4.1 Discuss the implications of the globalisation debate for the recruitment and selection of international employees. Your answer should be based on the IHRM literature and relevant examples.
The concept of globalisation refers to an increasing flow of goods and resources across national borders and the emergence of a complementary set of organisational structures to manage the expanding network of international economic activity and transactions. Strictly speaking, a global economy is one where firms and financial institutions operate transnationally, i.e., beyond the confines of national boundaries. In such a world, goods, factors of production and financial assets would be almost perfect substitutes everywhere and would no longer be possible to consider national states as distinct economies. Globalisations is expected to accelerate growth in developing countries.
A consensus has emerged among scholars and practitioners alike that the business environment has become more competitive than in the past because of globalisation. In order to survive in this new era, businesses have to focus even harder on their competitive strengths so as to develop appropriate long-term strategies. Old practices and systems that have evolved over time are no longer appropriate.
Indeed development is achieved through people. Beardwell and Holden (1997) support this assertion by giving an example of Japan's success despite its lacking natural resources.
By Bharti Venkatesh
“The real wealth of a nation is its people. And the purpose of development is to create an enabling environment for people to enjoy long, healthy and creative lives. This simple but powerful truth is too often forgotten in the pursuit of material and financial wealth.”
Armstrong outlines three most important factors in achieving competitive advantage as Innovative, Quality and Cost Leadership, but all these depend on the quality of an organisation's human resources. What this entails is that the...