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Every day we hear it on news, we read it in the newspapers, we overhear people talking about
it« and in every single moment the word µglobalization¶ seems to have a different meaning. Y 


³«integration of business activities across geographical and organizational boundaries.´

³The capacity to treat the world as one market while«dealing with many culturally diverse

³«the process by which markets expands to include competitors for customers and productive
inputs without regard to national boundaries´.

³«doing business with a world wide focus« rather than doing business in an international
market with the focus from a home-country viewpoint.´

Globalization is not just a recent phenomenon. Some analysts have argued that the world
economy was just a globalized 100 years ago as it is today. Yet the term is used since the 1980¶s,
reflecting technological advances that have made it easier and quicker to complete international
transactions, both trade and financial flows. The most striking aspect of this has been the
integration of financial markets made possible by modern electronic communication.

At a political and economic level, globalization is the process of denationalization of markets,

politics and legal systems i.e. the use of the so-called global economy. Globalization refers to an
extension beyond national borders of the same market forces that have operated for centuries at
all levels of human economic activity (village markets, urban industries, or financial centers). It
means that world trade and financial markets are becoming more integrated.

At a business level, we talk of globalization when organization decides to take part in the
emerging global economy and establish themselves in foreign markets. First they will adapt their
products or services to the customer¶s linguistic and cultural requirements. Then, they might take
advantage of the internet revolution and establish a virtual presence on the international market
place with a multilingual corporate website or even as an e-business.

Overall, globalization requires a combination of linguistic, engineering and marketing

knowledge that is not easily available. (Y  )

Globalization is linked to four major aspects:

Trade Capital movements Movement of people Spread of knowledge


Driving factors of globalization can be divided into four groups:

å ü   

Convergence of per capita income Convergence of life styles Organizations behavior as global


Push for economics of scale Advances in transportation Emergence of newly industrialized

countries with productive capability and low labor costs

å  ü   

Growth of global networks making countries interdependent Rise of new competitors intent on
becoming global competitors Increased formation of global strategies alliances

  å ü   

Reduction on tariffs and other trade barriers Privatization of industry in many parts of the world
Creation of trading blocks (i.e. EU)

Globalization has elevated the importance of HRM development in organization. These changes
have led to the notion of the HR system as a strategic asset. Many of the arguments about
processes of globalization within the HR function rest on the assumption that there has and
continues to be longitudinal change in the conduct of HR. in the intervening seven years a wide
range of contextual changes have led to significant globalization of activity, including: the
transfer of work abroad, either to outsourced providers or on a global in-sourcing basis; the e-
enablement of many HR process; greater sophistication in the HR information technology, new
structures for international HR functions; greater competition for talented staff at all levels of
organization; more protracted and strategic talent pipelines. In particular, there has been a very
strong marketing, corporate communication and IT influence on the HR function. The HR
function is realigning itself in response to this process of cross-function globalization (building
new alliances with these functions) creating new activity streams and new roles and skills
required of the HR function (Sparrow, Brewster and Harris, 2004).

å   å            å 

Issues facing HR are expected to change dramatically in the next decades. Thus, HR
professionals must play special roles in dealing with these changes and must develop specific
competencies to support these roles.

Workplace flexibility is expected to be on the rise as the future workplace, the µvirtual office¶ is
characterized by creative and flexible work arrangements. As more employees work off-site-up
to two thirds of an organization in the 21st century ± there will be an increase in emphasis on
performance and results as opposed to the number of hours worked. In addition, off-site
employees can expect to attend fewer meetings. Specified work will become much more
collaborative and management will spend nearly all its time managing cross-functional work
teams who enjoy a lot of autonomy. In essence, there will be a movement, a trend towards a
decentralized model of HR.

HR managers will have to accommodate employees in their virtual work locations and find ways
to manage corporate culture, socialization and employee orientation. In order to obtain and
maintain a competent workforce, they must act as organizational performance experts and shape
employees behavior without face to face meetings.

Another expected change in HR is the µGlobal Business¶ concept world trade knew a major
growth during the last years and there is forecasted as well the growth of international
businesses, especially among small firms. Organization rely more and more organization HR
specialists as the facilitators of work across borders and among different cultures. Therefore,
they must be knowledgeable of other cultures, languages and business practices. They will be
required to develop and manage an international workforce, maintain written and unwritten
corporate polices for transportability to other cultures, keep top management informed of the
costs of not paying attention to the transnational issues and provide their services to a variety of
locations world wide.

