THE IMPACT OF GLOBALIZATION ON HUMAN RESOURCE MANAGEMENT

Usenko Anastasia M.; Gomtsyan Ovsep A.; Samygin Sergey I.

УДК 316

DOI 10.23672^8887-2868-1916^

Усенко Анастасия Михайловна

кандидат экономических наук, доцент,

заведующая кафедрой финансового и НR менеджмента, Ростовский государственный экономический университет vodoleika-y@rambler.ru

Гомцян Овсеп Арамаисович

кандидат социологических наук,

доцент кафедры социальной работы,

психологии и педагогики

высшего образования,

Кубанский государственный университет

ovsep1986@gmail.com

Самыгин Сергей Иванович

доктор социологических наук, профессор кафедры управления персоналом, Ростовский государственный экономический университет (РИНХ) darya.maksimovich@gmail.com

Anastasia M. Usenko

Candidate of Economic Sciences,

Associate Professor,

Head of the Department of Finance

and HR Management,

Rostov State

University of Economics

vodoleika-y@rambler.ru

Ovsep A. Gomtsyan

Candidate of Sociological Sciences,

Associate Professor

of the Department of Social Work,

Psychology and Pedagogy

of Higher Education,

Kuban State University

ovsep1986@gmail.com

Sergey I. Samygin

Doctor of Sociology, Professor of the Department Human Resources Management, Rostov State Economic University (RINH) darya.maksimovich@gmail.com

Влияние глобализации

на управление человеческими

ресурсами

Аннотация. Роли и обязанности управления персоналом трансформируются в результате глобализации мировой экономики. Одной из основных проблем на мировом рынке является несоответствие между спросом и предложением, которое, вероятно, увеличится для высококвалифицированных работников и руководителей бизнеса. Организациям необходимо уделять больше внимания привлечению человеческого капитала. Решение кадрового вопроса в глобальном масштабе и управление кадрами в культурном, языковом и географическом аспектах, являются одной из важнейших целей управления персоналом в глобальной мировой экономике. Только многонациональные организации, готовые адаптировать свою кадровую политику и практику к глобальным изменениям в сфере труда и рыночным условиям, смогут привлекать и удерживать высокоэффективных сотрудников. Компании, способные предвидеть свой бизнес и потребности в рабочей силе, особенно высококвалифицированной, получат решающее конкурентное преимущество.

Ключевые слова: управление, человеческие ресурсы, глобализация, аналитика данных, хранилище данных, онлайн-аналитика, мировая экономика.

The impact of globalization on

human resource management

Annotation. The roles and responsibilities of HR management are being transformed by the globalization of the world economy. One of the major challenges in the global marketplace is the mismatch between supply and demand, which is likely to increase for highly skilled workers and business leaders. Organizations need to pay more attention to attracting human capital. Solving the personnel issue on a global scale and managing personnel culturally, linguistically and geographically dispersed are one of the most important goals of HR management in the global world economy. Only multinational organizations that are willing to adapt their HR policies and practices to global changes in the field of labor and market conditions will be able to attract and retain high performing employees. Companies that are able to anticipate their business and workforce needs, especially highly skilled ones, will gain a decisive competitive advantage.

Keywords: management, human resources, globalization, data analytics, data warehouse, online analytics, world economy.

Human resource management (HR management) is changing as modern business faces complex challenges of a globalized world economy. The transformation of human resources today is a direct challenge to business. In the face of global competition, making effective decisions in organizations is becoming more and more difficult. The new global world is expanding the personnel reserve for hiring employees. Organizational and managerial talent can be a source of sustainable competitive advantage and affect the organization's performance, such as market survival, profit margins, customer satisfaction, and employee performance [1].

In human resource management, it is necessary to take advantage of information technology and data analytics to create a global human resources information system that collects and stores data from various sources. Such a system can help you analyze data to gain insight into your business, predict future needs, and develop strategies to meet them. Companies that are able to anticipate and sustainably manage their needs for a workforce, especially a highly skilled one, gain a decisive competitive advantage [2]. The global talent supply does not match long-term demand - and this gap is a problem for employers around the world.

The gap between the supply and demand has the tendency to grow, especially for highly skilled professionals, middle and senior executives. Most developing countries with large populations, including Brazil, Russia, India, and China, may not be able to sustain a net surplus of the right skills workforce over the long term. Now, more than ever, organizations need to focus more on attracting human capital, not just financial capital. Since financial capital is available through investors and lenders, and innovation can be borrowed and copied relatively easily and quickly, effective human resource management is the best way to differentiate a company from the crowd and provide it with a competitive advantage. Global staffing and global leadership development are the two pillars of global HR management with the greatest potential to impact global companies. Only multinationals that are willing to adapt their workforce practices to the changing global labor market will be able to attract, develop and retain the right talent and are likely to succeed in global competition.

