Human Resource Issues in India, China, Brazil, and Nigeria - Essay Example

Expanding Shoemaking Business beyond the United Kingdom Abstract Human resources are a crucial asset to any organization. Human resources are affected by many factors and these factors vary from one country to another. One of the most significant factors is the cultural difference of these countries. Four countries were analysed based on the human resources issues that affect them. In all the four countries, the labour market is large, and an opportunity for the company to expand its business. The transition to recent models of human resources is a key strength to the nations and this will influence positively to the company. Culture is a big threat to the establishment of the company, and this is because of the sensitivity of the issues being addressed. One weakness of these nations is the high turnover as witnessed in India. It is recommended that the company take advantage of the large labour market. However, it should be aware of the existing cultural and political issues in these nations. These issues pose a serious challenge to the establishment and growth of the company. Table of Contents Abstract 1 Introduction 3 Literature Review 4 India 4 China 5 Brazil 7 Nigeria 9 Discussion 10 Recommendation 12 References 13 Expanding Shoemaking Business beyond the United Kingdom Introduction Human resources are regarded as the most crucial asset of any organization; however, not all organizations are capable of fully harnessing its potential. Human resource system is defined as a set of individual but interrelated processes, activities, and functions that are aimed at maintaining, developing or attracting a company’s human resources. In order to enhance operational performance, there is the need to equally manage the system in both manufacturing and service organizations. Innovative manufacturing practices and sophisticated technologies do very little to improve operational performance unless the essential HRM (human resource management) practices are in place to create a constant socio-technical system (Ahmad and Schroeder 2003, p19). Therefore, there is a need for organizations to assess their existing practices in HRM and amend if needed in such a way that employees can efficiently contribute to the improvement of operational performance (Ahmad and Schroeder 2003, p19). The paper discusses various human resource issues in four countries, which include India, China, Brazil, and Nigeria. These nations differ in their culture and therefore, their practices in HRM differ considerably. Apart from culture, there are other factors that affect practices in human resource management. Literature Review India There has been a considerable shift towards appreciating human resources in the Indian organizations. This is because they have become strategy driven instead of the status quo, which is instigated by culture. Competitive advantage in industries such as biotechnology, pharmaceuticals, and software services in which India is looking forward to asserting universal dominance have made human resources become more emphasized. The following are some of the main human resource management practices in India and they include job description, recruitment, compensation, training and development, performance appraisal, promotion and reward, career planning, gender equity, and reservation system (Chatterjee 2007). The percentage of individuals employed in formal works is very high in the Indian public sector. There is a strong reliance on the formal labour market. It is important to state that direct recruitment from the higher learning institutions is a common phenomenon among engineering and management professions. The most popular way of advertising recruitment in India includes print media, internet, and placement agencies. Strong emphasis is put on lifetime employment and security in the entire public sector including a number of facilities such as schooling for children, housing, and healthcare (Chatterjee 2007). The Indian organizations are poorly institutionalized thus the popularity of training programmes, and the impact in value and skill development is not developed. In terms of performance appraisal, there is very low coverage of workers who are under the formal rewards/organizational goals and performance appraisal. Reward and promotion are moderately variable across the industries. One of the most pressing issues for the India human resource managers is the high staff turnover. The issue of retention is very critical in most industries, in India. This has forced a majority of the companies to develop innovative incentive packages in an effort to counter job-hopping (Chatterjee 2007). Employees have become greatly apprehensive with fair treatment on the job. The preamble of the Indian constitution promises political, economic and social justice, and it is further reinforced by Articles 14, 15, 16, 24, 41, and 43A. The promises are further strengthened by several labour legislation. Therefore, it is important for the human resource managers to be extra sensitive to make sure that the legislation and constitutional guarantees are not violated or ignored by organizations or individual managers (Saiyadain 2009, p9). The function of the human resource manager is increasingly moulded by the rapidly growing knowledge of social sciences, globalization, social justice, competition, and the transforming profile of the employees. The approach of the HRM has to be innovative, flexible, and continuously responding to the environmental challenges. Therefore, they have to be responsive to situational changes, human aspirations and hopes both outside and within the organization (Saiyadain 2009, p10). China In the early 1980s, China launched market reforms. The presence of FIEs (foreign invested enterprises) and World Trade Organization has transformed the competitive landscape. With the pressure to compete universally, China hastened its transition to the economy, which is more market-oriented. The human resource practices have moved to performance-based and market driven system from a highly centralized allocation system. It is essential to note that the