Concerning the recruitment in the above mentioned µglobal business¶ it will be important which
strategy will be adopted by the management.

Globalization will impact HR managers by requiring new skills such as language capabilities.
For e.g., in order to recruit employees from other cultures, HR managers will either have to learn
new languages or else they will certainly have to have foreign speakers on staff. But in order to
facilitate communication among people coming from a wide range of language backgrounds, in
most multinationals, it is preferred to speak English.

However, when we talk about Globalization and culture, then how does this relation influence
businesses and HR professionals¶ attitudes?

Organization must take into account cultural differences that shape managerial attitudes, when
developing multinational management programs. For e.g., British managers value individual
achievement and autonomy, whereas French managers appreciate competent supervision, fringe
benefits, security and comfortable conditions, while Indian managers gives more importance of
their culture and tradition.

HR managers must therefore be familiar with and understand other cultural norms to promote
organization diversity. An organization that recognizes and promotes cultural diversity will
benefit because it will be employing the market that it serves. With increasing globalization and
competition within the market, a diverse workforce is conducive to attracting and retaining a
strong client base. While competing in an international market, employees from diverse national
backgrounds provide language skills and understanding of other cultures. HR professionals will
also be responsible for providing cultural sensitivity training for the organizations employees and
for managers throughout the entire organization. (Czebter, Anamaria, 2002)

üååü    ü

Unlike the other industries where HR is considered as a functional need, there is a need to view
HR as a partner or a business enabler. One of the constant challenges faced in this area is to align
HR to business. The five R¶s therefore, assume utmost significance in HR strategy. The HR team
needs to get in right from the stage of defining the business strategy to Resourcing, Recruiting
the right talent, Retaining the talent, Retraining and Restructuring.

However, if we see the scenario of HR in IT company, we find that flexibility appears to be the
key for success and survival as IT has become such a dynamic field due to the constant
developments and upgradation in the area of technology and changing customer requirements.
Topping all these reasons is also the trend of globalization, which tries the HR test of endurance.
The ability and the willingness to modify job structure, job classification and the organizational
structure as often and as quickly as necessary are important elements in a successful recruitment
and retention strategy for IT professionals. This challenges of managing expectations and change
puts constant pressure on the professionals.

The challenge does not stop with recruiting the right person but with how we are going to
manage the performance of our employees. The challenge would be to create a performance
culture where in opportunities are provided for enhanced performance and where giving out
optimum performance becomes a way of life.

Training and development is another area. In the IT industry training takes on a new connotation.
It is not just about identifying training needs and giving the required training. It is foreseeing and
anticipating the requirements and developing suitable training so that the employees are well-
equipped to handle the challenges.

Another major challenge is how we are able to incorporate all the sub-systems in HR and help
them in achieving the ultimate goal ± exceptional performance. People have to be groomed to get
in tune with the performance culture. Creating an environment that stimulates the creation of
knowledge and its sustenance throughout the organization is big challenge. No longer can the
HR department carry on with its traditional functions. However, Human Resource Information
Systems (HRIS) is to be put in place ± to build and sustain a performance ± driven culture. The
role will shift to that of facilitator. HR will have to involve the whole organization in this process
and act as a counselor and facilitator and that is the most gigantic challenge the HR of any
organization faces.

In the face of such challenges faced by HR managers, a question arises as to what competencies
an HR manager needs to equip them in order to survive in the turbulent phase of globalization.

å    å 

In order to effectively deal with all the changes, HR professionals must develop competencies
that will allow them to carry out their roles, competences like:

Flexibility Team work Communication Decisiveness Leadership Strategic planning Network

building Client service orientation Organizational awareness Self confidence Sharing of
expertise Global and cultural understanding Multiple language competencies
In addition to increasing and sustaining technological skills relating to communication
developments, HR professionals will may also be required to increase their numerical and data
compilations skills. As increasing demands merge to provide specific measurable results that
prove effectiveness in their area, HR professionals will be required that produce quantifiable
results that prove that their department is delivering specified outcomes based on the objectives
and goals set forth by the organization.

