Analyse the emerging trends in managing global workforce.

Globalisation: Globalization refers to the increasing alliance of countries in order to diminish barriers to international trade such as tariffs, fees, duties and import/export quotas. It is the process by which regional economies, societies and cultures integrate through communication, transportation and trade. These are different types of globalization but the most important is economic globalization. Economic globalization means transformation of small economies into the international economy through trade, foreign direct investments, capital flows, migration of people and the spread of technological advancement. Globalization gave birth to mobility of labour across international boundaries. According to ILO (international Labour Organization) statistics there is a workforce of 3.8 million around the globe. Around 49.7% people are earning less than 2 dollars a day, which means they are living below the poverty line. Moreover 185.9 million people are unemployed. These statistics indicates that the resources are not equally distributed among the nations. These factors are responsible for the movement of human capital and because of this scenario companies have to manage global workforce. Below are four major factors that play a vital role in managing global workforce. 1) Liberalization of Economic Policies Nowadays countries has relax their economic policies as a result it has increased the interdependence of world economies and because of this there is a growth in cross-border trade of commodities services, flow of international capital and wide and rapid spread of technologies. Considering these elements companies manage its work force through these techniques. o Interconnectedness

o Delocalization
Interconnectedness It means a decision made in one region effects other regions of the world. Delocalization Cultural, Political, Economic, Social, Actions which were determined locally or delocalized because of globalization.

2) Increase in FDI (Foreign Direct Investment) FDI means entering into a foreign market by developing foreign based assembly or manufacturing facilities. FDI has advantages and disadvantages for an economy like it may causes a flow of money into the economy which stimulates economic activity. It will help in increasing employment rate. It may give domestic producers an incentive to become more efficient. FDI has some drawbacks as well like it may cause rise in inflation may increase slightly. Domestic firms may suffer if they are relatively uncompetitive. If the volume of FDI in a particular industry is big e.g. FDI in the automotive industry a country can cause too much dependence and it may resulted the failure of local automotive industry of the country. 3) Emergence of New Economic Blocs Economic Blocs have influence in all global affairs whether they related to business or workforce. These blocs directly effect on each country in the union. It has been started in 1957 by the name of European Union for particularly for European countries after that some other regions of the world also made their own separate blocs. EU common market 1957 When European Union built up, it had been started in 1957 with 3.75 million people. There are 27 member countries up to now. The reason of creating a common market is to create a single economic market. These countries are doing 20 % of exports of the world. Following are the outcomes of EU common market. Removal of Barriers Removal of tariffs and Quotas

Free movement of People Increased use in Technology

NAFTA (North America Free Trade Agreement)

NAFTA was formed in 1989 among three countries USA, Canada and Mexico with the population of 360 million people. A trade volume of $6.7 trillion in 1994 and became a free trade zone. USA exchange 1 billion dollar of goods and services with Canada every day.

Mercosur Trading Bloc (South and Latin America) Member countries Brazil, Chilli, , Argentina, Uruguay and Paraguay, are part of this block. This bloc has emerged recently but it is growing rapidly. Currently with a population of 200 million people.

4) Increase in Mobility of Labour across international borders: It is the era of technology and communication. If a situation is vacant America, people can see it in Africa. This situation makes the world a Global village. People from all over the world keep looking for opportunities and thus they travel across the globe. This process has increased the mobility of labour across international boundaries. Flexibility Todays age of increasing competition, diminishing operating profits, redundancies, business closures and mergers, and an ever higher degree of uncertainty, organizations need to have the ability to adapt to fluctuations in demand and to changes in their environment in order to be successful or even in order to survive. This extreme need to adapt has led organizations to be flexible in as many aspects as possible, including search for flexibility in their production methods, their access to and availability of financial resources. To address all these issues, Atkinson in 1984 has come up with it flebibilty model called 'Flexible firm', he introduced four components 'numerical', 'functional', 'financial', and 'distance flexibility. Briefly numerical flexibility is where the management can adjust levels of labour in line with demand, functional flexibility is the ability to train and deploy labour over a range of tasks, financial flexibility is the extent of the pay structure as within the roll of the flexible firm, and distance flexibility is the replacing of permanent employment contracts by measures of commercial substitution, According to Atkinson the workers are split up into two groups .

There are two types of workforce.

1. 2.

Core workforce Peripheral workforce

1. Core workforce
People who are competent, skilled, experienced and knowledgeable came in this category. These people are usually at senior managerial level. . They are difficult to replace. These people are also called standard workforce. Peripheral workforce

These people are less competent and responsible for lower level jobs .They are usually manual workers, difficult to manage. For example Holiday Hiring

Part Time Work Casual Work

Conclusion In the 20th century, nations saw something new and then world become part of the global village and trade barriers between them reduced or removed completely. Globalization of trade and economy are taking deep roots in the world. Events of the last 5 years of the previous century have focused our attention on the knowledge of industries. Quality human resources have become an important ways with which to respond to the emerging environment Therefore, knowledge of the workforce in particular as a vital role to play in the emergence of the digital economy.