Lecture 3
HRM in a global context
Definition
- Globalisation
o ‘The ever-increasing interaction, interconnectedness and integration of
people, companies and cultures and countries’ – Briscoe et al 2012:15
o MNC’s as the key drivers
o Labour markets are becoming increasingly international
o A shift to a more integrated world economy e.g., financial crisis in one
country can affect multiple countries
o Maximisation of profits is significant importance on how HRM is managed –
respond to different needs of cultures/institutions etc.
o Changed the image of a company as well to think locally and now think
globally
o See inking to become more multinational
o Searching to gain a competitive advantage
Lots of companies are merging and forming alliances
A historical context
- Globalisation through the ages
o Industrial revolution in the UK 1820s/40s
o Textile in the UK was the first industry to modernise using machine in process
and also the most dominant industry
o Rise in the standard of living
o Trade became world-wide, export and import, manufacture quicker with the
use of machine etc.
o Post war expansion of world trade
o Japan emerges as an economic power-horse 1970/80s
o The rise of the Asian tigers: Taiwan, South Korea, HK, Singapore
o The subsequent fall: 1997 financial crisis.
o 1960s African independence
o Fall of Berlin Wall,
o India’s modernisation democratisation of South America
o 90s dominance of MNCs and then internet, ICT
o 2008 economic crisis
o Emergence of BRICS – brazil, Russia, India, china, and South Africa
Impact of globalisation
- International expansion and competitive advantage
- Drive for efficiency
- Industrial restructuring
- Volatility in world markets
HRM in a global context
Definition
- Globalisation
o ‘The ever-increasing interaction, interconnectedness and integration of
people, companies and cultures and countries’ – Briscoe et al 2012:15
o MNC’s as the key drivers
o Labour markets are becoming increasingly international
o A shift to a more integrated world economy e.g., financial crisis in one
country can affect multiple countries
o Maximisation of profits is significant importance on how HRM is managed –
respond to different needs of cultures/institutions etc.
o Changed the image of a company as well to think locally and now think
globally
o See inking to become more multinational
o Searching to gain a competitive advantage
Lots of companies are merging and forming alliances
A historical context
- Globalisation through the ages
o Industrial revolution in the UK 1820s/40s
o Textile in the UK was the first industry to modernise using machine in process
and also the most dominant industry
o Rise in the standard of living
o Trade became world-wide, export and import, manufacture quicker with the
use of machine etc.
o Post war expansion of world trade
o Japan emerges as an economic power-horse 1970/80s
o The rise of the Asian tigers: Taiwan, South Korea, HK, Singapore
o The subsequent fall: 1997 financial crisis.
o 1960s African independence
o Fall of Berlin Wall,
o India’s modernisation democratisation of South America
o 90s dominance of MNCs and then internet, ICT
o 2008 economic crisis
o Emergence of BRICS – brazil, Russia, India, china, and South Africa
Impact of globalisation
- International expansion and competitive advantage
- Drive for efficiency
- Industrial restructuring
- Volatility in world markets
