Impact of Hrm

7495 Words Mar 4th, 2014 30 Pages
IMPACT OF GLOBALIZATION ON THE HUMAN RESOURCE MANAGEMENT FUNCTION IN DEVELOPING COUNTRIES: A CASE STUDY OF KENYA PUBLIC CORPORATIONS Hazel Gachoka Gachunga1
Abstract Globalization has a major impact on the management of human resources in developing countries including Kenya. It has led to homogenization and convergence in organization strategies, structures and processes as well as in consumer choice. With accelerating globalization, organizations have had to change and new trends have set in even in the management of human resources. Globalization has led to changes in organization design and organization structures are leaner thus improving efficiency but having a negative impact on staff numbers which have had to be reduced. This
…show more content…
The transmutations of technology and capital, work together to create a new globalized and interconnected world. (Castell, 1998) A technological revolution involving the creation of computerized network of communication, transportation and exchange is the presupposition of a globalized economy, along with the extension of a world capitalist market system that is absorbing evermore areas of the world and spheres of production , exchange and consumption. The technological revolution presupposes global computerized networks and the free movement of goods, information and people across national boundaries. Hence the internet and global computer networks make globalization possible, by producing a technological infrastructure for the global economy. 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 changes the way business operates (Drucker, 1998). Globalization is also seen as changing organizational structures where expenses can move up or down as the business climate dictates (Garr, 2001). For employees the trend toward outsourcing has been thought to result in a loss of fixed employment opportunities as a consequence of firms seeking to use cheap labor from countries like China, Mexico and even Africa. The globalized economies have
Open Document