The human resources management practices in the UK - Essay Example

Human Resource Management (HRM) Introduction: The study is about the human resource management practices in a country that has been chosen tobe United Kingdom (UK) for the particular study. With the uplift and integration of the economies of different countries over the years, it has been obtained that several multinational organizations have been created across the world thus leading to the emergence of what can be referred to as the international human resource management (IHRM). The practices of HRM are particularly required since companies are engaged in activities that are no more restricted to the local regions but have their presence globally. In order to uphold significant competitive advantage and manage the global pressure, companies need to focus on its HRM practice effectively (Briscoe, Schuler & Claus, 2008, p.10). The human resources management practices involve certain core activities that are common to every country irrespective of the businesses being in prevalence in the nation. These activities include human resource planning, job analysis, recruitment and selection, performance management and appraisal, career development, pay management, employee relations, and training and development all that are associated with the human resource management in different countries with probable differences in the manner the measures get executed, and thus help in a complete and integrated management of businesses in every country (International Human Resource Management, 2010). Considering the human resources management practices in the United Kingdom (UK), studies reveal that several changes have taken place over the years in the frameworks of regulation, globalization as well as the pressures associated with the need for costs reduction. Sparrow had suggested that the key responsibility of the HRM in this context is to involve people in the right manner such that they get to learn and understand significant issues and accordingly cooperate towards effective performances (Cesyniene, 2008, p.43). The present study focuses on the human resources management practices in the UK, and discusses and analyses on the cultural, political, economic and social factors that tend to affect such practices within the country. Human Resources Management in the UK: An Overview: Both the government of the UK as well as their membership of the EU have led to higher degrees of regulation in the country that is reflected on the human resources management practices of UK. The UK government follows strict legislative rules on labor activities that are known to bring significant improvements as far as the rates of strikes and absence at workplaces are concerned. Studies reveal that strike activities were reduced to great extents in during the time periods of 1999/2001. Also, the numbers of working days that are lost were found to reduce from 330 during the 1980s to as less as 11 days in this period. However this regulation was again found to get disrupted due to labor unions and strife during 2004-2006. Apart from the issues of regulation there are other factors associated with the HRM practices in the UK. Although an Equal Pay Act has been acted in the country focusing on equal value of men and women, yet there prevails a gender gap in the country and differences in wages and salaries have also been obtained (Cesyniene, 2008, pp.43-44). Individual innovative measures of HRM practices are also found in the UK where the managers of different organizations tend to employ different programs involving the employees of the organization effectively and trying to focus on employment relations as well (Bratton & Gold, 2001, p.31). Policies and procedures in regard to HRM practices are considerably taken concern of in the UK. The HR policies state the activities needed to be followed for particular issues. The procedures on the other hand determine ways to implement the different policies as decided the HRM teams for different organizations. The policies and procedures are mandatory for organizational employees to follow as directed by the law. These policies include procedures related to disciplinary activities, grievances, performance appraisals, recruitment and selection techniques, holidays, absence and sick leaves, flexibility in working, resignation, retirement and redundancy (Introduction to HR Policies and Procedures, 2009). In the UK, the increasing use of the HRM practices is associated with the decrease in the effects of labor and trade unions. Also, the structures of work organizations have been modified over the years. High performance measures have been considered more in the present times that ever before focusing on the satisfactions of the workers and organizational members. Several studies have been tried to be conducted on the relation of the HRM practices with that of the declining unionism. It has been obtained that the organizations where non-unionism was more prevalent, the HRM has introduced several appraisal and merit techniques that led to the increase in the levels of satisfaction of the organizational members (Machin & Wood, 2005, pp.201-203). Thus from the overview it can be understood that the HRM practices in the UK have undergone several changes over the years reflecting on the different challenges or factors that might affect the practices. As an overview, it has been obtained that the present HRM in the UK has its focus on the betterment of the businesses and the surrounding world with satisfactions in the minds of the organizational members. Cultural Factors Affecting the HRM Practices in the UK: Considering the global nature of business performances in the present times, the culture can be realized to have significant effects since it varies from one country to another. Culture refers to the values and beliefs that a particular community or in case of businesses, a particular organization follows. Since different countries follow and depend on different business values, their HRM practices are also accordingly based and hence differ from each other. This has a significant effect on the international HRM. Considering the UK, the similar problems can be associated that include as a whole the economic political, legal, and historical environments, employee demographics and labor-market characteristics, social-cultural characteristics of the workforce and the society. However the culture factor is a most significant issue among all these related factors since culture is directly associated with the human behavior and discipline which is at the