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6. How Globalization affects HRM
Emerging challenges in human resource management
Emerging challenges in human resource management
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The main purpose of this article is In the past human resources management played more of an administrative role which were consist of processing payrolls, sending birthday gifts to employees, rearranging company outings, and making sure forms were filled out correctly. Human resource management has experienced several changes over the last twenty years such as staffing, development of Workplace policies, compensation and benefits administration, retention, and training and development. These changes have brought many challenges to human resource management profession. According to Ekta Srivastava (2012), these challenges have increased the pressure on human resource managers. This paper will disgust the many emerging challenges in human resource management such as globalization, workforce diversity, technology, and changes in the economic environment and the ways to overcome some these challenges. The key question that the author (s) is addressing is There are various methods and techniques to overcome these challenges that human resource managers are facing in their daily operations. The most important information in this article is There are many emerging challenges that are evolving in the human resource management profession. Due to these challenges the role of human resource management has changed. These changes have increased the pressure on human resource management. Srivastava (2012). Today human resource management personnel role is to attract, retain and nurture talented employees. The main point(s) of view presented in this article is (are) The first challenge Human resource management is facing is globalization. Globalization is international integration arising ... ... middle of paper ... ...ing of human resource personnel so that they understand other cultural people and motivate professional personnel more and more so that they do not change organization more frequently. Srivastava ( 2012). The main conclusion in the article are As stated in this paper the challenges human resource managers are facing is getting more challenging on a daily basis. According to Srivastava ( 2012), the problem human resource managers are facing are retention, attraction of employee, dealing with different cultural people, managing workforce diversity, technology, and changes in the economic environment. There are some solutions to overcome these challenges such as cross cultural training in cultural differences and training in information technology, and proper development plans should be used in the organization to reduce professional mobility. Srivastava ( 2012),
While there are many various global issues that affect the International Human Resource Management to run efficiently, there are two key concepts that play a major role in understanding how to approach them with cohesive and a well coherent strategy; they are the International Human Recourse Management Strategy and Understanding the Cultural Environment. In the International Resource Management strategy, many companies will do their research in finding companies that offer the following:
So understandably the management of human resources has become of vital importance in this process. Unfortunately, not all corporations understand this fact. And this could prove to be a fatal mistake. For example, 15% to 30% of the executives sent abroad by Latin-American corporations do not achieve their goals. And also 30% of the managers that return to their original countries leave the company within two years.
Schuler, R. S. & Jackson S. E. (1994) ‘Convergence or divergence: Human resource practices and policies for competitive advantage worldwide,’ in International Journal of Human Resource Management, Vol. 5, Iss. 2, pp. 267-99.
Noe, Raymond A., et al. Human Resource Management: Gaining a Competitive Advantage. 7th ed. New York: McGraw-Hill/Irwin, 2010. Print.
Dessler, G. (2011). Managing Human Resources Today. A Framework for Human Resource Management (6 ed., p. 2). Upper Saddle River, NJ: Prentice Hall.
The Global Financial Crisis (GFC) led to the collapse of many leading financial institutions in the USA and Europe in 2007 and 2008. This was caused mainly due to subprime lending, which in simpler terms mean that many of these financial institutions were unable to repay their creditors and depositors due to reduction in the value of their assets they were holding. Without getting into the details of how the financial crisis occurred due to some other factors such as subprime mortgages and property price appreciation, we can say that during this period there was a massive loss of confidence in the financial system globally, which not only affected the foundations of the economy of a country but also harmed the social and political structures of many of those countries affected directly or indirectly (Zagelmeyer and Gollan, 2012). This lead to the increase in demand, rise in unemployment, more debts and whole lot of other social and economic concerns for companies and governments. The relation of this crisis with human resource management (HRM) is relevant because it ultimately affects the way people are managed within organizations. As mentioned by many authors like Gunnigle et al (2013); Edwards & Rees (2011), the key functions of a human resource manager (HR) role is understood to be managing employees, such as recruitment, selection, pay and benefits, industrial relations and the HR function. The approach they take, the policies they implement and the practices they employ are what contribute to employment and unemployment figures. There are a number of factors that affect how the HR department acts, whether they change or implement new practices, as a result of the global financial crisis. Another issues at hand is that, it ha...
