Human Resources Management - Global Strategies for Managing a Diverse Workforce - Assignment Example

Introduction Employees in an organisation are valuable assets that determine the success or failure of an organisation. Its performance is dependent on them since they are the main drivers of all the operations taking place in an organisation towards the attainment of its goals. Thus, through a critical analysis of some of the human resources (HR) policies outlined in Bahrain 2008, the following four questions seek to explore some of the measures put in place to retain the staff by Emaar, a UAE based company that mainly specialises in construction and development of projects in the United Arab Emirates region. The following discussion in different cases will look at the functions of HR in an organisation as well as the measures that can be put in place so as to ensure long term sustainability of the organisation. 1. A close analysis of the Bahrain case study shows that a comprehensive review by the US department of labour of more than 100 companies shows that there is a positive relationship between motivating, training and empowering of workers and improvement of productivity and employee satisfaction as well as financial performance. In this regard, the importance of staff retention was clearly illustrated by Microsoft in 1999 when key staff members were leaving in droves mainly to join internet start-up companies (Moeller & Murphy 1999 as cited in Amos et al 2008). In response to the large number of staff departures, Microsoft executives identified 350 key employees they did not want to lose and explored how they could not make each of their jobs more compelling so that they will not leave. In the Bahrain case study, Lisa Brummel, senior vice president for human resources at Microsoft suggests that a stable and growing workforce with talent is bound to produce good financial results. The issue of staff retention is not only limited to Microsoft but it extends to all the other organisations that are committed to their long term survival. Staff turnover arises from a combination of factors such as dissatisfaction over pay or working conditions. Recruiting the right people plays a pivotal role in ensuring the success of the organisation. A company which is more concerned about its development should treat the employees as valuable assets and seek to retain them at all costs. The human resource approach is more ideal as far as company growth is concerned and it is used by Emaar at the present moment. “It is clear that our employees have played a crucial role in this success. As a company which boasts a large national and multi-ethnic workforce, we realize that our commitment does not stop at providing a challenging work environment, but extends to employees’ professional and personal growth,” ( Alabbar Chairman, Emaar Properties PJSC 2010). The process of recruitment is a twofold approach through which the organisation benefits in two ways where it seeks to increase its effectiveness as well as increasing the satisfaction of the workers (Carell et al 1995). As noted already, the human resource is a valuable asset in the organisation hence the need for measures to be put in place that are meant to ensure that the need for the organisation to achieve its goals as well as satisfying the needs of the employees are balanced which can be a long term guarantee of organisational growth. First and foremost, it must be noted that recruitment efforts seek to fulfil the needs of both the applicant as well as those of the organisation and it becomes the duty of the company to retain the staff once they have been hired. According to its official website, Emaar values its staff and want to ensure that they employ the best people. “We look for enthusiastic, energetic, flexible team players who will enjoy the excitement and challenges of working for a very successful and rapidly growing organization. As a customer focused company, we also look for people with a passion for delivering excellent customer service to our many customers” (http://www.emaar.com/index.aspx?page=career). This is a very important function of HRM. Workers in an organisation are expected to meet certain standards of performance so as to ensure that they achieve the organisational goals set and for these to be achieved, they need to be motivated so as to improve their performance which entails that the overall productivity of the organisation is improved. Simply put, motivation is the enthusiasm given to the worker to be productive. A number of definitions and theories of motivation exist and the theories are classified into two categories namely the content or needs theories and process theories (Amos et al 2008). Needs theories focus on the individual factors within each person and it is the role of the HRM to take into consideration the social needs and interests of the employees in order to form meaningful policies that will guide the operations of the organisation. Process theories on the other hand are concerned with explaining the process of how behaviour is initiated, directed or sustained. For instance, giving the skilled workers the autonomy to make decisions will greatly motivate them and the manager ought to know this process so as to ensure retention of key staff in the organisation which is the guiding principle at Emaar. Selecting the right candidates in an organisation is not an end in itself in as far as retention of the employees is concerned. Constant human resources development (HRD) is one technique that is used to shape the HR policy at Emaar with regards to retention of staff as well as to ensure that the employees keep pace with the changing