Discuss about the Essentials of Human Resource Management System.
Human Resource Planning has emerged as a challenging task to the HRM in the globalized area of business. Globalization has brought ample of options to the organizations for expanding its expertise to a broader part of the world. However, it has also put the HRM into enormous kinds of pressure for maintaining a peaceful workplace activity in organizations. Some of the issues that have tested the skills of the HRM are issues related to high turnover, skills shortages, tight labour market, ageing population, diversity and many more. These are some of the most important factors, which have put a sounding pressure on the HRM to balance it to the fullest of possibilities. The aim of the essay is to give the HRM some effective ways to bring productivity in its practices through the help of effective strategic planning, resource based view etc.
Effective Strategic HR Planning is a challenging task for the HRM, which has put several pressures on its shoulders for several of reasons such as diversity, ageing population, skills shortages, high turnover, tight labours and many more. However, it has become necessary for the HRM to rejoin the hands of collaboration with the SHRM to put forth the resonant reply to the problem (Aswathappa 2013). SHRM is the group society for the international HRM management, which prepares skilled HRM through several ways such as education, certification courses, thought leadership, community and many more. It is the world’s biggest society for the HRM, which operates in not less than 165 countries. For nearly the last seven decades, it has been serving the service to prepare the excellent HRM personals across the globe. It has almost 575 affiliated chapters in the United States of America. It also has its subsidiaries in some other parts of world such as China, India and United Arab Emirates. HRM is a group in organizations that are engaged in managing human resources. It has come into existence to provide excellent work output from employees (SHRM, 2017).
The globalization has not only brought the multinational companies of different parts of world close to one another but it has also enhanced the challenging level for the HRM to maintain the several kinds of diversity in the organizations. One of the most popular problems of this segment is the ageing population of employees, which has created ample of pressure on some countries such as Singapore (Stredwick 2013). In Singapore, the ageing population of baby-boomers have created several pressures on the HRM to find out the alternate options for the highlighted problem in the coming future. This is one of the problems that globalization has put forward. Another problem of the globalization is the tight labour rules, which are more threatening go organizations in China. In China, the minimum wage standard is very high that makes it one of the toughest destinations to have a high profit margin. The cost of raw materials is comparatively cheaper in China; however, the high labour cost is a constraint on the foreign companies (Banfield and Kay 2012).
Diversity is one of the most challenging tasks ahead of the HRM in the globalized era of business. To understand the problem, it is necessary to understand the types of employees, which are certain because of globalization in companies. For a Company, which goes to the foreign nations after being inspired by the globalization, it has to have employees from three locales such as host nation, parent nation and third country nation. The assimilation of three countries at one place for the purpose of business do put ample of pressure on the HRM to mitigate the cultural diversity related problem (Bratton and Gold 2012).
To mitigate the rising challenges in front of the HRM, it has to undergo some kinds of restructuring to meet with the changing demand of the stakeholders. The high labour costs are unmanageable but an alternate solution can provide the solution for the organizations as it is serving for the Walmart in China. Walmart has no manufacturing centres in China as it depends on the export done from the China, which makes this cost effective and free from any anti-union activities. Cultural diversity is one of the major problems ahead of the HRM, which comes into picture once a company plans for an offshore operation of it. It is not feasible to send all the existing employees to the offshore destination. On contrary to this, some are selected and sent to the offshore locations. However, the local applicants fill up the rest of the positions. This is where the assimilation in between the local residents and the employees of parent Company happens. The management is aware of the importance of the assimilation but the same level of understanding is not feasible to the employees also. It becomes necessary for the HRM to train employees on the cultural awareness, which is helpful for a cooperative work at the workplace (Brewster and Mayrhofer 2012).
HR planning and project management is a rising concern for the Global HRM, which has put the HRM under several kinds of pressure. The importance of the HR planning can well be understood in the example given in the attached link, which is on the “Queensland Rail Disruptions: Annastacia Palaszczuk ‘furious’ over 100 cancelled trains in Brisbane” (Budhwar and Debrah 2013). The incident that was highlighted through this link is about the cancellation of 100 trains because of drivers shortages. The new line of Redcliffe Peninsula did witness the cancellation of hundred trains because of unavailability of trained drivers for the new line. The main issue, which was highlighted with the help of the link, is about the shortages of trained drivers for the new line in the Queensland. It was a big project, which needs to be taken with utmost care of skills and qualities. However, it cannot turn around as per the expectation. Ms Gluer did feel that the ignorance to the training for the staffs has resulted in this performance related glitch (ABC News, 2017).
It gives some important clues to the HRM for mitigating the rising threat of issues because of the globalization. The rising trend of globalization has put immense pressure on the HRM to maintain a balance relationship in between staffs of diverse cultures. The above example did prioritise the importance of staffing and training, which is of utmost importance for the HRM (Tiwari and Saxena 2012). Training is undoubtedly one of the most effective tools for inducing job relevant skills into employees. For the irrespective of the professionals, training is compulsory to put their focus on the project requirement. A big project such as Queensland Train Service to a new line needs an utmost care of the HRM on its selected employees with the use of necessary tools. Training is arguably one of the most effective tools in mitigating the staffing problem and training the skills. Apart from skills, cultural awareness into employees is another important aspect for the HRM, which might also disrupt the working environment because of cultural conflicts (Harris 2012).
