(a) 'Globalization' seems to be at 'cross-roads' as increasingly large number of countries embrace 'neo-nationalism' based on the…

(a) Globalisation at the crossroads: neo-nationalism and Indian firms

Globalisation is the growing integration of national economies through flows of trade, capital, technology, information and people. Neo-nationalism, as in Atmanirbhar Bharat (2020), tariff walls and screening of foreign investment, pushes self-reliance and local production.

Impact on Indian firms: gains include protected domestic markets, incentives under production-linked schemes, a boost to import substitution in electronics, defence and pharmaceuticals, and opportunities for MSMEs. Costs include costlier imported inputs and technology, disrupted supply chains, retaliation against exports, restricted foreign investment and limited economies of scale.

Strategic measures: balance local and global operations, diversify suppliers and markets, build capabilities in technology and design, use trade agreements, partner with global firms and aim to compete globally from a strong home base.

(b) Personality and the Big Five traits

Personality is the relatively stable set of psychological traits through which a person reacts to and interacts with others. The Big Five are: openness to experience, conscientiousness, extraversion, agreeableness and emotional stability (neuroticism).

Conscientiousness is the best predictor of job performance across jobs, through planning, discipline and persistence. Extraversion predicts success in sales and leadership. Openness predicts creativity and learning. Agreeableness predicts cooperation and teamwork but may lower negotiation strength. Emotional stability predicts resilience to stress and lower absenteeism, while neuroticism predicts stress and lower satisfaction. The links vary with the job and situation.

(c) Strategic human resource management and alignment

Strategic HRM is the planning of HR policies and practices so that they support the firm's strategic goals and competitive advantage. Alignment is vertical, with the business strategy, and horizontal, among HR practices.

A firm pursuing cost leadership needs efficiency, tight job design, standard training and performance pay. A differentiator needs creative, skilled people, investment in training, and rewards for innovation. Under growth, hiring and development dominate; under retrenchment, redeployment and cost control. Recruitment, selection, appraisal, rewards and development must therefore be designed to build the behaviours the strategy requires.

(d) Structure and design: mechanistic and organic

Organisations differ because of strategy, size, technology, environment and culture. A stable environment suits a mechanistic structure, a changing one an organic structure (Burns and Stalker).

A mechanistic structure has high specialisation, formalisation and centralisation, a narrow span of control and a rigid chain of command. An organic structure is flat and flexible, with cross-functional teams, wide spans, decentralised decisions, little formalisation and free information flow.

(e) Variable pay-for-performance plans

Variable pay links part of pay to performance: piece-rate wages, merit pay, bonuses, profit sharing, gain sharing and stock options (ESOPs).

For success, they need performance that is measurable and employees can influence, a clear, perceived link between effort and reward, a fair and trusted system, timely and meaningful rewards, a sound communication of the plan, and fit with strategy and culture, while avoiding short-term gaming.