personally, i see the biggest challenge for HRM in the global market is (as you've already stated) - to understand cultural differences & to invest in human resource. Essentially, as the world becomes more homogenous (share & enjoy similar food, fashion, tastes...) you would think that recruitment, employment etc... would simply follow this pattern - but culturally we are all very different and have different expectations or needs. For example, in New Zealand, at the interview stage it is quite normal to bring support people with you. In 'European' culture this might be viewed as being quite strange considering it is you trying to make a good impression on a potential employer- whereas for Maori or Pacific Islanders having support (be it family members or friends) is quite normal. In fact employment law dictates here that this option must be made available and cannot prejudice the outcome! Hmmmmmm......
Other cultural differences i am noticing are C.V.'s with photos. Ten years ago it was considered 'showy' or unprofessional to include a photo (aka passport/driver's licence) on the front page of your c.v. whereas today many applicants/institutions insist on a photo (photoshop et al) so they can 'remember you'. I'm not sure if this habit emerged from Asia's rise but i can't say i've ever seen a c.v. from a Chinese/Korean without a photo!
I also think that in today's climate it is not merely enough to be tertiary qualified (fairly normal these days) but it is expected that most workers are 'life-time' learners with 'extra' qualifications added later (usually job specific grad/postgrad diplomas). Employers need to make more use of 'other' skills that could be valuable for an organisation. The main one of course is language skills. Being able to communicate with staff whose 1st language is not english is a major asset for companies today. Other skills could include leadership, organisation, group work....
Globalization is a reality that is increasingly impacting all the countries in the world. However the nature and extent of impact on individual will differ from county to country and will be influenced heavily by the nature of activities of the organization. All that we can say is that globalization affects all functions of a business organization, including marketing, procurement, manufacturing, finance and human resources.
Globalization affects the human resources functions in several ways. A company needs to manages its human resources in various countries in line with local culture and human relations environment. At the same time company must also retain its basic character across the operations in different countries. Even the companies operating in a single country may find that as a result of globalization they have people with different cultural background working in the organization. Therefore the human resource management in the company should be able to promote harmonious working relationship between people from different cultural backgrounds.