HRM in International Context - Research Paper Example

Table of contents Introduction………………………………………………………………………3 Key areas of human resources to be standardised………………………………..4 Obstacles to implementationof HRM policies…………………………………..6 Recommendations………………………………………………………………..7 Employee involvement…………………………………………………………...7 Reorientation of the workers…………………………………………………….8 Effective communication………………………………………………………..10 Key competencies of the managers……………………………………………...10 Conclusion……………………………………………………………………….12 Bibliography……………………………………………………………………..13 Executive Summary IT is a multinational company which has underscored to make far reaching changes to its operations and structure. With regards to the change plans as well as decision making about the firm, the major aim of this report is to suggest strategies that can be adopted and give a critical analysis of the HR policies that can be standardised in order to make to make the change initiative successful. The report notes that the areas of HR practice that should be standardised on a global basis mainly include the key issues related to salary, training as well as working conditions as these are interrelated and often determine the effectiveness of the organisation’s performance towards achieving its goals while at the same time satisfying the needs of the workers. The report recommended that there is need for employee involvement in decision making to create a sense of belonging. There is also need for reorientation of the employees through training and it has also been recommended that there should be effective communication in order to create understanding among the work mates. It has also been noted that regional managers should have quality leadership styles to be able to motivate the employees. They also ought to accommodative to different people from different cultural backgrounds and they should also be impartial when dealing with key issues such as recruiting. Introduction IT Company is a large multinational organisation which has been in existence for more than 100 years but had no clearly defined global HR policies to unify its operations since it was structured on a regional basis where each company in a different geographical location was given the autonomy to make its own decisions. IT Company which had enjoyed a near monopoly status in its markets until the early 1990s encountered economic problems due to higher global and domestic competition which prompted the new CEO to make far-reaching changes to the business strategy and the organisational structure. In particular, the decision-making authority of local managers was reduced and responsibility transferred to regional headquarters such as Paris, and to the US headquarters. However, this initiative requires the company to address all the probable impediments that may scuttle the efforts to operate in global markets which are characterized by employees from diverse cultural backgrounds. Against this background, it is imperative to standardize the human resources policies from a global perspective in order to ensure that the operations of the organisation conform to similar standards to meet the new demands of the change plan so as to operate at the same wavelength. This report will particularly focus on strategies that can be adopted by the HR Director of the Global Business Unit: Printer especially with regards to human resources development strategies that can be implemented in order to equip the employees with qualities that would ensure their competence in view of change plans. In this case, the most appropriate tools to analyse the proposed change plans include the systematic approach of how the employees can be upgraded to remain useful to the company from a global perspective while maintaining the expected standards of operations with regards to human resources. Thus, in view of the above mentioned issues in respect of change plans as well as decision making about the firm, the major aim of this report is to suggest strategies that can be adopted and give a critical analysis of the HR policies that can be standardised in order to make to make it work. A reflection about the action plan for implementation would be given as well as recommendations of overcoming the impediments likely to be encountered during the process of implementation. This is in response to the process of change which is caused by different factors such as competition as well as globalisation Key areas of Human resources to be standardised from a global perspective The areas of HR practice that should be standardised on a global basis mainly include the key issues related to salary, training as well as working conditions as these work hand in hand with each other and often determine the effectiveness of the organisation’s performance towards achieving its goals while at the same time satisfying the needs of the workers. The human resources approach suggests that organisational goals and human needs are mutual and compatible: one set need not be gained at the expense of the other (Carell et al 1995). In most cases, these elements are interrelated and they often affect the function of human resources management. The HR Director of the Global Business Unit: Printer should ensure that the aspect of remuneration is standardised so as to ensure that the organisation operates as a homogenous entity. Employees are mainly motivated by the financial gains they will get for working hence there is need to have a standard global policy which clearly spells the structure of the salary schemes for workers who occupy the same position regardless of being based in different geographical locations. It defies logic to have employees doing the same job getting different salaries as these work for the same organisation though in different regions. Such discrepancies in salary structures can lead to the production of sub standard products as a result of some people getting little salaries compared to their counterparts which would discredit the reputation of the organisation. Basically, all the employees are motivated by the amount of money they get hence there is need for workers occupying similar positions to have same salaries. On the other hand, this would also not strain the fiscus of the organisation since the payments will be determined by a scale that would not disadvantage other workers. Issues of payment should be determined by the head office so as to ensure that the organisation remains profitable. Giving the companies under one umbrella name the autonomy to