environment that is characterising the operations of business during the contemporary period. HRD refers to all the methods used by an organisation to help its employees to develop their skills at work (Kleynhans R. et al 2007). This is about choosing the skills that need to be developed in the employees so that they will develop their performance standards like what Emaar is always striving to do. The HRM function spans from recruiting the right people in the first place to effective measure that can be put in place in order to retain that same staff for the long term benefits of the organisation. It is the role of the HRM to ensure that training and development are tools used in this process so as to ensure that the workers are able to face different challenges at work. During the current period, it can be seen that organisations operate in a dynamic environment hence the need to take a holistic approach so as to be able to keep pace with any changes in the environment. In most cases, these changes are necessitated by various factors which include the following: economic, political, social as well as cultural and demographic among others (Schultz et al 2003). In order for the organisation to remain viable as well keep pace with the changes taking place in the environment, it is imperative for them to put measures that the employees are developed and trained to know the changes that are taking place to be better positioned to face them. It is imperative to provide basic training to the employees so that they have the required knowledge to undertake challenging tasks that can arise. Training is often conducted through coaching and mentoring. HRD is very important since it improves the effectiveness of the employees as well as increase chances of retaining them which in turn improves the organisation’s competitiveness and effectiveness. There is also need for the HRM to be influenced by the need for learning among employees in the organisation when they formulate their policies. Jackson and Schuler (2000), describe learning as the process where the employees gain knowledge from others through interaction and this helps the organisation to remain viable. It can be noted that learning is mainly concerned with creativity and innovation which motivates the employees and plays a big role in facilitating their retention. One very important aspect that must help the HRM shape their policy with regards to staff retention is the fact that organisations concerned about their growth and development should run on the basis of knowledge management. The development of knowledge is meant to improve the operations of a target group which share common values and norms in an organisation. Knowledge management is very essential in ensuring the viability of an organisation especially during the current period characterised by the changing environment. Vygotsky (1962, 1968) suggests that knowledge management can be created by social interaction normally referred to as socialisation. Constant creation of knowledge as well as managing it makes the employee accustomed to the operations of the organisation and will develop a better understanding of it which helps in retaining the employees. 1. One of the major features of the late twentieth century has been the emergence of the global marketplace. It can be noted that there are various implications and considerations that have to be taken in as far as managing human resources is concerned. The removal of geographical boundaries as a result of globalisation means that different organisations can operate in areas with people from different religious and cultural backgrounds and can as well recruit people from diverse backgrounds as a result of migration of labour. Against this background, this discussion seeks to critically analyse the implications as well as considerations that need to be taken when managing the human resources. In the event of establishing business in other countries, the organisation should be aware that each society has got its own cultural values which shape their behaviour and they ought to be protected. Essentially, the HRM functions include but are not limited to the following: recruitment, solving conflicts, motivating workers, ensuring employee relations among others. In as far as HRM in global markets is concerned, it is important for the HR managers to shape their policies on the basis of the cultural values obtaining in that particular place. Thus, it is important to begin by explaining the meaning of culture. According to Werner et al (2003), culture can be loosely defined as a way of doing things by an identified group of people. In an organisation like Emaar as well as any other organisation, the behaviour of the employees is shaped by the organisational culture which is also influenced by the culture of the surrounding area. Against this background, the role of the HRM becomes more important in the context of operating in areas with different cultural backgrounds. Research has also shown the importance of human resources especially in the changing global environment in which organisations operate and there is a strong link with the performance of the organisations (Werner 2003). In every organisation, there ought to be rules that guide its operations hence the HRM policies in multi national or international organisations should be formulated on the basis of the values that will affect the employees of that particular organisation given that the employees are the foundation of every organisation. According to the official website of Emaar, the organisation is committed to recruiting UAE nationals and offers a Management Associate Program, which actively