human resource management-challenges and opportunities in the globalization

8/10/2019 Human Resource Management-Challenges and Opportunities in the Globalization

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Human ResourceManagement-Challenges

and Opportunities in the

Globalization era

Dr. Chitra Kasana


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About Globalization

Globalization symbolizes the structural making of the worldcharacterized by the free flow of technology and humanresources across national boundaries presenting an ever-changing and competitive business environment.

Firms competing in a global market place, and organizationsare to survive and prosper in the modern world of rapidchange, they need to be more flexible, faster-moving andfaster-learning than ever before.

Globalization is no longer an abstraction but a starkreality that virtually all firms, large and small, have toface. Firms that want to survive in the 21stcentury mustconfront this all encompassing force that pervades everyaspect of business.


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GLOBAL SCENARIO

Transnational corporations serve different marketsaround the world. Their global expansion may bedriven by various factors. These include:

saturated and intensely competitive domestic markets,

diversification of risk on a geographical basis,

opportunity to realize economies of scale and scope,

entry of competitors into overseas markets,

the need to follow customers going abroad and the desire to compete in a market with

sophisticated consumer tastes


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Impact on HRM

The human resource function faces many challengesduring the globalization process,

including creating global mind-set within the HRgroup,

creating practices that will be consistently applied indifferent locations/offices while also maintaining thevarious local cultures and practices, and

communicating a consistent corporate culture across

the entire organization.To meet these challenges, organizations need to considerthe HR function not as just an administrative servicebut as a strategic business development.


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NEW TRENDS IN INTERNATIONAL HRM

International HRM places greater emphasis on a number ofresponsibilities and functions such as relocation, orientation andtranslation services, to help employees adapt to a new anddifferent environment outside their own country.

There are certain human resource management issues that are

particular for the global enterprise. The key issues involve staffingpolicies, selecting and retaining talented employee, training anddevelopment whilst encouraging employees to be innovative andcreative, avoiding culture barriers, and adjusted legal frame work.

Others issues include understanding the challenges of living andworking overseas, indirect performance appraisals from

a distance, training and management development, compensationpackages, and labor relations and organized labor laws with respectto each country.


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The coming of the 21STcentury poses distinctiveHRM challenges to business especially thoseoperating across national boundaries asmultinational or global enterprise. Competing in

global markets entail many factors andcentralization of its human resource practices iscertainly vital to improve global competitivenessand empower employees for global assignments.

To achieve success in global marketplace, thechallenge of all businesses regardless of their sizeis to understand global corporate culturaldifferences and invest in human resources.


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Globalization Trends and Human

Resource Challenges

TREND :

Globalization and increased competition.

CHALLENGES :

Managing a global workforce.Ensuring availability of employees who have the

skills for global assignments.

Focusing increasingly on employee productivity

to ensure competitiveness.Ensuring legal compliance when conducting

business abroad.


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TREND:

Mergers and Acquisitions

CHALLENGES:Managing employee insecurity.

Ensuring continued employee productivity.

Developing HR initiatives to manage employeemorale.


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TREND:

Changing Nature of Work.

CHALLENGES:

Managing workforce with flexible workingpatterns.

Focusing on competencies during hiring process.

Designing incentive based compensation.Developing proactive employee development

programs.


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TREND :

Flexible Work Arrangements.

CHALLENGES:

Managing the loss of organizational control overwork.

Developing programs for motivating the flexible

workforce.Developing ways of ensuring commitment of the

flexible workforce to the firm.


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TRENDS:

Ageing population and Workforce Availability.CHALLENGES:

Ensuring the availability of skilled talent to fulfillorganizational needs.

Finding replacement for retirees.

Managing the demand-supply gap for qualified managerialtalent due to a large retiring workforce.

Developing mentoring programs to ensure the skills of

experienced mangers are passed on to new managers. Obsolescence training and retaining of older employees.

Managing retirement policies.

Conducting programs to retain experienced employees.


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TRENDS:

Changing family structures.

CHALLENGES:Developing work-life balance programs.


