Globalization is one of the factors affecting the employee relations, otherwise known as the industrial relations. Strategic management is important because changes in employee relations has resulted to increased bargaining power of the employees, flexibility in working time as well as changing job functions and this has occurred due to the increase in competition, product processes changes due to consumer awareness combined with the increasing essence in quality, productivity and skills. An integration of all these factors has had impact on the practices and policies of the management. While managing change in the firm, the employee involvement in making sure the change is effected is very important while the management has to ensure that the skills processed by the employees are compatible with those required in the market to meet the customer needs. The results of globalization are that:-

oCountries have become more interdependent economically than before due to the breakdown of barriers of trade hence they cannot become self reliant.

oGovernments have been unable to control information, technology and capital flow across the boundaries.

oMarkets are now not regulated allowing the goods, services and capital to integrate like the European Union

oCompanies are becoming global entities which are forming the global webs due to de-nationalization of firms

oThe firms have discovered the importance of remaining competitive in the market b y producing high quality services and goods

A strategic human resource management is essential in making sure the objectives of production of high quality products, ability to counter fast to the dynamics of the market and continuous innovation are attained, and this can only be achieved through employee training, involvement and intrinsic and extrinsic rewards, this making the employee relations to be of paramount importance in management. In many firms which include the general motors, the employee relations are taken to consist of five values which have enabled the management to succeed in achieving its objectives, these are:

oHow the works are organize

oAcquisition skills and development of employees

oCompensation and pay processes and structures

oSecurity arrangements on employment and staffing

oLabor management issues

With the increased importance of the employee relations, the human resources is has shifted it focus to quality, innovation and reduction of the cost. The importance of human resource management (HRM) is reflected in the personnel management in the firms. Employee relations (ER) is better viewed as a long term goal rather than short term because it deals with the way the HRM treats the people in long term view. In successful companies like General Motors it’s noted that how the workers are treated is a key item feature in the long term beside other factors like the corporate culture and the objectives.

Today in most industries, the HRM is recognized since it’s of big concern to the company since it’s not meant to only ensure that the employees comply with the laid down policies but also win commitment of the workers, this therefore makes the ER a worthy investment. HRM strategies are affected or influenced by the decisions made in relation to the structure, strategy and considering the external factors like the legal system, labor market position and the influence of trade unions.