Shri Vile Parle Kelavani Mandal’s

Narsee Monjee College of Commerce and Economics

(Autonomous)
2020-21

Psychology at work
TYBCOM
Semester VI

IMPACT OF GLOBALIZATION ON WORK PLACE

Submitted By:
Risha Lodha
SAP No: 45208180368
Contact Number: 9829089494
Roll No: E101
 TABLE OF CONTENTS

1. INTRODUCTION ............................................................................................................................... 2
1.1 INTRODUCTION ............................................................................................................................. 2
1.2 LITERATURE REVIEW .................................................................................................................. 4
1.3 HYPOTHESIS ................................................................................................................................... 7
2. RESULTS/ANALYSIS ........................................................................................................................ 8
2.1 OBJECTIVE ....................................................................................................................................... 8
2.2 METHODOLOGY ............................................................................................................................. 8
2.3 DISCUSSION ON FINDINGS ......................................................................................................... 8
3.CONCLUSION ...................................................................................................................................... 9
4.BIBLIOGRAPHY ............................................................................................................................... 10

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1. INTRODUCTION
1.1 INTRODUCTION

Globalization as a concept refers both to the compression of the world and the intensification
of consciousness of the world as a whole, both concrete global interdependence and
consciousness of the global whole.

Globalization is more than just a buzzword: it’s a reality for business nowadays. It’s changed
the way that many companies work and how they approach many aspects of their operations.
Organizations no longer operate within national boundaries.

A workplace is a location where someone works for their employer, a place of employment.
Such a place can range from a home office to a large office building or factory. For
industrialized societies, the workplace is one of the most important social spaces other than the
home, constituting "a central concept for several entities: the worker and his/her family, the
employing organization, the customers of the organization, and the society as a whole". The
development of new communication technologies have led to the development of the virtual
workplace, a workplace that is not located in any one physical space.This research is being
conducted to analyze the impact of globalization on the workplace and how it affects the
diversity at the workplace.

The full impact of globalization in the workplace has yet to be realized, but as more companies
embrace this trend and become more diverse, certain changes are emerging. While many of

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these changes are good, others may not be as positive. Small business owners are learning that
they have to adopt new policies and new guidelines to keep up with these changes.As
globalization becomes more prevalent, companies deal with increased cultural diversity within
the workforce.

These changes require small and large businesses adopt new policies and guidelines for
workers. This increased cultural diversity also has produced many benefits as companies gain
new insights into different cultures from a management and a marketing standpoint.As more
companies have access to overseas companies that offer outsourcing, wages have changed for
many workers. With lower standards of living, third world companies can offer their services
at a rate greatly reduced from those in countries with higher standards of living. This has
affected many workers in the countries as more companies embrace the outsourcing trend.

While it means a greater profit margin for the companies, it can also lead to reduced earning
potential for employees.As companies reach across country borders and globalization of the
workplace becomes the new norm, businesses must continually adapt to changes. Professionals
must learn to communicate differently. Business processes are continually adjusted to
accommodate the growing number of different cultures and nationalities that organizations
work with.

Companies who are evolving with this shift have a competitive advantage over those who
don’t. With better outsourcing options and people being globally connected through
technology, there is an increasing awareness of issues around the world. There is a push for

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worker health and safety and many companies are hard-pressed to comply with these higher
standards set by customers and competitors. Better working conditions are becoming more of
a priority nowadays thanks to the globalization of the workplace.

1.2 LITERATURE REVIEW

Hing Ai Yun (2002) conducted research to identify Globalization's impact on the Malaysian
workforce. The findings of the research highlighted that the dominant discourse is ideological
and strongly normative, indicative more of the happy position of transnational elites who are
multicultural and happy hybrids. Though the dominant image is one of unity, globalism, and
integration by international media and intercontinental hotels, this neo-liberal reading of
globalization is problematic1.

Zahra Ghodrati et al(2015) conducted research to identify The Influence of Globalization

on "Lookism" In the Workplace Environment of Different Cultures.It was found that
applicants and employees in order to not fall behind, put extra effort to improve their
appearance in line with beauty ideals of the societies including workplaces that are a small
representative of each society. Discrimination based on appearance which is now labeled as
"lookism" has become a concern because some features of globalization including media and
global visual advertisement are influencing lookism regardless of geographical area or cultures.
They found evidence that appearance can have a different effect on one's career, depending on
the occupation. In many organizations, appearance is rewarded either in increased productivity
or by consumer discrimination. In his research about globalization and beauty, Geoffrey Jones
(2011) confirmed that the growth of the world beauty market was closely linked to the waves
of globalization.

