Page 13 - DMGT548_GLOBAL_HRM

Global HRM

Notes Above categories refer to managerial attitudes that reflect the socio-cultural environment
in which the internationalising firm is embedded. The strategic importance of the foreign
market, the maturity of the operation, and the degree of cultural distance between the
parent and host country, influence the manner in which the firm approaches a particular
staffing decision.

Example: MNC may operate its European interests in a regiocentric manner and its
Southeast Asian interests in an ethnocentric way until there is greater confidence in operating in
that region of the world.

Task Critically analyse the factors that has contributed to the globalisation of the Indian
firms and the advantages of the same.

Self Assessment

Fill in the blanks:
1. HRM refers to those activities undertaken by an organisation to utilise its ………….
resources effectively.

2. Global HRM aims to create a local appeal without compromising upon the …………
identity.
3. A high degree of ………… is required in wake of the cross cultural sensitivities.

4. Regiocentric is the geographic strategy and structure of the multinational. Personnel may
move outside their countries but only ………… the particular geographic region.
5. Key positions at the domestic and foreign operations are held by management personnel
of headquarters, in ……… approach.

1.2 Drivers of the Globalisation

Globalisation involves the diffusion of ideas, practices and technologies. It is something more
than internationalisation and universalisation. It isn’t simply modernisation or westernisation.
It is certainly not only the liberalisation of markets. Anthony Giddens (1990: 64) has described
globalisation as ‘the intensification of worldwide social relations which link distant localities in
such a way that local happenings are shaped by events occurring many miles away and vice
versa’. This involves a change in the way we understand geography and experience localness. As
well as offering opportunity it brings with considerable risks linked, for example, to technological
change. Globalisation, thus, has powerful economic, political, cultural and social dimensions.
Though several scholars place the origins of globalisation in modern times, others trace its
history long before the European age of discovery and voyages to the New World. Some even
trace the origins to the third millennium BCE. Since the beginning of the 20th century, the pace
of globalisation has proceeded at an exponential rate.
In 2000, the International Monetary Fund (IMF) identified four basic aspects of globalisation:
trade and transactions, capital and investment movements, migration and movement of people
and the dissemination of knowledge.
Key drivers of globalisation:
 Market Drivers

8 LOVELY PROFESSIONAL UNIVERSITY