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Acknowledgment
I am incredibly happy to have had this support during the completion of the assignment work
because the success and ultimate result of this project requires a lot of direction and aid from
many individuals. I would want to acknowledge their aid and direction for what I have
accomplished. I admire Mr................. for giving me the chance to complete this task and for
offering all the help and direction that enabled me to finish the work on time. I am really
appreciative to him for his excellent advice. I'm quite glad that I was able to finish the work
in the allotted time. I want to thank everyone of my friends and respondents for their support
and willingness to take the time to assist me.

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 Abstract
Globalization has an impact on businesses that compete for customers with high
performance, quality, and cost demands. The need to adapt to shifting organizational
expectations and provide greater value is another effect of globalization on human resource
management (HRM) tasks. The following definition of globalization, however, has been the
subject of inquiry for many decades. HRM Globalization is a process that unites individuals
from all over the world into a single community that is connected by an extensive network of
communication technology. Given the extensive worldwide outlet chain, distribution, and
product sourcing operations, this remark is quite relevant.

In this study, the impact of globalization on HRM is examined. In order to accomplish the
aim, appropriate theoretical perspectives on organizational behavior will be used as a study
for investigating the actual factors of the major difficulties that Walmart faced in the thriving
economy. Throughout the course of their business operations, multinational corporations will
work with individuals from a range of backgrounds. Cultural differences have made human
resource management in global firms challenging. In this, we've examined the problems of
managing human resources in an increasingly globalized world. The majority of their
difficulties are caused by cultural differences, and they have an impact on processes like
performance evaluation, issues with the remuneration system, challenges with employee
training, and the hiring process. Additionally, certain beliefs on managing human resources
as well as some reasons for both success and failure in organizational activities were
examined.

Finally, suggestions on how to manage human capital in the middle of globalization and how
to address HRM-related challenges. is currently facing will be given with reference to prior
research and actual industry implementations.

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Contents
Drivers of the globalization and their impact on people management in organizations................1
1.0 Introduction...................................................................................................................................1
2.0 What is globalization?...................................................................................................................2
2.1 The history of globalization.......................................................................................................2
2.2 Importance of globalization......................................................................................................3
2.3 How Does Globalization Impact Society?................................................................................3
2.4 Pros and Cons of Globalization................................................................................................4
3.0 Drivers of globalization.................................................................................................................5
4.0 Impact on people management in organization...........................................................................7
5.0 Conclusion....................................................................................................................................12
6.0 Self-reflection...............................................................................................................................12

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v
1.0 Introduction

Unquestionably, the diverse and dynamic forces of globalisation have shaped the modern
world. It is fueled by a wide range of interrelated variables, including technological
improvements, trade and investment liberalisation, and the growing interconnectedness of the
world economy (Adomako & Ahsan, 2022). This phenomenon has significantly altered how
businesses run and handle their human resource needs. We will delve into the forces driving
globalisation and its profound effects on human resource management in organisations in this
introduction (Ahmed, 2021).

First and foremost, globalisation has been accelerated by the quick development of
technology. Geographical boundaries have been successfully removed by the digital
revolution, which is characterised by the broad availability of the internet and the emergence
of new communication technologies, making it simple for enterprises to operate across
borders. This increased technological connectedness has changed the nature of labour in
addition to facilitating the global interchange of goods and services (Ahmed, 2021).
Nowadays, businesses have access to a vast talent pool, and working remotely is a common
practise. As a result, human resource management has changed to meet the demands and
opportunities brought on by this global labour market.

Second, global trade and investment policy liberalisation has promoted economic integration.
Trade agreements have eliminated trade obstacles and encouraged international investments,
such as NAFTA, the European Union, and the ASEAN Economic Community (Alabi, et al.,
2019). As a result, businesses have grown globally, setting up subsidiaries, joint ventures, and
strategic partnerships in other countries. A more culturally diversified workforce is now
required as a result of the globalisation of corporate operations, and the demand for cross-
cultural management, intercultural communication, and talent mobility initiatives is now
greater than ever (Alabi, et al., 2019).

