Main Implications of Globalisation for Human Resource Management - Essay Example

Main implications of globalisation for Human Resource Management “Globalization involves free application ofmodern technology and human resources across national and international boundaries” (Amos, 2008). Human resource management have been impacted by globalization. This is partly contributed by changing global quality standards. Human resources are a key to success in any business organisation. In fact the success of any organisation depends much on the efficient and effective management of human resources. Moreover, with increased number of organisations in today’s global markets, interest has shifted onto effective management of resources in response to market competition. Most organisational systems in today’s global markets have had a continued decrease in investment. This happens amid the increasing middle level organisations’ call for more foreign direct investment and securing market positions in the competitive market. As a result, organisations have been forced to redefine their strategies. “Therefore, it is important for organisations to adapt to the changing environments, develop a resistance to negative market forces in an effort to achieve customer satisfaction” (Amos, 2008). Within the changing environment, human resource managers owe to formulate quick and immediate human resource strategies that will help an organisation retain its personnel while helping them develop their profession through training and seminars. There are enormous challenges surrounding the future of people management in any organisation setting. This calls for sufficient and constant attention on management of resources regardless of positive trends in results that often cause excessive optimism in the future financial status of the company. In fact, there is a need for a continuous development of effective Human resource plan and implementation at all levels. In so doing, the human resource should develop its capacity operationally as well as strategically. This should be done in a manner that compliments changes in an organisation while at the same time maintaining a strategic balance. In this case, sound human resource policies need to be put in place first before attempting more complicated changes in company practices are implemented. Introduction Globalization is the integration of the entire operations, processes and strategies of an organization in an effort to generate diversity of cultures, goods, services and facts. Since, globalization strongly emphasizes on diversity, it has a deep effect on the manner in which companies manages its operations and workers. Therefore, it is vital for the executive to understand the impact globalisation has on human resource management. “Globalisation entails efforts meant to increase the flow of goods and resources across regional and international borders” (Amos, 2008). Moreover, globalisation encompasses the surfacing of corresponding organisational structures with a view to expand international financial activities and dealings. Human resource management has never received proper attention it deserves in today’s global economy. Most human resource managers lack basic skills of organisational management more importantly due to globalisation. It is important to note that business environment is a complex one today. The market has become more competitive and complex than it used to be due to globalisation. It is because of this competition and complexity that businesses strive to survive by focusing hard on competitive strengths in an effort to develop long term strategies for them. It has now emerged that most organisations have started moving away from old ways owing to their inappropriateness in today’s competitive market. Indeed the new market environment calls for a new approach in human resource management as this saves organisations in the face of the upcoming global environment. “Numerous human resource management challenges have come up due to the rapid growth in business trends in the past few decades” (Farnham, 1999). Therefore, there is a call for organisations to add authentic business worth to organisational management. “In order to retain their survival during recession, companies are required take proper steps to retain their employees” (Amos, 2008). This can be achieved through engagement programs or investment into such areas as integrated Information Technology systems. In this case, human resource managers within an organisation will maximise available resources in a way that boosts growth. Possible future challenges of people management within an organisation include; change management, leadership development, organisational effectiveness, compensation, staffing, succession planning, learning and development, employee retention, health and welfare issues among others. This paper presents a critical analysis of main implications globalisation has on human resource management. It will then discuss future challenges of people management within an organisation. Diversity in employee recruitment As globalisations emerge, different organisations have a wide choice of clientele and stakeholders to interact with. This gives companies an opportunity to recruit employees from varied cultures, languages and social backgrounds. In fact, human resource executives have swiftly responded to rising globalisation by hiring workers who come from diverse social backgrounds and culture. “Diversity recruitment is vital in any company set up as it encourages customers from diverse cultures and backgrounds to identify with employees from diverse origins within an organisation” (Farnham, 1999). In addition to this, diversity of employees helps build diverse ideas that are vital in influencing success and profitability. Professional development Globalisation gives employees within an organisation a chance to push for their professional advancement. In this regard, globalisation provides employees with a chance to achieve career related goals. The organisation does this through provision of opportunities as well as resources for employees. Some organisations provide support for employees for further studies while others engage their workforce on periodic trainings by organising conferences. “Professional development among the workers helps build a win-win situation” (Amos, 2008). When organisations provide an opportunity for professional development among its workforce, they will feel as if the organisation is committed towards provision of skills and competences. In return, the organisation benefit from the acquired skills through improved