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To succeed in the new era of globalization, thehuman factor is central. That is why it isnecessary for HR personnel to prove themselves

beyond reasonable doubt that they are capableof playing key roles.

HR department must possess a thoroughunderstanding of business and also act as

important influences in the level of integrationbetween HR management and organizationalstrategy .

The HRM challenges facing organizations in the

new era of Globalization.


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FOCUS AREAS for GLOBAL MANAGERS

TRAINING

* Executive Etiquette for Global Transactions: Thisprogram prepares managers for conducting businessglobally by training them in business etiquette in othercultures.

* Cross Cultural Technology Transfer: This program showshow cultural values affect perceptions of technology andtechnical learning.

* International Protocol and Presentation: This programshows the correct way to handle people with tact anddiplomacy in countries around the world.

* Language Training: Language training delivered bycertified instructors, usually determined by the learner'sneeds.


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FEW CHALLENGES AND APPROACHES

Retention of talent and maintaining a motivated andcontended workforce is, perhaps the biggest challengebefore the HR professionals. It has become moresignificant and assumes greater importance in era of

open economy and cutting edge competition. Retention is a big and a constant challenge for every

organization today. It is a Herculean task for mostorganizations in the modern era of globalization andcompetitive business. Successful organizations realize

employee retention and talent management areintegral to sustaining their leadership and growth inthe market place.


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HR professionals readily agree that retaining the best

employees ensures customer satisfaction, product sales,and satisfied coworkers and reporting staff, effectivesuccession planning and deeply imbedded organizationalknowledge and learning.

CHALLENGE

HR professionals all over the world are breakingtheir heads to formulate Retention Strategies but

nothing is working-out in their favor.


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SUGGESTIONS

1. Employee Empowerment:

One of the basic strategies to retain talents is to empowerthe employees by enlarging an employee's jobresponsibility by conferring him the authority to get thingsdone without becoming over burdened or distressed.

By empowerment, the employees are supported andencouraged to utilize their skills, abilities and creativity byaccepting accountability for their work.

Empowerment occurs when employees are adequately

trained, provided with all the relevant information and thebest possible tools, fully involved in key decisions, and arefairly rewarded.


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SUGGESTION

2.Congenial Work Environment:

An effective employee retention program is asystematic effort to create a good Quality work

life by providing congenial work environment. People wants to work for an organization which

provides:

A friendly and cooperative environment,

ample opportunities to grow,

appreciation for work done.


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A congenial work environment includes:

good organizational culture,

values, company reputation,

quality of people working,

good working conditions,

fostering employee development and growth, using leading technologies,

flexible work environment that welcomes new ideas,

risk taking,

doesn't carve all decisions in stone,

trust,

good employee relation.


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It also includes:

efficient managers,

supportive co-workers,

challenging work,

involvement in decision-making,

clarity of work and responsibilities, and recognition.


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The environment should be such that the

employee feels connected to the organizationin every respect.

Other supportive work environments that canattract and retain talents in an organization

are:flexible timings,

alternative work schedules,

vacations,wellness etc.


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There are various non-financial motivators thatalso reinforce talents to retain in the organization

such as:

* Issuing commendation letters to meritoriousemployees.

* Sponsoring employee visits for advancedtraining and exposures.* Publishing their names in their in-housemagazine or notice board.* Giving additional responsibility as a challengingassignment.* Recognizing for outstanding performance.


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A UNIQUE APPROACH-Employee

engagement Employee engagement is what we get when an employee is

motivated by the job and is successful in the job and is wellmanaged by the supervisor and paid fairly by management.

PREPOSITION

Good employees who are successful and managed and paid well willbe engaged even if not fully satisfied.

Good employees who are successful but not managed well or paidwell will not be engaged and will not be satisfied.

Bad employees who are unsuccessful even though they are well

managed and well paid will not be engaged even if fully satisfied.


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Research has shown that when engagement scores arehigh, employees are more satisfied, they are less likelyto leave the organization, and more productive.

