HR Challenges: Globalization, Technology, and Ethics

Introduction: HR in a Changing Marketplace

Human resources is undergoing a profound change in response to the competitive market environment, both locally and globally, and business organizations are forced to become more adaptable, resilient, and customer-focused to succeed. In response to market conditions, human resource personnel must be aware of the business organization's mission, be in a position to influence major decisions, and participate in the formation of company policies. The purpose of this research is to determine how human resource personnel in today's business marketplace must adjust their practices in response to these forces, and to examine the importance of values and ethics in that process.

Due to changes in the overall marketplace, human resource professionals must become flexible in their approach. Factors that once had little bearing on HR operations — such as cultural diversity, globalization, differences in international laws and regulations, and language barriers — are now a regular concern for many human resource professionals. This paper provides insight into how these various factors affect the efficient operation of a modern human resource department.

Workplace Issues

Traditionally, the demographics of the labor force have been largely ignored by human resource professionals when developing and applying policy. Experts in the human resource field have begun to recognize the importance of employee demographics and how demographic variables impact employee attitudes toward HR policies. In increasing numbers, human resource departments are applying research results in making decisions about the design and implementation of policy and in the management of the workforce.

The cost of health insurance continues to burden businesses and ranks as one of the most serious problems that most businesses must face on a daily basis (Chernew, 2005). Human resource departments and personnel serve as the primary conduit for the administration of most health care plans and are therefore at the forefront in handling employee concerns and problems. Rising costs are not the only concern in the area of health care; insurance policies have also become far more complex, with increased restrictions that require careful attention. Human resource professionals must be competent in all areas of health care concerns.

Globalization and Its Impact on HR

The process of globalization has changed the landscape for all businesses. Even those businesses that have limited international sales have had to address the issue. Few businesses are afforded the luxury of remaining completely local and, as a result, there are a number of specific concerns that all businesses must address (Marquardt, 2003).

The outsourcing and offshoring of human resource services have become a highly contentious political issue. Businesses in a struggling world economy are using every measure possible to save money and increase profits. The issue has become part of presidential campaigns and has been debated in legislative bodies at both the national and state levels. In an effort to control the use of both practices, a variety of actions have been proposed, including placing restrictions on visas, enacting information privacy laws, and pursuing state government initiatives that would serve to limit their use.

The use of technology in the field of human resources has, until very recently, been quite limited. Today, however, human resource professionals use modern technology in all areas, including recruitment, legal and regulatory compliance, benefits administration, and the protection of confidential employee information. As a result, HR personnel have been required to become versed in the language of information technology, the use of the internet, and working with specialized software. The increased use of technology has caused an entirely new discipline to emerge — Human Resources Technology — in order to facilitate the use of such tools (Henrickson, 2003).

Diversity in its many forms — race, gender, age, disabilities, religion, nationality, and competency — has assumed a position of increased importance in the area of human resources. In addressing the increased diversity in the workplace, modern HR professionals must develop an understanding and acceptance of managing diversity concepts; recognize that diversity is involved in every aspect of management; be aware of cultural biases, prejudices, and stereotypes; and demonstrate a willingness to challenge and change institutional practices that present barriers.

The demographic effects of globalization are significant. Cultures that at one time had little impact on business — such as those in India, China, Korea, and Vietnam — are now deeply integrated into the international marketplace. The emergence of these nations has altered business dynamics and caused dramatic changes that many developed nations have had difficulty understanding (Pfeiffer, 2007). The role of the human resource professional is to assist their company in adjusting to these changing demographics.

Conclusion

The role of the HR professional has changed, and successful business organizations are becoming more resilient, more adaptable, more willing to change direction, and more customer oriented. Because of these changes, it is important that HR professionals learn how to manage effectively through improved planning, organization, leadership, and the increased use of knowledge made available through technology.