International Human Resource Management - Essay Example

International Human Resource Management Table of Contents Introduction 3 Thesis ment 3 Discussion 3 First Reason 3 Second Reason 4 Third Reason 5 Opposing Viewpoint 6 Conclusion 7 References 9 Introduction “An organization is a social entity that has been conceptualized as an institution with a comparative identical boundary to achieve pre-determined goals (Guest, 1997, p.19)”. It is also defined as a human groupings or social entity that are deliberately structured to seek set of goals. Every organization is developed for several benefits of individuals, such as small businesses, corporations, religious institutions and political parties. The goal of organization is to produce low entropy and provide a force that can help to motivate action. Individuals participating in the organization can fulfill their own goals. Social architecture is defined as a new organizational change management. The use of effective recognition program can help to reinforce the essential values of the company to life. The prime purpose of the project is to provide in-depth knowledge on one of the key duties of Human Resource Managementwhich is to build and create social architecture in multinational firms. Thesis statement “Development of Social architecture is one of the key responsibilities of human resource management to maximize the productivity of an organization” Discussion This part of the essay will provide three reasons in favor of the above thesis statement. First Reason The application of decentralization can redistribute people, power and functions from a chief authority. The development of social architecture enables to motivate each individual within an organization. The conscious design of an environment within the organization can modify human behavior to achieve certain goals (Tripples, 1996, p.2). In the modern era of globalization, it has become a pivotal objective of multinational firms to avoid pitfalls in a global workforce. It is vital for organization to build and design effective social architecture to foster a culture that can help to avoid pitfalls and develop successful strategy deployment (Soliman, 2009, p.17). Monetary, non-monetary incentives and employee appraisal can motivate employee for better job performance. According to Nora McKenzie and Andrew Ballentine, non-monetary incentives include promise of opportunity and flexible work schedule. Cash bonus, profit sharing and stock options are the monetary incentives (Jones, 1999, p.8). According to Abraham Maslow, the hierarchy of needs is a theory of human motivation. The approach of human resource management is to create an effective work environment can benefit multinational firms to make full use of the human resources.A motivating workplace environment can create a sense of excitement and enthusiasm among the employees. According to Karen Evans, the development of workplace environment can change the disposition of employees (Dunning, 2009, p.12). The application of decentralization can create better efficiency and diversity in an organization. This can eventually create a better workplace environment. Second Reason The implementation of flat organization structure in an organization can empower employees to take responsibility of making decisions for the betterment of organization. It can benefit organization to build relationships, permit collaborations and direct effective communication between teams and hierarchy management level (Vahlne, 2006, p.5). Multinational firms are in constant linked to the external setting and other systems including communities, other organizations, groups and individuals. An organization is a harmonized social entity means it is composed of people interacting between each other. The pattern of interaction followed by people must be coordinated to reduce redundancy. Flat organization is also known as horizontal organization (Eisenhardt, 1989, p.16). This can eventually help human resource management for the development of social architecture in an organization. According to Madison Hawthorne of Demand Media, the incorporation of horizontal organization structure can benefit organizations. This structure is employee-centered and sets emphasis on collaboration and teamwork (Bass, 1991, p.11). Value is placed on creating an effective workplace environment. This can help to increase job satisfaction and worker motivation. An organization is a goal directed and social entity that connects to the external environment to achieve objectives. By taking this in to consideration, the organization has to ensure that their members complete the critical tasks. According to Arrow 1974, the effectiveness of the organization is dependent upon the participation of the members. Flat organizations structure provided clear and fast communication (Gephart, 2004, p.9). This is because of fewer levels of management and few managers. Every employee in the organization have right to submit feedback and new ideas on company policies, business models, operational processes. Third Reason The application of democratic leadership style can help human resource management to build and develop social architecture. It is also known as participative leadership. The success of organization is dependent upon understanding the nature of employees (Gupta, 1994, p.31). The various legal organizations are providing entities in order to perform the organizational mission. In case of democratic leadership style, each employee of an organization has power to select leader. This process of selecting leader creates lack of personal interest and secrecy. Every employee can participate in the decision making process and fell valued. This creates positive morale and high employee motivation (Tung, 1998, p.6). This process can help human resource management to build social architecture in an organization. Democratic leadership style can create problem complexity on information and lack of control.The decision making process is involved through more than one person. This results in to implementation of delayed decision making process. Authority is decentralized in the process of democratic leadership (Fairclough, 2005, p.24). Moreover, the approach nullifies the use of competent executives in the decision making process. This approach is time consuming and heavily reliant on motivation of recognition and incentives. This process of leadership style is regarded as the best method to select a leader for an organization. Company’s social architecture helps to motivate employees and maximize the productivity of an organization by the implementation of democratic leadership style, flat organizational structure and decentralization. Best example of democratic leadership style is famous military leader Dwight D. Eisenhower. Eisenhower worked hard to make sure that Alliance forces agree on common strategy (Laurant, 1986, p.5). Collaborative efforts of this military leader helped to implement democratic leadership style. Every people working in the organization can share their own views and decisions. Opposing Viewpoint According to several critiques, the application of democratic leadership style, flat organizational structure and decentralization can sometimes decrease worker motivation and job satisfaction. Human resource management have key role in the modern organization to drive performance of employee. The development of social architecture can enable to balance the employees and processes in an organization. In this world of globalization, every organization has to implement change management in the organization to maintain sustainability. The introduction of democratic leadership can create a drawback for leader. As power is not centralized and lead to double taxation. Monetary incentives can motivate employees rather than application of decentralization process (Maruyama, 1984, p.27). However, flat organizations structure provided clear and fast communication. This is because of fewer levels of management and few managers.The flat organization structure model eliminates middle management and increase the level of responsibility of employees.The application of flat organization can encourage creating an environment for employees to achieve desired goals.Innovation, adaptability and cost saving are the benefits of implementation of flat organizational structure (Lu, 2008, p.12). In addition to this, the application of democratic leadership style can create positive work environment and reduce employee turnover. The strength of business organization or social entity is determined by the existence of value attributes. Conclusion It is clear from above analysis that the development of social architecture is one of the vital responsibilities of human resource management to maximize the productivity and gain competitive advantage over other competitors. Effective implementation and adaptation of decentralization, flat organizational structure and democratic leadership style can benefit organization to enhance business growth rate and foster work environment to motivate employees. At the time of price system failure, the purpose of organization is to achieve the advantage of collective action. From legal perspective, the organization views the social entity as a powerful structure and a set of tasks to achieve decision making process, path provision and goals. Development of Social architecture is one of the key responsibilities of human resource management to maximize the productivity of an organization. Social architecture creates a balance between community and hierarchy. Companies operating flat organization structure encourage collaboration and open communication. This can help for the development of social architecture in an organization. References Bass, B., 1991. From transactional to transformational leadership. 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