Concept Of Human Resource Management And Globalization Commerce Essay

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HRM in business management is expedient for achieving global targets in an extremely competitive environment. Diversity, a function of economic systems, company activities and values, political and legal formations including employee gender and skills influences international business. Economic systems elucidate resources administration while recruitment and retention of talented workers is a value addition exercise; hence a diverse workforce is a resource to achieve global organizational targets.

Recruitment and Retention of talented staffs brings constancy to a company by attracting and hiring talented workers. Recruitment and retention of talented workers is now a value-accumulating and success-contributing exercise in most organizations. 

During recruitment and retention of talented staff, including diversity should be acknowledged because a diverse workforce acts as a resource than a threat.

1.1 INTRODUCTION

In the current global economy, the success of HRM activities in organizations largely depends on the resolve of management to imbibe workforce diversity because of its immense impact on corporate globalization drives.

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The relationship between Globalization and human re­sources management with diversity in recruiting and retaining the best staffs in organizations today cannot be overemphasized. A lot as being has said about the contribution of HRM and work diversity in today's globalized economy and a lot has being done to make managers appreciate it. HRM and workforce diversity factors have been recognized as key elements in achieving organizational goals recently. This paper attempts to shed more light on these facts for better appreciation and employment.

2.0 THE CONCEPT OF HRM AND GLOBALIZATION

HRM is the practice model of personnel management that focuses on analyzing and managing human resources. It is characterized by an emphasis on strategic integration, employee commitment, workforce flexibility, recruiting, screening, training and appraising. Globalization on the other hand primarily amplifies and exploits social, political, economic and cultural affairs on world markets. It deals with the "escalating mishap of trade barriers and the growing incorporation of world market" (Fafowora, 1998:5). It is the systematic restructuring, in interactive phases, among nations by breaking down barriers in the areas of culture, commerce, communication and several other fields of endeavors (Ohuabunwa 1999: 20). It aids the free movement of international capital assisted by the supersonic transformation in information technology (Tandon 1998B: 2).

Globalization has driven the UK economy for higher efficiency with the aim of recruiting and retaining the best skilled worldwide. Sustaining commitment has become challenging where employee are downsized. HRM consultants responded by promoting substitute programs which offer information on in-house openings and skills development for job se­arch outside the firm. Foreign investments in the UK have been impacted due to globalization; in manufacturing, nearly one-fifth are employed in fo­reign organizations. This development has brought with it new HRM operations which can spill into domestic forms.

2.1 ADVANTAGES AND DISADVANTAGES OF HRM

ADVANTAGES OF HRM IN A GLOBALIZED ECONOMY

There are various advantages of strategic human resource management.

It helps analyze the essential opportunities and threats from the company's point of view.

It helps develop strategies and vision for the future of organizations.

Competitive intelligence is attained through the implementation of strategic human resource management.

The proper implementation of strategic HRM can reduce abrasion pace.

HRM performs the task of employee motivation.

HRM offers the improvement and maintenance of proficiency among employees

HRM helps management to take proper measures by ascertaining weaknesses and strength of the organization.

HRM help to ascertain if employees are happy and content.

LIMITATIONS OF HRM IN A GLOBALIZED ECONOMY

The process of strategic HRM is a complicated one and barriers in the growth of employees and in turn the company, are created if strategic HRM is not implemented properly. Following are some commonly observed problems.

Struggle to change from the foundation line employees.

Lack of clear communication to the employees about the vision and mission of the organization.

Team dis-functionality and improper implementation of HR policies.

The diversity of workforce.

Conflict among the employees and discrimination.

The resistance from institutions such as the labor unions.

Changes in the nature of workplace.

2.2 THE ROLE OF HUMAN RESOURCE MANAGEMENT

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HRM supports high performance work system. HRM practices involve employee recruitment and selection, performance management, training and development, work design, compensation, employee relation and human resource planning. These practices are designed to give employee skills, incentives, knowledge and autonomy. HRM practices in workplace have been said to be associated with the increases in productivity and long-term financial performance.

Company performance

Analysis and design of work

Human Resource Planning

Recruitment and Selection

Training and Development

Compensation

Performance Management

Employee relations

Analysis and design of work: understanding of job, employees participating in planning changes in equipment and work methods, job rotations, using of various skills, setting Goals and roles, job evaluation

Human resource planning: stock plans, strategic planning, forecasting, mergers and acquisition, international human resource.

