Faculty of Business Environment and Society - Literature review Example

Faculty of Business Environment and Society Table of Contents Introduction 3 Review of the Articles 4 Critical Evaluation 10 Conclusion and Recommendations 14 References 15 Introduction The present business scenario has developed due to increased level of globalisation, advent of pioneering technologies and most importantly gaining momentum of cross-cultural differences. Observably, the prevalence of cross-cultural differences have intensified business market competition in terms of raising number of domestic along with international firms and developing the identical products and/or services. Evidently, global business corporations characterised by cross-border differences are often held accountable for the movement of labours and development of diversified workforce. In this respect, business corporations are required to organise and coordinate their respective operational activities with the intention of ensuring that these are conducted in an appropriate manner (Brewster & et. al., 2011). Identifiably, the management team of diverse business organisations are often identified to face adequate challenges while devising international human resource management (IHRM) approaches in an appropriate way with the increased level of cross-cultural differences and other related potential factors. In this context, business organisations operating in different global regions i.e. multinational corporations (MNCs) are required to develop effective IHRM policies in order to ascertain that the employees are able to perform their respective activities efficiently. Conceptually, IHRM is entitled with the responsibility of integrating local along with global employees in a balanced way. In this regard, the HR managers are required to play an effective leadership role with the aim of managing the employees successfully. Leadership is often regarded as the practice of using broad assortment of effective procedures and strategies in order to accomplish a specific aim. Effective leaders are the one who create plans, imagine vision along with mission, secure accessible resources, ensure correct allocation of the resources and fix errors. Consequently, the HR managers are entrusted with the tasks of leading and managing diversified workforces by developing efficient policies including payment policy, training along with development policy, communication policy and employee involvement policy among others (Johnson, 2009). With this concern, the essay intends to analyse diversity leadership in IHRM and determine the challenges, opportunities along with the lessons relating to the adoption of an eclectic view of leadership values for successful development of HRM with reviewing certain related articles. Review of the Articles The article ‘Management in Emerging versus Developed Countries: A Comparative Study from an Indian Perspective’ of Roli Nigam Su Zhan imply that liberalisation and globalisation are duly considered as the two decisive factors that are responsible for the progress of business operations in different international regions as well as market segments. In this regard, the MNCs operating in emerging as well as developing nations are expected to develop an effective management culture in foreign subsidiaries with the intention of performing business in a profitable and successful way. The article has been identified to conduct an analysis of specificity, which exists between ‘Indian management culture’ with that of ‘developed country management culture’. Additionally, the study also depicted the management culture practiced in foreign subsidiaries by Indian MNCs, which is accountable for positive performance implications (Nigan & Su, 2011). According to the article, Nigam & Su (2011) stated that India is an important emerging country and MNCs are required to become strategic in order to perform their respective operations in an effective manner. As noted by Nigam & Su (2011), India is recognised as one of the top most nations in relation to the aspect of ‘foreign direct investment’ (FDI). Additionally, the country is a top investor in multinationals operating in foreign countries that include Ranbaxy along with Dr. Reddy. Apart from these, various other Indian multinationals include Reliance Industries, Bharat Petroleum, Tata Steel and Indian Oil Corporation among others. The Indian multinational performs their operations in foreign locations by developing subsidiaries with the assistance of conducting mergers as well as acquisitions. In this respect, the Indian MNCs are expected to formulate effective management culture so that the subsidiaries are able to conduct their operations in accordance with the business objectives. Subsequently, the HR managers are identified to play an effective leadership role in order to develop appropriate HRM policies along with practices. The HR managers require formulating these policies as well as practices efficiently, so that differences persisting within cultural management styles can be mitigated. It would be vital to mention that the HRM department is crucial for preserving effective performance of business organisations through managing employees, making efficient decisions in relation to management culture and meeting future business needs (Nigan & Su, 2011). According to Nigan & Su (2011), there are three strategies encompassing acculturation, laissez faire and integration that are expected to be followed by Indian multinationals to perform their operations effectively in foreign