Cultural awareness does also require some kinds of effective training on it. The diverse culture of employees of host nation or a third party nation needs to be aware of the cultural values of the parent country. Before they start their job, they need to set up their mind for the acceptance of diverse culture of employees (Tyson 2014). It would help them in adjusting and compromising with the cultural diversity. However, geographical influence is the one important factor that acts as a retarding agent in the way of cultural understanding. It never let one realize about the importance of the assimilation of different cultures at the workplace. It does not allow them thinking on the matter of cooperative workforce. This is where the HRM appears as it can well try to induce the required cultural awareness into diverse culture of employees. Communication needs to be faster between the management of the parent country and the host country. Customers are more result oriented, which they want to be delivered in real time. For this to make happen, the communication in between the management of the parent and the host country needs to happen in real time to meet with the demand of the customers. Sustenance is only in meeting the demand of customers in quick succession of time (Hendry 2012).
The Resource Based View is such an important tool that helps in preserving the short run competitiveness for a log run of the organization. It is about identifying the existing strengths of the firm and evaluating the effectiveness of the resources for mitigating the issues of the HRM because of the Globalization (Wilton 2016). RBV supports a fact that qualities and characteristics that are rare in the organization and can never be imitated by its competitors are the best to achieve a sustainable growth in the firm. The rising problem because of the globalization has put several pressures on the management to be in the race of competition. It supports the fact that firms are needed to identify its unique resources. Moreover, it is more effective to preserve the identified unique resource than for going to the some new resources. These resources are something that is unique for other firms, which is more important for a competitive advantage in the market (Sparrow, Brewster and Chung 2016).
It is more important to engage into a continuous development program on the available competitive resources. This is because of the fact that switching to some new skills might not work for the firm. The Queensland Train cancellation example does represent a better example of understanding the fact. The failure was happened because of the ignorance on the staffing and training part of the management. It simply reveals a fact that identifying ten existing potentiality of a firm is more important than to just switch to something new. The new thing might have potentials in it to bring all joys to a firm but it can never guarantee of producing a resonant performance outcome. As per Resource Based View, it is more effective to identify the existing capabilities of the firm and then rely on the identified strategies to achieve a sustainable performance of the firm. The concept did also help in identifying that not all the resources of a firm have the potential to put forward a resonant result. It is necessary to identify the potential resource of the firm to help the management implementing the skills to attain the maximum competitiveness in the market (Stahl, Björkman and Morris 2012).
The resource-based view again emphasises on the importance of training, which is necessary to train the existing and the new employees on the unique capabilities of the firm. Training is the one important tool that can help the HRM in inducing the skills related to the identified capabilities of the firm into the employees. Apart from giving training on the organizational capabilities, it is also necessary for the organization to identify the right set of skills for a particular project. The cancellation of 100 trains in the Queensland does support the fact that employees were untrained on driving skills for the new line. The HRM did not realize the importance of staffing and training. RBV is focussed on a sustainable approach of the firm that according to the principle can only be achieved if it utilises the unique resources of the firm. Moreover, these resources add values to the firm, which can never be imitated by its competitors (Storey 2014).
Human resource management needs to be flexible with the changing nature and demands of customers. To an organization, HRM is a valuable asset that provides a solution to the staffing problem. However, the role of the HRM does not end here, it rather becomes bigger and bigger with the changing demands of customers and the globalization effect. Some of the rising issues have already tested the international HRM for putting up counter solutions for the problem. However, it is becoming a strain on the HRM to find out a sound solution for the problem. Issues such as cultural diversity in employees, labour costs, skills shortage and many others are a collection of pressures for the HRM. The resource-based view did try to give a solution to the human resource by emphasizing the importance of identifying the unique capability of the firm and they rely on the same to attain the competitiveness in the market. It is applicable to some extent as it brings uniqueness in the management; however, it becomes necessary to consider also some of the established institutional thoughts for mitigating the solution. Training and professional development plan is by far the best possible weapons in the hands of international HRM for minimizing the rising issues to the maximum of possibilities.
References
ABC News. (2017). ‘I want answers’: Palaszczuk furious over rail disruptions. [online] Available at: https://www.abc.net.au/news/2016-10-23/annastacia-palaszczuk-furious-over-queensland-rail-disruptions/7957862 [Accessed 31 Mar. 2017].
Aswathappa, K., 2013. Human resource management: Text and cases. Tata McGraw-Hill Education.
Banfield, P. and Kay, R., 2012. Introduction to human resource management. Oxford University Press.
Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave Macmillan.
Brewster, C. and Mayrhofer, W. eds., 2012. Handbook of research on comparative human resource management. Edward Elgar Publishing.
Budhwar, P.S. and Debrah, Y.A. eds., 2013. Human resource management in developing countries. Routledge.
Harris, M.M. ed., 2012. Handbook of research in international human resource management. Psychology Press.
Hendry, C., 2012. Human resource management. Routledge.
SHRM. (2017). About SHRM. [online] Available at: https://www.shrm.org/about-shrm/pages/default.aspx [Accessed 31 Mar. 2017].
Sparrow, P., Brewster, C. and Chung, C., 2016. Globalizing human resource management. Routledge.
Stahl, G.K., Björkman, I. and Morris, S. eds., 2012. Handbook of research in international human resource management. Edward Elgar Publishing.
Storey, J., 2014. New Perspectives on Human Resource Management (Routledge Revivals). Routledge.
Stredwick, J., 2013. An introduction to human resource management. Routledge.
Tiwari, P. and Saxena, K., 2012. Human resource management practices: A comprehensive review. Pakistan business review, 9(2), pp.669-705.
Tyson, S., 2014. Essentials of human resource management. Routledge.
Wilton, N., 2016. An introduction to human resource management. Sage.
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