Global HRM Practices and Their Challenges

The Challenges of Global HRM Practices in Companies

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Introduction

Research questions

• What are the human resources management methods in global and local settings?
• What are the difficulties that human resource managers go through during the formation of companies?
• What are the human resource competencies required for effective management?
• What are the issues that multinational resources face?

Aims and Objectives

The following main goals and priorities will be the subject of this research study:

• To gain a better understanding of the management methods used by human resources in global and local settings.
• To determine the difficulties that human resource managers face during the formation of the organization of companies. 
• . For example, if an organization finds that a specific employee is consistently late and continues to be late after receiving several alerts, HR can intervene and investigate the cause of the tardiness. It may be an opportunity to provide extra support or benefits to the employee, such as therapy. Rather than incurring the expense of dismissing and then hiring a replacement for that employee, it might be an incentive for that employee to learn something new that would further their career. HR needs to know and understand the organization’s needs and make sure those needs are met when recruiting for new employment positions. It’s not as easy as just throwing an ad up on Indeed: analyzing the market, consults stakeholders, and manages budgets are some of the key roles played by the HR
• To assess the human resource competencies required for effective management.
• To identify the issues that multinationals human resources face.

Background Information

An organization’s most critical role is resource management. The HR department’s performance determines the effectiveness of a company. Motivating people is difficult enough, but keeping them motivated is much more difficult. Motivation can be interpreted in the simplest terms as the stimulation of people’s needs, wants, and desires to motivate them to act and convert unfulfilled expectations by providing the appropriate medium.

Human resource management is a critical function in organizations when it comes to taking care of the employees. Human resources managers are responsible for the processes that allow for internal and external company efficiency (Casio, 2015). The function is not the management of the processes directly but by developing the procedures and tools to be used. HR plays a critical role in improving, reinforcing, and transforming an organization’s culture. HR is involved in many aspects of a company, including paying wages, managing employee performance, monitoring employee growth, recruiting and on boarding, and ensuring sustained company values. Hum and Resources Management is the method of bringing individuals and organizations together to achieve mutual goals is one of an organization’s most essential properties. The human resources management functions cover any decisions made in a company that affects their employees. HRM also conducts proficiency checks on workers for the company’s good (Robbins et al., 2016). Employees benefit from frequent training because it improves their skill set and proficiency. They often keep their workers motivated by organizing various events such as promotion and appreciation, fun activities, training, sending birthday presents, organizing company outings, among others. Human resource management is critical in establishing an organization’s goals (Casio, 2015). The HRM team is responsible for informing all of the company’s staff about the company’s goals and plans (Snell, 2015). The human resources department continues to create organizational policies to ensure that the organization’s vision is carried out smoothly. They solicit input from all employees through a survey or feedback.

Human resource development is one of the most important aspects of a company’s growth, whether small, medium-sized, or big. It aids the organization’s success, which is particularly important given the competitive nature of today’s business world. Human resource management is a dynamic and ever-changing discipline that undergoes regular changes that can impact a company’s productivity, either positively or negatively. Owing to their limited resources, small and mid-sized enterprises find it difficult to handle human resources.

Human resource management may be a stand-alone role or one of many within the HR Department’s roles and tasks. Human resource management ensures that the right quality and number of workers are present in the workplace and provides opportunities for individuals and groups of employees to develop and improve their careers. Workplace policy formation, benefits administration, retention, and job safety are all things that need to be considered during human resources management. Their main responsibility is to find the best talent and people for the business (Cavanagh, 2017). Another task is the creation of workplace policies to improve the company. When developing or preparing a new strategy for the workplace, other employees from various departments should be a key factor in the implementation stage before it is implemented company-wide.

Since it does not directly oversee processes, human resources develop processes, protocols, and resources for top management, including the manager, to manage and execute processes within their departments. The basic functions of a manager are to schedule, organize, lead, and monitor. Human resource planning is crucial in defining roles, duties, and reporting lines. Recruiting workers is the most basic function of human resources (Ngwenya, 2017). Employee recruitment and selection is a process that involves careful preparation to be successful (Tonus, 2014, p. 394). For companies to maintain their reputation and still command superiority and wade fierce competition from other companies, they have to monitor the performance of their employees with the company’s main variables. The human resources of companies ensure that a conducive environment is created for employees to ensure the productivity of enterprises. The need to analyze human resources and their working environment as a performance variable is usually so strong. 

Literature Review

Human resource management has been vital in companies in various departments and various levels of efficiency such as innovation, production, and other levels (Carmen, 2014). Initially, human resources were seen as only a production factor in organizations, but they become a crucial component of organizations as time goes by. When they are appropriately managed, they can significantly influence the long-term growth leading to the remarkable transformation of companies. Proper and well-planned human resources can motivate and empower workers and even unleash their potentials, which would benefit the organization.

