Employee relations and globalisation
Background
There is an evolving relationship between employee relations and globalisation.
In recent decades we have seen the emergence of HRM as the dominant perspective for structuring organisational relations and values
An overview of employee relations
The business environment is quickly becoming more international in character
Globalisation it transforming employee relations
Organisations are now attracting people from around the world
Tapping into international labour markets
This has created opportunities as well as pressure
The 5 areas of globalisation
Globalisation and innovation
Globalisation and culture
Globalisation and economics
Globalisation and society
Globalisation and quality of life
Globalisation is shifting employee relations from a national focus to an international focus
Employers and employees must adapt
Source of innovation and concern
Globalisation has provided the opportunity for those within organisations at all levels to take advantage and learn from this internationalising environment
For employees in particular it can feel as if they have no power to stop this ‘inevitable’ change and the higher inequality and often lower wages it brings
Human resource management (HRM)
Force in helping organisations and its members navigate globalisation
Employers
HRM are crucial for helping to manage cultural differences among its workforce and maximising the opportunities presented by this global context.
Employees
Can recruit employees from an international pool of candidates as well as assist in their adjustment once hired
Are no longer restricted to finding work in their own country or region
Challenges posed by these changes should not be underestimated
Governments and private institutions are often restricted in what they can do due to existing global economic expectations and trends
Instrumental in shaping an organisational strategy to meet challenges
Common for employers and politicians to champion business-friendly policies based on the need to remain globally competitive
They are often implemented at the expense of employee interests
A key force for potentially creating a ‘win–win’ situation for employers and employees in the face of globalisation
Questions over whether HRM is the best placed and intended perspective for doing so
The transition from employee relations to HRM
Employee relations
Def - The relationship between employers and employees; this term covers both individual and collective relationships in the workplace
The most effective since the 19th century was collective bargaining between employers and labour organisations such as unions
Established in countries across the world through years of labour struggle, leading to higher wages and a range of worker’s rights from safety to job security
Global economic pressures and the rise of ‘free-market’ ideas have greatly diminished the power of labour unions
HRM
Has evolved as a prevailing perspective in its place for guiding employee relations
Its focus is not on ‘participation’ but, instead, ‘inclusion’
Its focus is on replacing collective bargaining and industrial democracy with individual negotiation and processes of ‘consultation’
Aim
It advocates policies that seek to empower the workforce for such purposes while also protecting them against unfair treatment, discrimination and threats
To maximise the production and performance of an organisation’s personnel
Globalisation has raised a number of challenges
The demand for global competitiveness limits the available options for HRM practitioners. Emphasis on ‘doing more with less'
Long-term strategies are commonly dismissed if they do not bring immediate short-term profits
Employee worries over exploding personal debt – indirectly limiting their bargaining power – and a more precarious employment environment generally
Globalisation creates possibilities
Employee ‘empowerment’ is on the rise, encompassing new technologies to allow employees to have more flexible working arrangements and better ‘work–life balance’
A renewed emphasis on corporate social responsibility that can help firms improve their policies associated with environmental, social and governance (ESG) values
Enhanced opportunities for benefiting from global ideas and talent, helping to produce more open and diverse organisations
There are areas in which HRM seek to innovate
The international labour market
Globalisation has created an increasingly international labour market
Individuals are applying for jobs across the world, no longer restricted to simply choosing opportunities in their own country or region
Organisations are progressively transnational with divisions, operations and contracts that span internationally
Less directly, employers and employees must be aware of global employment trends
Outsourcing, that can dramatically impact them both positively and negatively
The growth of an international labour market offers organisations and its members a number of new possibilities
Employees
Being able to market their skills to employers in different contexts - this results in the opportunity to use their career to travel, relocate and experience diverse cultures first-hand
The spread of organisations into new global areas can create enhanced opportunities for individuals to gain the skills necessary to help organisations successfully engage in such cultural exchange
Employers
It permits them to capitalise on a wider talent pool as well as for institutions to learn constructively from this more diverse workforce
Multiculturalism
What is arising is a progressively multicultural organisation.
A significant contemporary value
Reflects desires for the inclusion, respect and safety of populations marked by ethnic and cultural differences
Organisations are literally composed of multiple cultures as they operate in numerous parts of the world and their members are from various international backgrounds
Represents the ways organisations must manage and take advantage of this multiculturalism if they are to be globally competitive
HRM
Help organisations to navigate these diverse cultures
Key forces for assisting firms to attract an international workforce and meet their diverse needs and desires
Important information brokers, in terms of highlighting contrasting regulations and cultural expectations between nations and regions
They foster a broader culture of ‘organisational learning’ that encourages institutions to not only adapt to but also benefit from this greater diversity
Positively or negatively impact on employment?
-ve Competition from lower income countries can decrease employment in richer countries.
+ve During times of global recession globalisation can also help to promote employment
Factors associated with globalisation which impact on employment
Competition
Technology
Legislation
Reflection on the ‘international’ labour market
It reveals how employees must be aware of broader global economic, political and technological trends as well as the global imbalances between employees across the world.