Additionally, as the world economy becomes more integrated, organisations are becoming
more and more dependent on international supply chains. Intricate supply networks are
created as a result of the sourcing of raw materials, components, and completed goods from
many parts of the globe. Although this interconnection has expedited processes and cut costs,
it has also brought new hazards and vulnerabilities (Azizi , et al., 2009). Today's
organisations must manage their workforces to mitigate supply chain disruptions, ensure the

1
safety of employees dispersed around the organisation, and adjust to changing market
dynamics. These tasks call for a more adaptable and globally aware workforce.

2.0 What is globalization?

Globalisation is the term used to describe how nations, economies, cultures, and civilizations
are interconnected and dependent on one another. It is a complex phenomenon that includes
the economic, political, social, cultural, and technological facets of human existence. The
forces and mechanisms that propel globalisation have both beneficial and detrimental effects
(Azra & Salfiya Ummah, 2021).

Key aspect of globalization includes:

Economic Globalization – This feature relates to how national economies are becoming
more integrated into a single global economy. Cross-border trade in products, services,
capital, and investments is included (Azra & Salfiya Ummah, 2021). Global supply chains,
the expansion of multinational firms, and trade liberalization through international
agreements like the World Trade Organisation (WTO) are all results of economic
globalization.

Technological globalization – Technology advancements, particularly those in

communication and transportation, have been crucial to globalization. Worldwide
connections between people and organizations have been made possible by the widespread
use of the Internet, mobile devices, and digital communication tools. This has facilitated
information sharing, online business, and remote work (Bettiol, et al., 2012).

Cultural globalization – Music, fashion, cuisine, and other cultural aspects have crossed
international borders as a result of globalization. It can lead to cultural homogeneity or
hybridization, which is the merging of cultures and the adoption of elements from many parts
of the world (Centeno , et al., 2013).

Political globalization - In order to handle global concerns like climate change, terrorism,
human rights, and trade laws, governments and international organisations are becoming

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more integrated on this dimension. International initiatives are coordinated by global
governance institutions like the UN.

2.1 The history of globalization

Globalisation as an idea is not new. Ancient merchants travelled enormous distances to buy
pricey and rare things to resell in their native nations. The Industrial Revolution's
breakthroughs in communication and transportation made international trade easier in the
19th century. A think organisation called the Peterson Institute for International Economics
(PIIE) asserts that after World War I, globalisation stalled and countries began to move
towards protectionism by enacting import taxes to defend their industries. This pattern was
maintained during the Great Depression and World War II until the United States played a
significant role in reviving global trade. (Lang, 2006).

According to (Zinkina et al., 2019), Through trade agreements and fiscal policies,
governments all over the world have embraced a free market economic system over the past
20 years. The majority of trade agreements are built on the removal or reduction of tariffs. As
economic systems have changed, industrialization and financial opportunities have increased
in many nations. Governments are placing more importance on removing trade barriers and
promoting international trade.

2.2 Importance of globalization

Countries are more interconnected than ever thanks to factors including air travel,
containerized sea freight, international trade agreements and legal treaties, the Internet, and
other causes. Movements like outsourcing, free trade, and international supply networks are
all associated with globalisation in the corporate world. Globalisation is important because it
increases the size of the global market and makes it possible to produce and sell more and
different goods for less money (Ferrell, et al., 2021).

Given that globalisation is one of the most important factors influencing the current world, it
could be difficult to comprehend the world without doing so. This makes it essential to
comprehend globalisation. For instance, many of the largest and richest businesses in the
world have locations and supply chains all over the world, making them undoubtedly global

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enterprises. These companies could not exist without the complex network of trade routes,
international agreements, and communication networks made possible by globalisation.
Significant political developments like the ongoing trade war between the United States and
China are intimately related to globalization. (Abdellah, et al, 2015).

