Globalization effect on human resource management
When a business expands its operations internationally, the impact on human resource management and development is quite evident. The department must adapt to changes that come with globalization such as cultural differences, technological developments and foreign regulations.
The human resource department has to ensure that all the employees who are to be transferred to other countries are trained in the ways to conduct themselves in such countries. The department is also charged with the responsibility of processing visas, work permits, language acquisitions and housing too (Sparrow, Brewsterb and Chung, 2016). There are cases when the company cannot find the labour force from the international country on their budget or totally shortage of the labor force and therefore the need to transfer the employees at all those expenses.
The long-distance employment and the availability of employees away from the human resource department creates a challenge in communication and offering training to the employees. Human resource department looks on the welfare of the employees by training them and providing other necessary support and motivation (Brewster, Houldsworth, Sparrow and Vernon, 2016). With the globalization, the department gets a lot of challenge on discharging their duties fully.
The health sector has a compelling effect on the economic growth of the economy of a country. Investment in health human capital measures by the ratio of healthcare expenditure to GDP positively and influences the growth of per capita income (Bedir, 2016). This was found after controlling the standard growth determinants. Health spending and economic growth are important because they have a bilateral causality and long-run relationship in most countries.
When considering health and wages of different countries, the healthcare issue is an important aspect to put into consideration. Healthcare positively contributes to economic growth. Expenditures on salaries and wages in the healthcare system denote the rate at which the economy of the country is, at any given time.
Purchasing Power Parity PPP is used by macroeconomics analysts to compare currencies of different countries through a basket of goods. The economists also compare the living standards and economic productivity of countries using PPP.
References
Sparrow, P., Brewster, C., & Chung, C. (2016). Globalizing human resource management. Routledge.
Brewster, C., Houldsworth, E., Sparrow, P., & Vernon, G. (2016). International human resource management. Kogan Page Publishers.
Bedir, S. (2016). Healthcare expenditure and economic growth in developing countries. Advances in Economics and Business, 4(2), 76-86.