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As the world has undergone dramatic change over the last few decades, today's business organizations are facing a competitive environment in this dynamic world. This change of business environment has caused with increasing challenges of globalization, work life balance and profitability. In order to sustain in this competitive environment organization needs to utilize the human resources of the organization as the success or failures of the company depends on the quality and effectiveness of the employees in the organization. Organizations were required to operate Strategic Human Resource management. According to Mazen and Kayaly (anonymous) Strategic human resources management (SHRM) is the pattern of planned human resources operations and activities intended to enable an organization to achieve its goals.
Employees in different age groups have different expectations. The current generation of workers in the organizations demand more work life balance than the older generations. Work life balance form an employee view is the creating a balance between responsibilities at work and at home. From an employee view it is the benefits or working conditions that the organization provide to help employees balance the family and work domains as work life benefits (Bardoel,Tharenou, and Moss,1998; Russell and Bowman, 2000).
To achieve these expected goals workers of today are interested in organizations that offer flexibility, telecommuting and temporary but challenging assignments. Bruce (2001) states workers in today's generation don't like to stay too long on any on assignment. This generation has potential for attending multi tasks and they can juggle e-mail on their Black Berries while talking on cell phones while trolling online. Therefore, this tells today's workers are totally comfortable with technology.
Moreover such workers will also be interested on organization who offers opportunities for learning and personal growth. In addition to this there are some employees who have sick children, elderly parents who need special care, and other. Such workers will demand for family friendly benefits which accommodates employees' needs for work life balance (Coulter's and Robbins, 2009) If the organizations are not meeting with the demands of such workers they will move from one organization to another in search of jobs.
Human Resource managers, who have worked in the older generations, will have to work hard to understand the younger generation and change company practices so as to attract and retain the best of these workers.
Coulter's and Robbins (2009) insists that today's progressive workplace must accommodate the varied need of a diverse workforce. This can be done by providing a wide range of scheduling options and benefits that allow employees more flexibility at work and that allow them to better integrate their work and personal lives. That it is important for Human resource department to plan programmes like onsite child care, summer day camps flexible time, job sharing, time off for school functions telecommuting and part time employment.
As we enter a new millennium, the effects of internationalization now known as globalization are everywhere visible in most of the organizations Globalization refers to tendency of firms to extend their sales, ownership, and/or manufacturing to new markets abroad (Dessler, 2011, p.37). Example Toyota produces the Camry in Kentucky, while Dell produces PCs in China. Globalization has played a major role in sustaining the economic expansion of the global economy in the second half of the 20th century (Hussein .A, 2011).
Companies face various challenges in global markets. Dessler (2011) insists that mangers of the company have to install all management system it needs to manage its overseas activities. Those management system include organization structure, managerial controls, worldwide banking relationships, and of course human resource system for recruiting, selecting, training and appraising and compensating its workers abroad. Furthermore, Dessler (2011) reveals managing Human resources creates unique challenges like managing cultural, political, legal, and economic differences among different countries.
To be more profitable in the challenging economy with the large competitors company's use cost reduction strategy. A study done by Lam.W and Chenb. Z and Taeuchia, reveals that Japanese electric companies are making profit in China by reducing the cost of the products. According to the vice general manager of the Japanese company, extensive cost reduction are the major sources of competitive advantage for the company during fierce competition in People Republic China's ( PRC) iron market of recent years. So products with high quality and technology served with lower costs offered are noticed as a foundation for meeting the market requirements of customers. Furthermore, highly reputable brand name that had been established by Japanese market could establish from the outset of a strong competitive position in the PRC market. Hence this could be a challenge for PRC market as Japanese companies are offering high quality products in lower cost in China. As a result the market share will gradually shrink due to growing competition among the manufactures.
Another challenge created for the companies in China was implementation of differentiation strategy by Japanese company. They produce wide range of product lines that no competitor has ever been to challenge.
Hence the challenges of work/life balance, profit making and globalization has become greater barrier for most of the organization business success , it is important for companies to address these issues by incorporating Human resource department as all the challenges are linked with human capital of the organization.
