Week 2 Assignment I need help with a paper on Global Economy, with an introducti

Question

Week 2 Assignment

I need help with a paper on Global Economy, with an introduction, body, from 2009 to current, prepare a 1,000 word APA formatted paper that explains, discusses, and analyzes the current global economy as it relates to the human resources profession and its functions. Compare and contrast domestic and international human resources practices and the evolution in the human resources profession.

Include concepts from the textbook and 7 peer-reviewed references from the online library to support your details and enrich your analysis.

Explanation / Answer

Global Economy is World-wide economic activity between various countries that are considered intertwined and thus can affect other countries negatively or positively. "In 2008, the global economy went into a tailspin as stock markets around the world faltered."
The global economy can have a big effect on how your business does because if there isn't much excess cash around its hard to get your hands on it

FACTORS DRIVING GLOBALIZATION

The increasing prevalence of globalization is driven by a number of factors, including shortage of talent in developed countries, availability of low cost labor and growing consumers in developing countries, and technological progress. Shortage of Talent in Developed Countries Despite the current economic downturn and unemployment, most developed countries, including the United States, Germany and Japan will face long term talent shortages mainly due to ageing and the retirement of baby boomers. There are more workers retiring than entering the labor force in these countries. By 2020, for every five retiring workers, only four new workers will join the labor force in most developed countries. According to one estimate the United States will need to add 26 million workers to its talent pool by 2030 to sustain the average economic growth of the two past decades (1988-2008) unless a technological breakthrough replaces manpower, while Western Europe will need to add 46 million employees (World Economic Forum, 2010). The shortage of workers is predicted across most industries, including manufacturing, construction, transport and communications, trade, hotel and restaurants, financial services, IT and business services, health care, public administration, and education. Availability of Low Cost Labor from Emerging Countries The opportunity has never been greater for multinationals to attract top talent from emerging countries, such as Brazil, Russia, India, and China, or to outsource work to these countries. Global population growth differs greatly between developed and developing countries. In the developed countries, USA, EU, and Japan, the current annual rate of growth is less than 0.3 per cent, while in the rest of the world the population is increasing almost six times as fast. According to McKinsey Global Institute, there are approximately 33 million potential professionals in emerging markets and they are growing very quickly. The stock of suitable, young professional talent in emerging markets is growing at 5.5 per cent annually, while the number in developed countries is growing at just 1 per cent annually (McKinsey Global Institute, 2005 - II). The total number of university-educated workers in low-wage countries far exceeds the number for higher wage countries. Currently, India produces as many young engineers as the United States, and China produces more than twice as many. Russia produces 10 times as many finance and accounting professionals as Germany. According to the International Organization for Migration, there were an estimated 214 million international migrants in the world in 2010, and fifty-seven per cent of all migrants live in high-income countries (World Migration Report, 2010). The number of migrants is likely to grow exponentially in the coming years. Furthermore, the migration of workers and outsourcing of work would not be limited to unidirectional flow from emerging countries to developed countries. Technological Progress Globalization is made possible by the development of cost effective, yet very powerful technologies, including the Intra- and Internet, enterprise resource planning system, data warehouse, data mart, and data analytics. Friedman (2005) defined globalization a whole set of technologies and political events converging—including the fall of the Berlin Wall, the rise of the Internet, the diffusion of the Windows operating system, the creation of a global fiber-optic network, and the creation of interoperable software applications, which made it very easy for people all over the world to work together—that leveled the playing field. It created a global platform that allowed more people to plug and play, collaborate and compete, share knowledge and share work, on a scale never seen before. Cloud computing and new advances in remote access and support technologies also seem to fuel globalization. Many service jobs, such as call centers, animation, transcription, and software development can be carried out remotely. It is estimated that 160 million jobs, or about 11 per cent of the projected 1.46 billion service jobs worldwide in 2008, could be carried out remotely, barring any constraints on supply (McKinley Global Institute, 2005 - I). Section 5 discusses a global human resource information system that collects and stores large volumes of data from various sources, including external and remote sources. The system is designed so human resource personnel are able to analyze the data to get business insights