supports the development and growth of fresh graduates into rewarding roles. The organisation values diversity and employ 43 nationalities all working together in the pursuit of common goals. Essentially, it can be seen that the organisation upholds one of the basic tenets of HR functions. Multinational organisations should formulate uniform HR policies that are centred on diversity and should treat all the employees with fairness as well as equality regardless of their culture, race, gender or creed. Where there is uniformity in the formulation of HR policies, it becomes easier for the management to monitor the performance of the employees and it also becomes easier to formulate as well as implement strategies if there is consensus in the global policies of human resources management for the organisation. It can be seen that during the current period, many people are migrating to different regions across the globe in search of employment and the HR policies in global organisations should be developed in an impartial way particularly when it comes to selecting or hiring the employees. Factors such race, gender, religion or culture should not affect the recruitment process. The global HR policies to be formulated and implemented by a company operating in different countries should be accommodative to a diverse range of cultures. As a result of globalisation, it can be seen that different organisations operate in different places and it must always be borne in mind that there are diverse cultures with different values in those places. It is imperative for the HRM policies to take into consideration the value system of the local people in different host countries since these would form the labour pool. A company like Emaar successfully operates in the UAE by virtue of prioritizing local values were the local employees in a particular host country are treated as valuable assets. The policies that are not favourable to the value system of the employees are often difficult to implement as they will be shunned by the local employees. The HRM therefore would need to establish during their selection process if the potential candidate will be able to work comfortably in other cultures so as to ensure long term growth of the organisation. Global HR policies should enable the HR managers to positively influence their employees to improve on their performance so as to be able to achieve the organisational goals set and these should be accommodative to diverse views. Good policies are likely to promote staff retention across the globe where there are measures in place that treat the employee as a valuable asset to the organisation regardless of cultural background for the sake of motivating them to do their best in as far as performance is concerned. After establishing the culture of the people and measures that can be implemented in order to avoid violating this culture, it becomes the role of the HRM to ensure that policies meant to retain the employees are put in place. Human resources play a pivotal role in the operations of an organisation and it can be noted that in different sectors, the aspect of culture plays a significant role in promoting long term survival and development of the organisation. The human resources management ought to have knowledge about the way of life of the local people so as to be better positioned to influence them to positively contribute towards the attainment of the organisational goals. According to Schultz (2003), research suggests that strong, adaptable cultures which value stakeholders and leadership, and which have a strong sense of mission are likely to be associated with high performance over a long period of time which ought to be a guiding principle for HRM in different parts of the globe. It can be said that diversity in the workforce will help promote equal opportunities in different ways. By virtue of carefully managing people from diverse backgrounds, the organisation stands better chances of creating equality whereby all the employees will be working towards the attainment of the goals set. Where there is equality, there will be high chances of sharing ideas which creates knowledge which is very essential for the long term survival of organisations during the contemporary period. Equality through knowledge of cultural values of other people affects our approaches, expectations and behaviours in a conflict situation. There are likely to be conflicts in any organisation and the HRM should be better positioned to solve conflicts in a diverse workforce for the betterment of the organisation. This cultural approach to conflict resolution posits to the effect that accommodation and integration are seen as virtues in solving conflicts (Werner 2003: 239). An organisation is a collection of people from different background and this has a bearing on the approach that will be taken by the HRM to solve conflicts should they arise. Regardless of background, an organisation can form a unique culture that can make if different from others and this can give it a competitive advantage. Over and above, it can be noted that after having recruited the right people, organisations operating in a global marketplace ought to take consideration of values of the local people which shape their way of behavior hence they ought to be safeguarded since they have a bearing in policy formulation by the HRM. 2. (4) Armstrong and Baron (1998:7 as cited in Werner 2007) define performance management as a strategic and integrated approach to delivering sustained success to organisations by improving the performance of the people who work in them and by developing the capabilities of the teams and the individuals. It