Yaw A Debrah et al (2000) conducted a research on Introduction: Globalization,

employment and the workplace: Responses for the millennium.The findings of the research
indicated that the concept of globalization has achieved much currency and a high degree of
popularity due to the fact that globalization is transforming the world at a rapid pace and it is
changing the traditional workplace and employment practices. The process of globalization is
changing the nature of production relations at the workplace. Globalization has also
precipitated changes to the labor market and has resulted in changes in employee relations.
Globalization is also changing perception of the traditional worksite and work organization.

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For the individual employee, the facets of globalization have particularly impacted in the form
of work intensification.3

Buhari Doğan et al. (2016) conducted a research on THE EFFECTS OF GLOBALIZATION

ON EMPLOYMENT, The increase of economic, political, social, and cultural relationships
between the countries with globalization has resulted in a shift from industrial society to
information society. With knowledge-intensive work being replaced by labor-intensive work
in the process of globalization, economic and social structural transformation has occurred.
Globalization affects the countries economically and socially.4

Bhushan Kapoor et al. (2010) conducted a research on Impact of Globalization on Human

Resource Management, 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 workforce diverse in culture and language skills, and dispersed
in different nations are the key goals of global human resources. Only those multinational
enterprises willing to adapt their human resource practices to the changing global labor market
conditions will be able to attract and retain high performing employees. Companies with the
ability to foresee their business needs and their workforce needs – especially for high skills –
will gain the decisive competitive advantage.5

Prof. Urmila Pradeep Shetve et al. (2011) conducted a research on IMPACT OF

GLOBALIZATION AT WORKPLACE, Economic globalization is one of the driving forces
of cultural diversity in the workplace. The modern workforce is made up of people of different
genders, ages, ethnicity, religions, and nationalities. Employers have realized that workforce
diversity provides both material and intangible benefits. In order for employers to reap the
benefits of cultural diversity in the workplace, they must communicate their commitment to
addressing the challenges of a diverse workforce. Employers must be seen to be celebrating
their employees’ diversity to avoid workplace issues, like awkwardness and hostility.6

Lee Eddy et al. (2006) conducted extensive literature survey to investigate the impact of
increasing workplace due to globalization . The conclusion they reach is that the current wave

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of globalization does not automatically produce the positive effects predicted by standard trade
theory.7

Ozur Onday ( 2016) conducted a comprehensive study to review the recent literature of
workforce diversity on a global basis and specifically Turkey. People no longer live and work
in an alone marketplace; they are now part of a worldwide economy with competition coming
from nearly every continent. For this reason, profit and non-profit organizations need diversity
for being more creative and open to change.8

Jana Skoludova (2017) conducted a research as to how the process of globalization affects
economic consequences in business and management. The aim of this paper is to provide an
answer to the research question of the impact of Enterprise Social Networks on the management
process..

Wilpert, Bernhard.(2009), conducted a research to identify the impact of globalization on

human work at the workplace taking into consideration the phenomenon of globalization and
its impact on the nature of the work. The findings of the results analyzed that consequences of
globalization can be viewed in two ways: (1) the significant changes in work places and (2)
the changing demands of individuals at work places. The research also includes general
understanding of globalization and factors of globalization which affects the work of different
employment categories.10

In the study conducted by Woods,Michael (2007), regarding Engaging the global

countryside : globalization and the reconstitution of rural places which lead progress in
human geography. The outcome of the research highlights the interaction of local and global
actors to produce new forms and relations. It also argued that politics with regards to
globalization cannot be reduced to domination but instead it would lead to negotiations and
configuration. The study also analyzed globalization in rural places and how it remakes rural
places with globalization processes along with global countryside space.11

On similar lines Gabel, Sharon (2014),conducted a study on future work in the globalizing
economy which observes the impact of markets at local level due to globalization. The main
findings of the research were the forces of global economic changes at work which measures
globalization, foreign direct investment and export trade. Globalization brings into focus
various challenges such as business, education and government stake. The study also analyzed

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how globalization has affected the work of personnel in the global working environment and it
also correlates the inter relationship between global economic changes and local markets.12

P. Malik, et al. (2018) conducted a research in order to propose a conceptual framework

associating globalization, workforce diversity, and deviance and suggest micro-macro HRM
strategies to overcome challenges associated with the workforce diversity and workplace
deviance. A systematic review of literature of the past 25 years was carried out with the key
word "globalization, workforce diversity, and deviance" from several electronic databases.13

