Strategic HMR between HR Function and Firm's Objectives - Literature review Example

Strategic Human Resource Management Student’s Name Subject Professor University/Institution Location Date Strategic Human Resource Management Introduction Strategic human resource management (SHRM) refers to connecting the HR function with organizational tactical objectives in efforts to enhance performance. For a global organization to run smoothly, the strategies developed at different levels should inter-relate. The HRM practices and policies of an organization must match its business strategy in the competitive business environment as well as with the direct business conditions which are being faced by the organization. The business strategy-human resources alignment cannot essentially be typified in the sequential and rational manner proposed by some authors. This is because; designing a HR system is an iterative and complex process. SHRM is intended to assist organizations to meet its employees’ needs while supporting the goals of the organization. Companies that try their best to meet their employees’ needs can promote a work setting favourable for productivity (Boselie, Dietz & Boon 2005, p.67). This paper will discuss HR issues that should be considered by HR managers. HR issues Hollenbeck, Gerhart & Wright (2008, p.11) maintain that, the rapidly changing business environment implies that, the current HRM issues will continue evolving for the coming many years. The HR function is central to the success of an organisation and thus there is need for HR managers to consider emerging HR issues in the business environment. After identifying the issues, the HR managers should then ensure that the HR function devises HR practices and policies which will help in effectively dealing with those issues. There are a number of issues which need to be considered. Leadership Development According to Holland, Sheehan & Donohue (2007, p.102), leadership development is one of the biggest issues for the HR department because leadership development should be a vital strategic initiative. HR specialists are expected to give the important processes, tools, structures and viewpoints in order to aid in selection and development of the appropriate future leaders for the company. Across the world, leadership development is considered as a significant strategic initiative for making sure that the appropriate workers are retained and that the organisational culture backs up performance within the organisation in order to enhance market position. Boudreau & Ramstad (2007, p.66) further asserts that, leadership development helps in equipping managers appropriately for them to able to assume future leadership roles in order for the firm to be successful in the long run. Therefore, the HR manager should ensure that the company’s HR practices favour leadership development since it is responsible for the selection and recruitment of staff. Leaders in an organisation need to be equipped with new knowledge and skills on a regular basis so as for them to be able to effectively manage the organisation in the changing business setting. Thus the HR function should develop leadership development and training programs. Labour and safety differences Frost (2006, p.30) says that, another HR issue that is mostly faced by multinational corporations is the varying rules and policies which are imposed in different countries in relation to the labour and safety of employees. In a number of countries, workplace safety standards differ from those in Australia, and workers may require particular training and equipment that is dissimilar from what an organization has in store. In addition, employees’ protections differ greatly from one country to another. For example, in Germany, requesting employees to take part in a survey may be against the country’s labour laws, while that is an ordinary business practice in Australia. Therefore, it is advisable for HR managers for multinational companies to get acquainted with the labour laws of the various countries that they are operating in or intend to venture in. This will help them to devise HR policies that are flexible and which can be changed to suit the laws in a given country. An example of labour law relates to minimum wage level which varies from one country to another. In such a case, the HR manager should ensure that the remuneration system of the organization is adjustable to suit the remuneration requirements of different countries (Dainty 2011, p.58). Cultural Differences According to Frazee (2007, p.3), global HR teams ought to reflect on cultural differences as well as ways of addressing them. For countries in regions like Latin America, it is comparatively uncommon for female employees to be given high-ranking job positions. This makes it very hard for female senior managers to get trust of workers in such countries. Hence, it is vital for the HR manager to discuss clearly with workers in those countries the reality that, discrimination is unlawful in countries like Australia and United States. Thus, female workers should also be given high job ranks in the company to ensure that there is gender balance among employees. Moreover, in some nations, it is not right for company administrators to receive gratuities and gifts in return for complimentary business workings. Such gifts may include dinner invitations, cash and more future business deals. Thus, since Australian firms are answerable to Australian law regardless of where they run in, wide-ranging training on business ethics might be needed in some global locations. Employees of an organization operating in different locations should be trained to fit in the local cultures. Language Barriers Drawing from Hayes (2006, p.49), another issue facing global HR departments on top of cultural differences is language barrier amid the workforce of a given company and employees and customers in foreign countries. In most times, the mistake which is made by majority of Australian companies is to just translate Australia employee materials. In doing so, they believe that the materials will apply to people across the globe. However, such practices rarely work for those companies. As a result, the HR teams for multinational corporations ought to think about localization when talking to employees and customers from foreign countries. Communications that are full of Australian analogies or references to Australian culture may not make sense in other countries. In order to effectively communicate with global audience, a company must try to understand what is sensible to them. This can be achieved through workforce diversity where people from different cultures and races are employed. By doing so, customers will have a sense of belonging since they will be in a position to interact with employees who understand their language and needs better. Managing demographics The topic of managing demographics is an important issue for companies in Australia as well as in other countries. HR managers need to both substitute older employees with younger workers. There is also a need for them to address the prevailing needs for younger ones, usually referred to as Generation Y. In order to fill the vacancies that are left behind by retiring employees, HR managers expect their firms to start offering job options for attracting or retaining semi-retired and retired employees and look forward to train workforce for new job vacancies. All together, firms are trying to maintain younger workers, who are engaged, dedicated and loyal to their company. Moreover, younger workers are on high demand as compared to older ones because they are more active and productive. Besides, the current business environment is ever changing and thus companies require people with fresh minds and that are up to date with the advancing technology. Thus young people are suitable for firms to be able to survive in the unstable setting (Baird & Lansbury 2004, p.147). Measurement of HR Effectiveness According to Tootell, Toulson & Dewe (2009, p.375), it is impossible for a company to enhance its performance if it does not have the correct tools for measuring HR effectiveness. Just like in other business functions, HR managers should also be in a position to measure outcomes in terms of the positive impact on business, as well as transaction management. Using metrics to ascertain effectiveness is the start of a move from viewing the HR function as entirely an administrative role to perceiving the HR manager as a real strategic partner in the organization. Stopper (2003, p.7) argues that, for companies whose HR functions have habitually focused on assessing their individual effectiveness, they have an evolving acknowledgment that the HR function can give organizational value through the assessment of the overall organizational effectiveness. The move is significant because; it represents a shift from simply calculating the numbers employed to ascertaining the Return on Investment (ROI) of joint and individual employees in the long run. Conclusion Strategic human resource management is a link between the HR function of a company and its strategic objectives. It helps in enhancing the performance of a company. Leadership development is a vital strategic initiative which helps in the selection of the right leaders. Rules and policies relating to labour and safety of employees differ from one country to another. Training on business ethics should be done to help deal with cultural differences. Language barriers in multinational corporations can be managed through localization. Young employees are on a high demand than older ones because they are more active, have fresh minds and have knowledge on advanced technology. Measuring HR Effectiveness facilitates the ascertainment of Return on Investment of both individual as well as a group of employees. List of References Read More