The Challenges of Human Resource Management (HRM) on Globalization

Introduction

There are many scholars who explained the concept of globalization on various perspectives. Ulrich (1997) says the globalization has brought the world smaller through telecommunication, travel, information, ideologies and partnerships. Globalization has created a situation where organizations in a position to move people, idea, product, and information around the globe to meet local needs (Ulrich, 1997).This leads HRM to play important role on globalization.

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Armstrong (2004) defines Human Resource Management (HRM) as the function within an organization that has two main functions in the organization which are

1.    Recruitment management

2.    Provide direction for the employees

In globalization process, Human Resource Management (HRM) will have to work on the challenges which arise while they performing the functions. When an organization does business globally, their HRM will have to add new elements in their HR strategies to face the challenges such as continuous global trade issues, volatile political situations, fluctuating exchange rates, and unfamiliar culture (Ulrich, 1997).It makes HRM has to enhance the organization’s the ability to perform globally.

Challenges in Recruitment Management

a) Geocentric Approach for Staffing

It has been identified that there are four types of headquarters orientations or predispositions towards subsidiaries (Welch, 1994):as follows

1.   Ethnocentric

In this approach, the key positions are held by parent country nationals (PCNs).

2.   Polycentric

In this approach, host country nationals (HCNs) to staff the subsidiaries.

3.   Regiocentric

In this approach, the staff for positions are selected anywhere within the region.

4.   Geocentric

   In this approach, the best people will be developed for key positions anywhere in the world.

It says that a multi-national companies must have geocentric managers .However by definition, When choosing a candidate for key positions everywhere including headquarters by applying geocentric approach, an organization should not see the color of the his/her passport (Welch, 1994).

b) HRM Challenges

• It is not an easy task to find and nurturing high caliber staffs (Welch, 1994).

• One of the major challenges for global management is enhancing managerial mobility (Welch, 1994)

• The survey says that the majority personnel managers do not like to accept position abroad (Welch, 1994)

Conclusion

    Organizations have to increase their ability in HR to overcome these challenges by understanding them clearly. HRM will have work on this to bring a best team to organization while on the process of globalization.

    References:

Armstrong, M., & Stephen, T. (2014). Armstrong’s handbook of human resource management practice (13 ed.). London: Koganpage.

Paul , S., Chris, B., & Hilary , H. (2004 ). Globalizing Human Resource. London: Routledge .

Ulrich, D. (1997). Human Resource Champions : THE NEXT AGENDA FOR ADDING VALUES AND DELIVERING RESULTS. Boston: Harvard Business School.

Welch, D. (1994). HRM Implications of Globalization. Journal of General Management.

Global Issues in Human Resource Management

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Introduction

Human resource (HR) of an organization has to be aligned in order to achieve organizational business excellence (Ulrich, 1997).  The current business environments bring new challenges to the organization regardless of the size or the industry or the location of the organization.  As a result, organizations have to build an environment to meet these challenges with the support of HRM while having a plan to enhancing well-being of their HR.

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Human Resource Management (HRM)

HRM is an approach in an organization guiding about how people should be employed and managed to improve the organization’s effectiveness through people (Armstrong & Stephen, 2014). This approach is clear and comprehensive, and it should focus on how people should be treated with respect to set of ethical values (Armstrong & Stephen, 2014).

Issues in HRM…

1. Globalization

As globalization opens new markets and new way of thinking business, on the other side, HR professionals need to create models to attain global agility, effectiveness and competencies (Ulrich, 1997). For example, Philips Corporation has moved their research and development works on mobile phones, televisions, audio products to Shanghai, China (Paul , Chris, & Hilary , 2004 ).

2. Profitability through Growth

Achieving growth and increasing efficiencies while reducing cost will put HR professionals a challenge to seek ways to integrate different organizations’ work processes and cultures together (Ulrich, 1997) .

3. Change

The change can be called by any name such as transformation, re-engineering, culture change reinvention, adaption, flexibility, rapid learning and agility (Ulrich, 1997). For example, Both Tesco and Unilever have invested efforts into mobilizing change by getting the support from a professional and reputable HR Function (Dive, 2004).

4. Technology

It is a challenge for HR professionals and managers to redefine work at their organization to make good use of the technology innovations which come faster than we think (Ulrich, 1997).

5. Intellectual capital

Securing talent and finding a way to measure intellectual capital in an organization have become one of the primary challenges for HR professionals (Ulrich, 1997).

             

Conclusion

Organization’s expectations are much higher on HR professionals to find solutions professionally in order to face these challenges. HR professionals will have to see these issues as a part of competitive business equation (Ulrich, 1997).

                       

References:

Armstrong, M., & Stephen, T. (2014). Armstrong’s handbook of human resource management practice (13 ed.). London: Koganpage.

Dive, B. (2004). THE HEALTHY ORGANIZATION :A Revolutionary Approach to People and Management (2 ed.). London: KoganPage.

Paul , S., Chris, B., & Hilary , H. (2004 ). Globalizing Human Resource. London: Routledge .

Ulrich, D. (1997). Human Resource Champions : THE NEXT AGENDA FOR ADDING VALUES AND DELIVERING RESULTS. Boston: Harvard Business School.