HRM Mainly Differs From SHRM In Two Ways Commerce Essay

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There is always a dilemma with the organizations regarding the use of the technological, financial and the human resources. According to Porter an organization therefore must use those resources first which are rare, valuable and inimitable. However, it is found that an organization can easily have a sustained competitive advantage if it applies a strategic approach in combination with the human resource management. Strategy deals with the employees to be considered as a resource filled with skills, knowledge and experience while human resource management deals with managing the employees and hence using their collective skills to gain effectiveness in the organization. (HRM leading to SHRM)

The shift in the human resource management has eventually led to the emergence of strategic human resource management as a modern function of HRM. Strategic management therefore supports the organization by providing a high quality of people to help the business managers' in strategically planning the various human capital functions within an organization. Strategic human resource management strictly believes that the performance behaviors of the employees are sine qua non for attaining a respective business goal. Moreover, HRM although covers a high range of employment practices like performance appraisal, recruitment, selection, administration of benefits and compensation and development and training, it is the strategic human resource management which further reflects a high utilization of human resources and a more flexible arrangement for the achievement of the organizational goals. Thus this strategic management feature works in accordance with the organization and helps it gain competitive advantage in the market. (HRM leading to SHRM)

HRM mainly differs from SHRM in two ways:

SHRM basically focuses on the organizational performance instead of the individual performance.

SHRM further emphasizes the role of the Human resource management systems to provide solutions to the various emerging business problems instead of individual HR management practices.

This feature of SHRM hence shifts the emphasis to managerial efficiency of the organization as a whole instead of the operating efficiency of the employees' individually. (HRM leading to SHRM)

Link between strategic objectives and strategic human resource objectives of an organization

Strategic objectives are achieved through the strategic planning where the strategic management ensures that the various plans for every resource are developed in combination with others. This proves that fact that the various resources are interdependent and hence the HR professional and the strategic management teams understand this interdependency for the development of the strategic plans for each resource. Employee management can be done best through the strategic human resource management. (link between strategic objectives and SHRM objectives)

For instance, the municipality of Abu Dhabi commits to its vision to ensure a higher living and sustainable environment for the city's residents and makes huge efforts to achieve the same. The department therefore launched the sustainable public lighting strategy which was endorsed by the Executive Council. Further, the chairman of the department of municipal affairs, H.E. Majid Al Mansouri also issued the version of revised standards of the Strategy of Implementation on bridges, streets, pedestrian areas, parks and public squares. Through this strategic resource planning the department prepares for the future plans for redressing the existing situation of public lighting. In reference to this, the Abu Dhabi municipality has installed around more than 6000 lighting units across the city with new standards and specifications over a year. (Abu Dhabi Municipality startegy)

Q2. Factors currently influencing the field of human resource management in UAE:

Overreliance on expatriates

The country relies on the expatriates because of the high unemployment ratio as the domestic workforce does not work under hard and long working conditions. The country is working towards creating job opportunities for national workforce, enhancing the productivity and skills of the national workforce and lastly recommending the various appropriate policies to the Federal Government in UAE. (reason for over reliance on expatriates)

UAE estimates to have around 4 million of foreign laborers which work in nearly 260,000 private companies. The high entry of the expatriates in the country has resulted in a high economic growth which in turn is being financed by the increase in the oil revenue. This increase has hence led to an excessive rise in demand for labor which the country is unable to meet through the domestic workers. Moreover, foreign workers have low reservation and cheap wages which has led to over reliance especially in the non-oil sector. (over reliance on expatriates)

On the other hand, foreign workers associate with high economic rent along with their ability to tolerate poor working conditions for long hours, have also increased the country relying on the expatriates. (over reliance on expatriates)

The private companies enjoy a higher economic rent by employing the foreign workers. In fact, the private companies if on one hand receive high economic rent on the other hand; do not pay taxes as well in order to cover the incurred cost by the society and the government which results due to the foreign workers' existence in the country. This feature therefore results in an indirect transfer and automatically benefits the various companies which employ a high number of unskilled foreign workers. Moreover, the implied indirect subsidy also favors the unskilled foreign workers as compared to the skilled domestic workers. (over reliance on expatriates)

If the cost of labor and productivity levels are compared the latter contribute to a large amount of economic rent which are enjoyed by the various private companies and also by the economy in UAE by employing the foreign workers. These economic rents are found to be close to around 170,000 AED per worker annually, 360,000 per skilled worker and 121,000 per unskilled worker. However, it is also found that the productivity levels for an unskilled worker are nearly seven times as compared to the cost of the unskilled worker while it is only four times for a skilled worker. (over reliance on expatriates)

Another factor which influences the over reliance on expatriates is the productivity and adjusted labor cost which refers to the labor cost involved in producing an output worth of one dirham. Generally, the cost for one dirham of output in UAE counts of 20 fils of the labor cost and 26 fils of labor cost inclusive of social cost. Therefore, for a skilled worker, the cost for one dirham of output is 27 fils worth of labor whereas an unskilled labor the cost of output comes to only 15 fils. Hence, usage of the unskilled workers in the UAE economy produces the same amount of output which is produced by the skilled workers and at a relatively low labor cost. (over reliance on expatriates)