In addition to delivering specific measurable developments, managers will also need to know
what contributed to the results declared. This may mean that HR professionals will be required to
be familiar with and administer employee survey and provide for accurate data compilation and
regression analysis.

As a result of the increase in technology, innovation and globalization over the last 20 years, HR
professionals around the world are forced to be more efficient, more effective and more
competitive. They need to respond to the demands of global competitiveness by becoming more
familiar with language skills, cultural awareness and diversity promotion. Additionally, HR
professionals must be committed to continuous learning, being familiar with cutting edge
communication. If HR managers won¶t pay enough attention to their changing role, serous
consequences could result, including the deterioration or even perhaps the elimination of the HR
department. (Halcrow A, 1998)


However, the research has shown that the HR function in international organization has to meet a
series of challenges. Three key conclusions about the role of HR professionals working in the
field of international recruitment selection and assessment can be drawn:

The added value of the HR function in an international firm lies in its ability to manage the
delicate, balance between globally coordinated systems and sensitivity to local needs, including
cultural differences, in a way that align with both business needs and senior management
philosophy. There now appear to be a distinction to be made between international HRM and
global HRM. In this transition, the old functional divides between international recruitment,
international management development and international reward management have become
increasingly weak.

Over the last 20 years, the workplace has changed in more ways that one could have ever
imagined, resulting from the increase in technology, innovation and globalization. The next
decade will bring even greater change, impacting all facets of the workplace, including major
changes for the HR department and HR managers. In order to respond to the demands of
globalization, HR managers will require new skills and competencies relating to language and
culture, technology capabilities to facilitate overseas communication, methods to measure and
quantify effectiveness and evaluate strategies and return on investment. Evidently, these new
skills and competencies will result in an emerging new role for HR managers, requiring them to
be strategic business partner, supportive of the overall corporate strategy.
The future role of HR professional will change from a less administrative role to more of a
strategic role. HR managers will continually be required to prove their effectiveness and their
existence. They will be expected to understand international business practices and promote
cultural diversity within the organization. They will need to understand the core business of the
organization and become partners with line managers. They will need to prove that their
initiatives and programs are result-oriented, providing specific measurable results in terms of
business competitiveness that contribute positively to the bottom-line of the organization. They
will be required to stay current with leading edge as more and more organization is faced with
the demands of globalization and strategic alliances with other organization around the world.


Czebter, Anamaria, (2002), µLabor market and Gloablization: Human Resources management in
global enterprises, Centre International de Formation Europeenne, Nice. Halcrow A, (1998),
µSurvey shows HR in Transition workforce¶. Sparrow, Paul, R., (2006) µGlobalization of HR at
function level: Exploring the issues through International Recruitment, Selection and Assessment
Process, working papers, Cornell University. Sparrow, Paul, R., Brewster, C., and Harris, H.
(2004), µGlobalizing Human Resource Management¶, London, Routledge.

A culture is the values and practices shared by the members of the group. Company Culture
therefore, is the shared values and practices of the company's employees.

Company culture is important because it can make or break your company. Companies with an
adaptive culture that is aligned to their business goals routinely outperform their competitors.
Some studies report the difference at 200% or more. To achieve results like this for your
organization, you have to figure out what your culture is, decide what it should be, and move
everyone toward the desired culture.

Company cultures evolve and they change over time. As employee leave the company and
replacements are hired the company culture will change. If it is a strong culture, it may not
change much. However, since each new employee brings their own values and practices to the
group the culture will change, at least a little. As the company matures from a startup to a more
established company, the company culture will change. As the environment in which the
company operates (the laws, regulations, business climate, etc.) changes, the company culture
will also change.

These changes may be positive, or they may not. The changes in company culture may be
intended, but often they are unintended. They may be major changes or minor ones. The
company culture will change and it is important to be aware of the changes.


There are many ways to assess your company culture. There are consultants who will do it for
you, for a fee. The easiest way to assess your company's culture is to look around. How do the
employees act; what do they do? Look for common behaviors and visible symbols.

Listen. Listen to your employees, your suppliers, and your customers. Pay attention to what is
written about your company, in print and online. These will also give you clues as to what your
company's culture really is.

ü! ü!"