decide their own payment would be a great disadvantage to the organisation since some sections may unjustifiably award themselves high pay checks which will be costly to the organisation. It can thus be noted that it is a noble idea to have a standard salary scale that is determined by the global operations of the organisation. The other area which needs to be standardised includes the performance management of the workers. By virtue of operating various companies in different parts of the world does not mean that the organisation ceases to be regarded as a single entity. Workers in different parts of the world should meet certain standards of performance so as to ensure that the printers produced by IT meet the expected standards. The products with the same trademark should not be very different as this would discredit the reputation of the whole organisation. Measures such as training the workers to meet the global expectations of the organisation’s operations ought to be put in place so as to ensure that the organisation maintains its global competitiveness by upholding similar standards of performance. The HR Director of the Global Business Unit: Printer should also make sure that working conditions are standardised in all companies that operate in different areas. It has to be borne in mind that employees are motivated by different things apart from financial gains alone. Flexible working conditions can motivate them to pursue their own personal businesses. In every organisation, there ought to be rules that guide its operations hence for a multi national organisation like IT, there should to be standardised regulations that guide formulation of policies with regards to the working conditions of all employees across the globe. If there is uniformity in such policies, it becomes easier for the management to monitor the performance of the employees and it can be easier to formulate as well as implement strategies if there is consensus in the global policies of human resources management for the organisation. Obstacles to implementation of global HRM policies More often, initiatives to implement change are often characterised by resistance such as fear of loosing jobs by the employees or general misunderstanding among them (Kleynhans 2005). In some cases, where there is no trust, it may be difficult for the workers to discuss their problems openly. Whilst the initiative by the new CEO to have the decisions made by the headquarters of the company, it does not mean to say that the ideas of the workers pertaining to their salaries become irrelevant. Such obstacles like resistance to change can be easily overcome if all the interested stakeholders are involved in contributing their ideas towards the decision making process that characterise their working on a daily basis. The voice of the workers who are the drivers of the organisation should be considered in policy formulation instead of the managers simply dictating everything to them since this would cause resistance. Involvement of the employees in contributing ideas towards formulation of decisions will create a sense of belonging. Another obstacle that can be encountered is that the leaders may lack leadership qualities to influence the workers to improve their performance with regards to adoption of new policy changes. Leaders should always be exemplary where they portray a positive attitude towards the implementation of policies so as to minimise the chances of failing to change the behaviour of the employees in the organisation. A leader who fails to effectively communicate the policies of the organisation may fail to change the behaviour of the employees to adopt the new policy changes in the organisation. Recommendations Employee involvement If employees are given the opportunity to give their ideas though they may not personally make decisions then there would be high chances of them being part of the decision making. As noted, the new CEO just dictates his own policies without proper consultations the reason why there is some form of resistance. According to Jackson and Schuler (2000:203), the following techniques can be implemented since they are vital in overcoming resistance to change. Education: Need to teach people gain the required knowledge in implementing change. Participation: People should participate in the change process. Negotiation: Talking removes barriers to implementing change such as misunderstanding. Cooptation: This can be adopted when other tactics fail. However, resistance to change will never disappear completely. In fact, in some cases, resistance is helpful in that it will act as a check-and-balance structure to ensure that management complies with the advocated change. HRM has to play a careful role which allows the people to participate as a way of attempting to minimize barriers to change. It is also recommended that the policies to be implemented should be flexible and can accommodate norms and values of people from diverse cultural backgrounds. The concept of globalization posits that organisations are free to operate in different parts of the world characterised by different cultures and these have different values which should be respected for the benefit of the organisation and the leaders. It is important for IT to take into consideration the value system of different people found in the countries the organisation would be operating in since these form the bulk of the workforce. Ignoring the value systems of local people may be dangerous in that they would fail to identify with the organisation which can make it difficult to implement the policy changes. Reorientation of the workers Reorientation of the workers is very important since these old employees are the ones who have the knowledge about the operations of the organisation and are the ones who will be directly affected by policy changes to be implemented. It is very important to provide continuous training to the employees as a way of equipping them with the basic knowledge that is relevant to their day to day operations. In this regard, training is mainly in the form of coaching and mentoring which are very important in motivating the employees to have a positive feeling towards the change initiative as well as their work. Mentoring is a process where experienced workers support the inexperienced workers to develop a deep understanding of their work so as to keep pace with the changes that may take place (Jackson and Schuler 2000). Coaching is a planned one on one instruction method where a coach