P. Waring et al (2000) , conducted a research to understand the changes and developments,

from the organization of production through to the management of the export coal chain, that
are impacting on the workplace organization and industrial relations of the Australian coal
industry. In particular the attempts and strategies of management to increase productivity,
realize functional and numeric flexibilities in the deployment of labor and deregulate employee
relations are highlighted. The forces that are collectively labeled as globalization are
systematically transforming workplace organization and impacting on the strategies of coal
mine managers and trade unions. The Australian coal industry serves as a vivid illustration of
the impact of globalization on workplace organization and workplace industrial relations.14

Martín Rama (2002) conducted a research to study the positive and negative effects of
globalisation on workers in developing countries abound Firstly, it deals with the effects of
openness to trade, foreign direct investment and financial crises on average wages. Secondly,
it discusses the impact of exposure to world markets on the dispersion of wages by occupation,
skill and gender. Thirdly, it describes the pattern of job destruction and job creation associated
with globalisation. Since these two processes are not synchronised, the fourth issue addressed
is the impact on unemployment rates. Fifthly, the paper reviews the labour market policies that
can be used to offset the adverse impacts of globalisation on employment and labour earnings.
Finally, it discusses how the international community could encourage developing countries to
adopt sound labour market policies in the context of globalisation.15

1.3 HYPOTHESIS

H1: There is no significant relationship between globalization and the workplace .

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H2 : There is a significant relationship between globalization and the workplace.

2. RESULTS/ANALYSIS

2.1 OBJECTIVE
A detailed research was carried out to find out if there is a significant impact of globalization
on the workplace. Certain objects were set to have a clear understanding of what we need to
achieve from the research.

2.2 METHODOLOGY
Secondary data methodology has been used in this paper. Secondary data were collected from
journals, articles and books using the school library and web. It refers to the information or
facts already collected either published or unpublished. Various other research papers have
been articulated and a detailed discussion has been done between the group members to
understand the topic of our study and derive onto a result. We have derived two hypotheses on
which we will base our results and check which of the hypotheses has been accepted.

2.3 DISCUSSION ON FINDINGS

The findings of the study indicated that there is a significant relationship between
globalization and the workplace. It was found that the increasing globalization of economic,
social, political and cultural processes has important implications for the organization of work,
employment, labour markets and employee/industrial relations.Globalization is also changing
people’s perception of the traditional worksite and work organization. In particular,
globalization and technological advancements have facilitated the spatial transformation of
both production and work. It was also found that production and employment are no longer
permanently anchored to a particular physical location. Research conducted by Wilpert,
Brenhard.(2009) suggested that there is an impact of globalization on human behaviour at
the workplace and how it affects nature of the work. On a similar basis Ozur Onday ( 2016)
conducted a comprehensive study to review the recent literature of workforce diversity on a
global basis. As part of the process of internationalisation of production multinational
companies can now locate production sites at various locations around the globe and production
can be relocated easily to suit company objectives which supports our second hypothesis. It
was also found that Industrial Relation reforms will be critical to realising the changes needed.

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In all countries in the region, improving workplace flexibility and skills development will be
the key to maintain and increase quality of goods and services and hence competitiveness, both
domestically and internationally. Thus from above we can conclude that our first hypothesis
has been rejected and second hypothesis has been accepted.

3.CONCLUSION

As highlighted above, the increasing globalization of economic, social, political and cultural
processes has important implications for the organization of work, employment, labour
markets and employee/industrial relations. The globalizing trend
means the workplace of the twenty-first century will continue to witness the impact
of the world economic restructuring.

For instance, the current state of economic interdependence means that an economic
recession in one part of the world quickly impacts on
jobs/employment and employment practices in other parts of the world.

Various research papers explore the multiple impacts of globalization on work

and employment in contemporary organizations. Broadly, the papers explore the HRM
implications of organizational responses to globalization. Within this broad theme the various
papers examine the theoretical, methodological, empirical and comparative issues pertaining
to the following:
(i) globalization, competitiveness and the management of human resources
(ii) the impact of organizational strategies and international production on the workplace
(iii) globalization and the organization of labour markets
(iv) globalization and human resource development
(v) globalization and cultural change in organizations
(vi) trade union responses to globalization
(vii) globalization, transnational corporations, employment and the workplace.

From within the following abstracts there emerges some kind of

dichotomy, for globalization is seen as an opportunity and at the same time as a threat.

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For the individual employee the facets of globalization have particularly impacted in the form
of work intensification. For example, the growth of the world-wide internet and electronic
mail have developed business communications into a twenty four hour, seven day per week,
fifty two weeks per year (24x7x52) activity creating continuous pressurisation of employees
with consequences for health and well being not least in terms of stress and related problems.

