Category : Importance of human resource management
Article:
v1-HR-IHRM-00003
Globalization, outsourcing and human resource management
Our corporate climate today is a far cry from the business world of the yesteryears which was restrictive and time consuming. Nowadays business decisions are made on snap second judgments and are not limited to or hindered by the physical geographical boundaries of a country. In fact we can go so far as to say that the corporate sector of the new millennium has broken down the geographical barriers that once limited our business sphere.
The world has now become one giant oyster for most businesses as information technology has proliferated into every aspect of our lives, and has literally changed the way we do things. Today with the aid of globalization, we can now simultaneously conduct business in any part of the planet simply sitting at home on our PCs. We can broker deals, negotiate contracts and outsource work anywhere in the world.
Globalization has made the business process not only more efficient and effective, but more streamlined and modernized as well as businesses now share with each other trade secrets that were once limited to only those who could afford it. The corporate sector has become more receptive and reactive as old business methodologies now give way to new and innovative ideas and opinions such as the outsourcing of labor.
Outsourcing has totally altered the way business is done nowadays. Cheaper labor, more skilled expertise, freer cash flow, a more flexible working environment and the more effective use of staff has made outsourcing a global phenomenon. Today businesses from all across the globe are now outsourcing work so that they can save more money by getting specialists to work at more affordable rates so that companies can better utilize their own resources for more productive ventures.
The human resource department of a business plays a significant role in the outsourcing of labor, because ultimately the decision to outsource work is made by the human resource manager. This decision is not only based on the cost effectiveness of the situation (outsourcing), but is also made considering the time and effort that needs to be put into a project so that it does not drain a business's resources. It has to be kept in mind that while outsourcing is hailed by many as a fantastic opportunity, it also results in the termination of many lower level jobs leaving a number of people out of work.
Many people view the outsourcing of work as a threat to their job stability and this is where human resource management comes in to play. The human resource department has to therefore convince employees that outsourcing is not as bad as it may seem. Yes, jobs will be lost, however outsourcing will also ensure a smoother running business that can increase profitability and create a more conducive and productive working environment. Human resource management is critical in outsourcing as employees need to be assured that their jobs are not in danger, so that they can work to their maximum potential.
While globalization and outsourcing are fantastic opportunities for any business big or small, they may not always be welcomed by the employees of an organization who fear change as a loss of job security. What human resource departments in these organizations need to do is, come up with a human resource management plan that not only makes the employees become more receptive to change, but embrace it as a way of getting the job done better and more effectively, thus saving time, money and resources. In the end what matters is that the employees of a business must be happy and confident because only then can they work to their full potential and maximize the growth of a business.