seeks to improve the results at the level of the individual, team or organisation and the process is owned and driven be the managers. On the other hand, performance management system is a systematic process that formally documents the goals and objectives of each employee with a built in review process. This section therefore seeks to attempt to design a performance management system for my organisation that is most likely to achieve better results for the organisation, teams and individuals. My organisation specifically deals with construction as well as selling of property and I am the manager in the sales department. The following is an outline of a suggested management system for Emaar where I work as a manager. The purpose of performance management in the organisation is to improve the performance of the employees so that they will attain optimal sales in their day to day operations of selling motor spare parts. In this case, performance is managed on the rate of increase of sales achieved on a weekly basis compared to the previous weeks. The number of sales achieved by different sales reps will determine their performance level in relation to the organisation’s stated goals. All the sales reps will be involved as well as their immediate supervisors. An appropriate appraisal method is management by objectives. This gives the sales rep the opportunity to be flexible to set the sales target for different properties which is unlimited. The employees are to be appraised continually on an informal basis but formally at least twice a year especially during the first half of the year and the second half to see if they are improving in their work. The ones with highest results will be promoted to the next stage at the end of the year and those showing improvement in their performance will be rewarded accordingly. The results will also be used for development purposes especially determining if there is need for expansion of the organisation. All the records to be kept in the database of the organisation. Performance review will be periodically held between the employee and the manager. The meeting will discuss areas that need attention with regards to the employee’s performance. The performance management system sets the guidelines for resolution of disagreements between the raters and the employee. The performance management policy will be based on the notion that all the employees’ efforts are target driven and their earnings will be performance based. Constant education about how the system operates will be carried quite often. Monitoring will be done by the manager and the results will be communicated to the employee as regularly as possible in a bid to stimulate the employee to keep on improving on sales. The individual will be directly linked to the organisational development planning process because he will be involved in the decision making process. The employee will contribute in assisting the manager in the task of establishing a performance agreement. 3. (5) An organisation will not operate effectively unless it has a stable and relatively harmonious relationship with its employees. This discussion seeks to critically evaluate the state of employee relations in my organisation Emaar and the extent to which the concept contributes to the effectiveness of the organization. According to Swanepoel et al (1998:611), “employee relations as a topic is thus taken to refer predominantly to those aspects related to conflict, cooperation, involvement, and communication in the relationships between the managers and non-management employees, irrespective of the type of work or industry concerned and irrespective of the presence or the absence of trade unions.” From this definition, it can be noted that aspect of interaction within an organisation is very important in as far as mutual understanding among people within an organisation is concerned. It is the basis upon which a relationship that binds the members of the organisation is formed. The notion of employee relations is primarily concerned with the one to one relationship of employees at work. This also includes the daily human relationship between the subordinates and their superiors which determines the effectiveness of the organisation. Where there is a good relationship between the managers and their subordinates like at Emaar, there is likely to be mutual understanding which promotes effective performance among all parties involved. An employment relationship is essentially meant to show the relationship between the employer and the employee and the extent they can exchange remuneration for work done by the employee. This is a win-win situation so under normal circumstances, there is no party which will be comfortable from getting a raw deal from this marriage of exchange. Therefore, employee relationship is a virtue where it can be seen that without the existence of this relationship, an organisation may not function effectively. It can be seen that the behaviour of the humans has to be controlled in order for the organisation to streamline the performance of the employees towards the attainment of the set organisational goals. Where there is no cordial relationship, the people in an organisation may fail to understand each other which will result in lack of coordination among them which can negatively impact on the goals of the organisation. Employee relations also serve the purpose of minimising or solving conflicts in an organisation. Conflict is a result of misunderstanding between the employees and it is something that is seen as natural and normal in any organisation it is the duty of managers in particular to solve disputes among the members of the