Human Resource Management in the Global Age - Report Example

What do you consider to be significant difficulties that HR specialist faces in putting their skills into practice within an organisation and explainhow knowledge of some basic theories about HRM can help to overcome them? Introduction Edwin Flippo’s definition of Human Resource Management encompasses functions like planning, organizing, directing, recruitment, development, providing compensation and rewards and aiming at the fulfillment of both organisational and human resource objectives. The history of Human Resource Management dates back to the evolution of human race. Between 1000-2000 B.C., there was advancement in Human Resource Management function. It is a very interesting fact that there were screening tests conducted in 1115 B.C. in China. Due to Industrial revolution, the concept of factory and manufacturing process evolved. United States shift to an industrial economy demanded companies to implement innovative but effective ways to recruit and keep skilled workers. Therefore, there was a need of Organized Human Resource Management to solve the problem of recruitment and selection. The need for managing human resources was certain due to formation of Labor Unions in factory and due to dangerous working conditions. The modern Human Resource Management evolved due to two reasons - first, the industrial welfare movement, which created the education and welfare facilities and second, the ideology of Frederick W. Taylor. Taylor in his book named Management methods for attaining greater productivity from low-level production workers emphasized the need of Human Resource Management in today’s world. Though the focus of Human Resource Management is on people management within an organisation yet in practice, it is considered as a tool for promoting optimum utilization of human resources through individual development. In large organisations, Human Resource Management department have the task to maintain parity between company goals and employee goals. Therefore, for goal achievement of an organisation, it is very important to have the right employees to achieve them. (Mote, n.d.) Functions of Human Resource Management practitioners The responsibilities of a Human Resource Management practitioner in an organisation are individual management, organisational and career progress. Individual management has the idea of helping employees to give their best and attain individual and organisation’s goal by identifying their strengths and weaknesses and rectifying their deficiencies and also gives a proper solution to their grievances. Organisational development refers to planned changes for organisational effectiveness. Career development involves mentoring employees to right career paths. In this context, the Human Resource practitioners are assigned various responsibilities like human resource planning, job analysis and design, recruitment and selection, orientation and induction, training and development, performance appraisal, compensation of an employee, welfare, health and safety of an employee and industrial relations. (Jackson, Schuler, Werner, 2009: 78-80) Human resource planning Setting and defining the objectives to be achieved in the context of Human Resource can define human resource planning as the set of activities related to scanning and assessment of external and internal environments of Organisations. It identifies the tools used to achieve those objectives and developing and implementing specific plans for achievement of Human Resource policies and their practices. Identification of job vacancy and whether human resource is in excess or in shortage and plans made for the same come under human resource planning. (Jackson, Schuler, Werner, 2009: 78-80) Job Analysis and Design Job Analysis is the analysis made with the help of a thorough study of the jobs performed by employees in an organisation. Based on job analysis, an organisation prepares job advertisements. Job design deals with the change, modification and enrichment of jobs in order to judge an employee’s capability while improving the performance of an organisation. (Bohlander, Snell, 2010: 162) Recruitment and Selection Recruitment is the process of finding the right employees from a pool of candidates applying for the same position. Recruitment process needs a well-designed recruitment policy in place, a proper analysis of the position concerned with the job description and specification and analysis of organisation’s needs and goals. The five steps involved in recruitment process can be given as follows: searching for alternative recruitment, deciding the recruiter to be selected, sourcing the employee through consultant, internet, advertisement in newspaper etc., taking care of the legal aspect and deciding on methods of application. After deciding on all these factors, interviews are taken for the short-listed candidate from a pool of applicants and the selection is made according to the criteria set for the position. (Compton, Nankervis, 2009: 15) Orientation and induction Orientation and induction refers to the programs intended for the new employee to make them understand the background of the organisation, work culture, values and ethics to be followed, terms and conditions of their job offer and facilities to be provided within the organisation. Without a proper orientation and induction program on the way the employee lacks self-confidence, which can affect the operations of the company. The employee can even leave the concern causing huge turnover costs or can opt to stay and de-motivate others. (Personnel and Human Resources