nations. Theoretically, acculturation implies that multinationals implement home country’s cultural and HR practices in the subsidiaries that are located in foreign nations. The practices are adopted as standardized ones with the intention of performing global operations smoothly. Laissez faire reveals the process of implementing home country’s cultural and HR practices with the aim of localising their practices with the intention of performing beneficially. Integration signifies that multinationals adopt host along with home country’s practices in order to perform their operations in profitable as well as aligned manner. Subsequently, the HR managers of Indian multinationals are required to acquire a comprehensive knowledge about western management cultures and Indian management system for conducting various operations efficiently. In this respect, Nigam & Su (2011) have accepted that Indian management cultural values are based on relationship, which exist between employees and management. In Indian management style, the employees are appraised based on experiences along with loyalty. On the other hand, the management culture of Western countries is based on providing better career opportunities and the employees are appraised in accordance with their respective performances (Nigan & Su, 2011). Respectively, as noted by Nigam & Su (2011), effective leadership values that consider by the HR managers in managing the Indian multinationals’ subsidiaries are based upon the strategies of acculturation, laissez faire and integration in a balanced manner. In this regard, the HRM practices that are adopted as well as implemented by multinationals include training, career planning, power delegation, performance appraisal and compensation along with rewards. The HRM of Indian multinationals often faces ample challenging situations relating to changing business environment and management practices (Nigan & Su, 2011). The article ‘The Challenges of Evolving and Developing Management Indigenous Theories and Practices in Africa’ of Benjamin James Inyang represented that HRM in African continent ought to follow indigenous management theories. Accordingly, the indigenous management theories are based on traditional cultural values along with beliefs. However, the indigenous management theories have been affected in their implementation by colonialism largely. The colonial administration has aligned western management theories in the African management practices. In this regard, the HR managers in the African continent should take into concern the cultural factor for performing effective managerial practices with the introduction of western culture management styles (Inyang, 2008). Inyang (2008) stated in the article that the alignment of African indigenous theories and Western culture theories would certainly assist the African managers in developing better bureaucratic management. In this respect, the management of business organisations operating in Africa will be facilitated with the opportunity of conducting their respective operations in an efficient manner. Subsequently, in order to align the western management theories with the indigenous management theories, the HR managers are expected to transform western theories into desirable cultural norms. This is for the reason that the ‘management education programme’ of Africa does not facilitate the inclusion of western management theories along with practices for its implementation. In this regard, the alignment of western and African management theories is expected to enhance the knowledge along with the management practices of African managers by a certain level (Inyang, 2008). According to Inyang (2008), several problems in relation to the African management practices can be apparently noted due to the existence of colonial administration along with bureaucratic management. It is expected that the colonial and western management theories have adversely impacted the African management theories in an immense manner due to mismanagement, inappropriate management and poor management among others. In this context, the African managers accepted that the alignment of western management theories with African management practices has failed in imposing the important factor i.e. culture towards the development of indigenous African management practices. Specially mentioning, culture is a significant factor, which is accountable for better and effective management, as it depends on traditional values and ethnicity. The implication of colonial administration along with western management practices has introduced different management norms including wage employment that affected the behaviour, attitudes and motivation of the employees. There are certain other difficulties that eventually affected the formulation of indigenous African management theories. These include inadequate research facilities, differences in intra cultural aspects and inability of managers to perform effective operations (Inyang, 2008). As stated by Inyang (2008), the African management practices have implemented the approach of Ubuntu. Ubuntu is based on the concept of sharing, harmony, respect and caring as identified in African culture. In this regard, the African managers implemented Ubuntu with the intention of improving the productivity of employees. Moreover, the managers are facilitated with the opportunity of coordinating as well as managing the operations of employees in an efficient manner with the aid of Ubuntu approach. The management practices of Ubuntu can be duly