Liberalization and Globalization Impact On HRM

Liberalization: 

The term liberalization means liberating the industry and trade from all unnecessary restrictions and removing all impediments in their growth arising from licences , permits , quotas , delays etc. it implies reduction in the role of government and increase in the role of market forces. due to this entrepreneurs gain the freedom to start new enterprises , acquire other enterprises , enter into joint ventures , restructure their operation.

Globalization : 

Globalization means integration of the various economies of the world leading towards the emergence of cohesive global economy . it involves an increased level of interaction and interdependence among various economies. there is free exchange of not only goods & services ,but also of technology , culture , management practices . the driving forces enhancing the pace of globalization are rapid advances in technology and trade liberalization. technology has able to reduce the distance of time and space between people and countries .

Impact on Human Resource Development :

liberalization and globalization have paved the way for joint ventures with foreign firms , mergers & acquisitions , foreign technology agreements and restructuring of business operations for survival and growth . these development have influenced human resource management in a significant manner .

Some of the examples are :

• Employment :  Global acquisition  of personal , online recruitment , poaching means snatching key personnel from competitors , attraction of diverse workforce , etc.

• Training and development :Upgrading of skills , use of new techniques such as audio visual and power point presentations in training , online training  , video conferencing , shared learning , business games , special courses etc.
• Compensation : Pay band compensation , productivity related bonus , career advancement , employee stock option plan (ESOP) , reimbursement of expenditure on medical facilities & education of children , leave travel concession (LTC) etc.
• Personnel Services : Day care facilities for children , free transportation and lunch , gym facilities , work-life balance practices like flexible working hours , home commuting etc .
• Restructuring : Adoption of flat structure , downsizing of workforce , redeployment of personnel , training of personnel for undertaking new jobs , voluntary retirement scheme (VRS) , outplacement services etc.

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