{"id":95,"date":"2012-04-28T14:08:00","date_gmt":"2012-04-28T14:08:00","guid":{"rendered":"http:\/\/lucilleossai.com\/Blog\/index.php\/2012\/04\/28\/the-impact-of-globalisation-on-the-new-employment-relationship\/"},"modified":"2022-10-18T15:00:31","modified_gmt":"2022-10-18T14:00:31","slug":"the-impact-of-globalisation-on-the-new-employment-relationship","status":"publish","type":"post","link":"https:\/\/lucilleossai.com\/blog\/2012\/04\/28\/the-impact-of-globalisation-on-the-new-employment-relationship\/","title":{"rendered":"The Impact Of Globalisation On The ‘New’ Employment Relationship"},"content":{"rendered":"\n
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This article will be divided into two parts.<\/p>\n\n\n\n

Part 1 would examine the impact of globalisation on the \u2018new\u2019 employment relationship and workplace dynamics, as well as its implications for both the organisation and employee.<\/p>\n\n\n\n

Part 2 would focus on the effects of globalisation on the world stage, using as a case study, the Global Financial Crisis of 2008. It would also contain the conclusion to this piece.<\/p>\n\n\n\n

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PART 1: Article views in web history: 9,933+<\/em><\/strong><\/p>\n\n\n\n

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The Impact of Globalisation On the \u2018New\u2019 Employment Relationship<\/strong><\/h2>\n\n\n\n
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It is a well-known fact that the \u2018old\u2019 employment contract is archaic, and if one were to be blunt \u2013 dead. The \u2018old\u2019 employment contract, whereby the traditional promise of a trade-off  between a secure job, a fair day\u2019s pay or a career in an organisation, (which employees desire to receive), for the loyalty and hard work, (which they are expected to provide), is no longer plausible, (Guest, 1998).<\/p>\n\n\n\n

Echoed in organisational behavioural science literature is the reaffirmation that the \u2018old\u2019 contract \u2013 generated in a period of full employment, stability, growth and predictability \u2013 was built on steady financial rewards, investment in training and expectations of advancement. These desirables were exchanged for hard work and loyalty, (Spindler, 1994).  In that era, employees, in fact, exchanged compliance for security. As it is virtually impossible to operate in a predictably unchanging environment, the \u2018old\u2019 contract is regrettably not sustainable in today\u2019s fast-paced environment and technological advancements. Consequently, the \u2018new\u2019 employment contract is expressed in terms of what many see as a degradation of the employment relationship and levels of trust.<\/p>\n\n\n\n

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Globalisation ushering in a new era<\/strong><\/h2>\n\n\n\n
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Globalisation<\/em>, generally defined as a conflation of ideas encompassing the free flow of international trade, global technology etc. is widely cited as one of the main sources of the shift in the dynamics of the employment relationship: moving away from a state of predictable security, in terms of one\u2019s tenure in an organisation, to the ever-changing, ever-competing reality of flexible careers.<\/p>\n\n\n\n

Globalisation obliges organisations to seek flexibility in the management of their human resources. This has led to a growing number of organisations opting for the use of a contingent workforce, such as short-term, part-time, ad-hoc and contract staff. Other alternative forms of worker representation are also adopted, namely human resources initiatives, employee involvement programs, teams and quality circles, total quality management etc.<\/p>\n\n\n\n

Indisputably, globalisation heralds in a new era in the employment relationship by introducing new opportunities and birthing new innovations. It has also been stated that it contributes to economic growth in developed and developing countries, through increased specialisation and via the principle of comparative advantage.<\/p>\n\n\n\n

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The world seems to be revolving faster with every blink of the eye. Geographical boundaries, hitherto obstacles to business expansions, are being eroded or blurred by the virtual world and new innovations in communications. The Internet with its social media platforms, (Facebook, Twitter, LinkedIn, etc.), is revolutionising the way we communicate and interact with each other on a personal level and via business networking. Platforms utilising Voice Over Internet Protocol (VoIP) systems, as well as devices for video conference calls, Skype etc. (which have either drastically cut, or even eliminated the cost of long-distance calls), have made it easier for businessmen based for example, in the United States, North America, to close deals in Singapore, Far East Asia. Employment opportunities rooted in \u2018traditional\u2019 industries, (such as oil, timber, finance, health, construction, manufacturing and engineering), give rise to new positions in \u2018young\u2019 sectors, (such as IT, alternative energy, biotechnology, nanotechnology, R&D, etc.).<\/p>\n\n\n\n

According to the Wikipedia website, critics have alleged that the benefits of globalisation are exaggerated. Nonetheless, its influence is underestimated, as is evident in the wake of decreased inter-cultural contact and the increased possibility of international and intra-national conflicts. Tied to this argument is an incontestable outcome of  globalisation: innovation, which has become a permanent fixture, not only in our collective psyche but also in global economies. Amusing as it may seem, this \u2018apocalyptic\u2019 statement rings true \u2013 innovate or perish!<\/p>\n\n\n\n

An increase in employment opportunities signals greater flexibility in the workplace. Thus, as globalisation means that lifetime employment or job security can no longer be guaranteed by employers, neither can employees pledge their continued tenures in the organisations if they perceive that their various needs, (such as competitive pay and benefits, healthy  life-work balance, flexible hours, considerate employee welfare programs etc.),  are not consistently fulfilled. The \u2018new\u2019 employment contract thus emerges and is viewed by some as the \u2018individualisation of the employment relationship\u2019. Various researchers have echoed the following:<\/p>\n\n\n\n

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