Before you can change the company culture, you have to decide what you want the company
culture to look like in the future. Different companies in different industries will have different
cultures. Look at what kind of a culture will work best for your organization in its desired future
state. Review your mission, vision and values and make sure the company culture you are
designing supports them.

Here are some characteristics of company cultures that others have used successfully. Decide
which work for your company and implement them.

u Mission clarity
u Employee commitment
u Fully empowered employees
u High integrity workplace
u Strong trust relationships
u Highly effective leadership
u Effective systems and processes
u Performance-based compensation and reward programs
u Customer-focused
u Effective 360-degree communications
u Commitment to learning and skill development
u Emphasis on recruiting and retaining outstanding employees
u High degree of adaptability
u High accountability standards
u Demonstrated support for innovation


You need to align your company culture with your strategic goals if it isn't already.

u Develop a specific action plan that can leverage the good things in your current culture
and correct the unaligned areas.
u Brainstorm improvements in your formal policies and daily practices.
u Develop models of the desired actions and behaviors.
u Communicate the new culture to all employees and then
u over-communicate the new culture and its actions to everyone.

Only a company culture that is aligned with your goals, one that helps you anticipate and adapt
to change, will help you achieve superior performance over the long run.
* What needs to happen to create the culture desired by the organization? You cannot change the
organizational culture without knowing where your organization wants to be or what elements of the
current organizational culture need to change. What cultural elements support the success of your
organization, or not? As an example, your team decides that you spend too much time agreeing with
each other rather than challenging the forecasts and assumptions of fellow team members, that
typically have been incorrect.

In a second example, your key management team members, who must lead the company, spend
most of their time team building with various members of the team on an individual basis, and to
promote individual agendas, to the detriment of the cohesive functioning of the whole group. Third,
your company employees appear to make a decision, but, in truth, are waiting for the "blessing" from
the company owner or founder to actually move forward with the plan.
In each of these situations, components of the organizational culture will keep your organization
from moving forward with the success you deserve. You need to consciously identify the cultural
impediments and decide to change them.

However, knowing what the desired organizational culture looks like is not enough. Organizations must
create plans to ensure that the desired organizational culture becomes a reality.

Change the Organizational Culture

It is more difficult to change the culture of an existing organization than to create a culture in a brand
new organization. When an organizational culture is already established, people must unlearn the old
values, assumptions, and behaviors before they can learn the new ones.

The two most important elements for creating organizational cultural change are executive support and

* Executive support: Executives in the organization must support the cultural change, and in ways
beyond verbal support. They must show behavioral support for the cultural change. Executives must
lead the change by changing their own behaviors. It is extremely important for executives to
consistently support the change.

* Training: Culture change depends on behavior change. Members of the organization must clearly
understand what is expected of them, and must know how to actually do the new behaviors, once they
have been defined. Training can be very useful in both communicating expectations and teaching new

Additional Ways to Change the Organizational Culture

Other components important in changing the culture of an organization are:

* Create value and belief statements: use employee focus groups, by department, to put the mission,
vision, and values into words that state their impact on each employee's job. For one job, the employee
stated: "I live the value of quality patient care by listening attentively whenever a patient speaks." This
exercise gives all employees a common understanding of the desired culture that actually reflects the
actions they must commit to on their jobs.

* Practice effective communication: keeping all employees informed about the organizational culture
change process ensures commitment and success. Telling employees what is expected of them is critical
for effective organizational culture change.

* Review organizational structure: changing the physical structure of the company to align it with the
desired organizational culture may be necessary. As an example, in a small company, four distinct
business units competing for product, customers, and internal support resources, may not support the
creation of an effective organizational culture. These units are unlikely to align to support the overall
success of the business.

* Redesign your approach to rewards and recognition: you will likely need to change the reward
system to encourage the behaviors vital to the desired organizational culture.

* Review all work systems such as employee promotions, pay practices, performance management,
and employee selection to make sure they are aligned with the desired culture. As an example, you
cannot just reward individual performance if the requirements of your organizational culture specify
team work. An executive's total bonus cannot reward the accomplishment of his department's goals
without recognizing the importance of him playing well with others on the executive team to accomplish
your organizational goals.

You can change your organizational culture to support the accomplishment of your business goals.
Changing the organizational culture requires time, commitment, planning and proper execution - but it
can be done.