The Impact Of Globalization On Organizations At The Global Economy

1351 WordsSep 10, 20156 Pages
Introduction The impact of globalization has largely affected the way organizations operate in the global economy over the past years. We moved form an era of local competition to an era of global competition, meaning that companies need to constantly innovate and find new ways to sustain competitive advantage. Internal and external forces in the environment have driven HRM from a maintenance and record-keeping function to a source of sustained competitive advantage for organizations competing in the global economy. (Ferris, 1999) In this essay we will discuss the impact HRM has on organizations today and how some of its key functions can improve the overall success of the company and overcome future challenges. The three functions are as follows: Attraction with recruitment and selection, retention with learning and development and managing compensation with motivation. The 4 task model to develop HR plans (Storey, 2001) can also be linked to the different functions as the questions asked will assist in the 3 step plan of attracting, retaining and motivating employees. Strategic Management Challenge – Recruitment and Selection In an organization, the key concept of HRM is to attract, develop and retain a strong workforce. In order to attract a strong workforce HR analysis, forecasting, recruitment and selection are required. In today’s society Human Capital is seen as one of the most important asset to achieve high performance and growing business
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