Management, n.d.: 166-168). Training and Development Training and development programs are conducted to make the employee perform better in an organisation. Fresher training is given to new employees while refresher training given to existing employees to improve their present skill. The training can also be provided on the job, which helps to enhance the skill and potential of an employee. Job rotations and assignment of special responsibilities to employees also necessitate training. (Personnel and Human Resources Management, n.d.: 165-166). Performance appraisal The basic goal behind performance appraisal is to give a feedback to the employee. Every organisation has a particular goal and target. If an employee is able to reach the goal and exceed the target given well within time, he or she is given a positive feedback. Performance appraisal is done by giving performance incentive with rewards and recognition but if a employee is not able to achieve the target, he/she is given a feedback about the need to improve the performance and necessary support is given to the concerned employee so that the individual understands where he is lacking and try to improve the performance. Therefore, this will make the employee understand where they are standing and efforts made to improve the performance. (Performance Appraisal, 2007) Compensation Compensation is a process of payment of salary to an employee recruited based on his educational qualification and related work experience. The compensation package is based upon a mutually agreeable negotiation between the Personnel Department and employee. Providing incentives like performance based incentives and fringe benefits help in giving financial motivation to the employees. It is the job of the Human Resource Management practitioner to look after the benefits like pension, life and health insurance, vacation or holiday and opportunity for higher studies to make the employees feel satisfied and cared for. (McNamara, n.d.) Welfare and health If the Human Resource Management practitioner can look after the wellness of an employee, this in turn will reduce absenteeism and improve the productivity of the organisation. Wellness benefits include free health check-up for the employee, free Gym facilities within the organisation and advice from doctors to reduce stress and obesity. Healthier an employee means more productivity and profit for the organisation. (Employee Wellness Programs, n.d.) Safety It is the utmost job of a Human Resource Management practitioner to look after the safety of an employee in an organisation. An employee always expects to work in a safe and secured environment in their workplace. Therefore, a proper safety measurement like fire exit and fire extinguisher is a pre-requisite in case of a fire peril. Safety also depends on the workplace because a person working in an IT firm is more secured than a person working in a coal mine but it is the responsibility to get proper safety-aid and amenities to make the workplace secure. (Spitzer, 2007: 249) Industrial Relations The Human Resource Management must look at fostering a congenial industrial relations environment with its employees, the trade unions representing them and also with the government of the state. Maintenance of a harmonious and a suitable industrial environment helps in the increase in production of the concern. Industrial relations help in maintaining the economic balance of the company by the promotion of equity, justice and development of the manpower involved. (De Silva, n.d.:8). Problems faced by a human resource manager and its probable solutions In today’s world the organisations as well as their human resource departments are facing a drastic change in the business environment. Demographic and economic changes coupled with the need for globalisation and increase in the number of ageing workforce is fast altering the global labor market. The need of the hour is trained and well skilled manpower. Thus integration of information technology with strategic management initiatives is needed to shape the global workforce. In the light of the above context the major challenges faced by the organisations and human resource department can be grouped as: changing work groups patterns and work force demographics, ability to operate in a global context, introduction of information technology, gap filling of employee to skill operations, need for spontaneous development of human capital and fulfilling social objectives and responsibilities through meeting of organisational goals. (Sims, 2007: 22-23). Changing Work Groups Patterns and Work Force Demographics It is found that the American work place has changed in a radical fashion. The number of white men is found to be increasingly decreasing year after year. A recent study states that the number of white men will come down to 35 percent of the total work force in the United States. The employment for women is also found to increase in the American labor force. Employees coming from other countries reflect both cultural and educational differences. The human resource department of the companies needs to have a better understanding of the changing situations. America is also found to gain a huge influx of old manpower by the end of 2012. The estimated average age of the employees is expected to become 41.4 from 40. Similarly the entrant age group is estimated to become 39 from 25 years. This clearly reflects the growth of the elderly work group owing to experience. However, it must be noted that they will be less adaptable to changes and need for flexibility. In the above context the need for a proper intervention of the human resource department can be felt. The company needs to give focus on the security needs of women employed at the workplace. More training patterns should be developed both for the existing as well as the new entrants. (Sims, 2007: 23-24). Operating in a Global Context The current scenario of trade and commerce in the global hemisphere demands the organisations to become globally competitive in delivering the required products and services. The human resource management policies of the companies need not only to reflect a global outlook but also must cater at the local needs of the workforce. In order to be successful in the global context the organisations need to devise strategies to share work related information with its offices located in different locations around the globe. Moreover, cross-cultural training needs to be imparted to the workforce along with training in a foreign language to help them operate in the global sphere. (Sims, 2007: 24-25). Technological Changes Information Technology has invaded each and every sphere of the business and trade hemisphere in today’s date. The rapid advance of information technology has greatly affected the job and business environment. It has led to the growing need for technology-oriented professionals in the different industries. In regards to the above context the Human Resource department of the companies needs to make proper evaluations on deficiencies in the technological front of both the business and of its employees. It needs to design and plan training modules that will keep the business and manpower updated on technological advancements. (Sims, 2007: 25, 28) Spontaneous Development of Human Resource The human resource management of a concern need not only look at closing the efficiency gaps as related to the growing use of information technology, but also must look forward to provide total and spontaneous development of its manpower. It demands the development of strategies to provide advance knowledge and skill and work related training to its employees. The efficacy of on-the-job training should be emphasized here. In total the human resource department of an organisation should make the concern well equipped to be flexible in context of the environmental changes. (Sims, 2007: 28-29). Meeting Social Responsibilities by operating within an organisational framework The organisations in the modern day context are seen as the driving forces that can bring about social and political changes. In America legislations like the Civil Rights Act 1964 have framed rules for the companies to perform within a stipulated social, political and legal framework. In this context it can also be observed that legislations regarding the action of the companies in cases of social intervention are also framed in America. The companies need to give shelter to disabled and AIDS patients. The grievances and complaints of its employees need to be managed by operating within the legal framework of the state. (Sims, 2007: 29-30). Conclusion The Human Resource Manager in today’s global age needs to make the organisations flexible enough to adapt to the changing business and technological environment. It must not only encompass the tenets of management preached at the business schools but must be alert and responsive to changes needed. Globalisation of business, advent of technology and employment of women in the workforce are some of the changes which needs the business concerns to be rightly adapted to. Moreover, the need for a business to be socially responsive has created a challenge to develop a socially and legally alert workforce within the company. It also calls for the need to develop better policies and regulations hinting social and legal alertness of the business organisation. References Mote, D. (n.d.). Human Resource Management. Retrieved on 16th September, 2010 from: http://www.referenceforbusiness.com/encyclopedia/Gov-Inc/Human-Resource-Management-HUMAN RESOURCE MANAGEMENT.html (accessed on September 18, 2010) Jackson, S, Schuler, R & S. Werner. (2009). Managing Human Resources, New York: Cengage Brain Bohlander, G & Snell, S. (2010).Managing Human Resources, New York: Cengage Brain Compton, R & Nankervis, A. (2009). Effective recruitment and selection practices, CCH Australia Limited Personnel and Human Resources Management, (n.d), Rex Bookstore Incorporation. Performance Appraisal. (2007). Naukrihub.com. Available at: http://appraisals.naukrihub.com/definition-concept.html (accessed on September 18, 2010) McNamara, C. (n.d.). Employee benefits and compensation. Free Management Library. Available at: http://managementhelp.org/pay_ben/pay_ben.htm (accessed on September 18, 2010) Employee Wellness Programs, (n.d.), Infinite Wellness Solutions. Available at: http://www.infinitewellnesssolutions.com/ (accessed on September 18, 2010) Spitzer, D. (2007), Transforming performance management: rethinking the way we measure and drive organisational success. AMACOM Div American Mgmt Assn De Silva, R. (n.d.). Elements of a sound industrial relations system. International Labor Organisations. Available at: http://docs.google.com/viewer?a=v&q=cache:TgbwluL0w50J:www.ilo.org/public/english/dialogue/actemp/downloads/publications/srseleme.pdf+need+for+industrial+relations&hl=en&gl=in&pid=bl&srcid=ADGEESgSaShujPoWJvphP9uV_2lmDBqaymNUNNjfphzNz60bKOZ-U_p_67-d9phEeb0eiDhkai1Vo-WIqxOL0X36dYC2bhbPAtZJLqov0H_RsBvJL-sj4VAcoArYbS3z8VTEbkwm87Lf&sig=AHIEtbTuZWn925aEFsgi6paQ_bHqx5lYXQ (accessed on September 18, 2010) Sims, R. (2007). Human Resource Management: contemporary issues, challenges and Opportunities, IAP Read More