Apart from technology, globalization is perhaps one of the factors that have taken over the world by storm. Indeed, from every corner of the world, the impact of globalization is being witnessed by everyone. Some of the industries that have experienced the effects of globalization are the hospitality and human resource. Therefore, firms in this sector need to embrace globalization since it has a direct impact on their human resource departments. From the data that has been published by many researchers, it is apparent that globalization has a significant effect on human resource departments of many a company. An in-depth and detailed analysis of the impact of globalization in the hospitality industry and human resource departments is provided in this paper.
Indeed, globalization has dramatically affected the manner in which people and organizations carry out their activities. For instance, many firms have invested to a great extent in the training of their staff so that their skills can be in tandem with the current as well as emerging trends in the world of business. Some of the factors that signify globalization are rapid movement of information, people and capital across borders in ways that have never been seen before. Countries, where globalization has been deeply entrenched, have taken over hospitality as one of the primary drivers of their economies. Indeed, the global hospitality industry has been noted to be one of the world’s biggest employers. Hence it can not be ignored or underestimated. Additionally, it has been considered to be one of the major traders of foreign currency, earning countries millions of foreign exchanges (Bradley, 2017). Another importance of the hospitality industry is that is has played a significant role in bringing people from different cultures and backgrounds together. All these have been linked to globalization. In the rapidly growing global business environment, hospitality can, therefore, be termed as a concept, a way of life, and not just an industry like the others.
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In the international business area, globalization has been considered to be at the core of globalization. As a result, firms that are involved in the hospitality industry need to keenly look at the various ways in which globalization affect them and their activities in general. They will need to understand the manner in which globalization affects competition as well as their clientele base. Some of the factors that characterize international business lifestyle in the course of globalization are dealing in foreign currencies, communicating in foreign languages, coping with diverse social and political systems and finally frequent travel overseas. Despite the fact that these aspects of globalization are straightforward to comprehend, it is imperative that organizations and other stakeholders develop methods that they can use to identify the underlying future and current trends (Rodrigo, 2017 ).
It will be foolhardy for companies in the hospitality industry that want to overlook globalization and its effects to proper. Most firms that ignore globalization significantly jeopardize their chances of survival and succeeding in the business arena, especially in the current competitive world. The hospitality business in the U.S is an example of those that have been at the threat of stiff competition from other markets, especially from Asia. Due to globalization, critical players in the hospitality industry have adopted a paradigm shift how they handle their human resource departments. Indeed, human resource departments are at the core of every company because of the principle role that they play in the day to day running of firms.
In the foreseeable future, globalization has been seen to affect almost all aspects of the hospitality industry. Some of the things that will be competed for on a global scale are sources of capital, employees, management processes and customers. Organisations that will not be prepared for such tremendous changes will automatically be left behind and will not be able to forge ahead in the course of globalization. Some regional and local firms may be misinformed to think that they will not be affected by globalization. Some of them fail to comprehend that future competition will be determined by the global entities as well as some of the merits that are associated with globalization.
Effects of Globalisation on Human Resource Management
Globalisation mainly revolves around the manner in which companies integrate their strategies and processes, services, products as well as other factors into diverse cultures. The magnitude of which globalization has taken over the world has affected how new firms manage their employees. By understanding all the elements that revolve around globalization, managers will be better placed to prepare their companies for the contemporary business environment.
Diversity in Recruitment
Human resource departments in the hospitality industry have been at the forefront in recruiting employees from diverse backgrounds and cultures. Similarly, a majority of human resource managers have reverted to hiring employees from various cultures to benefit from diversity (McGuire, 2015). Organisations that use such methods in the process of hiring employees understand the different ideas that can be brought by such employees once they are brought on board. Their wealth of experience in their diverse fields is of utmost importance to the running of an organization, especially one in the hospitality sector.
Greater Emphasis on Training
Globalisation in human resource management has also brought about a greater emphasis on the training that is accorded to most employees in the sector. On most occasions, the practice tends to be focused on the professional competencies and the needs of employees in that particular firm. For instance, the company may decide to train their employees in other languages by hosting language classes. Additionally, they can also be prepared by using new software that may improve efficiency in the hospitality industry. The training that these employees are accorded is vital since it equips them with the relevant skills that ultimately gives them an edge over their competitors in the global arena.
Management of Laws Across Jurisdictions
Indeed, globalization has a plethora of effects on the hospitality industry. Another impact that it has on the sector is that it enables enterprises to understand the laws that apply to similar jurisdictions (BBC, 2014). The United States Federal government has put in place stringent rules about taxes as well as labor that regulate firms that operate within the United States. Additionally, there exist regional and state laws that such companies need to comply with in the course of their operations. A breach of the existing rules might ruin the company’s reputation and dent its image in the face of the public and its clients.
Push for Professional Development
Another effect that globalization has on the human resource is that is pushing the organization to engage in the professional development. In this endeavor, firms should aim to provide their employees with opportunities that they can use to improve their career-related goals. Some of the ways that companies can do so are by sending their employees to seminars and workshops where they can meet other employees and learn from each other. Similarly, companies can also provide their workers with the necessary resources that will enable them to peruse degrees and related further studies to improve their qualifications and skills. Professional development is of utmost importance since it creates a win-win situation for both the employees and other employers in the height of globalization. Such a move motivates employees since they feel that the organization cares about them and their overall welfare. On the other hand, the company also benefits from the full range of skills that the employees will gain.
Impact of Globalisation on Economics
Globalisation has a very significant impact on economics. Companies in the hospitality industry cannot gain much by just limiting their operations in their localities. Such firms will benefit significantly by venturing out into other nations where they will have an additional market share. Their customer base and profits will dramatically increase when they increase the number of properties they own. Research indicates that significant organizations need to move beyond their borders and view the world as a borderless marketplace if they want to compete in the global arena and remain relevant.
Major hotels in the word such as Hilton, Marriot, Hyatt, and Intercontinental continue to thrive even in times of crisis merely because they have globalized their operations. Hotel companies are better placed to globalize in as many nations as possible if they desire to remain competitive. They should also aim to expand periodically so that they can keep pace with the competition and have the edge over their rivals. The more the number of countries in which a hotel has its operations, the more their chances of surviving and thriving in the hospitality industry.
Impact of Globalisation on Culture
Ove the past decades, the world has been transformed into a global village where people can communicate and interact with each other with ease. The world is a place that has different traditions and cultures. Therefore, most, if not all hotel companies have to address and adopt an approach that is similar to the residents of a country or region where they have set up shop. They will have to provide services that are commensurate with their prospective customers’ needs. Subtly, they will eventually have to settle in a country where they have understood all the laws about cuisine so that they do not kickstart their services on a wrong note.
In conclusion, it is imperative to note that globalization is a trend that has affected many parts of the word and transformed the business landscape in a significant way. Its impact on the hospitality industry and human resource cannot be underestimated or ignored at any cost. Therefore, organizations in the hospitality industry who wish to thrive should develop a good understanding of globalization and its overall impact on their operations in general. Doing so will enable them to reach unfathomable levels of success as compared to their competitors.
References
BBC. (2014). Globalisation. BBC , 54-68.
Bradley, J. (2017). Effects of Globalization on Human Resources Management. Hearst Newspapers , 56-72.
McGuire, K. (2015). Top 10 Global Trends that will Change Hospitality in 2015. Hospitality Net™ , 96-107.
Rodrigo. (2017 ). Human Resource Management in the Hospitality Industry. The WritePass Journal , 121-127.
