Term Paper on "Global HR Management"

Term Paper 10 pages (3280 words) Sources: 10

[EXCERPT] . . . .

Global HR Management

Human resource management is a universal practice that is based on processes, strategies, and policies. Traditionally, it was known as personnel management. The development and management human resources in the global environment have proven to be a core challenge for multinational corporations. This study focuses on how the growth in international business affects human resource management with respect to challenges in the global markets. The study further addresses the effects of diversity in cultures, socioeconomic factors, or political practices on the management of human resources. Strategies of addressing global challenges facing international human resource managers are also provided.

How growth in international business affected human resource management

HRM practices may vary from one country to another because of contrasting laws, cultures, and policies. Moreover, social contrasts might influence the execution of HR roles across borders. Cross-cultural measurements are applied to portray cultural dimensions in different nations and may include competency applications, administrative expert, and strategic partner. This study utilizes Hofstede's dimensional model to investigate how growth in international business affects human resource management (Vance & Paik, 2011).

Competency Implications

When businesses expand their operations on a global scale, HR professionals are must understand and be sensitive to their employees. This plays a critical role in boosting their esteem and motivation. Globalization enhances the integration of expatriates, their perspectives, languages, and cultures. Successful HR managers must also improve their knowledge on business, HR skills, and individual credibility. The skills and knowledge relating to the legal environment of the global market are essential in multinational corporations (Taplin, 2008). For instance, the European Community is more defensive on worker privacy rights compared to the Unites States while job discrimination laws vary from nation to nation. For an organization to succeeds, human resource professionals must understand some local business practices, employments laws, and communicate effectively across nationalities besides winning the confidence of employees different cultural backgrounds. This makes a challenging organizational progress more feasible (Kumar, 2011).

The expansion of international business also has pedagogical impacts for educators of business programs focusing on HRM. Besides the standard topic taught in higher education business programs, HRM educational module must be realigned to focus on flexible international and cross-cultural management of organizations. Such programs prepare human resource professionals to embrace cultural diversity and practice them as they are expected. Evidently, the need to remain competitive has driven numerous businesses to broaden their scope by introducing comprehensive challenges and solutions for HR professionals (Elvira, 2005). Different HRM models are useful in displaying critical implications of globalization patterns and cultural impacts for HR administrators.

Administrative Expert

Experiences encountered in a globalized market have forced corporations to be effective in their service delivery. First, increased rivalry for customers and scare resources makes organizations to provide services and products in a viable, quick, and cost effective way. Secondly, globalization has made corporations seek new advances, which are helpful in reducing cost of production while enhancing employee performance. Lastly, increased efficiency frequently brings about enhanced service delivery (Vance & Paik, 2011). For instance, the timely selection and recruitment of workers across borders reduces cost and eradicates possible loss business opportunities. A case in point is the Deutsche Bank AG. The bank was forced to improvise data innovation equipment that was helpful in aligning global objectives and targets. The performance management framework utilized the competency model to adjust goals on a global dimension. Selection of expatriate, training, and orientation have proven to be useful for companies operating in multinational environments (Bell, 2012).

A pattern to send expatriates on shorter tasks with the help host nation citizens for long-term tasks as administrative experts exists. The reasons behind the pattern include decreased expenditure, recruitment of citizens from the host country, and client preference. Effective worldwide staffing has implications for the management expert function. To adjust global business objectives and compensation, MNCs regularly execute different income systems. Electronic innovations minimize administrative costs and facilitate the attainment of compensation targets. Web-based infrastructures that automate compensation and employee communication can increase efficiency, reduce cost, and motivate workers (Scales, Singletary & Cooper, 2012).

Strategic Partner

Many MNEs choose acquisitions and mergers as expansion strategies. Human resource administration assumes a key part in guaranteeing strategic fit in the global arena. For instance, Wal-Mart acquired South African Massmart Holdings. This gave the company limited hurdles expanding to Africa unlike if it were to go alone without the acquisition. International human resource planning is essential because it enhances technical organizational relationship. Globalization fortifies organizations to search for business opportunities past its national borders. HRM enhances organizational effectiveness by fostering acquisition and merger processes. In some instances, mergers result in the loss of shareholder value. The poor success in mergers may arise when HR managers are not incorporated the process. The global HR experts have shown the importance of being of such processes and the appropriate methodology to be adopted if the process is to remain a success (Sengupta & Bhattacharya, 2007).

How diversity in cultures, socioeconomic factors, or political practices affects human resource management

The differences in the labor market in terms of culture and employment frameworks between nations create challenges for multinational organizations seeking to attract and retain qualified staff. In previous decades, human resource administration did not exist many in many businesses. Instead, fixed practices replaced ordinary human resource administration. Throughout the industrial period in China, the government supervised the operations of many organizations. Organizational leaders were educated about the products by the government. In 1980s, as China pursued growth and development, the idea of human resource management emerged because of the entrance of foreign organizations (Scales, Singletary & Cooper, 2012).

While youthful individuals were as a rule appointed to employments by the government, human resource management did not function. It was faultlessly regulatory in nature. In this scenario, the individuals who have been relegated work were acknowledged as lifetime employment in China. This implies that managers could keep their occupation for their entire lives and payment was not based on performance. The HR managers were not motivated since no additional incentives were provided for working hard. In this manner, the HR's working productivity will be much lower than envisioned. They would report working late and leave early or even be absent to attend to their private chores during working hours. In the end, they lost their technical skills. MNEs found it difficult to attract and maintain qualified expertise in foreign countries.

When multinationals corporations enter Chinese market, they encounter difficulties relating to human resource management. Pooling qualified managerial staff is also a challenge in other nations. Development and training activities have been distinguished as essential to organizational development and survival in today's intense business world (Taplin, 2008). Employee training programs increase employee skills with immediate influence on employee productivity. In addition, training is a viable approach in overcoming the elements that reduce employee satisfaction and performance. Jobs like security, training, and development demands a certain level of reciprocity. An organization that continuously develops and trains its employees increases the market value of its employees, which influences their commitment, productivity and may increase employee loyalty to the company.

Organizational development and training activities vary depending upon the social settings. This is contrary to high performance-oriented societies where training and development focus on enhancing group or individual performance. In collectivist cultures, such practices serve extra reasons for building commitment and loyalty to the organization. By providing training programs to their workers, Chinese organizations considered such actions as recipes of treating employees well. This recognition also spurred the need to pay back the support by staying committed and working hard to the organization. In such settings, training and development are utilized as compensation tools of motivating employees and enhance their dedication (Durai, 2010).

Challenges posed by growth in international business for human resource management

Unlike the different commercial enterprises where HR is recognized as a functional requirement, there is a need to view it as a business enabler. Aligning HR practices to serve business needs is one of the consistent challenges faced. The five R's assume utmost importance in HR strategy. The HR department in any organization must determine the appropriate strategy for Resourcing, Recruiting the appropriate talent, Retaining the ability, Restructuring, and Re-training the talent (Durai, 2010).

In the case of HR in IT organizations, adaptability has all the hallmarks of being the key for victory and survival as IT has ended up such a dynamic field. This is because of the consistent advancements and changes in the area of dynamic customer demands. The capacity and eagerness to adjust work structure, organizational structure and job classification as frequently and as fast as possible are critical components in a solid recruitment and maintenance technique for IT experts. This challenge of managing change and expectations exerts steady pressure on the HR experts (Congress & Gonza-lez, 2013).

The challenge does not stop with the enlisting the potential employees but with how organizations are prepared to supervise employee performance. It may require a performance culture where opportunities are accommodated under improved performance… READ MORE

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