According to Carmen, human resources management is one of the significant challenges that most operating organizations experience, specifically the companies that use globally in diverse markets (Carmen, 2014). Human resources need to be altered as the human resource applications and incorporate different effective ways of managing it to be effective in the global markets. The senior managers who head organizations experience vital problems that enable them to balance the conflicting pressures that exist as they strive to balance responding effectively to the needs of both the local and global levels (Paauwe and Famdale, 2008).

Human resources have become increasingly important in creating competitive advantages in recent years, such as in organizations, where performance is highly reliant on every employee’s expertise, knowledge, and abilities (Beardwell, Holden, and Claydon, 2014). The vertical integration of human resources processes is a significant step toward achieving common understanding in a multinational corporation. Vertical integration can be done in two different ways: downwards and upwards. The strategic integration of human resources is the subject of upward movement. It also entails the involvement of human resource planning management and the final execution of organization plans and the coordination of human resource management standards. The participation of senior human resource managers in the organization’s management team is an essential medium for collaboration and knowledge flow (Carmen, 2004).

Beardwell, Holden, and Claydon (2014) evaluated the dependence on the subsidiary’s production phase, which begins at the domestic stage, with practices similar to those in the core positions in multinational, then adaptive, where all human resource operations are domesticated. However, there is an end with global associations that utilize the same regulated procedures as the tame ones. However, most people have criticized this assessment has widely for implementing production following a series of phases that occurs in most cases, believing without near clear demonstrations that some of the initial stages are usually efficient. They are also criticized for assuming that various phases are equal, whereas only a small number of businesses follow the general strategy.

According to Erbel, Reyes, and Gomnez (2007), human resources are a very important part of any organization, and it is one of the few aspects that cannot be substituted or left behind. Erbel et al. believe that human resources undoubtedly result in a competitive advantage. A company’s human capital is a few and important tools that can offer it a competitive edge over its competitors. From that viewpoint, human resource operations or programs will operate without the risk of being duplicated by other businesses, and only the company’s employees’ understanding skills and capabilities will meet the criterion highlighted by the authors in the book.

According to Guillen (2006), human resource management is the collection of well-planned human resource implementations and operations that enable an organization to achieve its goals. As a result, human resource management uses a systems viewpoint to analyze the impacts of a series of human resource operations, demonstrating the distinction between strategic human resource management and more conventional organizational human resource management viewpoints. The most difficult task is determining what distinguishes strategic human resource management from mere human resource management. One of the most significant distinctions between the two is the degree to which human resource management is combined with decision-making processes, which helps to guide the company’s efforts in dealing with the environment and circumstances. Modernization, increased competition, and continuous market and technological change are the primary drivers of changes in human resource management.

According to Guillen (2006), human resource management is collecting well-planned human resource implementations and operations that enable an organization to achieve its goals. As a result, human resource management uses a systems perspective to assess the effects of a series of human resource operations, demonstrating the distinction between human resource and strategic human resource management. The most challenging task is determining what distinguishes strategic human resource management from mere human resource management. One of the most significant distinctions between the two is the degree to which human resource management is combined with decision-making processes, which helps to guide the company’s efforts in dealing with the environment and circumstances. Modernization, competition, and business evolution are all benefits of modernization. Changes in human resource management are primarily due to technological advancements.

The people and business have faced new rivals as a result of the competitive and foreign market environment. Enterprises’ ability to outcompete domestic and foreign rivals is hampered by a lack of adequately trained and prepared labor. This resulting in limited economic performance. Hello, Carmen ( 2014). Over the past few years, the company’s working environment has faced numerous challenges, including increased domestic and international competitors, emerging technologies and scientific advances, labor force demography, and maximum data technology use. Human resource managers must be aware of these issues and take the appropriate measures to assist their organizations. Human resource management is vital to the company’s success and development.

Human resource management is being encouraged because it promotes the identification of employees as business assets. Therefore, workers should have a diverse set of interpersonal and competence skills that will allow them to work with emerging technology and perform optimally in today’s high-performing businesses (Combs et al., 2006; Fernandez, 2001). The expertise, skills, and diverse experiences of the company’s employees are precious because they enable the company to be both profitable and adaptable. Long-term, businesses that control their human resource departments have higher levels of efficiency, higher market value, higher earnings, and meet the needs of the company’s stakeholders, consumers, investors, workers, and, ultimately, society.

In contrast to the United States and European companies such as Sainsbury’s have limited the levels of autonomy in decisions about hiring, training, and laying off employees. These decisions kept initially hidden from the free competition and the market, with trade unions shouldering the majority of the blame for job restrictions. According to the models, there is no single best approach for tracking human capital in businesses, but there are many effective methods for monitoring and handling employees. At the same time, it revealed that most of what is considered American management strategies do not perform well in other countries (Guillen, 2006).

