LABOUR RELATED ISSUES AND GLOBALIZATION ERA: AN OPPORTUNITIES AND CHALLENGES

Yash Pal Goswami* Research Scholar, Department of Management, Singhania University, Pacheri Bari, Jh n!h n "Ra!asthan# Dr$ R$% Dhan&a** Principal, D$'$( )ollege, )hee*a, +aithal

ABSTRACT
M ltinational corporations man fact re pro& cts in many co ntries an& sell to cons mers aro n& the worl&$ Money, technology an& raw materials move ever more swiftly across national ,or&ers$ 'long with pro& cts an& finances, i&eas an& c lt res circ late more freely$ 's a res lt, laws, economies, an& social movements are forming at the international level$ -his paper aims to st &y some effects of la,or relate& iss es in glo,ali.ation in general$

KEYWORD: Glo,ali.ation, Society, Management, /ffects of Glo,ali.ation

INTRODUCTION
Perhaps the greatest challenge most companies face in e0pan&ing their foreign &irect investment "1D2# is how to integrate host co ntry national "3)4# managers into the management process of their overseas s ,si&iaries as well as that of the parent companies themselves "+eeley, 5667, p$7#$ 2n 23RM, there are some pro,lems associate& with 3)4 integration for most companies so h man reso rce managers sho l& see* an& clarify the e0tent to which 3)4 managers are act ally integrate& "+eeley, 5667#$ 1or more than 56 years scholars from a variety of fiel&s have ,een engage& in a vigoro s &e,ate a,o t a new social phenomenon8 glo,ali.ation "Bel*, 799:; 1eatherstone, 7996, 799<; Ger an&

Bel*, 799:; %ie,es an& +at., 799=; Ro,ertson, 7995; S*lair, 5665; >aters, 799<; Matei, 566:, p$7#$ 3 man societies across the glo,e have esta,lishe& progressively closer contacts over many cent ries, , t recently the pace has &ramatically increase&$ Jet airplanes, cheap telephone service, email, comp ters, h ge oceangoing vessels, instant capital flows, all these have ma&e the worl& more inter&epen&ent than ever$ -he glo,al social ! stice movement, itself a pro& ct of glo,ali.ation, proposes an alternative path, more responsive to p ,lic nee&s an& intense political &isp tes will contin e over glo,ali.ation?s meaning an& its f t re &irection$

INTERNATIONALIZATION
'ccor&ing to 2nvestor >or&, "5677#, internationali.ation is the name for the process of increasing an& spee&ing p the connectivity an& inter&epen&ence of the worl&?s mar*ets an& , sinesses an& other instit tions$ -his process has spee&e& p &ramatically in the last two &eca&es as technological a&vances ma*e it easier for people to travel, comm nicate, an& &o , siness internationally "investor wor&, 5677#$

INTERNATIONALIZATION PIPELINES
-wo ma!or recent &riving forces are a&vances in telecomm nications infrastr ct re an& the rise of the internet$ 2n general, as economies ,ecome more connecte& to other economies, they have increase& opport nity , t also increase& competition$ -h s, as glo,ali.ation ,ecomes a more an& more common feat re of worl& economics, powerf l pro@glo,ali.ation an& anti@glo,ali.ation lo,,ies have arisen "investor wor&, 5677#$ -he pro@glo,ali.ation lo,,y arg es that glo,ali.ation ,rings a,o t m ch increase& opport nities for almost everyone, an& increase& competition is a goo& thing since it ma*es agents of pro& ction more efficient$ -he anti@glo,ali.ation gro p arg es that certain gro ps of people who are &eprive& in terms of reso rces are not c rrently capa,le of f nctioning within the increase& competitive press re that will ,e ,ro ght a,o t ,y allowing their economies to ,e more connecte& to the rest of the worl& "investor wor&, 5677#$

GLOBAL HUMAN RESOURCE MANAGEMENT CHALLENGES

2n& strial emergence of worl&wi&e pro& ction mar*ets an& ,roa&er access to a range of foreign pro& cts for cons mers an& companies partic larly movement of material an& goo&s ,etween an& within national ,o n&aries 2nternational tra&e in man fact re& goo&s has increase& more than 766 times "from A9< ,illion to A7= trillion# since 79<<"BB) 4ews, 5675#$ )hina?s tra&e with 'frica rose sevenfol& & ring 5667B76 alone "Polit.er, 5677#$ 'n& these are some effects of glo,ali.ation in the area of rapi& changing$ 's an integral part of this process, there are a n m,er of important relate& topics s ch as8 parent co ntry?s management in general, the transfera,ility of parent co ntry?s management practices to their foreign s ,si&iaries, international h man reso rce management "23RM# iss es, as well as cross@c lt ral management an& m ltinational management iss es$ 2nvestigating the role of 3)4 managers provi&es insights into co ntry?s 23RM thro gh the eyes of the 3)4 managers themselves an& reveals how m ltinational corporations "M4)s# act ally manage their foreign s ,si&iaries "+eeley, 5667#$