Human Resource Management (HRM) is the process of acquiring, training, appraising and compensating employees, and of attending to their labour relations, health and safety and fairness concerns (Dessler.G, 2008). According to Fujimoto (2010) the idea of HRM has evolved due to the change of organizational environment which demanded the organization to perform better with the full potential of human resources. Therefore, organization establishes the department of Human Resources (HR) and give authorities and responsibilities to mange human resources in its most efficient way to achieve the organizational goals. However, Phulpotto (Anonymous) states HRM planning only involves to the organization strategy without participating in the decision- making process of the organization strategy. Therefore it could create great challenge for HRM planning when organization faces different challenges.
Hence, the importance becoming HR mangers as strategic partners in business operations becomes crucial to utilize the full potential of their Human resources to compete the challenges of the environment. To meet these challenges, organizations need to consider the HR function not as just an administrative service but as a strategic business.
Strategic Human Resource Management (SHRM) involves a set of internally consistent policies and practices designed and implemented to ensure that a firm's human capital contribute to the achievement of its business objectives. Strategic human resources management is largely about integration of all human resources activities with strategic goals and objectives of the organization and adaptation (Stone, 2008). Moreover, according to Fujimoto, Y and Hartel (2010) states effective SHRM can understand both the internal and external operation required for the business and its social and behavioral requirements. Therefore, it is understood SHRM has an idea of incorporating organizations people in both strategy formulation and implementation. Also it focuses on the importance of HR practices which are important for developing its pool of human-oriented capital for future strategy formulation process.
Therefore, when HR mangers become strategic partners in business operations they can play a prospective role in implementing strategies through HR activities. So that HR mangers can utilize the full potential of their Human resources to compete the challenges in the global environment.
To overcome these problems today's organization should focus on Human resource planning, job designing, recruitment and selection to (Fujimoto, Y and Hartel, 2010). These Human resources tools are crucial functions of SHRM because they provide the foundation for the cognitive, affective and behavioural qualities needed for the organization.
Human resource planning involves ongoing environmental scanning analysis which benefits to ascertain the right quantity and quality of employees when and where necessary. It also includes the training programmes to ensure the organization to have the right mix of employees who are equipped with the right skills to achieve organizational goals.
Well developed Job design is another HRM tool which promotes the achievement of the organizations strategic business (Stone .J.R, 2008). This is because greater job design helps to increase both employment productivity and motivation. Increased productivity can manifest itself in various forms. For example, the focus can be that of improving quality and quantity of goods and services, reduce operation costs, and/or reduce turnover and training costs. On the other hand, increasing employees' motivation can be achieved through increased job satisfaction.
As many companies are seeking talented people for their organization, recruitment and selection is the HR practice which organization need to process. Recruitment is the process of seeking and attracting a pool of qualified candidates for a job vacancy and selection is the process of choosing the candidate who best fits the selection criteria (Stone 2008). To handle global challenges organization needs to use strategic recruitment where it links recruiting activities to the organization's business objectives and culture. For example if company X is experiencing the emotion of competition, winning and crushing competitors. Consequently, this creates a need to recruit people who are stimulated by the competitive spirit and the urge to b violent.
Employee compensation is another major way where Human resource managers can practice to increase their productivity. Employee compensation is a pay going to employees and arising from their employment. It can be either direct financial payments (wages, salaries, bonus and commissions) or indirect financial payments (financial benefits like employer paid insurance and vacation) (Dessler.G, 2011).
Apart from this Pfeffer (1995) reminds the importance of employment security. According to him companies that provide job security for their employees long stands commitment to their workforce and turn up with motivation to develop their skills and competencies that are valued by their company. Moreover Employees who notice that their jobs are secure are also more likely to suggest productivity improvements and to take more comprehensive and long term view of their jobs and the company's performance.
Organization that aims to meet challenges of globalization, profitability, and work life balance needs to generate Strategic human resource function in their organization. Hence the strategic functions of HR helps to incorporate for the development of human capital of the organization by recruiting qualified employees which best fits organization needs and further training which extents labours strengths and develops weakness to with stand the challenges meeting in the dynamic world.
Dychtwald.K ( 2006) emphasis to use different Human resources Mangement practices to over come the demand for todays workers in the organization.