Globalization and competition trends

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Human Resource Management

Introduction to Human Resource

GLOBALIZATION AND COMPETITION TRENDS

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Globalization refers to companies extending their sales,

ownership, and/ or manufacturing to new market abroad.

For example, Marriott International, Inc., is a global

leading lodging company with nearly 4,500 properties in

87 countries and territories

(http://www.marriott.com/marriott/aboutmarriott.mi).

Globalization compels employers to be more efficient. More globalization means more competition, and more competition means more pressure to be “world class”- to lower cost, to make employees more productive, and to do things better and less expensively.

The search for greater efficiencies prompts many employers to

offshore (export jobs to lower-cost locations abroad). Many

employers offshore even highly skilled jobs such as sales managers,

general managers, and HR managers.

For 50 or so years, globalization boomed. Changes in economic and political philosophies drove this boom. Governments dropped cross-border taxes or tariffs,

formed economic free-trade areas, and took other steps to encourage the free flow of trade among countries.

What is another trend in globalization? YES, it’s deregulation