MN7181 : People & Organisations : Principles & Practice in global context : The global context for HRM
The global context for HRM
HR is the most important asset of any type of organization since same would control all other assets of the company in order to drive company towards goals & objectives in long term basis. Not like past, most of organizations are currently prevails globally having elements such as people, capital, goods or services across borders.
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| (source : headonpublishing.com) |
What are the main functions of global HRM ?
There are main five functions can be identified under global HRM as follows
* Recruitment process - Basic functions of attracting , hiring & retaining skilled employees is to the organization
* On the job training - Provide training by being on the job for employees though they are skilled.This is because slight differences among companies even though they are in same industry. This function will amplified once it comes to global arena when organization does operations from number of different locations.
* Professional development - Providing opportunities for employees to participate inbound / outbound training, seminars, work shops, skill development programs in order to groom them as competent human assets to the company.
* Benefits & compensation - While offering general benefits & compensations, HRM unit has widening the same context in to non - traditional benefits & compensations such as flexible working hours, paternity leaves, extended vacations, foreign tours etc.
* Ensuring legal compliance - Align with widely accepted labour laws by imposing proper working hours, breaks needed, minimum salaries /wages , tax allowances etc.Being aware of legal aspects will keep the organization free from any unethical labour related matters.
What are the common HRM challenges in global context ?
Currently HRM has become more competitive & challenging due to globalization effects. All employers strive to attract most skillful, competent employees & retain with them to achieve business goals more efficiently & effectively. However they all have to face following challenges in global context as of now.
1.Compliance with laws & regulations
When HRM comes to global arena by doing operations from several countries, HR department has to identify specified labour regulations is separate countries to eradicate unnecessary labour issues.
2.Management changes
Changing managerial positions, strategies, policies will definitely impact on HR functions & need to carefully handle all the time.
3.Leadership developments
Need to conduct leadership development programs in order to create future leaders of the organizations.
4.Training & developments
Training & developing employees whose working from different locations will be a huge challenge to face by HR department.
5.Adapting innovations
Organizations always need to change them self in order to face challenges such as technology, different living/thinking patterns, traditions etc.
6.Compensation
Challenges of matching payroll budgets with other large scale companies.
7.Understanding benefit packages
Good knowledge on benefit packages in the market is vital & challenging to attract skillful, competent employees to the company.
8.Recruiting talented employees
Best investment for the organization is recruiting talented employees whose will directly contribute to the success of the companies in long term basis.It is impossible to assess an newly recruited employee to know whether he is competent enough to perform duties until he works for the company for a period of time.
9.Retaining talented employees
Demand for talented employees are much higher since more opportunities are available in market locally & globally.Hence HRM facing huge challenge of treating talented employees with much care, adequate benefits & career development opportunities in order to retain them with the organization.
10.Workplace diversity
Managing multiple social cultures, ethnicity, religion, generations is another big challenge face by the HRM in global context.
How organizations can overcome HRM challenges ?
* Complying with labour laws at all times
* Clear communication on changes of the company
* Regular training for leadership development
* Welcome new ideas of employees
* Win win compensation scheme for employers & employees
* Align with market benefit packages for employees
* Get the support from staffing companies to select candidates
* give due recognition for talented employees
* Create a common culture for all employees
What is the importance of effective HRM ?
When compared to past, importance of HRM has increased in the global context now due to following reasons.
- Creating unique corporate culture
- Emphasis the common practices within the organization
- Allow to see the beauty of cultural diversity of employees
- Encourage effective communication
- Regular training & development
- Remove employee uncertainty
By Ishan Meegaswatte
References
* On the job training - Provide training by being on the job for employees though they are skilled.This is because slight differences among companies even though they are in same industry. This function will amplified once it comes to global arena when organization does operations from number of different locations.
* Professional development - Providing opportunities for employees to participate inbound / outbound training, seminars, work shops, skill development programs in order to groom them as competent human assets to the company.
* Benefits & compensation - While offering general benefits & compensations, HRM unit has widening the same context in to non - traditional benefits & compensations such as flexible working hours, paternity leaves, extended vacations, foreign tours etc.
* Ensuring legal compliance - Align with widely accepted labour laws by imposing proper working hours, breaks needed, minimum salaries /wages , tax allowances etc.Being aware of legal aspects will keep the organization free from any unethical labour related matters.