For a number of reasons, the globalization of today's globe is quite important. Despite its
difficulties and limitations, it also provides a wide range of advantages and chances that
advance society as a whole. The following are some of the main arguments in favor of
globalization:

 Economic Growth – By extending markets and boosting trade opportunities,

globalization promotes economic growth. Businesses can use it to get access to
broader consumer bases, participate in international supply chains, and take advantage
of economies of scale. As a result, nations that take part in international commerce
more frequently enjoy higher levels of wealth and job growth (Ferrell, et al., 2021).

 Technological advancement – The diffusion of information and technical innovation

are encouraged by globalization. As nations and corporations compete on a global
scale, they spend money on research and development, resulting in technical advances
that raise living standards and stimulate economic growth (Gajanayake, 2010).

 Access to resources – The efficient deployment of resources across borders is made

possible by globalization. Access to vital resources like energy, raw materials, and
knowledge from other nations supports companies and satisfies the demands of
national people.

 Cultural exchange - Idea, cultural, and value exchange are made possible by
globalization. Tolerance, understanding, and cultural enrichment are fostered by
exposure to various cultures through international travel, media, and communication.
It promotes innovation and cultural variety by fostering creativity and the blending of
different cultural aspects (Gajanayake, 2010).

2.3 How Does Globalization Impact Society?

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Around the world, large-scale migrations from rural to industrial or urban areas have had a
tremendous impact on society, leading to the rapid rise of cities and trade hubs. This has
improved general salaries and standards of living but has also exacerbated problems
associated with urbanization such as crime, domestic violence, homelessness, and poverty.
According to (Sharma, 2004), Concepts of national identity, culture, and spending patterns
alter as goods from around the world are more widely and affordably available. The
competitiveness of global capitalism may also encourage more individualistic attitudes at
variance with some more collectivist civilizations.

Globalization has a significant impact on society, affecting many facets of individuals' lives.
It poses difficulties and downsides in addition to many potential and advantages. Here are a
few examples of how globalization affects society:
Economic effect
 Prosperity and job creation – Economic expansion, the creation of jobs, and easier
access to goods and services are all benefits of globalization. It broadens commercial
marketplaces, potentially increasing both national and individual incomes (Greengard,
2007).

 Income Inequality - Globalisation, then, can potentially make income disparity

worse. While some societal groups would profit disproportionately, others might
experience job loss or salary stagnation.

Cultural impact
 Cultural exchange – Globalisation makes it easier for people to share cultural
beliefs, customs, and values. By means of media, travel, and cross-cultural contacts, it
increases exposure to many cultures (Holiday, 2021).

 Cultural homogenization - On the negative side, there are worries about the
potential loss of cultural diversity and the growth of Western or dominating cultures,
which might result in cultural uniformity or "Westernization."

Social and political effects

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Migration - As people look for greater economic chances and cultural experiences
elsewhere, globalization drives migration. As a result, civilizations may become more diverse
and face integration difficulties (Holiday, 2021).

Political influence - As international organizations and multinational firms acquire more

clout and influence, globalisation may have an impact on national politics and sovereignty.
Conflicts between national interests and global governance might result (Horan, et al., 2011).

2.4 Pros and Cons of Globalization

Pros of Globalization

 Economic growth – By enlarging markets, fostering commerce, and luring foreign

investment, globalisation can boost economic growth. Increased GDP, job growth,
and improved access to goods and services can all result from this (Kotler &
Armstrong, 2010).

 Access to goods and services – Due to competition, it gives customers access to a

greater range of goods and services from around the globe, frequently at lower costs.

 Technological advancement – Sharing of knowledge and technological innovation

are encouraged by globalization, which advances many businesses and raises living
standards.

 Healthcare advancement - It makes it possible for medical information, drugs, and

research to be shared globally, improving healthcare and making it possible to
respond to health crises more skillfully (Lawrence, et al., 2019).

