Human Resource Globally And Comparison With Hr Practices Commerce Essay

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Since the discovery of oil in UAE it has been growing rapidly to become a dynamic global economy. Besides export of crude oil and its subsidiary products manufacturing sector has also grown with introduction of technology and influx of expatriate workers. Rapid expansion of construction, retail, education and tourism sector opportunities in private sector have expanded more rapidly than public sector which is still dominated by UAE citizens. Prevalent problem of most large organizations in private sector worldwide is staff retention which is affecting their productivity and performance. HR managers have a two pronged problem of retaining good employees against competition and also meet future needs by keeping a steady talent pool in hand. The topic is relevant to current scenario of economic recession prevalent on a global scale which has stabilized compensation levels and increased focus on job satisfaction while improving relations between employers and employees.



The current scenario of global business operations has encouraged employees also to offer their services to highest bidder in international locations. Both face cultural and social issues while assimilating activities to suit local sensibilities. Managing human resources and also developing them is a challenge faced by HR personnel by national and multinational enterprises requiring experience which has to be practiced over a period of time. Though most theoretical practices of Human Resources are universal the way its policies are adopted in different economies and industries are very varied since they have to be in tandem with local culture and customs. The objective of human resource functions is to hire suitable talent at a price which is within organization's budget and provides adequate compensation for services rendered. In the global scenario of multinational organizations HR practices are increasingly becoming decentralized. A recent survey about HR departments in this scenario has stated that most resort to situation wherein head office has a primary HR department which manages independent regional HR staff and also formulates uniform policies to be followed across its offices over the globe. Their priorities were divided between leadership development, recruiting high quality personnel, employee retention and maintaining high morale. [1] 

Description: Background/History:

The concept of Human relations arose during early 20th century due to Frederick Taylor's Scientific theory of quality management to improve efficiency in manufacturing sector by proper allocation of labor and increasing workforce productivity. It was started as a movement to develop affective strategies to made business landscape a professional area and yield productive workers. It was formalized as a discipline of industrial and labor relations in 1913 in England by formation of Chartered Institute of Personnel and Development which is considered the oldest professional HR association. Later the association was renamed as Institute of Industrial Welfare Workers while in United States the first institute dedicated to labor studies was established in 1945 as School of Industrial and Labor Relations. Due to declining membership these associations lost importance though industrial and labor relations were becoming a more specialized profession. In early 1948 the largest HR Association was formed to bring in professionalism to this school of thought as American Society for Personnel Administration (ASPA). With time as communication facilitated mobility and collaboration corporates started treated personnel as assets instead of machines giving output for monetary input. Therefore the process of worker management became "Human Resources Management" and name of ASPA was changed to Society for Human Resource Management.

Large scale employment opportunities and corporate culture started after formation of UAE in early 1971 with growth in education programs and growth of economic affluence due to oil wealth brought in professionals from around the world. Rapid expansion in manufacturing, services and construction sector brought in expatriate workers who were exploited in initial years due to lack of sufficient labor laws inducing law enforcement agencies to bringing in stronger laws. This led to establishment of working hours, rest hours, amicable work environment etc., and also made government realize that participation of UAE citizens in national workforce, specifically in private sector is marginal. This demographic challenge led to introduction of Emiratisation policy according to which all employers in UAE were to give first preference to local citizens and only refusal would seek expatriates to fill these job opportunities. However this policy has not had much success as till 2006 UAE nationals constituted only 2 percent of workforce employed in workforce. [2] 

Main body of argument/ Key points:

Global HRM practices are based on sustainability development by increasing choices and opportunities for employees without compromising on quality. Therefore they follow a process of hiring wherein positive improvements can be brought into lives of employees and organizational stability and performance is steady. The complete process of Human Resources Management comprises of developing an amicable environment to facilitate governance of organizational strategies and encourage best performance from employees who are its assets. This process has several standard practices which are uniform all over the world but strategy to carry out them are different and are adapted to suit local culture. The importance of these functions can be explained in detail as follows:

Environ - The global human resource environment is technology oriented in current scenario which has an impact of organizational structure and managerial work. Information systems have been set up across various major functions in an organization making them more integrated and creating profits. This structure has made information more accessible due to lean and flat organizations leading to better relationship building between workers and management.

