The important role of employees in achieving organizational goals and objectives has been recognized by both practitioners and scholars (Floyd and Wooldridge, 1997; Li, Guohai and Eppler, 2008; Fox, Donohue and Wu, 2007). The change in the appreciation of the role of employees in the organization has been precipitated by several factors, but one of the most important elements influencing this change is globalization. Globalization is a contemporary phenomenon (Soros, 2002). It has influenced almost every facet of contemporary life (Morgan, 2003). As such, it has been defined in several ways (Suarez-Orozco & Qin-Hilliard, 2004). However, the common understanding of globalization is that it concerns economic changes adopted by nation states as they enter the global market (Soros, 2002). Globalization is generally understood as the removal of economic barriers to trade between nations, thereby allowing a freer movement of goods, services, products, capital, knowledge, foreign investment and people (Soros, 2002; Balakrishnan , 2003; It has been noted that as globalization brings about economic changes, changes in economic policies and the fundamental principles underlying the economic trade relations of nation states with other countries are also undertaken (Peet, 2003 ). In this regard, through globalization, the global market economy has been opened up, making the world accessible and smaller at the same time. Since then, “because of globalization, national borders are constantly losing their importance as limits to human interaction in general and to economic collaboration in particular. This means that for all economic actors, their natural spheres of activity extend from national to multinational or even...... middle of article ......z, JE 2000 “Towards a new paradigm Development”, Global Development, Vol. 20, Iss 6,1075 – 1086.--- 2004, “Capital market liberalization, globalization and the IMF”, OxfordReview of Economic Policy, Vol. 20, No 1, 57 – 70.--- 2008, “Government failure vs market failure: principles of regulation” Presented in “Governments and markets: towards a new theory of regulation”, held from February 1 to 3, 2008 , in Yulee, Florida.--- 2009, “The global crisis, social protection and employment”, International Labor Review, vol. 148, No. 1-2, 1-14. Wilkins, M 1991, “European and North American multinationals, 1870-1914: comparison and contrast”. In Mira Wilkins Ed., The Growth of Multinationals, Edward Elgar Publishing, US. Yearbook of International Organizations 12th Ed 1968 -1969, pp. 1189 – 1214. Consulted on www.un-intelligible.org. Accessed March 3 2011.