Effects of Globalization of Human Resource (Essay Sample)

Effects of Globalization of Human Resource
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Globalization refers to the coming together of the markets in the worldwide economy. The markets that globalization are known include financial and commodity markets. Financial markets include capital market, credit, and insurance markets while commodity market, on the other hand, encompasses oil, coffee, tin and all other tangible goods that the company can trade in. Over the years globalization has increased in many businesses ranging from consumer products to general merchandise. The rapid increase in globalization is attributed to several factors. Advancements in technology transport and communication have spearheaded it over the past 30 years. In addition to the improvements, free trade has fuelled globalization a great deal. Companies can sell in the countries that initially had zero tolerance for foreign firms. There is also the development of new financial products for example derivatives. The Coca-Cola Company is one international company that have benefited from globalization.
When a corporation globalizes their products, they can control different market niche in the countries with their plants. Coca-Cola has been able to diversify its workforce through globalization. Their employees interact with people from diverse cultures, social constructs, and different languages. Diversification in the employees’ structure helps the company to get more clients since one can find someone that they can relate to. Besides, having different people in the organization has led to different skills and ideas that have resulted in the success of Coca-Cola. When different people work together, they can quickly deal with an error because of the varied expertise that they possess. (Heung-Jun Jeong, 2012) Coca-Cola has been able to get new ideas by opening plants in various parts of the world. The ideas can be on how to minimize costs or to increase the quality of their product.Globalization has propelled Coca-Cola into professional development. Professional development deals with providing avenues through its employees can realize their career goals. The central platform through which it has achieved this is by providing resources for education. Education can be accomplished by sending the employees to school, attending refresher courses, conferences, and networking events. Professional development is beneficial because it is beneficial to both the company and the individual. (Leung, A. 2003) Employees will feel the organization has their interest at heart by providing the range of skill to them. Likewise, Coca-Cola benefits because they have instilled skills on a workforce that will help them achieve their goals. Internally trained employees tend to deliver more in the workforce. Coca-Cola has incurred a little loss because the internally trained employees work as per the companies Standard Operating Procedures. (SOPs)Further, globalization has resulted in a greater emphasis on training. The training is however centered on the needs and the technical know-how of the members within Coca-Cola. Training at this level is only conducted for a specific department in the organization, for example, the company has taught the quality assurance department to give them an edge over others. It has also focused on important sectors such as the customer care. The department has been equipped with language skills, phone etiquette to give them an edge in telephone sales. This emphasis on training has helped the company to be ahead of the rest in the field. A trained workforce will deliver more than an untrained and unmotivated workforce. (Schaeffer, R. K.2009) The company has also been able to schedule benchmarking sessions with other leaders in the field to help train their employees.Coca-Cola has been able to apply different laws in the business. A company that decides to globalize must abide by the legislation of the particular country that they set a base. A government is likely to set many tax and labor laws that the businesses must comply with. Selling products in Europe for instance, means that a company must pay the Value Added Tax (VAT) on the goods that they deal in. (Bertho, M. et al 2008) Firing and firing the workforce has different rules in different parts of the country and differ from country to country. Minimum wage, tax allowances and their working hour will depend on their productivity and the labor laws of the country. Coca-Cola has been able to understand the jurisdiction of the different countries and has kept the spirit of embracing the rights of employees. Because they value their reputation, the company has been able to achieve fair treatment of the employees and rewarding them justly according to their talent and productivity. Currently, Coca-Cola is regarded as one of the best rewarding companies in the world in terms of the wages and salaries that they give to employees.Globalization has also led to benefits and compensation in the human resource department. Coca-Cola has revolutionized how they provide benefits to their employees as a result of globalization. It has been able to attract employees by flexible working hours, extended vacation time, paternity leave and extended vacation time. (Misra, R. N. 2009). Existing employees are motivated through such criteria, and new employees are attracted by the lucrative deals that Coca-Cola offers. Balancing payment and the benefits that employees get is a primary function of the human resource department and, therefore, necessitates proper consideration. Being that the company works in different nations, it has been able to sample many laws of the land that protect employees and consumers against exploitation of whatever nature.Another advantage of globalization is the global recruitment and importation of manpower. An employee can be transferred from say America to go and work in England. Coca-Cola has been able to get its workforce from different countries to perform the task that they want in their plants. (Rees, C. et al 2011) Global recruitment deals with getting the best workforce for the job regardless of where the person lives. Having foreign nationals to work for them gives them an upper hand when they sell their products in the countries that such people originate from. Through global recruitment, Coca-Cola has achieved a lot in getting different talent and expertise to fill the positions that arise in their company. Currently, Coca-Cola is one of the most internationally represented firms in the world. However, they have been able to feel some of the disadvantages of globalization.Globalization kills local talents and reduces morale of the local workforce due to global recruitment. (Pang, N. S.-K. 2006). Coca-Cola has not been able to use the local workforce except for the more junior positions. It causes unemployment because the company will move to areas where they can get cheap labor. When the people who offer the cheap labor are not skilled, they do shoddy work that can make the company losses. The company will be forced to hire more people to complete the task if it was not done well and will eventually make a loss.Although Coca-Cola has not been in a financial crisis, globalization can lead to financial problems. (Heung-Jun Jeong, 2012) Examples of countries that had problems by that time included Mexico, Thailand, Brazil and Indonesia. Investors in these countries pulled out, and the companies closed down. When such scenarios happen, they affect the human resource in that the people who used to work in these places become jobless and cannot eke out a living from the source anymore. Globalization in this context kills the morale of the employees. (Anderson, S et al 2000) A workforce that has low morale will not even hard to achieve the collective national goals. Coca-Cola should more in with speed so that they don’t get caught up in scenarios such as these. The reduced...