impact of globalisation on hrm

answer globalization and the changing face of human resource management

the pressures on traditional ir models are not all due to globalization, as we shall see, but many of the changes taking place can be traced to globalization. it is not always easy to disentangle the causes and effects of globalization. however, it would probably be true to say that globalization is represented by the opening up of markets due, in large measure, to foreign direct investment consequent upon the lowering of investment barriers in practically all countries; by the liberalization of trade, and by the deregulation of financial markets in consequence of which governments increasingly have little control over the flow of capital across borders. all this implies the dominance of the market system, facilitated by the collapse of alternative economic (and in many cases political) systems. there is also a direct link between globalization and information technology (it). rapid technological change and reduction in communication costs have facilitated the globalization of production and financial markets. at the same time globalization stimulates technology through increased competition; it diffuses technology through foreign direct investment. as aptly observed:

"together, globalization and it crush time and space." these developments have had further effects such as: democratization and pressures for more labour rights in countries where such rights have been restricted more liberalization and deregulation competition for investment increased economic independence of nations capital, information and technology flows are on the increase internationalization of enterprises and creation of mergers and alliances customer-driven (and not product-driven) global and local markets, but at the same time segmented markets competitiveness increasingly based (not on low wages or natural resources) on knowledge/innovation, skills and productivity. the success of global