productivity and connections. Greater need for training The other major implication globalisation has had on human resource management is a call for further training of employees across all organisations. “This training focuses mainly on meeting the needs and competencies among groups of workers in a firm” (Amos, 2008). In doing this, some organisations may opt to train employees on the use of universal software podium. The training given to employees provides them with skills that will help build an organisational competitive advantage in the market through utility of employee diversity. Law management “Globalisation has further impacted on human resource management in that organisations seek to understand and apply different legislations to the firm” (Anca and Va?zquez Vega, 2007). It is worth noting that different nations have enacted different tax and labour regulations that govern businesses within a region or country. The labour regulations set forth by countries are important as it helps spell out the minimum and maximum regulations on matters such as wage and tax amounts. “These are essential matters whose avoidance can negatively impact both on the financial state and reputation of a company” (Anca and Va?zquez Vega, 2007). Future challenges of people management “Employees are social beings who often meet and work in an organisational setting” (Ancona, 1999). Their interaction in work place is such as to enable them work jointly or individually on matters such as planning, innovating new ideas and managing relations. To manage the aforementioned relations, there is a need to nature the ability to man and manage our actions within an organisation. However, dealing with persons whose origin is diverse is a complex matter all together. “This is mainly due to the different way people perceive things caused by diverse inclinations in culture, ethnicity, national values, political and religious alignments”. (Aslib and Council For National Academic Awards (Great Britain), 1986). In this regard every individual holds unique ethics, beliefs and principles. Therefore, their characteristics, beliefs and principles lead to uniqueness in behaviour and attitude giving rise to diversity. There are three most probable future human resource challenges within an organisation setting. These include; change management, leadership development and Human Resource effectiveness measurement. Change management is a common challenge facing personnel management in today’s organisational setting. The trend at which the challenge spreads poses a possible problem in future management of human resources. In this regard, a deep focus should be engineered towards employee training in an effort to develop skills and competencies that can be used in dealing with change management. “Leadership development presents another big challenge in HR management” (Farnham, 1999). This call for a quick critical initiative that will aid towards solving the issue otherwise its impacts can cause detrimental damages in an organisation. Human resource managers are often confronted by demands to provide necessary structures, equipment and suggestions on selection and development of future leaders within an organisation setting. Today’s leading global economies cite leadership development as a major problem expectation in future human resource management. In essence, leadership development poses a greatest threat calling for a critical strategic approach especially on matters such as worker retention. “However, this retention should be based on quality to ensure that the right employees are retained as this has a long term competitive advantage particularly in gaining a good position in the market and building company reputation” (National Seminar on Technical Manpower Planning in India: Issues and Concerns, and Sudhir Reddy, 2005). In addition, managers should be equipped with prerequisite leadership functions for the future viability of an organisation. Human resource management performance should be measured to ascertain its effectiveness in any organisation setting. The results should be a measure of transaction management and positive impact on the organisation. The measure of effectiveness of Human Resource is a vital step that shifts a perception that the role of human resource is administrative rather a true strategic associate within an organisation. “The shift in the roles of Human Resource management is a clear indication that the profession has shifted its focus into measuring their own success” (Anca, 2007). As a result, there has been a developing recognition that HR can provide organisation value through effective measurement of the whole organisation. This shift in paradigm is vital as it moves the roles of HR from that of merely counting numbers hired to determining the value of Return on Investment of collective and individual hires in the long term. It is important to note that a person’s genes and the nature of the environment determine their ability to think and the tendency along which their actions take and hence their behaviour within an organisation setting. “This directs people’s actions towards what they think is good based on their own reasoning” (Anca and Va?zquez Vega, 2007). In fact people have uniquely latent intentions. In other words, organisational strategies on management of people are only applicable for a very short time. Since globalization brings together people of diverse cultures and origins, it is paramount to set universally acceptable policies and procedures on how to manage them across the organisations. However, the achievement of these acceptable policies still remains a mirage. As a result, complexity and variety caused by diversity of employees in the work place is often seen as a problem rather than an opportunity to rip from diverse talents. “Complexity is a natural occurrence that can be seen as how we behave and act in managing problems occurring within an organisation” (Andrews, 2009). Future people management within an organisation will purely be determined by the inputs the human resource practitioners put on its employees. In this regard, employee behaviour and reactions is a factor of human resource input. Management are charged with setting organisation policies. Having set these procedures and policies, the management should move forward and solve existing employee complexities within an organisation. In real sense, it is quite difficult to achieve a complete none complexity within an organisation. It is also realistic that few employees will ever get contented with the steps the organisation takes to avert complexities. In fact others