Cultural Diversity in Work Place

Globalization brings high cultural diversity in the workplace but it does not always work advantageously for the organizations. Cultural diversity in workplace in UAE results in high intercultural conflicts, communication problems and hinder in the smooth working of the business activities. A qualitative research has shown that there are mainly three different perspectives in respect to the workplace cultural diversity, the access-and-legitimacy perspective, the integration-and-learning perspective and the discrimination-and-fairness perspective. These perspectives help in understanding how people express and manage the tensions relating the diversity along with their interpretation of racial identity at work. These perspectives proved to be successful in motivating the managers to expand their staff. During culture diversity in the workplace it is important to identify the conditions which would occur between the demography of the work group and its relative functioning. (cultural diversity in workplace)

Therefore, the various organizations going through the issues of cultural diversity in workplace in UAE especially the private organizations should start from allowing the employees to practice their own respective customs but without pressurizing others for the same. One proved way to break the wall of hesitation among the employees is to open up the casual fashion trend. This means that if a person dresses differently from his colleagues, he should make an effort to be approachable by sharing his cultural experiences and festivities with others. This will not only help break the wall among the employees but also help them understand each others' culture in a better way. For instance, some cultures have a specific dress code which might provoke other to brand the same on the basis of the culture. Here, the organization must give the employees the freedom to dress, in adherence to the culture of the workplace and region. (diverse culture in workplace)

UAE has been seeing a high number of immigrants from countries like Sri Lanka, Pakistan, India, Bangladesh and Philippines and according to a report more than half of the migrants have annual earnings less than 400 USD. They are forced to work for long hours without their rights being protected where there are certain companies which even ask migrated employees to surrender their passport before joining. Migrants have to part with a high amount in order to get visas as a majority of domestic worker refuses to work for long working hours. (culture diversity in workplace)

These diverse cultural factors result in highly tensed labor relations which even lead to a state of violence with immigrants being the victims. The year 2005 witnessed around 18 strikes across UAE organized by nearly 18000 unpaid immigrant workers. The UAE hence is under great pressure for appropriately managing and employing the people of diverse cultural background. According to a recent research the government has being paying attention in terms of this factor where the issues regarding workplace diversity could be solved. For instance, with the help of creating the development of systematic diversity plans along with the diversity mission statement the employers can without much difficulty establish decorum in respect to workplace diversity. Employers will be required to leverage diversity in order to create culture specific rules which will hence improve the relations among the employees. (culture diversity in workplace)

Changes in Technology

With the frequent changes in technology every company and organization wants to gain a competitive advantage in the market by undertaking the latest technology. However, in terms of human resources, latest technology in turn helps in all the processes from recruitment to the retiring functions leading to a drastic change in the way the managers and employees function. But the challenge faced by the companies is how to implement the latest technology in combination with the human resource management in order to connect the employees and the respective information. Human resource and information technology go hand in hand owing to its high use in the organizations for increasing the productivity by maximizing the value of employees. (technological changes and HR )

The technological changes lay great impact on the human resource management in UAE through which managers help adapt the latest changes for fulfilling the organization' objectives. Technology lays heavy impact on the human resource management mainly in departments like recruitment, performance management, training and development, employee benefits and payroll and attendance records. UAE companies through the E-recruitment process can easily hire skilled workers from across the world according to the post requirement. The companies through websites, job portals and even social networking sites hire potential employees. E- Recruitment is highly advantageous in terms of greater reach for hiring, economical way for publishing the job openings and a way to connect with people with niche skills along with speeding up the recruitment process. However, although E-recruitment helps in speeding up the process but it comes with the aspect of a short listing the candidates becoming a lengthy process. Considering that high volumes of resumes are posted on the websites and portals, short listing of the same becomes a tedious job for the HR department. (technological changes and HR )

Further, the UAE companies can undertake the E-learning feature for the training and development of the employees in order to improve their skills and knowledge. E-learning is highly advantageous as the training materials are provided on the internet which the employees can go through at their own leisure time and learn with ease. (technological changes and HR )

On the other hand, human resource department also highly benefits from the technological changes especially for payroll management, performance management and even the employee attendance. Companies in UAE through computerized performance monitoring system (CPM) help in the data collection by counting the total work units covered by each employee per time period. A company can calculate the performance of up to ten million people at one time. (technological changes and HR )

Moreover, through the virtual organizational system where each computer in the workplace is inter connected keeping the employees linked. This gives leverage to the employees to work from anywhere around the world. Virtual organization proves to be a great help for the human resource management, where it becomes the responsibility of the HR manager for creating a psychological connection among the employees and the various units of the HR department. Therefore, every technological change leads to a step higher in the organization's activities in turn rising competitively in the market not only in UAE but worldwide. (technological changes and HR )