Recruitment and selection: interviewing, testing, temporary labour coordination.

Training and development: Training on finance and quality control methods, Orientation, performance management skills training, productivity enhancement.

Compensation and Benefits: Wages and salaries administration, executive compensation, profit sharing, insurance, retirement plans, team based performance pay.

Performance management: Employee receives performance feedback and are activilt involved in the performance improvement process, labour law compliance, record safety inspection, health and wellness.

Employee relations: Attitude survey, labour relation, publications, labour law compliance and discipline

CHALLENGES OF HUMAN RESOURCE MANAGEMENT

Two types of challenges are faced by HRM today which include:

- THE CHANGING ENVIRONMENT: under the changing environment we have

Increasing work force diversity

Economical

Technological changes

Globalization

Organization Restructuring

Changing nature of workplace

Sustainability

- CHANGING ROLE OF THE HR MANAGER: under changing role of managers we have

Flatter organization

Employee empowerment

Team work

Ethical management 

I will be discussing two of this challenges which are: INCREASING WORKFORCE DIVERSITY AND CHANGING NATURE OF WORKPLACE and with the aid of diagram explain the Human resource management of globalization, sustainability and technological challenges.

3.1 INCREASING WORKFORCE DIVERSITY

Workforce diversity is a major challenge of HRM. Workforce diversity is a global organizational activity to address various distresses like cultural discrimination and promote interaction and communication with diverse persons, organizational culture including leadership transformation.

Some negative effects of diversity are racism, homophobia, ageism and sexism; for example high positions and pay are dominated by men more than women in most organizations.

Some benefits include retention of employees who are exposed in diverse organizational styles and ideas for global reputation, cultural exposure including genders orientation.

3.1.1 MOTIVATING FACTORS TO DIVERSIFY WORKFORCE

Some factors that motivate companies to diversify their workforces include:

Marketing Strategy: ensure that products and services are designed to appeal to designed customer base. "Smart" companies hire from different walks of life based on specialized insights and knowledge for an edge over their competitors.

Power-building Strategy: can be measured by the range of talent, experience, knowledge, insight, and imagination available in their workforces. Tumultuous change is the norm in the business climate of the 21stcentury.

Societal Responsibility: By diversifying workforces, individuals are given the "break" they need to earn a living and achieve their dreams.

Business Communications Strategy: Most companies now see diversity as a tool for winning businesses using worldwide communication skills to generate strategic ideas.

Legal necessity: are legislative mandates by government for non-discriminatory employment practices. Non-compliance with Equal Employment Opportunity or affirmative action legislation can result in fines and/or loss of contracts with government agencies.

Economic Payback: Diversifying the workforce particularly through initiatives like welfare-to-work can effectively turn tax evaders into tax payers.

Resource Imperative: Competitive companies cannot allow discriminatory preferences and practices to impede them from attracting the best available talent.

3.2 CHALLENGES OF WORKFORCE DIVERSITY

Cultural background of the entrepreneur, age, personality and gender are few factors that could affect workforce diversity in organizations.

Only a few young employers are favourably disposed to practicing diverse work force. Effective organizational workforce diversification requires marketplace statistical appraisal, rational and enthusiastic feedback, concurrent skills and outlook of employees and managers.

Management and workers must know the cultural environment of each other to forestall avoidable conflicts. Specifically, opposing outlooks and behavior can negatively impact operational connection, morale and work efficiency. For example discrimination, stereotyping, and prejudice should never be used in recruiting, retention and termination.

3.3 HUMAN RESOURCE MANAGEMENT OF WORKFORCE DIVERSITY

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Managing diversity is a strategy that goes beyond valuing individual differences or developing human resource policies. It takes into account globalization of the world economy as well as changes in the domestic and demographic characteristic of the population.

Workplaces culture that allow low morale, employee turnover, harassment, discrimination, absenteeism and disruption to work team result in loss of productivity, business opportunities and the potential charges for harassment and discrimination.

3.3.1 THE FOUR STEPS OF MANAGING DIVERSITY

There are four steps that companies like Hewlett-Packard use in managing diversity:

STEP 1 IDENTIFY ECONOMIC EFFECTS ON THE ORGANIZATION

HRM need to recognize the defaults of a business and accept that there is need to come up with an effective strategy to manage diversity before it results into loss of productivity, opportunity, etc.

