International Human Resource Management - Case Study Example

Strategic Human Resource Management Introduction The idea of human resource management (HRM) has gained a lot of attention from academics and practitioners alike since it first emerged in the middle of 1980s. The first one often suspects both the practicality and morality of HRM. The latter have often absorbed some if not all of the HRM philosophy and attempted to put it into effect with varying degrees of success for various good and bad reasons. As we goes into the new era of an advanced very technocratic environment, the business world is also stepping into an atmosphere of fierce competitions This highly competitive world enlighten different types of dynamic and complex business environment that each and every companies are facing day by day. The ever-changing environment reminds us that, for a business to survive, it has to concentrate on its core competencies to be ahead of the competitors. The concept of Strategic Human Resource Management has changed keeping in mind to be sustainable in this world of high cut throat competitions. Human resource management (HRM) involves all management activities and decisions that directly or indirectly keep marks on the human capital of the company. HRM is full of different strategies, in the other way HRM in strategic level is called SHRM. SHRM implies different aspects of an organization. First it gives importance on the human resources which is a differentiator among the competitors. Secondly it gives a clear idea about the process and goal of the company. Third it reflects different HR programs. The main aim of SHRM is to be successful through human capital. SHRM helps organization to get skilled, dedicated and motivated human capital. It also helps a company to retain its valuable workforce. There are lots of elements are related with SHRM. Those are discussed below. SHRM creates a transformation among the staffs. It brings certain changes among the staffs. Those are team building, global perspective, strategic planning. SHRM also brings transformations in organizational structures. The hr policy will maybe centralize or decentralized. It would be guided by SHRM. It is a discipline which enlightens different practises, ideas, concepts keeping in line with HRM tactical planning, philosophy, activities and long term goal of the company. SHRM gives great guidelines on how to lay the strong base for strategic advantages by the creation of effective organizational structure and design culture, value proposition of workforce. The appropriate communication strategy also can be prepared for a changing landscape. It gives great importance to ethics, codes, business decision and societal effects. It can be taken as a quality of life enhancer for employees. It is a proactive management step taken for the sake of the all stakeholders related with the company. On the other hand it is a decision taken by management for the promotion of their long term goals without hampering the interest of the workforce. SHRM is a very productive way of maintain workforce for sustainable growth of the organizations. SHRM can be defined as organization’s plan and intentions on how its business’s targeted goals would be achieved through its workforce. This study will give a clear picture about the pros and corns of PRP models. Strengths of performance related pay In this section different strengths of performance related program are going to be discussed. It is a process concerning with the performance of the workforces. It is the way to get best out of the workforce (Steven, 7-13). Best output means sustainability in the market. In this way organization can create a performance objective for all levels of employees. It would create a great awareness among the employees. Employees will feel motivated about their work. Every organization will have workforces of various skill levels. Every individual would have different capabilities. This kind of strategic decisions can boast the moral of employees. It will help organization to measure the performance of an individual by comparing against the objective and target given to them. It is now being noticed that sudden hike in any fixed pay structure has been abolished. A new trend of performance related pay has come into the picture. This process takes performance and competence as the major yardsticks to measure the increments in the payments. PRP gives a clear picture about the individual to the management (Boxell and Purcell 188-191). This kind of payment can create a healthy competition among the employees. This kind of healthy competitions results in a great success of the company. Once one individual get its PRP, at that point of time it certainly boosts its confidence and moral. It inspires that employee to perform consistently. Every organization needs consistent employees. Consistent employee is the assents of company. PRP helps a company to keep its completive growth in the market. In this modern world of competition attrition rate are very big problems for any organizations. This kind of PRP can certainly help an organization to lower its attrition rate by offering a lucrative PRP to its assets. This system can be used at any level of the management. Organization has cascading effect from bottom to top of the pyramid. This kind of strategy can proved to be successful at any level of the management. It can be taken as the competition killer also. When any organization is offering a good PRP to its employee then obviously performers are not going to leave that organization. This kind of incentive can enhance the productivity of a particular staff. This strategy is also very effective for new talent acquisitions. This kind of strategy can prove to be a good way for custodian