Some organizations use engagement scores as lead

measures in their HR scorecards. When an organizationcan show the relationship between engagement scoresand bottom-line outcomes, everyone pays attention tothe engagement index.

Establishing this critical link between people andperformance helps HR professionals prove that people-related interventions are a worthwhile investment.


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WHY ?

The tight economy has refocused attention on maximizingemployee output and making the most of organizationalresources. When organizations focus attention on theirpeople, they are making an investment in their mostimportant resource.

You can cut all the costs you want, but if you neglect yourpeople, cutting costs won't make much of a difference.Engagement is all about getting employees to "give it theirall." Some of the most successful organizations are knownfor their unique work environments, in which employees

are motivated to do their very best.These great places to work have been recognized in such lists

as Fortune's 100 Best Companies to Work For.


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The concept of engagement is a natural evolution ofpast research on high-involvement, empowerment, jobmotivation, organizational commitment, and trust. All

of these research streams focus on the perceptions andattitudes of employees about the work environment.

In engagement, people employ and express themselves

physically, cognitively, and emotionally during roleperformances.

Employee engagement is thus the level of commitmentand involvement an employee has towards theirorganizations and its values. An engaged employee isaware of business context, and works with colleaguesto improve performance within the job for the benefitof organization


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THE ESSENCE OF ENGAGEMENT

A positive attitude towards, and pride in, theorganization.

Belief in the organization's products/services.

A perception that the organization enables theemployee to perform well.

A willingness to behave altruistically and be a good

team player.An understanding of the bigger picture and a

willingness to go beyond the requirements of the job.


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Employee engagement is crucial to achieve highproductivity and profitability. Withoutengagement organizations cannot hope to retain theirbest talent.

Truly great organizations however realize theimportance of sharing the vision and values with theirpeople. In fact this is a key factor that underpins theirsuccess. They often take great pains to

make people understand the direction in whichthe organization is going, what it want to achieve andwhy.


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BUILDING BLOCKS OF JOB

ENGAGEMENT

* Good quality line management;

* Two-way communication;

* Effective internal co-operation;* A development focus;

* Commitment to employee wellbeing;

* Clear, accessible HR policies and practices, towhich managers at all levels are committed.


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Avoid Excessive workplace stress

Signs and symptoms of excessive workplace stress

Feeling anxious, irritable, or depressed.

Apathy, loss of interest in work.

Problems sleeping.

Fatigue, Trouble concentrating .

Muscle tension or headaches.

Stomach problems.

Social withdrawal.

Loss of sex drive.

Using alcohol or drugs to cope.


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Common causes of excessive workplace stress

Fear of layoffs;

Increased demands for overtime due to staff

cutbacks;

Pressure to perform to meet rising

expectations but with no increase in job

satisfaction;

Pressure to work at optimum levelsall the

time!


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People who work more than10 hours a day are around 60

per cent more likely todevelop heart disease or have

a heart attack than people

who work seven hours a day.


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SOLUTION

Reducing workplace stress by improving

emotional intelligence

Emotional intelligence is the ability to manageand use your emotions in positive andconstructive ways. It's about communicatingwith others in ways that draw people to you,overcome differences, repair woundedfeelings, and defuse tension and stress.


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Emotional intelligence in the workplace:

Emotional intelligence in the workplace has four major

components:1. Self-awarenessThe ability to recognize youremotions and their impact while using gut feelings toguide your decisions.

2. Self-managementThe ability to control your

emotions and behavior and adapt to changingcircumstances.

3. Social awarenessThe ability to sense, understand,and react to other's emotions and feel comfortable

socially.4. Relationship managementThe ability to inspire,influence, and connect to others and manage conflict.


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Emotional intelligence - the five domains

Goleman identified the five 'domains' of EQ as:1. Knowing your emotions.

2. Managing your own emotions.

3. Motivating yourself.

4. Recognizing and understanding other people's

emotions.

5. Managing relationships, i.e., managing the

emotions of others.


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The rules for work are

changing. We are being

judged by not just howsmart we are but also by

how well we handle eachother and ourselves.


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human resource management-challenges and opportunities in the globalization

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