Cons of globalization

 Income inequality – Due to the fact that some societal groups benefit
disproportionately from globalisation while others experience job loss or pay

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 stagnation, it has the potential to worsen economic inequality both within and
between nations.
 Cultural homogenization – There are fears that the rise of dominant cultures and the
eventual loss of cultural diversity would result in cultural uniformity or
"Westernization."

 Job displacement – Job displacement and wage pressure in high-wage countries may
come from the outsourcing of work to lower-wage nations.

 Environmental degradation - Higher resource use, pollution, and environmental

deterioration could result from increased trade and manufacturing.

3.0 Drivers of globalization

Increased international business and trade - For some businesses, importing and exporting
goods across international borders is a source of revenue. To make their products available to
a global market, some enterprises are replacing import and export with joint ventures,
licencing, and franchising. Due to the homogeneous markets produced by the blending of
cultures, firms can now satiate customer demands internationally without necessarily having
to customise their goods. (Mann, 2012). For instance, Coca-Cola products are now readily
available everywhere and are known the world over. Cross-border trading has become
simpler as a result of technology's ability to facilitate interactions and payments in more
effective and efficient ways.

Need of economics of scale - As the rivalry intensifies, businesses are seeking for ways to
benefit from and experience cost reductions. Using economies of scale, businesses may
produce the same product for a big market. Businesses must therefore exert significant effort
to market their goods globally. (Madsen, 2014).

International economic integration - Several trade blocs have widened national borders as
trade barriers between members are being reduced. According to (Margalit, 2012), These
economic blocs include NAFTA, which brings together the US, Mexico, and Canada, and

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EAC, which brings together the countries of East Africa. The competition among firms in
member nations rises as a result of these trade blocs' facilitation of the movement of goods
and services across national borders (Resnick, et al., 2016). Even while some blocs, like that
of Africa, still exhibit protectionism tendencies, there has been movement in the direction of
complete market deregulation among the member countries. Several countries still encourage
individuals to buy handcrafted goods instead of local goods produced by trade bloc members.
The goals of economic unification are still being undermined by this sort of protectionism.

The digital revolution - Nowadays, purchasing goods and services produced anywhere in
the globe is simple thanks to the internet. Nowadays, purchasing goods online is easy, such as
books and cell phones. A notable example is Amazon, which runs an online store for books
and other products. Consumers may research titles, contrast pricing, place orders, and send
money online. Books (and other things) are mailed to customers all over the world after being
purchased. This implies that customers can comparison shop online to determine which offers
will cost them the least. Therefore, e-commerce and electronic banking have made
conducting borderless transactions simple: The global start and finish of transactions are
facilitated by the digital revolution. (Heimann & Mbiyavanga, 2018).

According to (Imamov & Semenikhina, 2021), globalization has been significantly fuelled by
technological advancements, notably in information and communication technologies (ICT).
How people and businesses connect, share information, and carry out cross-border
transactions has been completely transformed by the internet, mobile technology, and digital
communication tools.

Global education providers - As online learning gets more and more popular, there are
organizations that offer educational courses to a global audience. Due to the worldwide
education providers, students can obtain academic credentials that are recognized all over the
world while continuing to reside in their home nations. As a result, when the students enter
the workforce, they have a variety of skills and exposure to diverse cultures. This enables
people to work for enterprises located anywhere in the world, especially when using online
tools to create content and instruct pupils. (Spring, 2014). More people are receiving "global
education," and as a result, more people are able to deliver services across borders via online
platforms, contributing to the growth of "global human capital."

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Political decisions - The lessening of armed conflicts in some areas and political stability
have fostered the growth of globalization. Institutions and politics are present in every aspect
of economic activity. Politicians have the power to determine whether to reduce or even get
rid of barriers to trade in goods, services, labor, and capital. In the end, whether or not
economically motivated cross-border actions actually happen depends on the current policy
frameworks. Cross-border operations are either made simpler, harder, or even completely
disallowed depending on this framework. (Rudra, 2005).