Governance - The process of effective governance is integral to organizational success and will help leadership make appropriate choices to enable accomplishment of long and short term goals. Governance is critical for strategy as it enables sustainability of policy ensuring long term effectiveness within organization and maintains stability. Strong governance by a stable leader ensures that all workers apply their energies towards fulfillment of work goals thereby reducing idleness. Deployment of personnel by local HR departments in individual operating units after training cuts costs and adds value as they are more aware of local atmosphere.

Strategy - It enables selection of appropriate action from competitive courses of actions and implementing them to achieve results and outcomes. Besides gathering information and using it in decision making process strategic choices will help in organizational success. For proper allotment of employee resources and increasing productivity the strategy of HR has to be aligned to organizational strategy so that all alignment is carried out in effective manner in economic scenario of cultural diversity.

Organization - Within an organizational setup HRM function brings in more focus into management of its most crucial asset which is manpower by effective recruitment policies and providing career planning opportunities to its employees. It deals with issues related to hiring, training, compensating, motivating, administrating and communicating organizational culture to employees so that they regard themselves as valuable members and work in peaceful coexistence with each other. [3] 

Performance - The management of personnel and guiding them through professional career to achieve financial awards is a process of performance management. This is regarded as a one of most significant tools of HR as it enables distinguish between two employees performing similar activities for grant of compensation, promotion and merit rating. An HR planner can manage performance of employees at every level by hiring personnel by using subtle strategies to bring out leadership and behavioral skills. The performance of employees in a lower strata labor jobs will be easier to measure as they follow standard and mechanical work procedures. However for middle management and upper level executives' appraisal of performance is a more complicated process since it is done on annual basis. The process of performance management enables creation of work culture to encourage improvement of business structures through guiding employee skills, behavior and personal contributions. [4] 5


Issues/problems -

The issues with implementation of global HR practices in UAE based organization is related to cultural fit and divergence. Since till 1970's the nation was more or less limited to regional industry with little exposure to international regulations and practices. Even with growth of education a large number of UAE citizens are still not comfortable working in a multicultural setup which they consider alien therefore prefer working in government organizations. The variety of international HRM organizational models which exist have to be modified in UAE environment and methods to select, train, deploy expatriates also have to adapted to suit local customs. A problem which multinational firms face in UAE is its patriarchal society which believes in segregation therefore making it difficult for these firms to hire women in administrative functions and other traditional positions. Studies have shown that most European firms and professionals find themselves unable to accept laid back attitude of local people along with strong practice of favoritism over talent. [6] 


These problems will not affect HR industry in Gulf for a long term as with education people will become more adaptable to global practices and slowly adopt good policies from them. Since the government sector has reached a saturation point and recession is reducing opportunities local citizens will realize that getting jobs which pay well and are respectable should be taken up instead of seeking for waiting for prestigious jobs. With continuous exposure to expatriate population and international culture UAE citizens will also adopt a more liberal attitude towards women at the workplace thereby encouraging participation in workforce. The issue of favoritism towards kinsfolk may take a longer time as it has been ingrained in Asian culture for a long time. [7] 

Way forward -

The best way forward is for multinational organizations to understand that like every society with its own unique cultural regulations UAE has also its own positive and negative issues. The issues between multinational firms and UAE nationals can be reduced by adopting a more open door policy between employers and employees and also inducing them to try and make themselves culturally sensitive to each others practices. While the practice of Emiratisation has created several hurdles for private firms to hire expatriates the policy in itself has been unable to create more job opportunities for local residents. Therefore a viable step forward would be for HR policies to be more gender sensitive due to UAE's culture and have a more relaxed attitude until the local residents develop a more professional approach to human resources. The strategy of Emiratisation can be redeveloped to improve education system to make students more adaptable to ground realities of market situations. [8] 

Conclusion -

The practice of human resource management in a global scenario provides a standard framework for development and management of people comfortable within a strategic operational setup and makes them capable of working in an environment of cultural diversity. The prime aim of HRM is to build trust between executive management and regular employees at all levels over a period of time so that they understand organizational vision and adopt it. HRM division develops its own position to carry out facilitating activities in a best way to achieve title of "business partner within organization. Due to growth of multinational corporations with operations spread across cultures HR departments have to develop an international approach to handle issues of convergence and divergence. Therefore organizational structure, culture, and management programs have to be adapted to suit cultural attributes of to form a suitable balancing HR policy between global and local requirements. [9]