The paper “ Electrolux Company - the Impact of Globalization on the Management of the Multinational Enterprise’ s Employees” is a well-turned version of a case study on human resources. The roles and responsibilities of human resources departments are changing as the pressures of globalization penetrate the modern business. Global staffing and management of human resources embedded in diverse cultures and language skills spread in different nations are the key goals of globally based human resource departments (Boundless 2014). Globalization has had a tremendous effect on how multinationals manage their employees. First, it has impacted on how the multinationals recruit potential employees.
The multinationals have diversified their recruitment exercises (Bradley 2015). Because of globalization, multinationals are now making associations with customers and stakeholders from diverse cultures, social backgrounds, and languages. These groups of people assume a different set of values, customs, beliefs, symbols, and language (Sims 2007). In responding to that companies have also resorted to hiring employees from equally diverse backgrounds. Companies appreciate the fact that in order to have a competitive advantage they need employees within their ranks with diverse backgrounds. This will ensure that it relates well to the customers because they understand their cultures and way of life and can also contribute diversified ideas to the organization (Bradley 2015).
Case in point here is Electrolux, the appliance company that has for many years now have had a strategy of recruiting and developing a group of international managers derived from different countries. These create a pool of managers who are utilized by the company in their various facilities whenever the need arises (Treven 2001). Globalization has also put companies on their toes as far as supporting their employees’ professional development is concerned.
This is in order to attract and retain these employees as globalization had also within itself increased employee turnover. Companies have pushed for the professional development of their employees (Bradley 2015). Companies have started affording their employees opportunities to develop and enhance their career-related goals. Companies even sponsor their employees to earn university education while others allow the employees to attend conferences, networking events and training days. This creates in employees a sense of being taken care of (Bradley 2015).
Electrolux has for years now been training the subsidiary managers on how to actually meet their customers’ demands by learning their needs through the Consumer Innovation Program which highlights how they can innovate (Bloomberg 2006). There has been a greater emphasis on the training of employees due to globalization. Globalization has presented a new environment for business firms. And in order for the multinationals to operate in these new challenging environments, the employees of the multinationals require to be trained in new skills to cope with the new cultures that the organization is spreading its wings to (Sims 2007).
Some companies even host language classes for their employees working in the call center section. Training can also be on how to use global software to automate operations. Training gives these companies a competitive edge in the global markets (Bradley 2015). Globalization has also made multinationals to embrace laws governing employees in all jurisdictions. Companies have started having a well understanding of minimum wage requirements, working hours, tax allowances and the union laws inherent in the country these organizations are based.
A case in point is the scenario that Electrolux Thailand found itself in when it didn’ t respond to its worker's demand in increasing their annual salaries. The company instead dismissed the workers union president and illegally dismissed the employees (Industriall Union 2015). This is an indication of the lack of knowledge on the existing labor laws within Thailand on the part of management and lack of touch with its employees and inability to understand and respond to their requests in a civilized and democratic way.
Bloomberg 2006, ‘Electrolux redesigns itself’, viewed 21 April 2015, http://www.bloomberg.com/bw/stories/2006-11-26/electrolux-redesigns-itself
Boundless 2014, ‘The challenge of Globalisation’, Boundless management, viewed 21 April 2015, https://www.boundless.com/management/textbooks/boundless-management- textbook/introduction-to-management-1/current-challenges-in-management-21/the- challenge-of-globalization-133-10568/
Bradley, J C 2015, ‘Effects of Globalisation on human resource management’, viewed 21 April 2015, http://smallbusiness.chron.com/effects-globalization-human-resources- management-61611.html
Electrolux 2015, ‘Leadership development’, viewed 21 April 2015, http://www.electroluxgroup.com/en/leadership-development-2799/
Global.LT 2015, ‘Multicultural training’, viewed 21 April 2015, http://www.global- lt.com/en/us/cultural-training/expatriate-training.html
Harris, M M (ed.) 2008, ‘Handbook of research in international human resource management’, Taylor and Francis, New York.
Industrial Union 2015, ‘Electrolux imprisons then sacks workers in Thailand’, viewed 21 April 2015, http://www.industriall-union.org/electrolux-imprisons-then-sacks-workers-in- Thailand
Kapoor, B 2012, ‘Impact of globalization on human resource management’, viewed 21 April 2015, http://www.jimsjournal.org/6%20Bhushan%20Kapoor.pdf
Sims, R R (ed.) 2007, ‘Human resource management: Contemporary issues, challenges and opportunities’, Information Age Publishing Inc., Charlotte
Treven, S 2001, ‘Human resource management in international organizations’, Management, vol. 6, no. 1, pp. 177-189.