4.0 Impact on people management in an organization

Organisational personnel management has been significantly impacted by globalisation. It

has altered how companies find, keep, and grow their personnel as well as how they deal with
the difficulties posed by a globalised world. The following are some of the main ways that
globalisation influences human resource management:

Diverse workforce

The workforce of organizations is now increasingly varied as a result of globalization.

Employers from different nationalities, ethnic groups, and cultural backgrounds are
frequently hired as businesses expand abroad. As it brings together a wide range of
viewpoints, abilities, and experiences that can foster innovation, creativity, and problem-
solving within the organization, this diversity can be considered a positive (Salleh, et al.,
2017).

However, dealing with a diverse staff can often be difficult. All employees need to feel
appreciated and respected at work, which requires HR professionals and executives to foster
an inclusive workplace. This entails:

 Cultural sensitivity and awareness – To help employees and managers understand

and respect various cultural norms, beliefs, and communication styles, HR teams
should offer training and resources. Thus, misunderstandings and confrontations may
be diminished (Templeton, 2021).

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  Inclusive policies – Employing inclusive policies and procedures that support equity
and diversity is a must for organizations. This could include anti-discrimination laws,
programs promoting equality of opportunity, and diverse hiring practices.

 Diversity in leadership - To show the organization's commitment to inclusion,

diversity in senior roles is crucial. An inclusive culture is more likely to be fostered
through diverse leadership teams (Zarook, et al., 2013).

 Conflict resolution - To handle any issues relating to diversity or cultural differences

that may develop in the workplace, HR teams should have efficient dispute resolution
procedures in place.

Cross culture competencies

Cross-cultural skills are now crucial for successful people management in a globalized
society with a diverse workforce. The ability for people and organizations to interact with
people from various cultural backgrounds successfully is referred to as cross-cultural
competency. An explanation of this crucial element of people management is provided
below:

 Culture understanding – acquiring an understanding of various cultures, including

their values, practices, beliefs, and communication styles, is the first step in acquiring
cross-cultural competencies. HR leaders and professionals should educate themselves
and their teams about the many cultures that are present in the company (Azizi , et al.,
2009).

 Communication skills – Communication between cultures must be effective. This

entails being conscious of potential language barriers and modifying communication
techniques to make sure that communications are accurately understood and perceived
by people from other cultures. Cultural differences may also exist in nonverbal
indicators like body language and gestures.

 Cultural sensitivity – To prevent miscommunications or accidental offenses, cultural

sensitivity is crucial. Training programs can support a more harmonious workplace by
teaching employees to accept and recognize cultural differences (Templeton, 2021).

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  Conflict resolution - Cultural differences or miscommunications can lead to cross-
cultural disputes. HR departments should have dispute resolution plans in place that
accommodate cultural diversity and guarantee fair and unbiased decisions
(Templeton, 2021).

Talent mobility

Employee movement inside a company, frequently involving overseas assignments or

relocations, is known as talent mobility. The importance of talent mobility in the context of
globalization has grown as businesses expand their operations internationally. Effective talent
management is a crucial component of people management. Here is a more detailed
explanation of talent mobility and its effects:

International assignments - Employees from any multinational companies are sent abroad
on foreign assignments to work. These assignments may be project-based, short-term, or
long-term (expatriate assignments, for example). These tasks must be planned, coordinated,
and supported by HR teams (Salleh, et al., 2017).

Cultural adjustment – Internationally posted employees may face culture shock and need
assistance adjusting to their new surroundings. HR can offer tools, instruction, and
counselling to aid in an employee's cultural adjustment.

Repatriation – HR is essential in handling the repatriation process when abroad assignments

are completed. This entails easing the transition for workers back to their home country,
dealing with any reverse culture shock, and making use of the knowledge and expertise
picked up during the assignment (Alabi, et al., 2019).

Career development – Career growth may benefit from the mobility of talent. HR
departments should collaborate with staff members to help them match overseas assignments
with their career objectives and provide chances for skill improvement and career growth.