What are the common HRM challenges in global context ?
Currently HRM has become more competitive & challenging due to globalization effects. All employers strive to attract most skillful, competent employees & retain with them to achieve business goals more efficiently & effectively. However they all have to face following challenges in global context as of now.
1.Compliance with laws & regulations
When HRM comes to global arena by doing operations from several countries, HR department has to identify specified labour regulations is separate countries to eradicate unnecessary labour issues.
2.Management changes
Changing managerial positions, strategies, policies will definitely impact on HR functions & need to carefully handle all the time.
3.Leadership developments
Need to conduct leadership development programs in order to create future leaders of the organizations.
4.Training & developments
Training & developing employees whose working from different locations will be a huge challenge to face by HR department.
5.Adapting innovations
Organizations always need to change them self in order to face challenges such as technology, different living/thinking patterns, traditions etc.
6.Compensation
Challenges of matching payroll budgets with other large scale companies.
7.Understanding benefit packages
Good knowledge on benefit packages in the market is vital & challenging to attract skillful, competent employees to the company.
8.Recruiting talented employees
Best investment for the organization is recruiting talented employees whose will directly contribute to the success of the companies in long term basis.It is impossible to assess an newly recruited employee to know whether he is competent enough to perform duties until he works for the company for a period of time.
9.Retaining talented employees
Demand for talented employees are much higher since more opportunities are available in market locally & globally.Hence HRM facing huge challenge of treating talented employees with much care, adequate benefits & career development opportunities in order to retain them with the organization.
10.Workplace diversity
Managing multiple social cultures, ethnicity, religion, generations is another big challenge face by the HRM in global context.
How organizations can overcome HRM challenges ?
* Complying with labour laws at all times
* Clear communication on changes of the company
* Regular training for leadership development
* Welcome new ideas of employees
* Win win compensation scheme for employers & employees
* Align with market benefit packages for employees
* Get the support from staffing companies to select candidates
* give due recognition for talented employees
* Create a common culture for all employees
What is the importance of effective HRM ?
When compared to past, importance of HRM has increased in the global context now due to following reasons.
- Creating unique corporate culture
- Emphasis the common practices within the organization
- Allow to see the beauty of cultural diversity of employees
- Encourage effective communication
- Regular training & development
- Remove employee uncertainty
By Ishan Meegaswatte
References
Atlas staffing , n.d. Atlas staffing. [Online]
Available at: https://www.atlasstaffing.net/blog/10-todays-common-human-resource-challenges
[Accessed 26 12 2018].
Bradley, J.,
2018. Chron. [Online]
Available at: https://smallbusiness.chron.com/five-main-functions-global-human-resource-management-61538.html
[Accessed 26 12 2018].
http://www.headonpublishing.com,
n.d. Head stories of alopecia on. [Online]
Available at: http://www.headonpublishing.com/buy/international-2/
[Accessed 29 12 2018].
Atlas staffing , n.d. Atlas staffing. [Online]
Available at: https://www.atlasstaffing.net/blog/10-todays-common-human-resource-challenges
[Accessed 26 12 2018].
Available at: https://www.atlasstaffing.net/blog/10-todays-common-human-resource-challenges
[Accessed 26 12 2018].
Bradley, J.,
2018. Chron. [Online]
Available at: https://smallbusiness.chron.com/five-main-functions-global-human-resource-management-61538.html
[Accessed 26 12 2018].
Available at: https://smallbusiness.chron.com/five-main-functions-global-human-resource-management-61538.html
[Accessed 26 12 2018].
http://www.headonpublishing.com,
n.d. Head stories of alopecia on. [Online]
Available at: http://www.headonpublishing.com/buy/international-2/
[Accessed 29 12 2018].
Available at: http://www.headonpublishing.com/buy/international-2/
[Accessed 29 12 2018].
Well explain about “Global context of HR” interesting blog
ReplyDeleteHow organizations can overcome HRM challenges & the importance of effective HRM pointed out very clearly & briefly. Nice flow of writing.
ReplyDeleteYour points are really valuable..go ahead
ReplyDeleteWell summarised and learned something new.
ReplyDelete