Human resource management is one of the essential components to the competitiveness of global firms. Corporations that perform exceptionally regarding human resource management tend to integrate strong discipline in their people with attention to strong social capital (developing networks and relationships within the organization). The multiplier impacts of this combination generate inimitable conditions for people management, which in turn drives employee engagement in the global context. The following study focuses on the historical and current trends in human resource practices with a great focus on global HRM, equal employment opportunity and compensation and motivation. The emphasis will be laid on their influence on the management of international employees. The study will highlight the major aspects emerging from the three areas of focus. It will provide an extensive detail from real case examples of companies in the global field by examining major HRM practices including global HRM, equal employment opportunity, and compensation and motivation.
GLOBAL ASPECTS OF HRM
The rapid advancements in information technology along with globalization have transformed the way employee management is carried out in organizations. This transformation defined the significance of global HRM presently unlike what was being done in the past fifty years and earlier. HRM seeks to allow proper deployment of human capital so that an organization can satisfy and maintain customers both domestic market and globally (Sparrow, Brewster, Chung, 2016). Based on the current competitive business environment, proper management of the human capital has become crucial. As a result, the primary task of MNC thus revolves around identifying, recruiting and managing competent human resources in their operations to enhance functional efficiency and improve productivity.
The foundation of political and economic forums such as the World Trade Organization and the European Union together with the rise of trade blocks has considerably altered the business environment as far as open market and competition is concerned. In essence, the business field has transformed into a global business environment. Today, experts have influenced not only the staffing requirements and the entire labor market but also the HRM practices. Today, aspects like strategic alliances and joint ventures have become common forms of doing business across the globe. Global market, changes in business structures and high-tech communication technologies today demand new forms of HRM approaches for MNCs. Probably, the globalization of business has touched the HRM area for severely than any other functional area.
Presently, HR managers must provide international orientation to all the HR functions including employee recruitment, training, motivation, compensation, and development. Orientation within the global context has the greatest relevance because business today is increasingly interlinked between countries. Moreover, because MNCs must recruit, motivate and retain people at both the home office and overseas plants, the concept of global HRM helps them to procure properly. They must also allocate and effectively utilize human capital in the global business environment (Perkins, Shortland & Perkins, 2006).
The Concept of Global HRM
Global HRM is all about managing human capital worldwide. It involves hiring, allocating and properly using their knowledge, skills, and ideas in responding to the business needs. Global HRM has been recognized as the main determinant of failure or success in the highly competitive business economy. Therefore, this has become the only source of competitive advantage because the other factors of production such as raw materials, technology, information, and capital can be easily imitated (Festing, Budhwar, & Cascio, 2013). However, the caliber of the individuals within a company cannot be duplicated and offer a unique competitive advantage to companies.
MNCs must carefully focus on their most critical resources because it controls other factors of production. However, most MNCs tend to undermine the significance of the HRM function in selecting, training, motivating and compensating employees assigned overseas. The numbers evidence the importance of these resources. Research reveals that over 40,000 MNCs are currently engaged in international business (Sparrow, Brewster, Chung, 2016). Interestingly, modern developments in information technology have allowed these corporations to manage their global HRM function efficiently and effectively. This has served to maximize their global management cadre of these companies.
When implementing the function of global HRM, planning must involve decisions about staffing policy and the global strategy. The major...
UK National Environment In UK, the allocation of resources is purely based on the forces of demand and supply. This form of economy is a free economy in which competition is embraced and firms have to become efficient to increase their level of competitiveness. The government only intervene to provide the necessary infrastructure and to ensure that consumers are not exploited by the businesses. Besides, the government will formulate policies that
Business Environment Interaction of the Business Environment The environment of a company is much like the natural world in that there are many layers to any single organization (Marques, 2007). Political forces are present because there are factions and beliefs within a company which cause different politics to be formed. The economics of running an organization are a different facet of the environment which many consider the most important part of the
If the economy has not grown, it is certainly not the result of poor monetary policy response, given that the Fed's policies under normal conditions would have resulted in significant economic growth. Fiscal policy, therefore, has clearly been inadequate. Indeed, little of his has been attempted in recent years and the current path of "sequestration" is contractionary. Global Markets The product that I have selected is headphones. The global market for
Because cross-trained employees are more knowledgeable about the overall business processes of the organization, their conceptual understanding of the mission of their organization is enhanced by every incremental increase of their involvement and knowledge of its operations (Robbins & Judge, 2009). Beyond that element of increased involvement, the fact that cross-trained workforces tend to improve the morale and organizational connectedness of individual employees also contributes directly to organizational benefits
An interesting theory on interpersonal communication was developed by Leon Festinger, and refers to cognitive dissonance. Regarding this theory, cognitive dissonance is represented by an aversive drive that determines individuals to avoid opposing points-of-view, to seek reassurance when making a difficult decision, and to modify their individual beliefs in order to match public behavior in certain conditions (Festinger, 1957). In other words, the theory refers to the differences between behavior
Business Environment Describe the role of business in the economy, including the factors of production and the key dimensions of the business environment. Business is the engine that drives the economy, providing jobs, purchasing raw materials from producers, and providing the products and services that all consumers use, improving the value of life for everyone in the environment. The income of the economy is distributed through the factors of production. The
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now