of talents. It is a system which can provide two dimensional benefits for both employees and employers. PRP will certainly help to identify their best talent. On the other hand it can reward good talent which will convert into employee satisfaction and will result in repetitive success story. It will help the organization to achieve its goals by achieving the individual goals of the workforce. It would create a good healthy professional atmosphere in the organization. Generally this kind of PRP are given in different forms like cashes, kinds and different perks (Wood, 53-57). This kind of PRP not only fulfils the physical need of an employee but also create a psychological accomplishment in the mind of the employee. This kind of system or strategy connects every individual employee with the performance of the organization. Connected employee is great assets for any organizations. It increases the quality of life of the people related with this. It is known to all of us that team work is very much important for any organization. This kind of performance based payments inspires every individual to be good team members. Loyalty of the employee is also very important for managing performance. These kinds of strategies are very effective to keep one individual to be loyal with its organization. It is very good to get any kind of recognition after doing serious and dedicated hard work. PRP can certainly give that kind of recognition to the employee. The entire employee in an organization doesn’t perform in the same manner. PRP can be very intelligent way of inspiration or moral booster for that employee (Brewster, Sparrow, Vernon and Houldsworth, 221-230). PRP can prove to be very effective in case of innovation and creativities. PRP allows every employee to be more innovative towards their work. Employee would come up with new creative ideas to finish it stipulated work properly. It would help both the organization and employee to learn more and more new things. This is a very common practise followed by different managements globally. Managements around the world are coming up with different ideas to deliver this model for the mutual success story (Lynette, 1182-1189). In this world some people does not have very clear ideas about their own talents. These kinds of models can help to realize the people to come up with its latent talents and abilities. This kind of model can encourage different philanthropic activities by the organizations. PRP model can prove to be great performance boosters. It can generate revenue for the organization by making staffs happy. A well designed system is mostly can be free from individual biasness of the immediate manger. In this modern world of recognition most of the staffs want good recognition and high returns for their labour. PRP model are very important model for this. It can be considered as a very proactive measure to keep in the growth track. PRP system can be considered as a very important modern strategy used by the modern day managements. Weaknesses of performance related pay Every strategy is having their weaknesses. PRP is not free from them. It can create a sense of inequality among the employees. It creates an atmosphere of animosity in the mind of employees. Employee should be motivated towards its work. This kind of system can hamper the motivation level of any employee. Employee always needs to be connected with the organization but this kind of disparity can cut that connection between the employee and the organization. In this world different employees would have different abilities and they perform according to their abilities only (Marsden and Richardson, 7–13). In that case every employee would have certain limitations. They can’t go beyond those limitations. PRP can change very little in that case. This kind of system can destabilise the whole structure. Employee who is performing lower than the top performer can feel insecure about their position can affect their performance adversely. It can worsen the situation. It can be counterproductive for staff’s motivation and moral. The system can be a reason for personal favour and biasness. As performance measuring is done by appraisal. These are generally done by immediate manager. Manager’s personal matter can come in the picture which can ask certain questions about the integrity of the process. It can disturb the delicate fabric of the team. Individuality takes away the whole limelight. It creates a huge mental distance between the top performer and the lowest performer. It is not very easy to measure individual performance by seeing the organization performance. Sometimes different processes which are followed for PRP are very questionable in nature. This can be counterproductive in case of innovation and creativity. Staffs will go only to that proven track of direction where they got success on the last occasion. It will certainly curve its innovative thinking and creativity. This would result adversely for the organization in the modern market of continuous innovation and creativity. It can temper integrity and ethics of staffs. Staffs will run for that performance base payment and they will try it to achieve it at any cost sometimes compromising with the legality of the work. Every organization is a part of the social environment. It is very important to maintain the balance of the environment (Redman and Wilkinson 153-165). This kind of system can create that unwanted lust in the mind of individual that even can sacrifices the balance of the nature for personal performance. It would make one person unnaturally self-centred. PRP can cause for lots of risky investments from the side of employers. Individuals need to be paid something against of their performance. In no way those payments can surely keep