will totally be unhappy about such actions thus creating more complexities. Consequently, workers who get contented with the decisions of the executive will work towards helping the organisations’ management achieve its goals and objectives. In the contrary, the unhappy ones will work towards sabotaging the efforts of the cooperating employees through obstructive efforts. “The future of people management is uncertain as more complexities will likely occur within and outside the organisation” (Andrews, 2009). The executive in the near future will be expected to respond to diversity of employees and emerging business models within the various departments existing in an organisation. This may be worsened further by rising client needs, cultural needs, and government legislations. It is worth noting that organisations need to work towards solving interdependence complexity in people management within an organisation setting. This is because every organisation is expected to function and undertake its processes in a dependent manner. “Moreover, according to the butterfly effect principle a move by its wings on one side creates a tornado effect on the other” (Andrews, 2009). This means that the more porous organisation’s borders are the easier it is to penetrate and gain competitive advantage due to globalisation. It is important that organisations avoid rigid stance on matters of business. There is a need for open mindedness and flexibility as this promotes international customer relation and customer satisfaction. If this is properly done an organisation will be able to easily adapt to changes often occasioned by changing market forces and performance required to meet the needs of customers. “However, it is pertinent that organisations seem to get more exposed to global economic problems such as recession” (Ancona, 1999). In addition, today’s economic situation is marred unexpected events that seem unclear as it uses to be. This is because of the complexity in interpretation of information in the face of increased global knowledge. The executive as well as employees will always have to content with ambiguous conditions. “It is important to note that for effective human resource management, organisations are required to help employees by building proper guidelines and instructions that direct their actions and day to day activities” (Farnham, 1999). The future presents a situation where the management will have to deal with complex employee matters. These complexities can be effectively built through constant employee motivation and guidance in order to better their working environment and hence performance. These demands and the changing employee character call for a sophisticated management function that will focus in the day to day scrutiny of worker concerns in a bid to help build confidence in them that will help yield good results for the organisation. As earlier mentioned, people in an organisation are vital assets that eventually determine how the organisation will finally achieve its goals and objectives. The magnitude of organisations has become bigger than life is in terms of nature, images, attitudes and aptitude. Organisations are formed by factors acquired and formed by people. The characteristics of the organisation and its actions is obtain from the people .The nature and the organisational setup is obtain from peoples ways of life for example religious activities, Cultural functions and political knowledge is used to determine the characteristics of the that organisation. “This simply means that the most important advantage of an administration is individuals” (National Seminar on Technical Manpower Planning in India: Issues and Concerns, and Sudhir Reddy, 2005). Everyday’s challenge of an organisation is how to improve people’s ways of thinking. This is because people many people work according to their thinking. However, this problem of the way people work in the work place is so complex that it needs a complex solution. One important feature of an organisation is interdependence. Every administration should work interdependently. An organisation that is flexible and less rigid can be exposed to new ways of managing the organisation and will be able to obtain new structures of management and leadership skills. However the organisation is faced by many forces. These forces can be categorised as either competitive or social forces. All these forces are very important in the organisational management. “It is true to say that talent is no longer a management action that can improve the success of the company” (Farnham, 1999). But the most important aspect is the past human efforts. In the present times the success of the person and the administration is totally reliable on the aspect of change. “The organisations have changed the action of putting more emphasis on the supervision of the people” (Centre for Tourism Research (India), & Centre for Tourism Research and Development (Lucknow, India). (1977). Work has become more than a job of earning a living but a daily duty that brings a success of the organisation. Workers should be entitled to long term service in the work place. This will enable them to have security to the job and therefore be motivated to work. This could be a challenge to the organisation because the organisation does not have enough resources to allocate to the full employment of the workers as well as offering full training to its workers. HRM has originated from any management idea. “This has been based on the success or failures of the organisation due to certain factors and conditions” (Farnham, 1999). Three main types of resources that can prove important in the future management and that are considered important in the organisation include among others; human resources, financial resources and technological resources Organisations are expected to utilize the available resources in a manner that will produce optimum results for both the employee and the organisation. “The benefits expected to benefit from include both material and psychological” Centre for Tourism Research (India), & Centre for Tourism Research and Development (Lucknow, India). (1977). In conclusion, human resource managers need to put in place strict measures meant to contain unhealthy practises among the workforce. For instance, employee motivation matters and morale when planning to reduce expenses incurred on wages. It is important to understand the fact that human resource management does not work in isolation or vacuum but rather in relation to political, economic and social environments. 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