practices in human resource management are influenced by organizational, environmental, and institutional conditions. The interim Chinese economy is not based on a free market. In fact, majority of the enterprises are still controlled by government intervention and regulations. Market-based human resource configuration is not effective. This is because qualified talent is not readily accessible and the labor mechanisms have not being developed efficiently (Chow, Huang, and Liu 2008, p688). Chinese employees get used to secured and long-term employment rather than a contractual and market type relationship. Formalized procedures and rules and centralized power are very common in most Chinese companies. In the Chinese context of an authoritative corporate culture and high power distance, supervisors are not willing to share power with their subordinates and reluctant to delegate power in the process of decision-making. They tend to control and restrict the behaviour of their subordinates and use harsh regulations and rules to make sure that there is compliance. The resulting effect is that the Chinese workers are unwilling to accept responsibility and there are higher chances that they will not take the initiative to have things done (Chow, Huang, and Liu 2008, p690). Decreased individual performance, synchronization of work situation and less pay are some of the impacts that are experienced due to cultural practices and the governmental environs (considered a socialist state). These impacts are mostly noted to exist in many of the SOEs (state-owned enterprises) and DPEs (domestic private enterprises). Although the developments in some of the sampled enterprises in the FOEs (foreign-owned enterprises) are said to be uneven, some formal human resource practices have been introduced in these enterprises. The practices introduced include the transformational managerial role, the importance of line managers, in-house training freedom of personnel selection and strategic role for human resource managers (Warner and Zhu 2004, p20; Warner 2005, p2). A considered role for the human resource managers, especially those in the local enterprises, is less developed in the SOEs and the DPEs. In such places, the traditional ways of personal management still play a crucial role as experienced by such enterprises in China. Some firms have embraced the employee participation process, although it has not become a common practice in many of the enterprises and especially in those of employee stock possession and revenue allocation. Even though, the employee participation process has not been common, information sharing as a form of employee involvement practice is the most common among enterprises (Warner and Zhu 2004, p20). Brazil An important characteristic of the Brazilian culture is shown in the importance and manner of personal relations. People in Brazil bond strongly and this shapes the structure of relationships in different social groups. The country is well known for its hospitality, friendliness of relations, and the addition of the personal element in professional relationships. In the organizational hierarchy, this leads to personalism, which is based on the counterpart of conflict-avoidance inclination. It is important to note that conflict is not handled directly to avert embarrassment, avoid jeopardizing relationships, and to inhibit the upsetting of group harmony (Davila and Elvira 2005, p113). In the past few years, there have been substantial changes in the process of development, retention, and attraction of employees. The current environment is characterized by less loyalty and security. There are main weaknesses in terms of talent management in the country’s companies. It usually begins with the absence of definition of talent and its characteristics. The weaknesses are characterized by gaps that related to practices and policies designed particularly for the talented group (Davila and Elvira 2005, p119; OECD 2010, p13). Several Brazilian companies both local and global are undergoing significant steps in strategic definition. Some of the young multinational companies are characterized by considerable challenges that related to human resource management. Recent studies have recognized their motivations and they include growth, competition, reducing costs and risks, and meeting the goals of the stockholders, coming nearer to potential and current strategic customers. Growth is a need that is created by the permeation of the domestic market and the thirst for new opportunities. Competition is characterized by the quest to be the best in the universe and being the market leader (Davila and Elvira 2005, p120). Costs are reduced through economies of scale in processes and products and risk is reduced with a lower cost of capital. Apart from motivations, there are some challenges that affect human resource management in Brazil. The challenges include possessing a pool of competent individuals to act overseas who have a solid command of the language. This has permitted the companies to intensify the number of expatriated Brazilian agents and have newcomers working in Brazil, and disseminating and developing an international mindset, therefore, effectively managing diversity. There is a general notion that along these magnitudes are numerous opportunities for the field of human resource to expand its role (Davila and Elvira 2005, p120). Nigeria Human resources management practices and policies are usually carried out in a legal, political, social, and economic environment. Therefore, there is the necessity for considerable cultural and historical insight into local situations to understand the problems, processes, and philosophies of national models for human resources management (HRM). In Africa, Nigeria is the most populous country with approximately 180 million people in the population. The Nigeria’s human resource base and population make it one of the most attractive nations for foreign investment in the continent of Africa (Elegbede, Fajana, Gbajumo-Sheriff, and Owoyemi 2011, p58). As local and foreign companies increase their involvement in Nigeria, there is the need to create capabilities and use local competencies. The