4.BIBLIOGRAPHY

Bhushan Kapoor (2010). Impact of Globalization on Human Resource. doi:

http://www.jimsjournal.org/6%20Bhushan%20Kapoor.pdf

Buhari Doğan (2016). THE EFFECTS OF GLOBALIZATION ON EMPLOYMENT.

Journal of Asian Economic And-Financial-Review-6(10).doi:
https://www.researchgate.net/deref/http%3A%2F%2Fdx.doi.org%2F10.18488%2Fjournal.aefr%2F2016.6.10%2F102.10.62

0.633

Debrah, Y. A., & Smith, I. G. (2000). Introduction: Globalization, employment and the
workplace: Responses for the millennium: MRN. Management Research News, 23(2-4), 7-9.
Retrieved from https://ezproxy.svkm.ac.in:2099/scholarly-journals/introduction-
globalization-employment-workplace/docview/223543982/se-2?accountid=32277
Gabel, S. 2014, Future Work: Denver Metropolitan Area Jobs in a Globalizing Economy,
University of Denver.
https://ezproxy.svkm.ac.in:2099/docview/1629738182/abstract/4FE2F03EB3A646AFPQ/1?a
ccountid=32277
Ghodrati, Z., Joorabchi, T. N., & Muati, A. (2015). The influence of globalization on
"lookism" in the workplace environment of different cultures. Global Media Journal, 13(24),
1-17. Retrieved from https://ezproxy.svkm.ac.in:2099/scholarly-journals/influence-
globalization-on-lookism-workplace/docview/1697223659/se-2?accountid=32277
Jana Skoludova ( 2017 ) : The impact of enterprise social networks on the management
process in the Czech Republic .
THE IMPACT OF ENTERPRISE SOCIAL NETWORKS ON MANAGEMENT
PROCESS IN THE CZECH REPUBLIC - ProQuest (svkm.ac.in)
Lee, Eddy : The social impact of globalization in the developing countries.
The social impact of globalization in the developing countries - ProQuest (svkm.ac.in)

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Malik, P., Lenka, U., & Sahoo, D. K. (2018). Proposing micro-macro HRM strategies to
overcome challenges of workforce diversity and deviance in ASEAN. The Journal of
Management Development, 37(1), 6-26. doi: http://ezproxy.svkm.ac.in:2160/10.1108/JMD-
11-2016-0264
Martín Rama. (2002). Globalisation and workers in developing countries: Symposium on
perspectives on globalisation. Journal of the Statistical and Social Inquiry Society of Ireland,
Xxxi, 147. Retrieved from https://ezproxy.svkm.ac.in:2099/scholarly-journals/globalisation-
workers-developing-countries/docview/911977856/se-2?accountid=32277
Ozur Onday :Global workforce diversity management and the challenge of managing the
diversity : Situation on World and in Turkey .(PDF) GLOBAL WORKFORCE DIVERSITY
MANAGEMENT AND THE CHALLENGE OF MANAGING DIVERSITY: SITUATION
ON WORLD AND IN TURKEY (researchgate.net)

Prof. Urmila Pradeep Shetve, Asst. Professor ,Joshi Bedekar College, Thane (2011). Impact
of Globalization at Workplace. doi: https://vpmthane.org/jbcapp/upload/m6/320.pdf

Wilpert, Bernhard. (2009). Impact of globalization on human work. Safety Science - SAF
SCI. 47. 10.1016/j.ssci.2008.01.014.
https://www.researchgate.net/publication/228462294_Impact_of_globalization_on_human_w
ork
Woods, M. 2007, "Engaging the global countryside: globalization, and reconstitution of rural
place", Progress in Human Geography, vol. 31, no. 4, pp. 485-
507.https://ezproxy.svkm.ac.in:2099/docview/230696149/4752B89FF6E44879PQ/1?accounti
d=32277
Waring, P., Macdonald, D., & Burgess, J. (2000). Flexilibilsation, globalization &
confrontation: The transformation of the australian coal industry: MRN. Management
Research News, 23(2-4), 53-54. Retrieved from https://ezproxy.svkm.ac.in:2099/scholarly-
journals/flexilibilsation-globalization-amp-confrontation/docview/223541024/se-
2?accountid=32277
Yun, H. A. (2002). Globalization's impact on the malaysian workforce. Journal of
Contemporary Asia, 32(3), 305-322. doi:
http://ezproxy.svkm.ac.in:2160/10.1080/00472330280000211

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