Human resource managers in global corporations face integrity, justice, self-discipline, and, finally, the consequences of habits and behaviors. Since human resource teams take on a lot of responsibility in the business, it can be a considerable burden for the managers in charge of the human resource team to distinguish between what is morally better and ethical for the employees and what is a financial gain for the company (Pointon and Ryan, 2004).

Guillen indicated in 2006 that employee morale has been declining in recent years and that senior managers have to take complex and successful steps to improve motivational thresholds among staff employees. Lawler also proposed in 2005 that if labor is under-motivated, it will result in higher labor costs, lower efficiency, and lower output, as well as a negative effect on the firm’s other working environments. As a result, any employee needs to be motivated at work.

According to Barney (2009), when a company’s employees are well-motivated and committed to its mission and vision statement, it is easier for the management team to handle its competitors through its competitive advantage. When they are sufficiently motivated both extrinsically and intrinsically, their work output increases immediately, and the firm’s goals are met successfully and efficiently in a short period. As a result, existing modern organization practices and policies often focus on employee motivation in human resources. Since highly motivated and knowledgeable employees are a company’s most important competitive advantage.

Methodology

This section of the research aims to assess the methods used in the research study, precisely the research philosophy, research design, population of the study, data collection and instruments used, data analysis, reliability and validity, and ethical considerations.

Research Philosophy

The research philosophy examines the context of understanding on which the research’s essential assumptions and references are based. It is a firm belief in how study data should be gathered, analyzed, and applied. There are two main research philosophies in science: empirical positivism and interpretive phenology, each of which can be divided into qualitative and quantitative stages (Deleary & Shaw, 2008).

Research Methodology

Paauwe and Famdale say that (2008) there is no such thing as a single research design that can stand alone. The authors proposed combining different research designs in a single study would allow for triangulation and make the findings more accurate and reliable. The analysis methodology is the most important aspect of the whole study and the methods used in it. The research approach that has been selected for this analysis is as follows.

To determine the impact of globalization on human resource management, a study project will be undertaken that included interviews, questionnaires, and case studies from senior managers in the company’s human resource department. International human resource management techniques and multicultural management strategies will be aligned with priorities such as diversity performance and performance. Globalization has changed the way people do business and the level of rivalry.

Data Collection 

The research will be carried out using two methods of investigation designed to provide a detailed overview of the multinational corporation, its trends, and the model it has implemented: Data will be collected from interviewing participants and conducting interviews with senior human resource managers at multinational retail company. Self-administered questionnaires will be used to collect the primary data. They will be used to assess the targeted manager’s findings and take a stance on the observed variables. The methodology will be modified due to the technical existence of the scale’s variables and the need to verify the validity of the participants’ responses.

Research Participants

The study will be conducted with a focus group of eleven senior executives from a global company, each of whom has a human resource office, either in headquarters or in regional or national offices, and regional and national human resource managers. The remaining participants will be chosen from partnership ventures and multinational corporation from United States, with nine senior managers representing 20,000 to 400,000 individual workers across nations. Sample managers and their management teamwork in a variety of countries and regions. The main respondents will be selected from within the multinational corporation based on their formal role in the organization and the managers’ expertise. The other group of respondents will be chosen from informants who know more about the issues under investigation and who will be elaborate effectively.

Procedure

There will be structured interviews targeting the senior managers in some chosen multinational companies around the United States. Most of these interviews will be undertaken in person; we will be undertaking some via telephone due to the geographical dispersion of the study group, with the interviews lasting between forty-five minutes to one hour (Gearhart, 2010).

Proposed Analysis and Presentation of Results

The data will be analyzed using a computer-assisted qualitative analysis to reduce, identify, and group the data from the interviews and the key issues under investigation. A research will be conducted following Boselie, Dietz, and Boon (2005) to determine the content of thematic. During the interview and questionnaire delivery, the data to be obtained will reveal the Name of the job, the firm or sector, and the respondents’ area.

Ethical Implications of the Problems and Solutions

Human resource management is an aspect of a business organization or corporation that is in charge of managing relationships between groups of people in their various roles as employers and employees. This activity raises questions about the roles and rights of each party in the relationship, especially managers’ ability to treat their employees fairly. The ethical implications of the concerns to be investigated in this report, as well as the solutions to be suggested, concern how human resource managers understand the principles, ethics, and expectations of the multinational company’s workers, as any decision they make, has a direct effect on the employees’ productivity.

The research will take several steps to ensure that the study is conducted in full accordance with research ethics. Respondents will be asked to volunteer for the study in exchange for their anonymity and confidentiality. The questionnaires will be designed to collect data specifically relevant to the investigated topics, with no personal or private questions being asked of respondents. There will be no discriminatory, derogatory, or other objectionable terminology in the questionnaires or the interview that could be deemed offensive to anyone.

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