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HRM is the important wing in every organization. In earlier days the HRM
is not given much importance but they mainly concentrate on very simple aspects.
After globalization it has become was and the scope of every HR manager is
improved to greater extent.
What globalization is?
If a firm or an organization expands its sales or production beyond the
National boundaries, then it is GLOBALISATION.

HRM in 20th Century:

 Researchers began documenting ways of creating business value through
the strategic management of the workforce.
 Function of HR
1. Payroll:
In a company, payroll is the sum of all financial records of
salaries for an employee, wages, bonuses and deductions. In
accounting, payroll refers to the amount paid to employees for services they
provided during a certain period of time.
2. Benefits administration:
Benefits administration is the process of establishing,
maintaining, and managing benefits for the employees of an organization.
3. Care taker:
The main function of HR managers was to take care of the records
maintained in the organization.
4. The HR managers will be Striving to improve economic efficiency in
manufacturing jobs
5. HRIS solutions are the major function of the HR manager which says the
collection and storage of information.

Globalization and HRM:

 Globalization is the Process of drawing people together from all nations into
a single community linked by the vast network of communication
 HR managers need not depend on small limited market to find right
employees needed to meet the global challenge, but today they can recruit
the employees around the world.
 Besides the effective data base which is being used globally today also has
made HRM and simple but effective task. Thus it became effective and
efficient in today’s economy but it’s a simple task.
 HR managers of today must ensure that appropriate mix of employees in
terms of knowledge, skills and culture.
 Global HRM refers to Human Resource Management practices that deals
with managing the diversity workforce from all around the world.
Functions of HR after Globalization:
1. Recruitment and Staffing:
Recruitment refers to the overall process of attracting, selecting and
appointing suitable candidates for jobs within an organization, either permanent or
temporary. Recruitment can also refer to processes involved in choosing
individuals for unpaid positions, such as voluntary roles or training programs.
Staffing is the process of acquiring, deploying, and retaining a workforce of
sufficient quantity and quality to create positive impacts on the organization's
2. Talent Development:
Talent development is the process of changing an organization, its
employees, its stakeholders, and groups of people within it, using planned and
unplanned learning, in order to achieve and maintain a competitive advantage for
an organization.
3. Organization Design:
Organizational design is a step-by-step methodology which identifies
dysfunctional aspects of work flow, procedures, structures and systems, realigns
them to fit current business realities/goals and then develops plans to implement
the new changes
4. Compensation and Benefits:
Compensation (also known as Total Rewards) can be defined as all of
the rewards earned by employees in return for their labour.
a) Direct financial compensation
b) Indirect financial compensation
c) Non-financial compensation

5. Performance Management:
Performance management (PM) includes activities which ensure that
goals are consistently being met in an effective and efficient manner. Performance
management can focus on the performance of an organization, a department,
employee, or even the processes to build a product or service, as well as many
other areas.
6. Training and Development:
Training and development is a function of human resource
management concerned with organizational activity aimed at bettering the
performance of individuals and groups in organizational settings. It has been
known by several names, including "human resourcedevelopment", and "learning
7. Leadership Development:
Leadership development refers to any activity that enhances the quality
ofleadership within an individual or organization. These activities have ranged
from MBA style programs offered at university business schools to action learning,
high-ropes courses and executive retreats.

Challenges faced by HRM after Globalization:

1) Globalization:
Globalization refers to the amalgamation of economics and societies
around the world which means that world trade and financial markets are
becoming more integrated. Growing internationalization of business has its impact
on HRM in terms of problems of unfamiliar laws, languages, practices,
competitions, attitudes, management styles, work ethics etc (Srivastava &
Agarwal). Globalization has an effect on employment patterns worldwide. It has
contributed to a great deal of outsourcing which is one of the greatest
organizational and industry structure shifts that change the way business operates.
2) Changed Employee Expectations
Nowadays, employees demand empowerment and expect equality with the
management. Krafft and Mahtrala (2010), states that it is only through true
empowerment that staff will really contribute to the changing needs of a business,
since they will then be doing things because they understand them and for the right
reasons, thinking and reflecting on the changes and their likely impact, and above
all feeling at ease with the implementation of change.
3) Outsourcing HR Activities
The trends towards outsourcing have been caused by several strategic and
operational motives. Outsourcing has also been used to help reduce bureaucracy
and to encourage a more responsive culture by introducing external market forces
into the firm through the biding process. It is a big challenge before the HR
manager to prove that his/her department is as important as any other functions in
the organization.
4) Work Diversity :
Diversity within HRM, termed as workforce diversity, is a multifaceted
phenomenon that can be defined as any visible or invisible difference between
organisational members. Diversity can be labelled into two distinct aspects:
observable differences (e.g. nationality, age) and underlying differences (e.g.
values, sexual orientation). Workforce diversity becomes a particular issue in
HRM as it has legal, moral and business implications for an organization.
5) New technology:
Technological advances have a significant impact on HR business
practices. Due to the advancements in the technology there has been a drastic
change in the approach to the various projects and the scenarios that guide to the
organizational regulations.

Challenges faced by HRM in future:

1) Work place flexibility:
It is expected to be on the rise as the future workplace also
known as the virtual office is characterized by creative and flexible work
arrangements. As more employees tend to work off-site, there will be an increase
in emphasis on performance and results as opposed to the number of hours worked
2) Technological Developments:
While organizations are growing in term of size, complexities
and automation (computerization), it is important to examine:
How technological development affects the specification of jobs in terms of
different requirements of education skill required and organizational structure
performance control.
3) Changes in the Socio-Cultural expectations of the work force:
These include changes in the compositions of work force in
terms of their education, social background, and roots in urban setting and
exposure to larger democratic culture of our country, all of which bring about
changes in their expectations, attitudes and value-orientations which have bearing
on the approaches to Human Resources Management.

 The globalization is a HRM challenge
 HRM function has to make its policy, procedure & process to work on the
global level.
 The globalization has a huge impact on the HRM function & it is usually not
ready to take more responsibility in the movement of workforce around the