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Management Challenges to Globalization

Recently, globalization has experienced a rising growth in globalization worldwide. This rapid growth of globalization has enabled the developed countries to extend their businesses by making investment in the developing countries. Acknowledging the increase of this investment in the developing countries, the entrepreneurs in the developed countries have started setting up the necessary infrastructure and facilities, which will enable them to produce low-cost goods for consumption and retail in the developing countries. A long with the rise in the trend, there is the emergence of a new concern within the core of globalization, and that is the management challenges facing globalization.

The most management challenge facing globalization is in the human resource management in the integration of underdeveloped, developing, and developed countries. The key issues in this sector involve staffing policies, selecting and retaining talented employees, cultural barriers, legal framework, training, and development of employees (John, Robert, pg 15). The changes in demographics in the workforce are significantly affecting management especially with the increase in diversity of employees and the aging of the workforce in many countries. When this management factor is combined with other factors affecting globalization they put more cost pressure in the various organizations. Consequently, many of the employers in the various organizations have reduced the number of jobs and employees as part of restructuring in the organization.

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The movement of jobs from countries with high-labor rate to those with low labor rates is also creating a challenge in management in the global world. As an indication, of this, employers in the developed countries are off shoring jobs with an aim of cutting down the cost of labor. In the process of doing this, there is an effect created not only on the on the number of jobs in the countries but also the occupation and skills needed as well.

Also as a challenge facing management, identification of international vendors and customers is a serious problem facing globalization. The investors have to be assured of the availability of infrastructure, which will support the business.

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