considered as important as well as effective leadership values or ideologies due to the factors such as developing relationship, building teamwork, participative decision-making and mutual respect (Inyang, 2008). The article ‘Confucian Values and the Implications for International HRD’ of Jia Wang, Greg G. Wang, Wendy E. A. Ruona & Jay W. Rojewski denoted that in the present business scenario, culture is considered as an important factor, which is held liable for performing business operations in a sustainable manner. According to the article, it can be apparently observed that globalisation has led towards the development of trade as well as business operations on a global context. In this regard, China has adopted western management practices with the aim of expanding its business operations, enhancing economic conditions and developing living standards. Wang & et. al. (2005) expected that the collaboration of Western and Chinese management practices would certainly assist HR managers in coordinating along with enhancing the performances of joint ventures (JVs) by a certain degree. Wang & et. al. (2005) stated in the article that the Chinese HR personnel failed in aligning the Western management practices in an effective manner owing to the reason that HR personnel in China are trained based on traditional practices. In this regard, the HR managers adopting the concept of JVs often face ample challenges as well as difficulties in managing cross-border disparities due to misunderstanding underlying in their cultural factors. In this respect, the HR managers are expected to develop values along with practices based on cultural aspects with the intention of ensuring that the business operations are conducted in a balanced manner. It is worth mentioning in this regard that the HR management of JVs in China is based on Confucian values. Confucian values are generally adopted in HR practices in China as it is based on traditional values (Wang & et. al., 2005). The leadership values of the HR managers in China are accepted to be based on Confucian values that include group orientation, hierarchy along with harmony, guanxi networks (relationship), time orientation and mianzi (face). In this present competitive business scenario and cross-cultural management approach, the Confucian values are seemed to be ineffective in managing cultural aspects significantly. The HR practices in China based on Confucian values are identified to contradict with the Western management practices on various grounds that include interpersonal relationship and procedure of making effective decisions. Observably, the Chinese management is typically based on the conception of developing interpersonal relationship, keeping the employees quite reluctant to participate in making favourable management decisions. The Chinese HR practices have changed significantly due to cultural barriers along with competitive business market conditions. In this regard, the HR managers of Chinese JVs have accepted and implemented western management principles with the intention of ensuring that business operations are conducted in a better manner. Respectively, effective leadership values as accepted by Chinese HR managers have evolved from Confucian values towards western management practices. The HR managers evolving practices based on Confucian values along with western management practices would enable them to perform their respective operations effectively in this market-driven economy. Additionally, the amalgamation of Western management practices in Chinese HR practices will certainly facilitate the leaders to conduct business operations profitably as well as successfully (Wang & et. al., 2005). Critical Evaluation In the present competitive business scenario, HRM plays an important role in managing as well as coordinating diverse workforce for better and sustainable business performance. In this regard, Stahl & Bjorkman (2006) noted that the HR managers are required to possess adequate leadership competencies with the aim of ensuring that management operations and employees are managed successfully. It can be affirmed that globalisation is an important factor, which is held responsible for increased trade operations, labour and investment movement. Presently, HRM of global business organisations are identified to be concerned more about workforce diversity (Svendsen, 2011). In this regard, Lockwood (2005) observed that workforce diversity is based on the concept of anti-discrimination and inclusion. HR managers are entrusted with the responsibility of playing a leadership role for developing an effective working environment based on respect, knowledge-based system and inclusion. Evidences project that HR managers often face challenges in attracting as well as retaining skilled employees from their existing diverse workforces. Additionally, HR managers might face difficulties in providing effective training services to diverse workforce due to language barrier and diverse ethnic principles among others. In this respect, HR managers are required to adopt personality along with work style diversity in the workplace, so that employees from different backgrounds are managed. The concept of workplace diversity is adopted and developed in a more effective way in the context of western management practices. Currently, the management team of organisations concerns about diversity for effective amalgamation of ideas, cultures along with other different perspectives that are essential for enhanced business performance in this competitive market scenario. According to Lockwood (2005), workplace diversity is important for availing several opportunities that include better flexibility, retaining competent employees, reducing employee turnover, raising market share and growing sales as well as profit margin (Lockwood, 2005). Respectively, Aswathappa (2013) implied that the HR managers as identified in western and non-western business perspectives are required to adopt workplace diversity in their management practices with the aim of preforming business operations in an enhanced manner. Moreover, Shore & et. al. (2008) implied that the alignment of Western and non-Western business perspectives should be based on strategic goals. In this regard, Jayne & Dipboye (2004) argued that the HR managers and leaders are required to implement effective strategies in accordance with which they can employ a large pool of diverse workforce and develop effective appraisal system with the aim of attaining superior competitive position (Milikic, 2009). As argued by Elkin & Strach (2006), business organisations comprise two major assumptions that include mechanistic as well as organic based on which their management structure is designed. In this regard, the mechanistic model implies that the achievements along with the efforts of an individual should be based on beliefs as well as values. Respectively, mechanistic organisations are perceived to focus on ensuring that tasks are completed appropriately and the employees are able to conduct their operations effectively towards the accomplishment of the desired business targets. This sort of organisations is mainly formed based on formal structure, wherein every individual is assigned with respective tasks based on competency level. Additionally, in mechanistic organisations, the management of business organisations do not seek to develop relationship. On the other hand, Elkin & Strach (2006) argued that organic organisations are developed through building interrelationship amid individuals so that they are able to coordinate their activities in an appropriate manner. Moreover, these organisations facilitate management in making proper planning and coordinating activities by segregating tasks suitably. Organic organisations also ensure that the employees are able to conduct their activities as a team (Elkin & Strach, 2006). Subsequently, Myloni & et. al. (2006) argued that in the present competitive business scenario, the management of business organisations emphasise more on developing an organic organisation, so that they are able to perform their operations in a sustainable as well as competitive manner. According to Green & et. al. (2012) and Kreitz (2007), the notion of HRM adopts leadership values of developing a diverse workforce so that the competencies of individuals representing different cultural values along with beliefs are retained proficiently. In this respect, the HR managers of western as well as non-western based business organisations develop the approach of workplace diversity in order to build a better competitive position in the worldwide business market segments. In this similar concern, Scott & et. al. (2011) stated that HR managers should implement the strategy of inclusion in order to ensure that individuals from diverse cultural backgrounds with effective competencies are retained. Subsequently, the study of Nigam & Su (2011), Inyang (2008) and Wang & et. al. (2005) signified that HR managers are required to adopt workplace diversity as practiced in western management perspectives with the intention of performing business operations successfully. Conclusion and Recommendations It can be comprehended from the above analysis and discussion that HRM of business organisations play an imperative role in managing diverse workforce in the present competitive business environment. Notably, increased level of globalisation and cross-cultural differences among others are accountable for augmented diversity in the workplace. In this respect, the HRM professionals are entrusted with the responsibility of ensuring that diverse workforce are managed as well as coordinated efficiently. Moreover, workplace diversity plays a decisive role in developing greater associations with every organisational member so that management of business organisations are facilitated with the opportunity of making effective decisions and performing activities as a team. In this regard, certain recommendations are made based on which HRM will be able to manage diverse workforce effectively. The HRM should provide better training as well as knowledge development services to the employees so that they are able to conduct their activities in accordance with organisational objectives (Shen & et. al., 2009). Moreover, an effective communication system should be developed for assisting management as well as the employees to communicate and remain much aware about the business needs and perform accordingly (Shen & et. al., 2009; Kossek & et. al., 2005). Moreover, the HR managers can adopt eclectic leadership values with the intention of managing diverse workforce effectively in accordance with the changing business and market environment (Parkes & Borland, 2012; Andersen & et. al., 2005). References Andersen, T. & et. al., 2005. Is Strategic Human Resource Management Strategic? Files. [Online] Available at: http://knowledgelab.dk/sites/knowledgelab.dk/files/field_project_files/Is_strategic_human_resource_management_strategic.pdf [Accessed February 22, 2014]. 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