The article is organized as follows: Section 3 analyzes the driving forces of globalization, and Section 4 discusses some of the key challenges of globalization. Section 5 discusses the global human resources information system and its main components. Section 6 analyzes the debate about the changing roles and responsibilities of HR management driven by globalization. The final section of the article contains brief conclusions.

HR - management emerged on the basis of the management concept of human relations, within which, at the beginning of the 20th century, researchers began to study ways to improve business efficiency through strategic personnel management. Initially HR management was mainly transactional work such as payroll and benefit management, but due to globalization, company consolidation, technological advances and further research, modern HR management

focuses on strategic initiatives such as mergers and acquisitions, talent management, succession, planning, industrial and labor relations, as well as diversity and inclusiveness. This article is based on the concept of talent management (TM), although attention is also paid to the issue of cultural diversity. Talent management is an approach to strategic human resource planning to improve business performance and empower companies and organizations to achieve their goals. Everything done to recruit, retain, develop, reward and improve employee performance is part of talent management as well as strategic human resource planning. The talent management strategy must be aligned with the business strategy and local context in order to function more effectively [3].

The dynamics of globalization are driven by a number of factors, including a shortage of talent in developed countries, the availability of cheap labor and a growing consumer market in developing countries, as well as technological advances. Let us consider these factors.

Lack of talent in developed countries. Despite the current economic downturn and unemployment, most developed countries, including the United States, Germany and Japan face long-term labor shortages, mainly due to population aging and the retirement of the so-called «Baby boomer generations». In developed countries, the number of retirees exceeds the labor market. By 2020, in most developed countries, there were only four new workers for every five people retiring. By some estimates, the United States will need to add 26 million employees to its talent pool by 2030 to maintain average economic growth of 1988— 2008 unless technological breakthroughs replace the workforce. Western Europe will need to add 46 million workers [2]. Labor shortages are predicted in most industries, including manufacturing, construction, transportation and communications, retail, hospitality, financial services, IT, healthcare, government and education.

Availability of cheap labor from developing countries. There have never been such opportunities for multinationals to attract labor, including highly skilled, from developing countries such as Brazil, India and China, or outsource work to these countries. Population growth varies significantly between developed and developing countries. In developed countries, the US, EU and Japan, current annual population growth is less than 0.3 percent, while in the rest of the world, the population is growing almost six times faster.

According to the McKinley Global Institute, the pool of suitable young professionals in emerging markets is growing by 5.5 percent per year, while in developed countries it is growing by only 1 percent per year [4]. The total number of workers with tertiary education in low-wage countries is much higher than in countries with higher wages. India currently produces as many young engineers as the United States, and China more than doubles. Russia produces 10 times more finance and accounting professionals than Germany. According to the International Organization for Migration, there were about 214 million international migrants worldwide in 2010, and fifty-seven percent of

all migrants live in high-income countries [5]. In subsequent years, the number of migrants increased.

Technological progress. Globalization has become possible thanks to the development of cost-effective but very powerful information technologies used both within organizations and for communication with the external environment. These include the Internet, enterprise resource planning systems, data warehouses, Data Marts and so-called analytics of Big Data defined by Friedman [6]. Globalization is defined as a collection of converging technologies and political events, including the fall of the Berlin Wall, the rise of the Internet, and the proliferation of the Windows operating system, the creation of a global fiber optic network, and the creation of interoperable software applications that make it easier to work together regardless of the workers' physical location. A global platform has emerged that has allowed more people to connect, collaborate and compete, share knowledge and carry out collaborative projects on a scale never seen before. Cloud computing and new advances in remote access are driving globalization. Most of the service work can be done remotely. An estimated 160 million jobs, or about 11 percent of the projected 1.46 billion service jobs worldwide as early as 2008, could be performed remotely [7].

Section 5 of the article discusses such a global resource for HR management as information systems that collect and store large amounts of data from various sources, including external and remote ones. Such systems are designed so that HR management can analyze data and gain insight into the business, predict future needs and develop strategies to meet them.

As indicated in the previous section, the pool of skilled workers is growing and tends to continue growing in the near future, mainly due to the expansion of educational opportunities in developing countries. The demand for talent is likely to grow even faster. Based on data from 22 countries and 12 industries, a World Economic Forum study predicted that the gap between supply and demand for skilled workers would be evident by 2020 [8]. The demand for talented people is growing not only in developed, but also in developing countries, to the extent that they strive to improve their own economies and political governance. However, workers differ in the skills they have, and not just professional ones. HR professionals at multinational companies in emerging markets such as China, Hungary, India and Malaysia have noted that candidates for engineering and management positions show large differences in suitability [9]. According to McKinley Global Institute, only 13-19 percent of the 33 million university graduates in developing countries are qualified to work for multinational companies due to their lack of language skills, poor quality training in education systems in developing countries and the inhibiting influence of cultural traditions. In addition, only a small proportion of these people are willing or able to move to foreign countries in search of work [7].

