Globalization and its impact on human resources

Origin of globalization

The origin of world globalization can be found in the process of internationalization of the economy, which has been taking place since the Second World War, understanding by internationalization of the world economy, a growth in international trade and investment faster than that of production world. Countries do not limit themselves to investing within their territorial space, but rather seek trade and investment alternatives in other countries, creating a whole mix of economic exchanges between different nations. Economic internationalization also has to do with the expansion of capitalism as the most generalized economic model and mode of production in the world.

This internationalization formally began with the constitution of the United Nations (UN) and the creation of its agencies: the International Monetary Fund, the General Agreement on Tariffs and Trade, and the World Bank; but in reality it occurred at first as a regional phenomenon of the First World as a result of the liberalization of international trade and investment among the member countries of the Organization for Economic Cooperation and Development.

Elements that define globalization

Globalization has been established as one of the concepts that organize contemporary economic and political discussion. This, in turn, has become a qualitative transformation of capitalism and a new relationship of interdependence has developed beyond the national states.

The defining elements of globalization can be summarized as follows:

1. The significance and the growing importance of the financial structure and the global creation of credit, leads to the dominance of finance over production.

2. The importance in increasing the structure of knowledge, it is said that knowledge has become an important factor in production.

3. The increase in the speed of redundancy of certain technologies and the growth in the transnationalization of technology: here the emphasis is placed on knowledge-based industries, the increasing dependence on technological innovation, and the increasing risk of technological obsolescence.

4. The rise of multinational corporations: It is said that corporations have no choice but to transform themselves into global and transnational corporations, together with transnational banks, which have become the most influential powers, much more influential than national states and their own economies.

The globalization of production, knowledge and finance, which leads to international groups such as the United Nations, the group of 7, the Andean pact, the European economic community, etc. What it hints at for the future, how the state can in turn also be global, or if you like, global influences on local states.

Organizational influences of globalization

At the beginning of the 1980s, the information and communications revolution broke out in the productive world. This new technology extends to all fields of economic life, starting in the productive sectors and covering services, finance, etc., in addition, new situations arise, such as:

A. The unification of international financial markets, the regionalization of the world economic space (the Andean pact, the European economic community, among others) in order to favor and facilitate exchange,

B. Partnerships between transnational corporations (for example: the Daymler (Mercedes Benz, Germany) and Chrysler (USA) corporations reach an agreement with each other, to support each other and thus be able to more quickly penetrate the markets that one or the other has already covered, C. Or transnational companies, Publicis (France) are associated with local companies, 67 Publicidad (Venezuela) using their experience, to achieve more easily penetrate the national market

D. and the coordination needs of the main national economic policies.

Influences on human resources

But, how does this affect the human resources of the various companies? The human resources of companies are also globalized. This is how the figure of "Expatriates" arises, those executives within a corporation who, due to their successful work, are sent to headquarters in other countries to put their experience into practice there. Sometimes it happens because the headquarters has a problem, or because the corporate requirements of the company require that certain positions (generally that of general management or presidency, and / or finance), but it can also be like learning from the market local of the foreign company.

However, the exchange of executives is not always effective, especially for those areas of greater sensitivity, such as Marketing, since each country has different cultural characteristics that require particular knowledge in order to establish successful strategies. The least sensitive areas are technical: manufacturing, for example, where, on the contrary, the national industry can be improved by international quality and production standards.

This is the general result of the appearance of the so-called globalization.

The advances of the globalization of the world economy are very great, but it should be noted that those achieved in other fields of human activity are also great. Among them can be highlighted:

• Migrations (the "Expatriates" of which we have already spoken), International trips and meetings (necessary for communications between agencies in different countries), Telephony, (and it is worth mentioning satellite cell phones) and other means of communication: video conferencing, pagers, internet, etc. Inter-state relations and organizations (that is, between certain agencies in different States), The creation of various non-governmental organizations (human rights (Amnesty International), ecological (Green Peace), humanitarian (ADRA), etc.).