Cost management - Due to costs associated with relocation, housing, and extra pay for
expatriates, talent mobility can be expensive. Budgeting and expense management for
international assignments are frequently handled by HR specialists.

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International economic integration

International economic integration, the process by which countries and regions become more
interconnected through trade and investment, can have a significant impact on people
management in organizations. Here are a few ways in which international economic
integration can impact people management:

 Increased competition: International economic integration can lead to increased

competition for talent and resources, which can make it more challenging for
organizations to attract and retain top talent. This can lead organizations to become
more strategic in their people management practices, such as designing competitive
compensation packages and benefits and offering employee development
opportunities (Centeno , et al., 2013).

 Global supply chains: International economic integration can lead to more complex
global supply chains. This requires organizations to have strong communication and
coordination among teams and departments that are spread across multiple countries
and time zones (Centeno , et al., 2013).

International economic integration

International economic integration, the process by which countries and regions become more
interconnected through trade and investment, can have a significant impact on people
management in organizations. Here are a few ways in which international economic
integration can impact people management:

 Increased competition: International economic integration can lead to increased

competition for talent and resources, which can make it more challenging for
organizations to attract and retain top talent (Adomako & Ahsan, 2022). This can lead
organizations to become more strategic in their people management practices, such as
designing competitive compensation packages and benefits and offering employee
development opportunities.

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  Global supply chains: International economic integration can lead to more complex
global supply chains. This requires organizations to have strong communication and
coordination among teams and departments that are spread across multiple countries
and time zones (Armstrong, 2004).

The digital revolution

The digital revolution, characterized by advances in technology and the growing use of
digital tools and platforms, has had a significant impact on people management in
organizations. Here are a few ways in which the digital revolution can impact people
management:

 Remote work and virtual teams: The digital revolution has made it possible for
employees to work from anywhere in the world, and for teams to be spread across
multiple locations. This has led to an increase in remote work and virtual teams,
which requires organizations to have effective communication and collaboration tools
in place and to manage cultural and time-zone differences (Depperu & Gnan, 2006).

 Talent recruitment and retention: The digital revolution has made it easier for
organizations to find and hire talent from anywhere in the world. This increased
access to talent can lead to a more diverse workforce. However, it also requires
organizations to be sensitive to cultural and language differences and to provide
support for remote and virtual teams. According to a survey done by Glassdoor in
2019, 51% of job seekers prefer finding job opportunities through online listings
(Holiday, 2021). In addition to that A survey done by PwC HR Technology Survey
2020 has found 58% of businesses around the globe use HR technology to find, attract
and retain talent (Holiday, 2021).

 Automation and technology: The incorporation of technology into the HR workflow

relieves professionals of a significant amount of routine work. Process automation
reduces paperwork, speeds up the completion of many tasks, and contributes to more
efficient HR performance. Because technology is advancing, businesses can use the

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 most recent innovations, such as machine learning to screen resumes and augmented
reality to onboard new employees (Azizi , et al., 2009).

 Data and analytics: The digital revolution has also led to an increase in the amount
of data available to organizations. This data can be used to make more informed
decisions about people management, such as setting performance goals, tracking
employee engagement, and identifying training and development needs.
 Cybersecurity: The digital revolution has also led to increased risks of cyberattacks
and data breaches, which requires organizations to have effective cybersecurity
measures in place to protect sensitive employee data and company information.

The digital revolution

The digital revolution, characterized by advances in technology and the growing use of
digital tools and platforms, has had a significant impact on people management in
organizations. Here are a few ways in which the digital revolution can impact people
management:

 Remote work and virtual teams: The digital revolution has made it possible for
employees to work from anywhere in the world, and for teams to be spread across
multiple locations. This has led to an increase in remote work and virtual teams,
which requires organizations to have effective communication and collaboration tools
in place and to manage cultural and time-zone differences.
 Talent recruitment and retention: The digital revolution has made it easier for
organizations to find and hire talent from anywhere in the world. This increased
access to talent can lead to a more diverse workforce. However, it also requires
organizations to be sensitive to cultural and language differences and to provide
support for remote and virtual teams. According to a survey done by Glassdoor in
2019, 51% of job seekers prefer finding job opportunities through online listings
(Holiday, 2021). In addition to that A survey done by PwC HR technology survey
2020 has found 58% of businesses around the globe use HR technology to find, attract
and retain talent (Holiday, 2021).
 Automation and technology: The incorporation of technology into the HR workflow
relieves professionals of a significant amount of routine work. Process automation

14
 reduces paperwork, speeds up the completion of many tasks, and contributes to more
efficient HR performance ( Mubarak & Yusoff, 2019). Because technology is
advancing, businesses can use the most recent innovations, such as machine learning
to screen resumes and augmented reality to onboard new employees.
 Data and analytics: The digital revolution has also led to an increase in the amount of
data available to organizations. This data can be used to make more informed
decisions about people management, such as setting performance goals, tracking
employee engagement, and identifying training and development needs.
 Cybersecurity: The digital revolution has also led to increased risks of cyberattacks
and data breaches, which requires organizations to have effective cybersecurity
measures in place to protect sensitive employee data and company information.

Global education providers

Global education providers, such as online education platforms, universities and vocational
schools, can have an impact on people management in organizations in a few ways:

 Talent recruitment and development: Global education providers can help

organizations identify and recruit top talent from around the world. Additionally,
many organizations partner with education providers to offer professional
development and training opportunities to current employees (Xiang & Worthington,
2017). This can help to improve the skills and capabilities of employees and can lead
to increased job satisfaction and retention.
 Cultural awareness and diversity: Global education providers can also play a role in
developing cultural awareness and diversity within organizations. They can offer
courses and programs that focus on understanding and working effectively with
people from different cultural backgrounds. This can help organizations to better
manage and support employees from diverse backgrounds.
 Networking opportunities: Global education providers often have a wide network of
alumni and professionals. Organizations can tap into this network to access new
talent, partners and clients and develop new business opportunities.

Political decisions

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Political decisions, as a driver of globalization, can have a significant impact on people
management in organizations. Here are a few ways in which political decisions can impact
people management:

 International trade agreements: Political decisions around international trade

agreements can affect how organizations manage their employees. For example, trade
agreements can open up new markets for organizations, leading to increased demand
for goods and services and creating new job opportunities. However, these
agreements can also lead to increased competition, which can make it more
challenging for organizations to attract and retain top talent (Spence & Essoussi,
2010).
 Immigration policies: Political decisions around immigration policies can also
impact how organizations manage their employees. Policies that restrict immigration
can make it more difficult for organizations to recruit and retain talent from other
countries. On the other hand, policies that make it easier for individuals to move
between countries can help organizations to access a wider pool of talent. As an
example, in 2021 as a consequence of “BREXIT” the free movement of people within
the Europe Union to the UK has been ended. A new point-based immigration systems
has introduced due to that companies in UK had to review job roles and recruitment
processes (Templeton, 2021).
 Taxes and regulations: Political decisions around taxes and regulations can also
impact how organizations manage their employees. For example, policies that
increase taxes or regulations can make it more difficult for organizations to afford to
offer competitive compensation packages and benefits.
 International relations: Political decisions regarding relations between countries,
such as war or sanctions, can also have an impact on people management by creating
economic instability, restrict access to certain markets, or even leading to travel
restrictions.

4.1 Globalization impact on people management in Sri Lanka

People management in Sri Lanka has been significantly impacted by globalisation. Some of
the major effects are as follows:

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Increased competition for talent – corporations have had to compete with foreign
corporations for top talent as Sri Lanka's economy has become more globalised. As a result,
salaries and benefits have increased, and staff growth and retention have received more
attention (Gajanayake, 2010).

Need for a more diverse workforce – The globalised economy has also made Sri Lanka's
workforce more varied. Businesses are now under pressure to develop more diverse and
egalitarian workplaces that recognise each employee's contributions.