core of the HRM practices of the country (HRM Policies and Practice in International Organisations, 2011, p.3). Since there is direct relationship between the cultural attributes with the behavior of the organizational members of any country particularly in regard to the leadership styles, nature of conflicts among others, it becomes necessary to understand the differences in culture to implement successful HRM practices and form thriving relationships with other countries. Even in the UK, organizations from other countries like the US have established their businesses. This brings in connection the different cultures, and only proper understanding and acceptance among the human resources can enable the business activities to be successful. The HRM practices are thus essential since organizational members need to be learnt and understood while involving them in different decision making and ideas generating activities such that they do not fall behind in accepting the cultural differences with the other nations. According to studies “HRM can help to inculcate culture through selection, socialisation, training, and various forms of employee involvement to win hearts and minds and ensure shared values and beliefs” (HRM Policies and Practice in International Organisations, 2011, pp.3-4). The key differences in regard to cultural values arise when members of one country have to settle in another country since their company has established or extended their business. It often becomes difficult for members to accept newer changes easily and fast and they might even tend to leave the organizations if the changes do not suit them. For instance, in the UK, there are no minimum legally mandated holidays for the organizational members. However the case is not the same with countries like the US or even Italy or any other country (Gary, 2011, p.632). Thus it can be realized that if a member from the US has to settle in the UK, the provision of no minimum holiday might not be easily accepted by the individual. In such cases only the HRM can make it possible through their different measures to motivate and encourage the members to learn and accept the cultural differences. This, as a whole, hints that organizational employees need to accept the different cultures and hence the different HR practices when the business becomes global in nature. This in other words might affect the practices if organizational employees fail to understand and accept the cultural differences and in turn not accept the HR practices of the other country. If this happens, the success of the businesses might also be at stake since humans are the key sources of performance and successful implementation and achievement of business objectives. Political Factors Affecting the HRM Practices in the UK: One of the different factors that might significantly affect the HRM practices in the UK relates to the political system prevailing in the nation. The political policies and the legal rules and regulations within the UK, the managerial developments and educational and technological advancements in this regard as prevalent in the UK might differ from the political systems of other countries. Moreover the HRM practices as planned and decided by the business organizations might encounter restrictions from the rules and regulations of the UK government who have strict control over the business performances in the country (Fisher, Schoenfeldt & Shaw, 2008, pp.738-739). Industrial relations, the types of regulations and rules contained in the system, the nature of collective bargaining and bargaining power, the reconciliation of interests, individualism and collectivism as approaches to employee relations, the voluntarist approach to industrial relations and its decline, the role of the employee relations function are different issues that are mostly governed by the government of the nation. These include the formal and informal policies that an organization might follow, the development, negotiation and application of the different systems within a particular organization, as well as the legal framework in the nation. In the UK, for example, more concentration has been obtained on the procedures of collective agreements than on the substantial rules associated with the processes (Armstrong, 2006, pp.753-756). The politics within different parties, the government, the opposition parties, the public administration, the public policies, the local government, the pressure groups, the opinions of the public, the institutions under the EU, as well as international organizations within the UK tend to create the political impacts on the practices of HRM in the country (Farnham, 2010, p.20). As have been mentioned earlier in the study, the government in the UK has strict ruling policies on the labor unions in order to decrease the effects of strikes and causes of dissatisfaction among the workers within different organizations. Differences have also been reflected on the legislations of the UK government with that of the policies of the EU. While the UK government focused more on the controlling measures of employment rules, the policies of the EU were inclined towards employee welfare, as well as their involvement and commitment towards performance (Cesyniene, 2008, pp.43-44). Economic Factors Affecting the HRM Practices in the UK: Economic factors are also relevant in considering their impacts on the HRM practices in the UK. This is primarily because it has been obtained that the employees in the UK tend to enjoy the benefits of cheap products as well as wealth. However, they have also been found to be more susceptible to negative impacts in comparison to other countries. These negative impacts are associated with the increasing level of globalization and might arise due to the fact in the global market; the purchase of the UK is much more in comparison to what it sells. Moreover, several multinational organizations are established in the country that might at any time move to other areas out of the country. Thirdly, the country has been known to focus on keeping its costs lower in regard to skills and development of employees as well as in terms of salaries and wages that reduces the chances of work being outsourced (Price, 2011, p.87). These economic factors can be understood to affect the HRM practices in the country since these are directly associated with the organizational employees and their welfare. Further studies also reflect on such economic trends in the country that might affect the UK employees drastically. According to a study by the Trade Union Congress (TUC) “While