that employee into the same organization. If any other organization pays more that employee can go for the new one. This kind of system only can give reward physically but the physiological contribution cannot be measured with this system. Every PRP model is having its highest limits. Once that highest limit is achieved then suddenly staffs can become complacent. It can result in organizational de growth. It can hamper the motivation of the staff. This kind of system can proved to be very successful for short term. In case of long term it may not be effective always. Often managements create such kind of PRP models that are next to impossible to achieve. People can understands those policy and they don’t give that much of importance to those policies. Employee satisfaction is very important for any organization. PRP models can cause employee dissatisfactions. PRP systems can cause huge mental pressure in the mind of the staffs. Every people would go after its assigned target in course of that they can come across mental stretches and can results into health hazards (Chamberlin, Wragg, Haynes & Wragg, 31-41). Some of the ideas and techniques to implements those ideas are can’t be measure with any rewards, it may be cash, kinds or valuable perks and facilities. Management around the world finds it very difficult to strike a proper PRP models for a workforce consisting of different capacity. It is often been seen that one model which can be very much productive for one set of staffs can proved to be counterproductive for other set of staffs. Here PRP’s are creating great confusions. Generally PRP models in the private sector are very different than public sectors. This can create a social disparity among two sectors. It is sometimes very difficult to measure the impact of the system in the result of the organization. There are lots of attributes are there behind the performance of a staffs (David and Richard, 1-34). Rewards cannot be the only factor in all cases regarding the performance. PRP models have certain limitations to recognise those other aspects. Limitations to recognize different other important aspects can cause for long term problems (Ganster, Christa, Rachel & Angela, 221-230). In the way of achieving stipulated goal often staffs use short cuts, inappropriate routs by deviating from quality of products or services. It can be very dangerous for the business point of view. Any type of deviation from the customer satisfaction can cause irreparable downfall for organization. Management must not create that type of model which can be detrimental for an organization. In appropriate PRP models can disturb the growth of any organization. Conclusions In this ever-changing world of business nothing is unmixed blessings. PRP model is also same. In some aspects this is very important and in some other aspects this also having lots of limitations. The above study is clearly showing that proper PRP models needs lots of expertise and experience to implement. It also stated that the model or system should be implemented properly. Proper implementation, simple system without any confusion can be very good for both employer and employee. Performance related payment programme must be mutually beneficiary for both the parties (Employee & Employer). Management includes any system for the betterment of the organization. Management should constantly monitor whether the system is serving their purposes or not. Management must be flexible for any change at any given point of time. Management must choose different reward in a very intelligent manner suitable for performance. Staffs must not go for any kind of illegal practises or short cuts for the sake of achieving their performances. Management and staffs should consider this thing sportingly without destabilizing the delicates fabrics of the organization. Organization is a place where trust, fellow feelings, team work and friendly atmosphere for all is very important. Works Cited Boxell, Peter and John Purcell. Strategy and Human Resource Management: Third Edition. Management, Work and Organisations. London: Palgrave Macmillan, 2011. Print. Brewster, Chris, Paul Sparrow, Guy Vernon and Elizabeth Houldsworth. International Human Resource Management: Third Edition. Chartered Institute of Personnel and Development. London: Mcgraw-hill, 2011. Print. Chamberlin, Rosemary, Ted Wragg, Gill Haynes & Caroline Wragg. Performance-related pay and the teaching profession: a review of the literature. Volume 17, Issue 1, 31-49, 2002. Print. David, Marsden and Belfield Richard. Pay for performance where output is hard to measure: the case of performance pay for school teachers. In: Kaufman, Bruce E. and Lewin, David, (eds.) Advances in Industrial and Labour Relations. London. JAI Press. 2006. Print. Ganster, Daniel C., Christa E. Kierscha, Rachel E. Marsha & Angela Bowen. Performance-Based Rewards and Work Stress: Journal of Organizational Behaviour Management. Volume 31, Issue 4, 221-230, 2011. Print. Kerr, Steven. On the folly of rewarding A, while hoping for B’, Academy of Management Executive. Volume 9, Issue 1, 7–13, 1995. Print. Lynette, Harris. Rewarding employee performance: line managers values, beliefs and perspectives’, International Journal of Human Resource Management. Volume 12, Issue 7, 1182–1189, 2001. Print. Marsden, David and Ray Richardson. Performing for pay? The effects of merit pay on motivation in a public service’. British Journal of Industrial Relations. Volume 32, Issue 2, 1994, 243-260. Redman, Tom and Adrian Wilkinson. Contemporary Human Resource Management: Text and Cases. London: Pearson Education Ltd, 2005. Print. Wood, Stephen. High commitment management and payment systems’. Journal of Management Studies. Volume 33, Issue 1, 1996, 53-57. Read More