Wednesday, 23 July 2025

Globalization and Technological Advancement.

The Impact of Globalization and Technological Advancement on Strategic HRM.


Most of the organizations on today operates across multiple countries, cultures and regulatory environments. As the companies expand internationally, they encounter diverse workforces that require effective management strategies. Globalization necessitates the development of inclusive HR practices to address cultural differences, language barriers, and varying work ethics (Ijrar,2018). 

There are several key challenges can identify which occurs along with the globalization and technological advancement in SHRM. For examples, Cultural barriers, legal & compliance issues and changes in recruitment processes. 

Impact of Globalization on Strategic Human Resource Management.

The major challenge of globalization in HRM is balancing global standardization with local responsiveness. With globalization, the organizations have open their doors to the employees from different cultures, with different attitudes and practices. Also, the organizations have expand themselves across other countries which have different nations and different practices. As a result, most organizations are facing difficulties with,

  • Cultural barriers.
  • Unconscious bias.
  • Cultural misunderstandings.
  • Managing remote and multicultural teams. 
  • Compliance with international labor laws and ethics.
  • Global talent acquisition. 
In this cases, the human resource team has vital role to straight line the organizational operations by providing,
  • Cross-cultural trainings.
  • Language support programs.
  • Use global HR consultants to manage cross-border issues.
  • Leadership development program.

Impact of Technological advancement on Strategic Human Resource Management.



Technological advancement plays a pivotal role in the strategic change management. The SHRM made a noticeable transformation with the rise of Artificial intelligence and the machine learning in talent acquisition and predictive analytics for employee performance assessment (kuey,2024). 

Technology is changing HR in both positive and negative ways, and keeping up with these changes can feel overwhelming. Four leaders share tips for managing the changes (Mark Feffer,2020). Here are some of the most common ways of technological impact to the Human resource management. 
  • Digital Recruitment.
  • Cloud based HR solutions. 
  • Online e-learning platforms.
  • Chatbots and virtual assistants.

As a banker who works at Sri Lankan Banking sector, the impacts of globalization and technological advancement is highly visible for the employees who working in this sector. Some of the private sector banks in Sri Lanka such as HSBC is a good example for the globalization as it is an international bank which has a diverse cultural impacts when it comes to globalization. The main branch of HSBC bank is located in USA. However, it has expand their branches in 62 countries including all over the world across five major regions. Accordingly, this can be taken as the best example in banking sector. 

Also, with the current advancement of technology, most of the companies including banks using this in a good way for their human resource practices, such as online recruitments processes, performance monitoring, learning platforms, remote work flexibility and HR analytics. These technological advancement comes with lots of benefits for the organizations which ease their HR and operational works. 

References.

  • Feffer, M. (2020). The impact of technology on HR: The good, bad and daunting. [online] SearchHRSoftware. Available at: https://www.techtarget.com/searchhrsoftware/feature/The-impact-of-technology-on-HR-The-good-bad-and-daunting.
  • ‌THE IMPACT OF GLOBALIZATION ON STRATEGIC HUMAN RESOURCE MANAGEMENT. (2018). Available at: https://ijrar.org/papers/IJRAR19D5864.pdf.
  • Brewster, C., Chung, C. and Sparrow, P. (2016) Globalizing Human Resource Management. 2nd edn. London: Routledge.

  • onlinestudy.uclan.ac.uk. (n.d.). How has technology impacted human resource management? [online] Available at: https://onlinestudy.uclan.ac.uk/resources/how-has-technology-impacted-human-resource-management.
  • Cascio, W.F. and Montealegre, R. (2016) ‘How technology is changing work and organizations’, Annual Review of Organizational Psychology and Organizational Behavior, 3(1), pp. 349–375.
  • Marler, J.H. and Boudreau, J.W. (2017) ‘An evidence-based review of HR Analytics’, The International Journal of Human Resource Management, 28(1), pp. 3–26.
  • Stahl, G.K., Björkman, I. and Morris, S. (2012) Handbook of Research in International Human Resource Management. 2nd edn. Cheltenham: Edward Elgar Publishing. 

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6 comments:

  1. Dilanka Sadeeshwaranath30 July 2025 at 07:25

    This is a well-rounded overview showing how globalization and technology deeply shape Strategic HRM today. I appreciate the real-world banking example—it makes the concepts tangible. Highlighting both cultural challenges and tech advancements captures the full picture nicely. It would be interesting to hear more about how organizations can balance global consistency with local adaptability in HR practices. Great work!

    ReplyDelete
    Replies
    1. Kavidi Pietersz1 August 2025 at 11:13

      Thank you for your thoughtful comment. Glad to hear the banking example help to ground the discussion. The banking sector example is more relevant to this discussion as regulatory requirements and the differences of customer expectations who are around the world is highly visible in this sector. Also, you have raised a great point about balancing global consistency with local adaptability, which is a major challenge in the international HRM.

      Delete
  2. Sajitha Priyangani30 July 2025 at 08:41

    Hi Author

    This is an informative and balanced debate on how both globalization and technology growth have had a twofold effect on SHRM. Your ability to relate theory with practice, such as the cases of HSBC and the banking system in Sri Lanka is the way I really liked it too, because it makes the work more realistic and familiar. The fact that the international standards of practice have to be accompanied by the local requirements is particularly applicable as of this day and age, and the fact that you brought up the issue of cultural boundaries and adherence to the legal requirements brings up the very issues that HR teams are dealing with at the present moment. The way you described how technology is redefining the HR through such practices as digital hiring and virtual training is on point too. Great work! More specifically, it would also be intriguing to get to know more about the way in which the Sri Lankan banks particularly have been dealing with cultural training or technology adoption within various branches.

    ReplyDelete
    Replies
    1. Kavidi Pietersz1 August 2025 at 22:26

      Hi Sajitha, Thank you for your encouraging comment. I'm glad that you agreed with the provided examples related to the banking sector as my aim was to how SHRM operates across the boarders as well as in Sri Lanka. You point about exploring how Sri Lankan banks are handling cultural training and tech adaption is both timely and insightful. For example, many leading banks in Sri Lanka such as NDB and commercial bank are now investing in digital geographical diverse teams. Stone and Deadrick (2015), has emphasized that technological integration in HRM must be coupled with strong change management and cultural intelligence practices.

      Delete
  3. Akhila Senadheera30 July 2025 at 10:41

    This is a well-articulated article that captures the dual influence of globalization and technological advancement on strategic HRM. I particularly liked the way you highlighted the challenges of balancing global standardization with local responsiveness. Your discussion on technological transformation is also timely.

    ReplyDelete
    Replies
    1. Kavidi Pietersz1 August 2025 at 22:33

      Thank you for your thoughtful comment. I'm really pleased to hear that the balance between globalization and local responsiveness resonate with you. It is one of the biggest challenges in today's multinational HR teams. In a research conducted by Marler and Fisher (2013) highlights how strategic use of technology can enhance decision making, streamline the processes and improve alignment with broader business goals.

      Delete

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