CHALLENGES OF GLOBALIZATION

As stated in the previous section, the pool of talented individuals has been growing and is expected to continue to grow in the near future, mainly because of increased educational opportunities in emerging nations. In addition, the demand for such talent is likely to grow even faster in the same period. Based on data from 22 countries and 12 industries, a World Economic Forum study predicted that vast talent gaps between the supply and demand of highly skilled workers would appear by 2020 (World Economic Forum, 2011). The demand for talented people is growing not only from developed countries, but from the developing countries themselves as they pursue their own nation building. Human resource professionals at multinational companies in emerging markets such as China, Hungary, India, and Malaysia have reported in a recent survey that candidates for engineering and general-management positions exhibit wide variations in suitability (Guthridge, Komm, and Lawson, 2008). According to the McKinsey Global Institute, only 13 to 19 per cent of 33 million university graduates in developing countries are suitable to work in a multinational company, due to their lack of language skills, low quality of educational system, and lack of cultural fit. Also, only a fraction of these people are willing or able to relocate to foreign countries for employment (McKinley Global Institute, 2005 - I). It also remains the biggest challenge for global organizations‘ human resource departments to manage a workforce diverse in culture and language skills, and distributed in various countries. It is critical that the businesses not only familiarize with local ways of doing business, and understand the needs of local consumers, but also develop a global mindset among their employees. Being at the center of globalization, multinational organizations need to learn to integrate diverse value systems and espouse shared global work values to create an environment, where workers are able to communicate and coordinate their activities to reach common goals (Rosenblatt, 2011; Erez and Drori, 2009; Ralston et. al., 1997). Human resources must play new roles and responsibilities in leading the organization in uncharted waters of globalization.

ROLES AND RESPONSIBILITIES OF HUMAN RESOURCES

In the past, the function of human resources was typically considered a cost center and an administrative overhead. The human resource departments focused on short-term gains and savings. They focused on administrative efficiency and compliance activities. They tended to expense investments in talent intangibles rather than capitalize and tended to raise short-term earnings by cutting discretionary expenditure on people development (Guthridge, Komm and Lawson, 2008; Hamel and Prahalad, 1994; Schuler and Jackson, 1987, Bryan, 2007). Such tendencies achieved short-term successes but encountered long-term problems when the objectives were achieved at the expense of employee productivity. The role of modern human resource departments is to focus on organizations‘ long-term objectives. Instead of focusing exclusively on internal human resource issues, modern human resource department takes a balanced and broader approach. They place emphasis on future-oriented plans and objectives and value adding initiatives (Adler and Ghadar, 1990; Adler, 1997; Kobrin, 1988; Milliman et al., 1991; Tung and Punnett, 1993). Ulrich (1996) defines the roles of human resource based on the following four functions – Strategic business partner, Change Agent, Employee champion, and Administration Expert. They are also champions of globalization and technology savvy.

GLOBAL HUMAN RESOURCE INFORMATION SYSTEM

Global organizations are utilizing the organization‘s data to making informed decisions instead of relying on their intuitions or gut feelings. Likewise, HR departments of global companies also assemble data such as employee, attrition and hiring, compensation and benefits, ethnic, gender, cultural, and nationality distributions, and load the same into data warehouses and data marts. By analyzing the past and current data, business analyst get business insights, and make fact based decisions. The Global Human Resource Information System consists of a number of component systems that are interdependent. The various components may be broadly classified into the following three main sub-systems: Data Warehousing, Data Analytics, and Information Delivery. These tools and systemic processes are critical to formulate questions or hypothesis, to design data and analytical models, to compute and communicate results to appropriate users, and then for the users to draw business insight from the results to shape business decisions and, ultimately, improve performance.

Expect for the global economy in 2018

1. The US economy will sustain above-trend growth. IHS Markit expects growth in calendar year 2018 to be 2.6%, above the 2.3% in 2017, and well above the 1.5% in 2016.

2. Europe’s expansion will slow a little, but remain solid. The relatively tame outlook for oil prices will limit the upside for inflation, which bodes well for real income growth. Labour markets will continue to improve. A still competitive euro and strong global growth should help exports. Perhaps, most importantly of all, the policy backdrop continues to be growth-supportive. In particular, the ECB is expected to proceed gradually with its tapering of bond purchases through the end of 2018.

3. Japan’s growth spurt will fade. While the economy will continue to grow in 2018, momentum will ease relative to 2017. We forecast growth will soften to 1.2% in 2018, from 1.8% in 2017. The weak yen is likely to support exports and tourism, but this could be offset by softer growth in Japan’s major trade partners, especially China.

4. China’s momentum will weaken. China’s fundamental problems of excess industrial capacity, debt overhang, and a housing glut have remained unresolved. The government will continue to address these problems through the “Supply Side Structural Reform” program in the near-to-medium term. These structural problems and the government’s policy response will be a drag on the economy, in general, and investment demand, in particular. This will result in growth diminishing to 6.5% in 2018.

5. The performance of the emerging world will improve gradually. IHS Markit predicts a further modest rise in growth to 4.9% in 2018 as the global environment continues to be growth-supportive. While some countries will see stronger growth in 2018, other countries and regions will face challenges. Growing debt burdens could become a risk for many economies. In Asia, India will recover from its twin policy shocks of demonetization and the imposition of the goods and services tax. At the same time, Indonesia, Malaysia, the Philippines and Vietnam will sustain 5-6% growth.

6. With the rally over, commodity prices will be range-bound and volatile.While oil prices rose at the end of 2017, and OPEC and Russia agreed to extend production limits for another year, continuing growth in non-OPEC liquids will keep a lid on prices.

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