As we enter a new millennium, the effects of internationalization now known as
globalization are everywhere apparent. This has played a major role in sustaining the
economic expansion of the global economy in the second half of the 20th century.
Globalization is seemingly shrinking the planet as barriers to trade are dismantled, transport
and communications costs fall, and global production systems are formed and managed by
giant multinational corporations. Globalization can be defined as the ongoing economic,
technological, social, and political integration of the world that began after the Second World
War. There are several dimensions to this dynamic process, including the increased
internationalization of economic markets as reflected, for example, in trade and financial
capital flows. The primary objective of this article is to present a conceptual framework for
strategic management of human resources as a response to the growing interaction of
globalization and business performance. The rapid integration of the world economy through
increased trade and investment, which has been fueled by new technologies, the spread of
information and the growing importance of knowledge-based industries, provides the
potential for opening up new avenues for human development.
Three central arguments made in this article are:
1. That a great deal of evidence has accrued to suggest that changes taking place in the global
business environment often are not accompanied by complementary changes in human
resource management practices leading to a situation whereby the failure of some firms is due
to the mismanagement of people rather than to problems with technical systems.
2. This is because organizations have achieved relatively low levels of effectiveness in
implementing Strategic Human Resource Management practices.
3.That in order to manage employees for competitive edge in a period of globalization, human
resource personnel must possess competencies relevant for effective implementation of such
strategic HRM policies and training
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