A significant challenge for the HR management of global organizations remains the management of personnel, diverse in culture and language skills, dispersed in different countries. It is essential that

enterprise management is not only familiar with local business practices and the needs of local consumers, but also can shape the global outlook of their employees. Being in the center of globalization, multinational organizations must learn to integrate different value systems and maintain universal work values to create an environment in which workers are able to communicate and coordinate to achieve common goals [10].

In a globalized world economy, HR management must master new roles and responsibilities for leading an organization.

Global organizations use data to make informed decisions instead of relying on intuition or habit. Likewise, human resources departments in global companies also collect data on dismissals and hiring, compensation and benefits of employees, their distribution by ethnicity, gender, culture and nationality. By analyzing the available past and current employee data, the business analyst is able to make decisions based on facts.

The Global Human Resources Information System consists of a number of interdependent components. The various components can be categorized into the following three main subsystems: data warehouses, data analytics, and information delivery. These tools and processes are essential for formulating questions or hypotheses, for developing analytical models, for calculating and communicating results to appropriate users in order to shape business decisions.

The data warehouse is a decision-making database maintained separately from the operational database. Operational databases contain data related to each transaction, while data warehouses contain a summary of general data such as totals, calculations of overall results. Data organized in a data warehouse is optimized for query and analysis. Data warehouse systems are made for the design, implementation and use of information, including data extraction, data cleansing, data transformation, and data loading from various sources. Systems also include metadata management, security management, backup and recovery, and disaster recovery. A data warehouse can collect and combine data from various sources. Employee data are usually placed in separate systems containing information on benefits, wages and compensation, vacations, training, certification; they are also distributed by functional areas.

Companies need to identify all internal and external data sources and then consolidate the data in a warehouse for HR management as one or more data marts. Many reference and statistical data systems are now publicly available, for example, data from various government services and organizations.

The IT professionals have overall responsibility for designing the data warehouse system that is optimal for storage and use, while the human resources department is responsible for ensuring that each user in their group has sufficient information to meet their professional needs. Thus, IT departments and HR representatives must find the optimal overall solution that works best in the long term for the organization as a whole.

Global information systems related to human resources are usually very rich in business intelligence applications based on statistics and forecasting. These applications cannot only provide answers to questions such as «what happened and why», but also allow the user to simulate the parameters of future processes. Advanced analytics can provide an answer to such important questions for HR management as the relationship between investment in human capital and organizational performance, what skills will be required in the near future, etc.

In the past, HR management was often viewed as a waste of enterprise resources. Human resources departments were usually involved in functions that did not go beyond short-term strategies. They focused on administration and control, tended to spend investment rather than capitalize, and increase short-term revenues by reducing staff development costs [9, 10]. Such strategies provide short-term benefits, but cannot solve long-term problems when goals are achieved by increasing employee productivity.

The role of modern HR departments is to focus on the long-term goals of the organization. Rather than focusing exclusively on intra-organizational management issues related to human resources, modern HR management must operate within a broader approach, with an emphasis on future-oriented plans and objectives [11, 12].

Ulrich defines HR management objectives based on the following four roles: a strategic business partner, a change agent, an employee, and an administration expert. These roles are associated with the ability to think globally and have certain skills associated with the use of new technologies in managing people [13, 14, 15].

The role of a strategic business partner and a change agent is to guide and assist in formulating the organization's overall business strategy and aligning human resource activities and initiatives with the overall business strategy. If the HR strategy is not properly formulated and implemented, the success of the organization is at risk [16].

Planning for employees should be inextricably linked to strategic planning and undertaken regularly by HR management. Companies need to develop leaders who can grow and effectively manage a multicultural workforce. Leaders themselves must represent different cultures and traditions, so the structure of decision-making bodies in organizations must reflect the diverse composition of the market [8].

Human resources personnel should conduct periodic assessments of the organization's performance at the corporate level. Staff must anticipate changes and understand what is needed to implement them. The HR professional must have the necessary analytical skills to anticipate change and make well-grounded decisions at an operational and strategic level. The HR specialist understands the current requirements and anticipates possible future skill gaps in the staff to look in advance for a way to deal with it. Business volatility and uncertainty increase the need for companies for advanced analytics, scenario

modeling, and other sophisticated workforce planning techniques [17].