the EU as a whole has a trade balance, Britain imports 25 per cent more than it exports. Germany accounts for 27 per cent of EU exports compared with 12 per cent from the UK. UK trade in services as a percentage of gross domestic product (GDP) has grown in line with EU figures. However, trade in goods has fallen in the UK while increasing across the EU, reflecting the decline in UK manufacturing and growth in GDP” (Price, 2011, p.87). According to this study, the companies in the UK are exposed to risks from price changes in other countries that would have severe effects on the organizational human resources. Thus differences in the economic status of different countries reflect on the need for the HRM practices to be inclined towards determining such measures that can engage the workers and employees towards being able to achieve a developed state of the economy as a whole (Ivancevich, 2008, p.43). This section of the study thus focuses on the economic factors that might equally affect the HRM practices in the UK. Social Factors Affecting the HRM Practices in the UK: The key issues in relation to social concerns for HRM practices in the UK include the differences in demographics, the prevalence of diversity, as well as the skills and expertise of the organizational employees. The characteristics of the labor force that an organization is associated with are an essential factor determining the suitable HRM practices. Considering organizations in the UK, it can be realized that employees of different genders, ages, and classes are parts of the businesses who need to be considered while deciding on HR policies and practices. The diversity or differences within the organizations owing to difference in social values also affect the practices of the HRM in the country. Moreover, it is also the responsibility of the HRM to plan programs on the training and development of the organizational employees (Cuizon, 2008). With increasing globalization the organizations that extend their business performances across other countries need to keep their focus on their social responsibilities as well. Such responsibilities are mostly regarding the employees in the abroad countries whose associations are involved in the performances of the businesses. The HRM practices are affected through such social concerns since it is their responsibilities to determine ways of proper training and development of the employees thus developing their skills and improving their cooperative nature in understanding different societal values. The HRM practices determine the efficient ways to tackle and cope with the differences (Banfield & Kay, 2008, p.201). It has been observed that in the present times, systematic choice and measures of appraisals are available and made use by the HRM practices across the world to attend to the differences in societal aspects with respect to business performances. The trends in UK reflect that such focus has been significantly taken concern of by the HRM practices in the nation (Storey, 1999, p.92). A Critical Analysis of the Study: From the above study, it can be analyzed that the HRM practices of any country are not only significant in the business development of the country but also reflects several challenges for the HR team to successfully implement their policies and procedures. Considering the study on the UK, the HRM practices can be found to be of significant value and improving over the years incorporating measures that could effectively manage and motivate the human resources towards the achievement of business goals in the midst of huge differences prevailing across the world. Such differences can be found in the social, cultural, political as well as economic aspects in different countries that need to be considered while deciding on HRM practices such that employees can be managed and utilized positively. As far as the social, cultural, political and economic factors affecting the HRM in the UK have been considered in the study, it can be said that these are factors sufficient to impact the business development of the country significantly. As have been obtained from the economic trends, it reflects on the possibility of the nation’s workers to suffer from significant economic troubles that make them vulnerable to the negative impacts of globalization. Similarly, the other factors have also been found to be effective in bringing challenges for the HR teams to work on success for the country. However the manner in which the country can be found to take different measures and the control of the government as well as the EU involved, it can be assumed that the country has its focus on the differences and the difficulties in implementation of the effective HRM practices. This might be analyzed to state that keeping a focus on the several factors that might affect the HRM practices; the country’s HR teams might be able to implement their policies and procedures towards successful business objectives achievement. Conclusion: The study has been focused on the Human Resources Management practices in the UK and the different social, cultural, political and economic factors that might affect the practices. With the increasing globalization, it has been learnt from the study that organizations plan to extend their businesses across borders and thus different cultures, societies and human resources practices get connected. While this can be considered as a significant step towards improved globalization, on the other hand the challenging factors might also affect the overall practices of the HR as have been obtained from the study. This is primarily owing to the differences in the values and beliefs of the different cultures and societies, that when they work together might create in-acceptances and problems within the organizational structures. Thus although different factors might lead to difficulties, it can be concluded that the HRM policies and practices in the UK are focused towards determining measures that might motivate and involve the workers across the country in a common understanding of the need for acceptances and working together. From the study, it can be said that the UK has significant concern over the issue of HRM practices implementation and hence it can be expected that the country if considers all the relevant concerns in knowledge, can effectively reflect on successful measures of HRM practices within the country. References 1) Armstrong, M. 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(1999), New perspectives on human resource management, Hampshire: Cengage Learning EMEA Read More