STEP 2 DEVELOP EFFECTIVE STRATEGY FOR MANAGING DIVERSITY

Converse with Employees: Appropriate employees sensitization on organizational attempts to diversity creates opportunity for improve efficiency and reduce disruptive propaganda and gossips.

Allot Responsibility: It is expected of managers to develop, execute, supervise, and appraise the diversity program. Consequently, the lead person for managing diversity has to be a decision maker, respected, one who exhibits constant dedication to the ethics of inclusion and will act on recommendations.

Apportion Monetary Resources: This is indicative of commitment to the process such that the strategy is not subjected to changing precedence. It signals the resolve of management to succeed in adjustments for improved efficiency and expansion.

Institute a Diversity Committee: A time and task precise diversity council, inclusive of employees, is vital in the organization growth, execution, supervision, and appraisal of the diversity plan.

Structuring Responsibility: Structuring responsibility starts with a plain speech from the CEO stating his/her vision for the diversity strategy. He must subsequently demonstrate exemplary commitment, accountability and dedication to customers, employees and suppliers.

STEP 3 EXECUTE ACTION PLAN FOR ORGANIZATIONAL CHANGE

Communicating the Action Plan: Communicate Diversity Management clearly to employees, society and unions and empathically get useful feedback to achieve its goals. Realize the organization is now potentially exposed for its shortcomings; it is time to walk the walk.

Organizing a Diversity Appraisal: Results of diversity appraisal highlight the opinion of employees concerning the workplace atmosphere and involvement of management in creating a suitable workforce. Maximizing this appraisal will guarantee sustainability of diversity.

Setting Diversity Business Goals: Managers are expected to evolve quantifiable, attainable and practical goals based on business needs and identify areas where diversity can bring progress to the organization.

Training and Development of Employees: Deliberate training should be made available for employees to appreciate workforce diversity to the extent that they can handle its implications and effects positively.

STEP 4 APPRAISE THE DIVERSITY STRATEGY

The goal for managing diversity strategy is to institute diversity as an organizational value. To achieve this, it is vital that managers appraise every factor of diversity strategy to establish achievement and new opportunities.

4.0 THE CHANGING NATURE OF WORKPLACE

The changing nature of work place is another challenge of HRM. In today's global economy, workforce diversity is a vital ingredient and there is an intense battle to attract and retain skilled ones for sustained organizational goals.

As a result of globalization, there is need for workers to anticipate, adapt and recognize the changing nature of the new economy and workplace by developing new set of skills and acquiring new foundations of knowledge. Taking responsibility for personal career management seems to be the new strategy for increasing marketability.

HRM can help employees in this process by incorporating their clients in the awareness of the changing realities of workplace (Kelly et al, 2003)

4.1 FORCES OF CHANGE IN WORKPLACE

There are some external or internal forces that drive change in the workplace.

External forces include:

Globalization of business through increased acceptance of the World Wide Web (WWW) and reduction in national trade tariffs

Shortage of skilled workers

Greater competition from competitors

Greater customer expectations for product and services quality

Government regulations and deregulation of markets

Growing consciousness over environmental degradation and waste

Increased business risk and validity through dramatic corporate collapses, terrorism and internal epidemics

Internal forces include:

Rising employee expectations for greater involvement in decision making

Change in upper level of management

High rates of turnover and absenteeism

Change in gender composition and nationality of workforce.

4.2 HUMAN RESOURSE MANAGEMENT OF GLOBALIZATION, SUSTAINABILITY AND TECHNOLOGICAL CHALLENGES

Using HRM to manage factors affecting workplace and work force employees need to make the greatest contribution possible and this includes:

Involving HRM practices in to the organisation's objectives i.e. strategic and Human Resource Management.

Ensuring that HRM practices complies with federal , state and local laws

Designing work that motivates and satisfies the employees as well as maximizes customer service, quality and productivity.

SUSTAINABILITY CHALLENGES

TECHNOLOGICAL CHALLENGES

GLOBALIZATION CHALLENGES

HRM strategy should be matched to business strategy.

Knowledge should be shared.

Work should be performed by teams.

Pay systems, reward skills and accomplishments.

Selection system should be job related and legal.

There should be flexibility in where and when work is been performed.

Employee engagement should be monitored.

Continuous learning should be emphasized.