The human resources literature often notes the central role of managers in implementing various management practices designed to improve the efficiency of the workforce [18, 19]. There is a direct correlation between a positive attitude of employees towards their immediate supervisors, and high levels of job satisfaction, commitment and loyalty, which, in turn, are associated with higher productivity [20, 21]. The role of HR management is to work with lower and middle managers to effectively develop and preserve human capital across all divisions of the company. Modern technology allows HR staff and line managers to conduct virtual meetings and provide virtual communications.

The HR manager plays a key role in the success of the organization through his knowledge and advocacy function. This includes creating a work environment in which people are motivated, willing to contribute, and be happy [13]. When employees are motivated, they want to do their best - not because of commitment, but because their work is important to them both professionally and personally. On the other hand, discipline includes practices that increase accountability. When motivation and discipline are combined, employees are encouraged to work, follow the rules, and are fairly rewarded for completing their tasks [17]. Since the «flexibility» of jobs will grow most of the interactions between HR-staff, line managers and employees will be virtual, HR-management must master new technical and psychological skills required for this form of management.

The HR representative must think globally and help develop the global mindset of employees. Thinking globally involves recognizing the benefits that can be brought to the organization by the cultural diversity of its employees.

The challenges of globalization add another important detail to cheap labor and powerful technology: imagination, that is, high innovation and creativity [6]. The role of HR management is to implement the necessary organizational strategies, taking into account specific cultural influences.

The globalization of the world economy is driven by a number of factors, including shortage of skilled workers in developed countries, the availability of cheap labor and growing consumer demand in developing countries, as well as technological progress. Despite the current economic downturn and unemployment, most developed countries, including the United States, Germany, and Japan face long-term talent shortages. In these countries, more workers are retiring than entering the labor market. By 2020 in most developed countries every five retiring workers were replaced by only four new employees joined the labor force. The decline in the number of skilled workers could be offset by the growing number of professionals receiving training in developing countries, but the global supply of talents does not meet the long-term demand for them, and this gap is a problem for employers around the world. The gap between the supply and demand of talents is likely to grow, especially

for highly skilled professionals. The demand for talented people is growing in both developed and developing countries.

Only multinational enterprises that are willing and able to adapt their workforce practices to the changing global labor market conditions will be able to attract develop and retain high performing employees and are likely to survive and thrive in global competition. Managing a culturally diverse and geographically dispersed workforce is a key goal of global HR management. It is also important that businesses not only become familiar with local ways of doing business, but also understand the needs of local consumers and develop a global mindset among employees. HR representatives must take on new roles and responsibilities, leading the organization towards openness and cultural diversity.

Литература:

1. Pfeffer J. (1994) Competitive Advantage Through People Boston Mass. : Harvard Business School Press 1.

2. World Economic Forum (2010a) Stimulating Economies through Fostering Talent Mobility.

3. Tyskbo Daniel. (2019). Competing institutional logics in talent management: Talent identification at the HQ and a subsidiary. The International Journal of Human Resource Management: 1-35.

4. McKinley Global Institute, The Emerging Global Labor Market: Part II - The Supply of Offshore Talent in Services, (2005).

5. World Migration Report (2010b) An Overview of International Migration Trends.

6. Friedman T.L. The World is Flat New-York : Far-rar, Straus and Giroux, 2004.

7. McKinley Global Institute, The Emerging Global Labor Market: Part I - The Demand for Offshore Talent in Services, 2005.

8. World Economic Forum (2011) Global Talent Risk -Seven Responses.

9. Guthridge Matthew. Making talent a strategic pri-pority, McKinsey Quarterly, January / Guthridge Matthew, Asmus B. Komm, and EmilyLawson. 2008.

10. Белов М.Т. Управление религиозными ориентирами в сознании современной молодежи / М.Т. Белов, Н.Х. Гафиатулина, С.И. Самыгин // Экономические проблемы России и региона. Ученые записки. Ростов-н/Д. : Ростовский государственный экономический университет, 2019. С. 186-193.

11. Rosenblatt Valerie. The impact of institutional processes, social networks, and culture on diffusion of global work values in multinational organizations, Cross Cultural Management // An International Journal. 2011. Vol. 18. № 1.

In a globalized world, HR management must focus on the organization's long-term goals and plans for the future. Instead of focusing only on the internal issues of the organization, HR departments should take a broader approach. HR departments of global companies must collect data on employees such as care and hiring, compensation and benefits, ethnic, gender, cultural and national origin, collect this information in data warehouses and data marts. By applying advanced analytics to data, the HR specialist will be empowered to predict change and make well-grounded decisions at the operational and strategic levels. The HR professional has access to current information and is able to anticipate what skills will be in demand in the future. Global organizations need not only information technology that can integrate a diverse and dispersed workforce, but also the effective use of the abilities and skills of people.

Literature: