Choose a Business Function - Essay Example

? Choose a business function Table of Contents Introduction 3 External Factors influencing the changing nature of human resource management practices3 New Trends at the workplace 5 The changing role of HR 6 Conclusion 8 Reference 8 Bibliography 10 Introduction The project primarily helps making as assessment of the changing nature of work and employment in the field of human resource management functions. With the rapid changes in the external environment and globalization, the business needs of firms have changes considerably. This is especially true for those firms having overseas operations. New trends have evolved at the workplaces which have impacted upon the human resource practices in the same. The project tries to explore the key influential factors resulting in such changes with emphasis on the challenges faced by the human resource management departments on organizations. External Factors influencing the changing nature of human resource management practices Few of the major factors that have been undergoing dramatic changes in the global scenario have been increasingly posing threat towards organizations. Consequently their business needs have also undergone changes. Technological factors, the economic challenges, and changes in the local and governmental issues are some of the key factors worth mentioning in this context. Workforce diversities, unions and political factors have also been responsible towards changing the human resource management practices in organizations. Predominantly the organization structure and culture has demonstrated changes. Globalization has generated different forms of human resource management functions in the global competitive environment. Firms which have been competing in the global competitive environment have been facing with numerous new demands on their people and their organizations. They also seem to be pushed into different and contradictory directions. In response to this, new global organizing paradigms are concentrated on the complementarities, and not on the trade-offs, on management processes, not on the organizational structures and procedures. It demonstrates a shift away from the static and traditional solutions to the global business challenges towards the acceptance of global organizations as being an evolving and dynamic network (Pucik, “Human Resources: An Obstacle to Globalization?”). The changing economic environment has also driven changes in the human resource management practices in firms. With the increasing significance and presence of the MNCs as being crucial players of the global economy, there has also been an increasing interest on the concept of international human resource management of these MNCs. In spite of the growing importance of this IHRM as being one of the most innovative sources of competitive advantage, there has been very little research on ways to manage the globally dispersed mass of employees belonging to the MNCs effectively. A number of studies have been conducted by the application of greater theory driven conceptual frameworks, for better understanding of the multinational corporations and the international human resources management practices undertaken in them. Following are some of the findings from the results. Firstly the general result that followed is that the human resource management practices remain localized to reflect the differences in the cultural and regulatory environments between the host and the home countries. This primarily throws light on the fact that these multinational organizations require modifying their parent human resource management practices in the overseas subsidiaries in order to achieve a degree of isomorphism with the environmental institutions of the host countries (Kim & Gray, “Summary, limitations and suggestions for further research”). Recently organizations are also faced with the growing challenge of confronting and managing workforce diversities. The shifting business realities and the social and demographic changes have increased the workforce diversities even further. This has been especially relevant and visible in the context of the Japanese organizations which has posed significant challenge before them. The fierce and competitive business environment has forced the management in organizations to pay greater emphasis on the bottom line and find out cost effective ways of work for the peripheral workers and employees (McDonald, “Introduction”). Organizations today represent a collection of employees who work under a wide range of work arrangements. This diversity in the workforce has significantly influenced the nature of human resource management in organizations. Different management practices have evolved to reduce and manage this workforce diversity which impacts the corporate culture and generates such HRM approaches for managing the diversity (McDonald, “Introduction”). New Trends at the workplace With the evolution of the new IT enhances technology, the efficiency with which production takes place improved drastically. This is mostly significantly visible among the production firms in the United Kingdom and the USA. The impact of the rise in technology has also been significant in the field f human resource management. There has been constant improvement and evolution of this field which has successfully caused costs to decline substantially. This has made the implementation of human resource technology effective and has demonstrated bright future prospects for the same (Bartel, et al.,’Abstract’). Software has been deployed in order to manage such areas like internal mobility, succession planning, appraisal management, personal development and package review. E-recruitment and the performance management software that have been developed have also helped in the dramatical improvement in the HR’s ability for conducting people relationship management (PRM) effectively and also improve the organization’s brand. PRM has allowed organizations to build one to one relationship with the potential and present employees, which has enabled organizations to attract, develop and retain the right kind of people and deploy their complete potential. Today’s human resource management practices seek to reduce the cultural diversities arising out of the increase in workforce diversities in organizations. Increase in the number of multinational corporations across has enhanced the cultural gaps in them. Special emphasis has been provided to improve interpersonal relations in the place of work for smooth running of the organizational functions and practices. HRM practices also focuses on the creation of institutional policies and practices and laws which govern and improves the relations in the workplace (Blessinger, “Human resource management”). The changing role of HR Along with the changes in the organizations’ business environment, the role of HR has also changed. A wide diversity of roles has been identified in the present day organizational settings in the increased globalization in the corporate domain. Today the boundaries of the firms’ settings are no longer limited to the domestic setting. Crossing the borders has evolved as a popular and important concept which has influenced the HRM practices in the organizational settings. The HR functions and roles have changed and the related have also changed accordingly at the different plants, regions, corporate and country levels. As a result of the international environment, numerous new roles of the human resource departments operating in the multinational organizations have been emerging which are based on the various HRM strategies for internationalization. In the corporate Human Resource levels, they primarily emphasize on the monitoring and designing of the implementation of corporate human resource policies, especially in case of the organizations’ top expatriates and management. These activities also need new roles such as the effective influencer. Before exploring about what the roles entail, the paper first tries to outline the existing typologies of the human resource department roles, and exploring their relation with the time during which they had been devised. The present context of multinational organizations which are operating in the global market is then considered. Subsequently, the evolving roles of the HR departments in these organizations would be highlighted (Farndale & Paauwe, “HR Department Roles In Context”). The major roles in the human resource management functions have emerged in the context of internalization strategies, which largely aims at increasing the competitive advantages through realization of the scale economies and the economies of scope. The corporate strategies are now devised to reduce and adapt to the local conditions. The standardization of the human resource management practices has evolved which aims to reduce the inequalities between borders and enhances the alignment of the international systems. However, such standardization is likely to create conflicts among the organizational practices in the prevailing local conditions in terms of the natural cultures, institutions and the business systems (Farndale & Paauwe, “HR Department Roles In Context”). More and more organizations have been demonstrating increased focus on the promotion of cultures which are based on equality and diversity. They are more targeted towards centralization and development of vertical hierarchical. They focus towards the development of flexible work practices. There has also been an increased focus towards the development of improved customer services. Organizations have also been emphasizing more on rewarding employees for their creativity and innovation. Organizations have been focusing more on the development of corporate responsibility and HR developments are increasingly trying to direct the efforts of employees to such corporate practices (Farndale & Paauwe, “HR Department Roles In Context”). Conclusion It is apparent from the project that the global business context has undergone dramatic changes over the years which have resulted in the change in the roles of the human resource management departments in organizations. Globalization and the economic fluctuations have been primarily accountable for the changes in the departments. Also the development of technology has been embraced by the HR departments in organizations which are also accounted for the application of advanced HR practices. Resulting from the external influences, the present HR departments focuses on the internalization strategies for merging the different cultures and business strategies. Also the strategies aim towards enhancing the competitive advantage of the firms through the development of scale economies and standardization of the HR practices. Reference Bartel, A., Ichniowski, C., Shaw, K. & Correa, R.. Abstract. 2007. International Differences in the Adoption and Impact of New Information Technologies and New HR Practices: The Valve-Making Industry in the U.S. and U.K. May 25, 2011. . Blessinger, K. Human resource management. No Date. Human resource management. May 25, 2011. < http://www.libsci.sc.edu/bob/class/clis724/SpecialLibrariesHandbook/hr_management.html>. Farndale, E. & Paauwe, J. HR Department Roles In Context. 2005. HR Department Roles In Context. May 25, 2011. < http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1478&context=cahrswp&sei-redir=1#search=%22changing+role+of+HR+site:edu%22>. Kim, Y. & Gray, S. J. Summary, limitations and suggestions for further research. 2005. Strategic factors influencing international human resource management practices: an empirical study of Australian multinational corporations. int. J. of Human Resource Management 16:5. May 25, 2011. < http://filer.case.edu/users/txs122/LHRP421/Strategic%20factors.pdf>. McDonald, D. Introduction. 2003. Strategic Human Resource Management Approaches to Workforce Diversity in Japan: Harnessing Corporate Culture for Organizational Competitiveness. May 25, 2011. < http://daito.academia.edu/DarrenMcDonald/Papers/107291/Strategic_Human_Resource_Management_Approaches_to_Workforce_Diversity_in_Japan_Harnessing_Corporate_Culture_for_Organizational_Competitiveness>. Pucik, V. Human Resources: An Obstacle to Globalization?. July 15, 1996. Human Resources in the Future: An Obstacle or a Champion of Globalization?. < http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1180&context=cahrswp&sei-redir=1#search=%22globalisation+influencing+HR+site:edu%22>. Bibliography Almond, P. & Ferner, A. American multinationals in Europe: managing employment relations across national borders. Oxford University Press. 2006. Brewster, C., Mayrhofer, W. & Morley, M. Human resource management in Europe: evidence of convergence?. Butterworth-Heinemann. 2004. Scholz, C. Human Resource Management in Europe. Taylor & Francis. 2008. Foulkes, F. K. & Livernash, E. R. Human resources management: cases and text. Prentice Hall. 1988. Read More