organisation. The essence of employee relations is to prevent conflicts as well as resolve problems encountered by the workers as these are counterproductive. Where there are conflicts, there are likely problems such as poor performance as well as employee misconduct where there will be need for the management to deal with these in a corrective manner. In order to make sure that the employees are conforming to the expected standards, there is need for the managers to address the grievances of the employees in an amicable way. In order to promote quality relations in an organisation, there is need for the management to provide the correct information so that the employees will have a common understanding of the goals and policies of the organisation that will help them to understand the way they should conduct themselves (Werner et al 2003). This is another way of addressing different issues that affect the workers at work. When correct information is disseminated to the employees, they will exactly know what will be expected of them and this can further motivate the employees to be productive if there are good relations prevailing in the organisation. Thus, communication in the organisation plays a significant role in establishing employee relations. Normally, there is no organisation that can survive successfully without communication which involves dissemination or exchange of information between the employees and the management (Werner 2003). From the above argument, it can be noted that communication is very important especially in influencing the attainment of the set organisational goals. In an organisation, all members are there for the same purpose of achieving the organisational goals hence the need to establish employee relations so that they can be in a position to pull their resources together towards the attainment of the set goals. Indeed, managers in the organisation have a task of overseeing the operations of the employees and they can greatly influence their interpersonal behaviour which forms the basis of employee relations (Swanepoel et al 1998). In most instances, chance of improving employee relations are high where there is direct communication which can greatly improve the relations that exist among the members of the organisation. Sharing of information in a free environment is a requisite for good employee relations given that all the members of the organisation can have mutual understanding which will enable them to share the same vision of the organisation. This will also minimise the chances of working under fear from the superior by the subordinates since they will be given the opportunity to express themselves and become part of the organisation. Misunderstanding over particular issues in an organisation will be drastically reduced where there is cordial employee relationship. This entails that chances of conflicts in the organisation will also be reduced. Thus, effective managers can also implement the concept of socialisation to foster employment relationships. Socialization is the process through which the members of the organisation continually learn the values, norms and beliefs of the organisation through interaction to become an integral part of it (Werner 2003). This encourages members of the organisation to have the same view towards something. People who often encounter conflicts between personal values and the organisation’s values will reduce their performance and the chances of them leaving the organisation will be high hence socialization should not be left to chance but should be carefully managed. This helps promote interaction among the employees which plays a positive role in creating good employee relationship. Over and above, it can be concluded that an employment relationship is essentially one of exchange which comes into being when a person is employed by someone to be available to work in exchange for some form of remuneration. Conclusion It can be seen that in the four cases discussed above, the human resources management play a great role in the operations of any given organisation especially with regards to the employees. Without the employment relationship, then, there can be, by definition no labour, employee or industrial relation (Swanepoel 1998). It has been noted that employee relations involve a body of work concerned with maintaining employer-employee relationships which greatly contributes to satisfactory productivity, motivation, and morale of the parties involved. Without sound employee relations, it may be difficult for the organisation to effectively operate. Good employee relations also play a pivotal role in retention of the workers in an organisation. As discussed above, Emaar is a good example of an organisation that is committed to treat the employees as valuable assets and it has measures in place to ensure that the employees get the best out of their commitment to their work. Bibliography Amos T.L., et al 2008. Human Resources Management. 3rd Edition. JUTA Carrell, R. et al (1995), Human Resources Management: Global Strategies for managing a diverse workforce, 5th Edition, Prentice Hall, USA. Emaar (05 December 2010) Available at: http://www.emaar.com/index.aspx?page=career [Accessed 05 Dec. 10]. Employee relations. What is employee relations? (03 May 2009) Available at: http://ohcm.gsfc.nasa.gov/employee_relations/whatis.htm [Accessed 01 December 2010] Human resources policies Bahrains (2008) Source: “Best Workplaces” Financial Times Special Report May 28, 2008 Grobler P. Et al (2006). Human Resource Management. 3rd Edition. London. Thompson Learning. Journal of industrial relations (2010). 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