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Effect of globalization on HRM
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Human resource management (HRM) is defined as the policies, practices, and systems that influence employees' behavior, attitudes, and performance (Noe-Hollenbeck,-Gerhert-Wright, 2003, p. 1). HRM has changed earlier attitudes and assumptions of personnel management about managing people in several significantly impacting ways and the new model of HRM includes many essentials vital to the basic management goal of accomplishing and maintaining competitiveness. In this paper, the author will describe the changing role of Human Resource Management (HRM) in response to trends in globalization, technology, diversity, e-business, and ethics. Globalization The first impact on the changing role of HRM is globalization. Companies are finding that to survive they must compete in international markets as well as fend off foreign competitors' attempts to gain ground in the United States (de Silva, S., 1997). To meet these challenges, U.S. businesses must develop global markets, keep up with competition from overseas, hire from an international labor pool, and prepare employees for global assignments (Noe-Hollenbeck,-Gerhert-Wright, 2003, p. 46). Employee skills have become important determinants not only of flexibility, efficiency and excellence, but also of employability, investment and the ability to adapt quickly to market changes. For today and tomorrow's employers, talent comes from a global workforce. Organizations with international operations hire at least some of their employees in the foreign countries where they operate. Even small businesses that stick close to home often find that qualified candidates include some immigrants to the United States. Changes in the contemporary global economy highlight many of the emerging challenges facing human resource management (HRM). Many societal changes increasingly bind countries into co-dependent nations in which goods, capital, and people move freely. Between these communities, however, there remains a mixture of cultural barriers. To remain successful in this new global age, agencies must commit themselves to expanding their business. They must also create internal plans that are likely to succeed in global competition. Applying successful global strategies requires careful attention to the inconsistencies created in the management of human resources and the maintenance of complex organizational cultures. Technology A second development, which has shifted attention to workplace relations, is technology. Human resource management is playing an important role in helping organizations gain and keep a lead over competitors by becoming high-performance work systems. These are organizations that have the best possible fit between their social system (people and how they interact) and technical system (equipment and processes) (Noe-Hollenbeck,-Gerhert-Wright, 2003, p. 36). As the workforce environment has changed, so has the necessities for creating a high-performance work system.
Noe, Raymond A., et al. Human Resource Management: Gaining a Competitive Advantage. 7th ed. New York: McGraw-Hill/Irwin, 2010. Print.
HRM in any company is a weighty issue that needs much attention where business performance is linked to a HR strategy (Caldwell 2008; Ulrich et al. 2008). In the recent past, competition has become stiff, such that organizations need to come up with other means to compete in the extremely dynamic market world. Thus, companies have shifted their emphasis to Strategic Human Resource Management (SHRM) where they enhance and empower their personnel in order to increase the productivity and the services offered into the market (Mello 2006). This goes against the traditional ways of increasing the means of competition where organizations place emphasis on tangible resources. In the past, organizations competed in terms of machinery and acquisitions. This has changed greatly due to the changing customer tastes and the diversity of the market in the present (Delery & Doty 1996; Lengnick-Hall et al. 2009).
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:
This paper is about leading people through a management system called Human Resource (HR), that does more than payroll, design training, and avoiding lawsuits. It provides essential components that will ensure that human talent is used effectively and efficiently to accomplish organizational goals. It is a case study of the Rio Tinto company 's Human Resources global approach after a significant downsizing in 2008.
International businesses are also finding new ways of increasing diversity abroad. Instead of using expatriate employees as management, they are starting to hire locals. Companies that operate abroad are realizing that using expatriate employees is not a permanent solution. They are often expensive, and are not capable of translating their skills into the new environment. In a company that operates globally, it is important that the company knows how to relate to the local markets, and a great way to do this is by hiring local talent. Hiring locally is cheaper, there is not a language barrier, and they are accustomed to the business environment in the area(5). They can also help the business by providing a new perspective into international markets, and offer ways that the company can improve their diversity abroa...
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.
It seems that HRM is so crucial to the organization, for what it does has nearly covered all aspects of the business – from strategic planning to the training and development, but unfortunately, its importance has not been accepted by everyone. As proposed by Morton, C, Newall, A. & Sparkes, J. (2001) there are three different views of HR function within the...
...e located and the human resource management to effectively manage the global workforce diversity. Furthermore, management practices across nations should be more focused in terms of enhancing expatriates’ experience with cross-cultural training. It is also highlighted that executives of international firms must efficiently devise the best strategies and plans to increase the business positive performance and for controlling resources of their foreign subsidiaries. As a consequence, global managers play a very important role in the development and success of multinational corporations in the current competitive international market since there are numerous issues that they have to deal with in the operating process. If the enterprises could overcome the management challenges, they would gain great opportunities in the global economy and achieve favorable outcomes.
Human Resources Management (HRM) Interventions relates to the idea of improving an organizations overall performance and efficiency by improving the members (individuals and groups) performances, commitment, and flexibility. According to Beer et al. (1984), this is often a relevant intervention technique when organizations are facing increased international competition. They see the value of HR investments as a way to improve organizations competitive advantages. Further, they establish that HRM policies have long-term consequences and immediate organizational outcomes. These policies should include the overall competence of employees, the commitment of employees, the cost effectiveness of HRM practices,
The success of a business depends on the capability of its employees. A businesses success is anchored on the input of his manpower separate from the technological needs. Capital and technology can be generated, however, it is human resources that are necessary for the success of and propelling through the challenges an organization might face. Essentially, nowadays cautious administration of employees’ vital asset requires a key Spotlight on Human Resources Management in a firm. Past exploration on HRM acknowledged that workers make a vital wellspring of upper hand for companies.
In recent times, Human Resource Professional has faced a growing number of challenges in responding to the needs of the contemporary workforce and attempting to win “The War for Talent”. These include globalisation, increasing workplace diversity, technological change and an aging workforce among others. This essay will attempt to show that the three most pressing concerns the Human Resources Professional faces today in satisfying the needs of the contemporary workforce are those, of addressing skill gaps, ensuring employee wellbeing and adapting to increased workplace diversity. Companies will need, to address these three areas; in order to become “Employers of Choice”, meet the needs of their employees and achieve their Strategic Human Resource objectives and ultimately succeed in “The War for Talent”.
With the proliferation of the internet international Business transactions are more common today than ever. Globalization is now a key factor when creating a business strategy for most companies whether they are small family own businesses or huge corporations. Globalization however does not just involve selling a product in other countries. There are legal and cultural concerns that must be addressed. The legal aspects are fairly simple because in most places the laws are spelled out. It's the local customs, and regional way of doing things that can be tricky. Research on globalization has shown that it is not an omnipotent, unidirectional force leveling everything in its path. Because a global culture does not exist, any search for it would be futile. It is more fruitful to instead focus on particular aspects of life that are indeed affected by the globalizing process. (1). In this new economy, as it has been in the past, it will be the people not the machines who will determine a company's success. Having an effective Human Resource Management team that effectively analyze your company's current and future personnel needs is key in any business organization.
Human resource is the most valuable and unique asset of an organization. The successful management of an organization’s human resource is an exciting, dynamic and challenging task , especially at a time when the world has become a global village and economies are in a state of flux. The lack of talented resource and the growing expectation of the modern day employee has further increased the difficulty of the human resource function.
Lewis, Clive (2007) Human resource management international digest. Bradford: 2007. Vol 15, Iss.4: pg. 3.
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.