understanding of human resource management and knowledge of factors that affect human resource management in Nigeria will be critical to the manner in which business is done in Nigeria and their ultimate success (Elegbede et al. 2011, p58). Since 1940, there has been a remarkable growth of human resource in Nigeria. However, in the recent years, it has been marked by lack of specialization and professionalism. This has been attributed to a number of challenges facing Nigeria HRM practices (Elegbede et al. 2011, p59). The Nigeria’s socio-cultural diversity has affected the HRM practices in Nigeria. It is important to note that Nigeria is characterized by over dependence on language, gender, educational qualifications, religion, and culture as the basis for determining an individual who is employed. In other words, employment in Nigeria is based on the aforementioned factors. Nigeria is one of the African nation troubled scarce talent and abundant labor. Developing, retaining, attracting, and deploying best talents has become an issue. It can be said comfortably that human resource management in Nigeria is still in infancy (Elegbede et al. 2011, p59). Most of the organizations in Nigeria are characterized by the absence of funding for HRM research and development. The economy of Nigeria permits the importation of new technologies to improve HRM; however, the training is a bit slow (Elegbede et al. 2011, p59). The law regulates the HRM function of development and training. The ultimate sets of laws that affect HRM are those that deal with dispute resolution and trade unions. In Nigeria, authority and power at the organizational level are substantially shaped by cultural values. Men essentially dominate most of the jobs in Nigeria. The attitude towards women affects the relationship between the boss and subordinate (Budhwar and Debrah 2013). Discussion Human resource management is entirely different in all the four nations. In India, the number of people in formal workplaces is increasing because of reliance on this labour market. Therefore, HRM has become very crucial in the recruitment and retaining of employees. Most of the people employed in India want lifetime employment and security, and it is a factor that human resource manager should consider when making decisions. Laws of the nation greatly affect the manner in which HRM conduct their work. The labour market is big, and it is an opportunity for the company to get the workforce it needs. However, there are challenges such as legislation and high turnover rate, which might affect the company if not taken seriously. The human resource in China is performance and market-based system. In other words, HR is largely influenced by organizational, environmental, and institutional conditions. The company should be aware that most of the enterprises in China are controlled by the government intervention and regulations. It is important to state that most Chinese workers prefer secured, and long-term employment, therefore, contracts may become a bit of a challenge for the company. Culture takes a central role in the way human resource is conducted. The authoritative corporate culture and high power distance are challenges to the companies because they make compliance difficult. In Brazil, culture also plays a pivotal role in HRM. Personalism is common among the Brazilians, and it has been embedded in most organizations. The current labour market is characterized by less security and loyalty. Apart from the aforementioned issues, there are motivations that drive the labour market in Brazil, and they include growth, competition, reducing costs and risks among other factors. There are many opportunities in Nigeria because it is one of the most attractive nations for foreign investment in Africa. However, it is important to note that Nigeria is characterized by overdependence in language, gender, educational qualifications, religion, and culture as the basis for determining an individual who is employed. This is a challenge to the company when it comes to the recruitment of its employees. Recommendation It is recommended that the company take into consideration opportunities and challenges as aforementioned. The company should take advantage of the large labour market in the four countries. The market will provide the workforce needed to conduct its operations. However, it should take note of the existing cultural differences in these nations. Therefore, it is recommended that the company be sensitive to the different cultural issues facing it. Apart from culture, there are political issues that the company will face especially in China and India. It is important that the company is aware of how trade is conducted in the four nations and their impacts. References Ahmad, S., & Schroeder, R. G. (2003) The impact of human resource management practices on operational performance: Recognizing country and industry differences. Journal of Operations Management, 21, pp19-43. Budhwar, P. S., & Debrah, Y. A. (2013) Human resource management in developing countries, London: Routledge. Chatterjee, S. R. (2007) Human resource management in India: ‘Where from’ and ‘where to?’ Research and Practice in Human Resource Management, 15(2), pp92-103. Chow, I. H., Huang, J., & Liu, S. (2008) Strategic HRM in China: Configurations and competitive advantage. Human Resource Management, 47(4), pp687-706. Davila, A. & Elvira, M. M. (2005) Managing human resources in latin America: An agenda for international leaders, London: Routledge. Elegbede, T., Fajana, S., Gbajumo-Sheriff, M., & Owoyemi, O. (2011) Human resource management practices in Nigeria. Journal of Management and Strategy, 2(2), pp57-62. OECD. (2010) OECD reviews of human resource management in government: Brazil 2010 federal government, London: OECD Publishing. Saiyadain, M. S. (2009) Human resources management, New Delhi: Tata McGraw-Hill Education. Warner, M. (2005) Human resource management in China revisited: Special issue, London: Routledge. Warner, M., & Zhu, Y. (2004) Changing patterns of human resource management in contemporary China: WTO accession and enterprise responses. Industrial Relations Journal, pp1-29. Read More