Changes in work practices – Workplace practises have changed in Sri Lanka as a result of
globalisation. For instance, a lot of companies are now enabling remote work using
technology, allowing them to hire staff members from all over the world. Additionally, this
has resulted in a stronger emphasis on flexibility and work-life balance (Lawrence, et al.,
2019).

Need for a more strategic approach to people management - Businesses now have an
even greater incentive to approach people management strategically as a result of
globalisation (Salleh, et al., 2017). This entails being aware of the organization's objectives
and how individuals may help it accomplish them. It also entails putting in place the proper
personnel management procedures in order to draw in, nurture, and keep the top talent.

Following are some specific examples of how globalization has impacted people
management in Sri Lanka:

1. A significant employer in Sri Lanka, the clothing sector, has been compelled to adjust
to the shifting worldwide market. Many garment companies have embraced lean
manufacturing practises and made investments in new technology in order to stay
competitive. As a result, there have been modifications in how personnel are handled,
with a stronger emphasis on effectiveness and productivity.

2. Additionally expanding quickly in Sri Lanka are the IT and tourist sectors, which are
also being increasingly challenged by foreign competitors. As a result, in order to
draw in and keep top personnel, these industries must likewise modify their people
management procedures.

17
 3. The Sri Lankan government is acting to advance globalisation because it recognises
its significance. As an illustration, the government has created several free trade zones
and made it simpler for international corporations to invest in Sri Lanka. Further
effects on the nation's personnel management practises are probably in store for this.

Globalisation as a whole has a significant impact on Sri Lanka's labour market. Businesses
will be well-positioned to thrive in the global economy if they can adapt to these
developments.

5.0 Conclusion

The spread of the flow of financial products, goods, technology, information, and jobs across
national borders and cultural boundaries is referred to as "globalization." An individual can
find many drivers of globalization. A few of these drivers are increased international business
and trade, the need for economies of scale, and international economic integration. These
drivers have played a key role in globalization. Through globalization, a significant amount
of change has occurred in the modern world. As a result of globalization, countries, markets,
and industries have connected and given birth to a single market. When looking at the impact
of globalization on society, it has significantly impacted societies all over the world, resulting
in large-scale migrations from rural to industrial or urban areas, resulting in the quick
expansion of cities and trade hubs. However, along with the positive aspects of globalization,
there will always be negative ones. As a result of globalization, wealth has been concentrated
in a few of the world's major countries, while poor countries have been left to stay poor, etc.
The impact of globalization on the business world is rather unique compared to other aspects.
Because of globalization, different theories, techniques, concepts, etc. were born. These new
factors had a big impact on how people were treated in organizations. The increased
international business and trade and the need for economies of scale and international
economic integration are a few of the factors that have had a significant impact on people
management in organizations. However, as a result of globalization, industries, businesses,
and organizations will need to evolve in order to survive and expand their global domain.

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6.0 Self-reflection

My understanding of the globalization drivers and how they affect organizational human
resource management has enhanced as a result of this essay. I also gained knowledge of the
theoretical framework used by earlier academic researchers to define and describe HRM.

By gathering, carefully evaluating, interpreting, and presenting information that was obtained
from secondary sources like journals, books, websites, etc., I was able to start writing the
report and perfect my ability to plan and complete the comprehensive evaluation on time. The
essay also helped me develop my language skills by showing me how to use the English
language to persuade and better convey my views in a clear and understandable way.

I also experienced a variety of both professional and personally advantages as a result of

passing this test, including an enhancement of my time management and report-writing skills
as well as the growth of my capacity for critical analysis.

After finishing the essay, I developed my capacity to speak clearly, use references and
examples, and talk about the relationship between globalization and HRM concerns in a
corporate setting. Since I learned how to apply theory in a method that incorporates critical
thinking, analysis of information, and applicability in a commercial situation, I believe that
this report is more practical. This skill will be very helpful to me in my role as a manager as I
lead my team and help the company achieve its goals.

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