THE INTERNATIONALIZATION AND LOCALIZATION ISSUES

-he tren& among 4ational an& M lti 4ational )ompanies "M4)s# in recent years is to see* to ,e glo,al an& local at the same time$ Cn the one han&, M4)s sho l& see* glo,al efficiencies an& competitive power ,y integrating to the greatest &egree possi,le its &iverse activities aro n& the glo,e$ -hey m st consi&er how to se all their reso rces, ,oth material an& h man, in the most efficient an& effective manner possi,le$ S ch a goal implies that a firm will have a glo,al perspective on the acD isition an& tili.ation of reso rces "incl &ing h man reso rces# an& ignore the national origin factor$ Cn the other han&, M4)s sho l& strive to ,e sensitive an& responsive to local sit ations, consi&ering the nee&s an& &esires of the local pop lation as m ch as feasi,le in ,alance with a glo,al integration strategy "Bartlett an& Ghoshal, 79E9; Sc llion an& )ollings, 566:#$ )hanges in the international environment & ring the last two &eca&es are forcing most firms to consi&er glo,ali.ation an& locali.ation iss es more serio sly$ 1actors s ch as the high val e of

the c rrency?s val e an& tra&e friction have le& firms of all si.es to esta,lish or e0pan& foreign man fact ring facilities$ -he large@scale e0pansion of overseas operations ,y Japanese firms & ring the 79E6s an& 7996s has ,ro ght a,o t a shortage of D alifie& Japanese P)4 managers to fill management positions at foreign s ,si&iaries "+eeley, 5667, :#$ -he high cost of maintaining so many P)4 managers at foreign s ,si&iaries an& complaints ,y 3)4 employees an& local a thorities n&erlines the importance of integrating 3)4s into the management process "Sc llionan& )ollings, 566:#$ -here is a significant ,o&y of research "Yoshihara, 799F; +opp, 799=#, s ggesting most Japanese an& 'sian M4)s have a long way to go ,efore reaching s ch a stage in their organi.ational &evelopment$ )orporations are going glo,al in the sense that they are engaging in e0tensive 1D2 , t at the same time they are not going local, as US an& / ropean companies have ten&e& to &o$ >ingrove "799G, cite& in +eeley, 5667# ,ases her concl sions on a st &y of well@*nown Japanese companies operating in Britain, incl &ing8 Mits ,ishi /lectric, 3itachi Power -ools, +o,e Steel an& Mits i an& )o$ She fo n& that Japanese e0patriates fill practically all the senior managerial posts$ 1 rthermore, >ingrove conten&s that even when &ecision@ma*ing is &elegate& to managers in the / ropean mar*ets, the Japanese practice of consens s still reD ires thoro gh cons ltation with hea& office in Japan$ She asserts that the Japanese parent companies tightly control the operation of their foreign s ,si&iaries an& that many Japanese foreign man fact ring s ,si&iaries have not move& ,eyon& the screw&river@plant stage$ She also reporte& that Shoichiro 2rima!iri, senior managing &irector at 3on&a, state& Japanese firms are 76B56 years ,ehin& in internationali.ation "+eeley, 5667#$

SUCCESSFUL LOCALIZATION IN IHRM

%ocali.ation has emerge& as a *ey iss e in the management of m ltinational corporations in 23RM an& every 3R managers sho l& consi&er this iss e as an important an& *ey point in their forthcoming staffing process$ -he concept is, however, often se& in generic terms witho t specific &entition$ 2n this regar& 3i&eo S gi ra, the former vice@chairman of 3on&a, &isting ishe& ,etween fo r types of locali.ation8 locali.ation of pro& cts, profit, pro& ction an& people "cite& in /vans et al$, 5665#$ 1or o r p rposes in this paper, we specifically &isc ss the locali.ation of people "Sc llionan& )ollings, 566:#$ 1rom this perspective, locali.ation "sometimes calle& la,or nationali.ation, host co ntry national &evelopment or in&igeni.ation# is

&efine& as, the e0tent to which !o,s originally fille& ,y e0patriates are fille& ,y local employees who are competent to perform the !o, "Selmer, 566F8 769F# an& it is often consi&ere& one of the cr cial &rivers of the employment policies of many nation@states$ %ocali.ation also infl ences the state?s relationships with foreign organi.ations see*ing to operate within their national ,o n&aries$ /vans et al$ "5665# see locali.ation as systematic investment in the recr itment, &evelopment an& retention of local employees, which is an important element in the glo,ali.ation strategy of m ltinationals "Sc llion an& )ollings, 566:, 7=9@7F6#$