Effects of globalization on the development of new technologies

The influence of globalization on the development of new and more effective technologies is undeniable, allowing communication more quickly in order to speed up decision-making and problem solving. That is why the Internet and E-mail have appeared.

In turn, companies must create global information systems that are effective enough so that within this macro market, information can flow adequately to all levels of large international corporations and does not become an inefficient and unproductive apparatus. Some companies that have not been able to adapt to this new system have gone directly to bankruptcy or have lost a good part of their market.

Let's look at an example: In the second half of 1998 when Iridium Pioneer of satellite wireless telephony made its launch at a global level (worldwide) and as a clear example of globalization, an advertising and direct marketing campaign was developed for the entire planet and that it had to "go on air" at the same time. The Agencies in charge of coordinating the different regions chose local partners in order to use their expertise in the national market, however, the nationalizations of the arts and commercials had to be sent to the Washington offices for their final review and approval.

This is how Draft Worldwide An international direct marketing agency whose main headquarters is in New York, selected Power Marketing in Venezuela to take charge of the campaign and coordinate Colombia and Peru. The project lasted approximately 6 months, during which time the Venezuelan executives only had to visit these countries on two occasions, the rest of the communications including support for Argentina, the Dominican Republic and Mexico (Venezuela was in charge of adapting the original texts into Spanish, but each country made its particular "tropicalizations" according to the local vocabulary *), as well as the reports to New York, were made by telephone, e-mail, fax and courier. The production of direct marketing forms was made in Colombia and was exported to other countries,achieving a saving of 70 thousand dollars of the assigned budget. Which shows one of the benefits of globalization.

However, not everything is perfect. For the development of the mass media campaign of Iridium in Venezuela, it was necessary to develop local pieces, as well as a promotion adapted to the idiosyncrasy of the Venezuelan, because, generally by globalizing communications, they can lose meaning and be unattractive. After this adjustment, the change in communication caused the response rate to nearly quadruple and one occasion to six-fold. This is where we identify one of the problems of globalizing. Venezuelan marketing experts say that the more you go up in social classes, communications can be more global, since "the rich are very similar in all parts of the world." The problem generally appears in mass consumer products, which is where cultures tend to differ the most.

It is for all the above that today it is practically essential that executives master another language other than the national one, and preferably English, so that they do not have limitations in communications with partners, headquarters and suppliers, so that they can access to a greater quantity and more updated information and so that they can travel and coordinate activities abroad at any given time. Generally, it is international accounts that produce the most income for local companies.

Sociocultural influences of globalization

In addition to greater international ties and interactions, globalization also implies the diffusion of patterns of economic and social organization, norms of consumption, patterns of life or thought, and particularly patterns of North American society.

Thus we see how globalization is a phenomenon that, despite its economic base, is much more comprehensive, also including political, social, cultural variables, etc. This exchange of executives creates different guidelines, influenced by other cultures and that, like a wave, affect human resources and social values. The director of a company who, after having lived abroad for several years, adapts certain eating habits or ways of working and thinking, taking him back to his country and influencing his family and new co-workers.

Globalization produces a kind of close union between countries and even between people from different countries, as has never been seen before. But on the other hand, we are witnessing the resurgence of nationalisms of all kinds: ethnic, religious, cultural, as we see happening in Europe: Ireland, Yugoslavia, Scotland, the Basque country, etc. While the rest of the world is seeking to unify, they simply want their independence.

In the economic sphere, we observe the trend towards the consolidation of a kind of world market, but in turn many countries (precisely the most developed ones) take protectionist measures, especially towards other blocs. Such is the case of the USA in the banana conflict with Europe and more recently with other products such as beef. If the European bloc reduces its purchases of an article, they proceed to do the same to maintain an economic balance between what is imported and what is exported and protect the national industry.

3. Conclusion