The discipline system should be progressive.

Customer's satisfaction and quality should be evaluated in the performance management system.

Skills and values of workforce should be used and valued.

Technology should be used to reduce the time for administrative tasks and to improve Human Resource Efficiency and Effectiveness (HRE&E).

5.0 USING THE CONCEPT OF HRM AND DIVERSITY IN RECRUTMENT AND RETENTION OF QUALIFIED, SKILLED AND TALENTED STAFFS

RECRUITMENT OF STAFF

A clear description of the job to be done should be given so the selectors know the characteristics an applicant must possess, the qualities and skills needed.

When replacing an employee the organization shouldn't be in a hurry to make a replacement available.

Selection is 'buying' an employee hence can be very expensive and because of this some organizations uses external recruitment agencies.

The main sources of recruitment are:

Internal promotion and internal introductions (at times desirable for morale purposes)

Careers officers (and careers masters at schools)

University appointment boards

Recruiting agencies

Advertisements or the use of other local media e.g. radio.

To be sure of medical fitness and capability of qualified applicants, they should be required to attend a medical examination.

Interviews can be carried out by supervisor, departmental manager, panel of interviewers or in the form of sequential interviews by various experts.

Finally, personal skills in decision are the most important. Methods to support decision include selection testing for:

Aptitudes (particularly useful for school leavers)

Attainments

General intelligence

In higher positions the methods are:

Leaderless groups

Command exercises

Group problem solving

Training during appraisal of candidates is quite important for good recruitment. Recruitment rating entails scoring applicants for experience, knowledge, physical/mental capabilities, intellectual levels, motivation, prospective potential, leadership abilities etc.

The following are ways of using HRM to retaining the best and talented staffs possible:

Having regular training sessions is important for developing employees to handle greater task and in time get promoted. The best employees want to explore progression and encouraging openings that leads to growth.

Communicate the vision and mission of the organization to attract people. Everyone knows their duties and responsibilities and how they can contribute to achieve the goals and objectives of the organization.

Offer fair and competitive income and benefits to employees. Withholding salaries, health insurance, paid leave makes skilled workers head for the hills.

Give employees sincere and beneficial feedback on their performance. Good efforts should be applauded or employees may feel you are not even aware of their hard work. Maturely enlighten them on areas of improvement.

Avoid mockery even if joking. Humour has its place and keeping a warm working environment is good. What you think is good fun may appear as ridicule to others.

Make time schedules of employees' flexible. Today's workers want work/life equilibrium. Flexible resumption and closing times for all shifts can help employees attend to vital personal tasks.

Make the working environment fun and proficient. Promote friendship through company parties and convention. Allow your employees to know each other outside work creating a positive and comfortable environment.

Communicate freely with respect. Allow employees to have a say in decisions that concern the way they work. Business should be a collective effort. Listen to ideas and views and you might just have the best mind in the workforce.

Present openings for employees to boost their knowledge and skills; operate a career path program to retain the best always. Offer training, presentations and promote mentoring within the company.

Recognize and reward good performance. Commemorate when vital goals are achieved. Bonuses are great for morale and an appreciated workers works harder.

6.0 RECOMMENDATION

HRM is of great importance in today's globalized economy and a proper management of diversity in work a place will be of great benefit to organisations in their recruitment and retention activities. The following are some recommendations:

HRM should be seen as the basis for an organisations progress in the globalized world.

Organization should have a proper knowledge of the role of HRM in organisations and there should be a proper implementation of strategic HRM

Companies today should tackle matters concerning diversity by having good diversity programs to educate managers and employees of the advantages of having a diverse work environment.

Organizations should have the knowledge of other cultures helping them in developing their business internationally through diversity. These companies must first study the work environment abroad before implementing the policies to know if there are conflicts that needs attention.

Proper reward systems should be created for employee satisfaction.

There should be more training and development programmes in organisations

Further studies regarding diversity of gender, cultural and sexual orientation in the workplace is recommended.    

7.0 CONCLUSION

Various facets of HRM today are influenced by globalization and variations in national culture. A proper implementation of HRM in workplace will help address the challenges organizations face in today's globalized economy in terms of balancing oppo­sing forces.

Globalization and workforce diversity have come to stay and it plays an important role in life today. Organizations today with the help of HRM should focus on how best to improve their profit by ensuring they have the best mind in the world and that HRM has a major role to play