ADVANTAGES OF SUCCESSFUL HR LOCALIZATION IN IHRM

' s ccessf l 23R manager sho l& compare the a&vantages an& &isa&vantages of &iffering e0patriate an& local staffing strategies in con! nction with other *ey management strategic &ecision ma*ers in or&er to select the ,est strategy for the M4)$ -here are many ,enefits that arise from tili.ing local people rather than e0patriates to fill *ey positions within foreign operations$ Cften these ,enefits are n&erestimate&, partic larly for senior positions, for reasons which are often ,ase& on racial or national stereotypes "Banai, 7995#$ -here are fo r a&vantages of s ccessf l locali.ation policies$ 1irst, locali.ation of h man reso rces may improve relations ,etween foreign investors an& host co ntry governments$ Selmer "566F# has arg e& that this is the case in the )hinese conte0t as the government favors the &evelopment of local employees$ -h s from the M4)?s point of view, a locali.ation strategy may help to ens re foreign operations operate with minim m levels of conflict with the host a thorities, while sim ltaneo sly garnering greater , y@in an& s pport from the host government$ Secon&, locali.ation of h man reso rces may improve comm nication, an&, ltimately , siness performance in the host co ntry$ -his is ,eca se comm nication local@to@local is s ally more effective than foreigner@to@local$ -hir&, host co ntry la,or is generally a more relia,le reso rce than temporary wor*ers, who even if they wor* in the co ntry for a long time, have &ivi&e& loyalty "Blac* an& Gregerson 7995# an& certainly see their ltimate &estination as a &ifferent location$ 1o rth, from an economic perspective, ,y respon&ing to local nee&s, especially thro gh investing capital an& employing local la,or, the organi.ation increases the wealth of the local pop lation an& so increases its a,ility to , y pro& cts an& services sol& ,y local , siness$ /ven

if the mar*et is small an& poor, there can ,e goo& potential for growth an& long@term profit "Prahala&, 566F; Sc llion an& )ollings, 566:, pp$7F7@7F5#$

DISADVANTAGES OF SUCCESSFUL HR LOCALIZATION IN IHRM

-here are fo r main &isa&vantages in &eveloping locali.ation policies$ 1irst, n&erstan&ing local mar*ets ta*es time, effort, an& e0tensive financial reso rces$ Secon&, there are &isa&vantages relate& to the comple0ities of having to ma*e changes in wor* policy an& practice to meet local con&itions$ -hir&, managing witho t e0patriates involves looser coor&ination an& potentially greater pro,lems in comm nicating$ 1o rth, a ma!or concern of senior managers with respect to locali.ation strategy is the fear of losing intellect al property rights, partic larly in the emerging mar*ets where the perception is that everything can ,e copie& "Sc llion an& )ollings, 566:#$ Selmer "566F# &escri,es this as an agency pro,lem an& arg es that e0patriate presence may help to g ar& against local managers p rs ing their personal self@interest in managing the s ,si&iary or ma*ing &ecisions which are incongr ent with the organi.ation?s glo,al strategy "Sc llion an& )ollings, 566:#$

INTERNATIONAL TALENT MANAGEMENT ISSUE IN IHRM

2n glo,ali.ation era, most lea&ing m ltinationals increasingly see* to com,ine local recr itment strategies with a more glo,al approach & e to the nee& to manage the growing mo,ility of la,or in a more coor&inate& manner, an& this tren& is only li*ely to increase in the coming &eca&e "Sc llion an& )ollings, 566:#$ -h s, the competition for talent is ,ecoming more intense, with international firms competing with each other as well as with lea&ing local organi.ations "Patel, 5665#$ 1or s ccessf l management in new t r, lent mar*ets, h man reso rce managers m st thoro ghly consi&er not only wor*er cre&entials an& relevant wor* e0perience, , t also other employee talents an& overall potential$

THE FUTURE OF IHRM

2n a&&ition to the c rrent strategic 23RM pro,lems an& &iffic lties that face M4)s, it is li*ely that the f t re will ,ring new strategic challenges to ,e overcome ,y M4)s an& &rive new &irections in the fiel& of 23RM$ -his is & e to s ch &ynamic iss es as an increasingly migratory

international wor*force see*ing ,etter D ality of life an& higher salaries$ '&&itionally, the correspon&ing geographical &ispersion "as a res lt of migrating wor*ers#, co l& lea& to enhance& cross@c lt ral iss es especially for e0patriate wor*ers an& staff, changing the comparative a&vantages for most co ntries$ -hese ongoing an& newly emerging challenges will force the international firms to face a necessity for competency an& sensitivity that is not fo n& in the &omestic firms ")la s, 799E#$

2n the f t re the personal an& professional attit &es an& perspectives of the 23R manager will ,e greatly e0pan&e& to han&le the m ltiple co ntries an& c lt res confronte& in the international arena ,oth to manage their 23R responsi,ilities an& to contri, te to s ccessf l international , siness strategies ,y their firms ,eyon& those which the &omestic 3R manager m st &evelop to ,e 23R managers "Briscoe an& Sch ler, 566F, p$59#$ '&&itionally, in the case of 3RM, internationali.ation will li*ely ta*e many forms$ 1or practical p rposes, 3R managers in most types of firms can or will confront at least some aspects of internationali.ation an& many glo,ali.ation changes ca sing the emergence of small an& me&i m enterprises, "SM/s#, as glo,ali.ation an& technology factors will leave no place to hi&e "Briscoe an& Sch ler, 566F#$ -h s, h man reso rce professionals can fin& themselves involve& in an& therefore m st n&erstan& 23RM iss es in any of the following possi,le sit ations "which incl &e 3RM positions in all types of firms, not ! st international 3R positions within the types of firms s ally foc se& on i$e$, wor*ing at the hea&D arters of an M4/ or in the parent co ntry operations# "Briscoe an& Sch ler, 566F#$ 2n all cases, the international aspects of the sit ation increase the e0pos re an& lia,ilities for 3R managers an& place on them ever@increasing &eman&s for new internationally foc se& competencies "Briscoe an& Sch ler, 566F; p$ 57#$ 3R managers, ,oth of the international an& &omestic variety will contin e to ,e confronte& with a wi&e variety of national, social, c lt ral, e& cational, managerial, an& governmental systems with M4)s, th s they sho l& ,e e& cate& an& prepare& well with the s*ills an& competencies nee&e& to s ccessf lly meet this growing challenge$

CONCLUSIONS
-ra&itionally politics has ,een n&erta*en within national political systems$ 4ational

governments have ,een ltimately responsi,le for maintaining the sec rity an& economic welfare

of their citi.ens, as well as the protection of h man rights an& the environment within their ,or&ers$ >ith glo,al ecological changes, an ever more integrate& glo,al economy, an& other glo,al tren&s, political activity increasingly ta*es place at the glo,al level "Glo,ali.ation, 566<#$

Cver many cent ries, h man societies across the glo,e have esta,lishe& progressively closer contacts$ Recently, the pace of glo,al integration has &ramatically increase&$ Unprece&ente& changes in comm nications, transportation, an& comp ter technology have given the process new impet s an& ma&e the worl& more inter&epen&ent than ever$ M ltinational corporations man fact re pro& cts in many co ntries an& sell to cons mers aro n& the worl&$ Money, technology an& raw materials move ever more swiftly across national ,or&ers$ 'long with pro& cts an& finances, i&eas an& c lt res circ late more freely$ 's a res lt, laws, economies, an& social movements are forming at the international level "Glo,ali.ation, 566<#$ Glo,ali.ation typically refers to the process ,y which &ifferent economies an& societies ,ecome more closely integrate&, an& conc rrent with increasing worl&wi&e glo,ali.ation, there has ,een m ch research into its conseD ences "4ilson, 5676, p$7797#$ 'lso e0amining the relationship ,etween three &imensions of glo,ali.ation an& life e0pectancy, the most ro, st fin&ing is a positive relationship ,etween economic glo,ali.ation an& life e0pectancy$ M ltinational corporations man fact re pro& cts in many co ntries an& sell to cons mers aro n& the worl&$ Money, technology an& raw materials move ever more swiftly across national ,or&ers$ 'long with pro& cts an& finances, i&eas an& c lt res circ late more freely$ 's a res lt, laws, economies, an& social movements are forming at the international level$ Many politicians, aca&emics, an& !o rnalists treat these tren&s as ,oth inevita,le an& "on the whole# welcome$ B t for ,illions of the worl&?s people, , siness@&riven glo,ali.ation means prooting ol& ways of life an& threatening livelihoo&s an& c lt res "Glo,al Policy 1or m, 5676#$ Un&er glo,ali.ation, politics can ta*e place a,ove the state thro gh political integration schemes s ch as the / ropean Union an& thro gh intergovernmental organi.ations s ch as the 2nternational Monetary 1 n&, the >orl& Ban* an& the >orl& -ra&e Crgani.ation$ Political activity can also transcen& national ,or&ers thro gh glo,al movements an& 4GCs$ )ivil society organi.ations act glo,ally ,y forming alliances with organi.ations in other co ntries, national governments "Glo,ali.ation, 566<#$ sing glo,al comm nications systems, an& lo,,ying international organi.ations an& other actors &irectly, instea& of wor*ing thro gh their

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