working with only one learner at a time sets a good example of what is to be done (Kleynhans 2006). Since IT has underscored to embark on a change programme, the coaching method is very ideal for this situation where the employee would quickly understand the demands of the new policies since it would expose them to first hand experience. Mentoring on the other hand is critical in that an experienced employee can take a leading role in guiding the development of a less-experienced worker in a bid to increase his competencies, achievement and understanding of the new policy framework. This would remove unnecessary fears among the employees as they would greatly benefit from the knowledge of experienced workers in a fashion that encourages mutual understanding. Where there is a cordial relationship among the workers, there would be very high chances of successfully achieving the goals of the organisation. It can be noted that coaches also play a leading role in encouraging the employees to be open and discuss difficult situations they may encounter during the dispensation of their duties which is very helpful in the implementation of anticipated changes to be effective as well as attempting to retain the workers. IT for instance has got its old employees who now have experience about the operations of the whole organisation and it would be cheaper and even better to educate the experienced staff about a single element about the change plan than hiring other skilled workers from outside. The outsourced workers may lack basic knowledge about the operations of the organisation as a whole. Implementation can take place after ensuring that the employees have gained the basic knowledge required to make the change strategy a success. This would also involve close monitoring of progress and constantly revisiting the areas which would require more attention and refinement. Effective communication Communication is very important in ensuring the success of the organisation (Kritzinger, Bowler and Goliath 2003). Thus, effective communication entails that there is mutual understanding between the employees and their employers as far as communication of organisational policy is concerned. Effective communication can play a major role in minimizing the problems likely to be encountered as the ones mentioned above. Basically, all organisations are concerned with achieving set organisational goals and their structure play a very important role in ensuring that there is smooth flow of information. It is recommended that there ought to be well defined channels of communication at IT and these should be open to make communication more effective. There should be feedback from both ends to ensure that there is mutual understanding within an organisation. Where there is an open channel of communication, there are likely chances of communicating effectively since the parties involved would be agreeing on one thing which is aimed at attaining the goals of the organisation. Communication would remove barrier that may exist in implementing certain changes. Key competencies of regional managers Regional managers should have quality leadership styles that would enable them to positively influence their employees to improve on their performance so as to be able to achieve the organisational goals set. Employees are likely to be highly motivated if they are being led by an exemplary person as he would try to establish a free environment in which the workers would not feel betrayed or let down by the introduction of new policies that can be treated with skepticism for fear that they can threaten their jobs. These managers should create flexible working conditions which can motivate the workers to put optimum performance in their day-to-day operations. Regional managers should also be better positioned to develop their employees as well as put measures in place that would ensure staff retention. This can be achieved through staff development initiatives such as training which can also include mentoring and coaching of the employees. These managers should put measures in place that treat the employees as valuable assets to the organisation as a way of motivating them. The regional managers should also be accommodative to different cultural values of different people from different cultural backgrounds Managers have the task of monitoring the operations of the other workers in an organisation. However, all the organisations operate in a dynamic environment which constantly changes hence the need for the managers to be also constantly developed so as to be able to cope with the changing times. More and more people are migrating to different regions in search of employment and the regional managers should be developed so as to be impartial when they recruit or hire employees. The managers should not be influenced by such factors as race, gender, religion or culture when selecting employees to join the organisation or when dealing with people already employed by the organisation but hailing from different cultural backgrounds. Managers in different regions ought to respect different cultural values so as to create a peaceful working environment that is characterised by mutual understanding where the employees can freely share their ideas towards the attainment of the organisation’s goals. There is need for constant development of the management in this area as this ensures the smooth operations of the organisation in the face of changing times as well as the business environment. Conclusion A close reading of the case study of IT shows that there is need to standardize the global human resources policies mainly on issues pertaining to pay, working conditions as well as training in order to remain viable after the implementation of suggested policy changes by the new CEO. Over and above, it can be noted that implementing new policies to the organisation is not a one day off event but requires concerted efforts especially by all stakeholders that are either directly or indirectly affected by its operations. Implementing a program is concerned with change of the current way of doing things and in most cases change is met with resistance by many employees as a result of many factors. Depending on the quality of the leadership style, these problems likely to be encountered can be overcome if positive structures that promote effective communication and mutual understanding among the workers are put in place. (2910 words) Bibliography Armstrong M. 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