Globalization of human capital is where, human resources are sook after by companies from all over the world. Due to the increased demand for skills at a lower cost, companies will tend to look for employees to work in their premises from all over the world (Webforum, 2015). In this regard, since companies are extending their operations the entire world over, human capital globalization is inevitable since they will need to work with people from these countries for them to successfully exploit global markets.
As a whole, human resources has undergone an enormous transformation in the United Kingdom and the United States (Popescu, 2016). It no longer plays an administrative role, it is now a strategic partner in any organization. The United States are leading the pack on global human resources and now other countries, such as Japan, are jumping on the
The traditional administrative role of human resource practices is a thing of the past and new roles for HRM are emerging at an alarming rate in the 21st century. HR is increasing its support for business goals and objectives while at the same time becoming strategic business partners. Challenges for the 21st century include, changing roles, shifting demographics, and globalization. In order for HR to stay current, they must adapt and make necessary changes in retraining, alternative work schedules and technological advancements. Then, these successes have to be analyzed and evaluated for effectiveness.
In the last decades, small national companies have grown in amazing scale all around the world. Companies that once were family owned have become huge multinational corporations. Corporations, which by the side of globalization, have expanded all around the world. International business has become one of the most important areas of business due to the need for companies to expand to markets outside their borders. Companies have had the need to adapt to another cultures and business systems. At the same time the way human resource management works has changed. Multinational corporations have had to adapt to new human resource requirements in order to be more effective and efficient. The business melting pot that surged in the last decades has forced corporations to develop a diverse workforce with the ability to expand their businesses.
In today's global business environment, managing diversity in human resources has become a very important and crucial issue. Human resources management has a lot to deal with managing workers/employees from different countries and nationalities. Managing multinational human resources becomes an issue not only in the multinational corporations, having their offices or plants in different countries, but also in the domestic companies, with domestic workforce becoming more and more diverse each day. Creating an HR that has the ability to recruit and select the right people and the ability to effectively socialize and train employees will allow multinational companies to excel in all business aspects.
Organizations’ other resources can be hired, retained and discarded at any time but human resources needs special treatment. It needs to be carefully hired, deserve an extra effort to retain it and requires training & development to upgrade and improve its capabilities. Other resources depreciate with the passage of time but when the human resource gains more and more experience, it becomes more beneficial for the organizations. These characteristics have brought human resources to be the central element for the success of an organization. (Mohammed, Bhatti, Jariko, and Zehri, 2013, pg. 129, para. 2)
According to this definition, we can see that human resource management should not merely handle recruitment, pay, and discharging, but also should maximize the use of an organization's human resources in a more strategic level. To describe what the HRM does in the organization, Ulrich, D. & Brocklebank, W. (2005) have outlined some of the HRM roles such as employee advocate, human capital developer, functional expert, strategic partner and HR leader etc.
In dynamic, global competitive markets, successful organizations are likely to be staffed with managers capable of adapting to constantly evolving roles, and with the capacity to achieve and sustain optimal levels of performance. The global market place has currently impacted the practice of human resources management in the United States and will continue in the next ten years.
Human resource practices can be viewed as valuable resources to an organisation that increases the efficiency of business operations and its competencies (Zaheer, 1995; Szulanski, 1996). Bartlett and Ghoshal (1991) argued that human resource management policies and practices are becoming crucial because these practices can help in controlling international operations and co-ordination within subsidiaries and parent company. The ability to effectively transfer HRM practices that are proven efficient in the parent company to the overseas subsidiaries is a key characteristic of the successful MNC (Nohria and Ghoshal, 1997). HRM constitutes a major constraint when MNC’s implement global strategies due to the complex labour market and cross cultural environment in different countri...