The essay aims at outlining the concepts and theories of the organizational HRM. The concepts discussed in the essay include diversity management, culture, training and development and international performance management. Diversity management represents actions carried by organizations and aimed towards promoting inclusion of employees belonging to varied backgrounds and organizational structure (Harvey and Allard 2015). Based on the organizational goals and the industry within which it operates, corporate structure can significantly differ between the companies. Organizational culture on the other hand refers to the experience, expectations, philosophy and values of the organization that holds it together and is particularly expressed as self image, interactions with outside world, inner workings and the future expectations. It depends on the shared beliefs, attitudes, customs, written and the unwritten rules that is developed over the time and considered as valid (Alvesson and Sveningsson 2015). International performance management represents the evaluation of individual working for the foreign subsidiary on temporary basis for transferring the knowledge or developing the global skills of leadership (DeNisi and Smith 2014). In other words, international performance management usually feeds into the global business goals. Training and development acts as the subsystem of the organization that emphasizes on improving performance of the individuals and the groups (Latif, Jan and Shaheen 2013). Training is basically considered as educational process that involves sharpening of the concepts, skills, change of attitude, gaining increased level of knowledge for enhancing the employee performance. The essay tries to explain each of the term with respect to the case study provided
Diversity Management
The present day workplaces are increasingly becoming diverse as a result of internationalization, globalization and the changing demographics. As the population grow and the border shrink, immigration and migration are leading to international, national and the local shifts in the demographics. Besides, advanced methods of transportation have enhanced the opportunities of work and accelerated the processing times.
The diversity concept was first introduced in Northern America during the 1980s which later spread to the different portions of the world. Employees believing in equality and affirmative action put forward an argument where diversity management is seen as competitive advantage to the US companies instead of the legal constraints. This discussion resulted in the research to concept of diversity management and diversity. Globalization of world economy along with spread of the multinational corporations brought about a newer twist in the concept where diversity management solely referred to heterogeneity of the workforce across organizations (Martin 2014).
Organizations can thus implement the best practices of the diversity management for maintaining competitive advantage across business while capitalizing on potential of the diverse workforce. An organization should make diversity a part of its objectives thereby ensuring working of people from every background. According to Wieczorek-Szyma?ska (2017), there exists two generalized approaches and three kinds of specific approaches of diversity management. The two broad approaches include the resource based theory of the diversity management and institutional theory of the diversity management. In addition to this, the three specific approaches include Mainstream Approach, Practitioner Approach and the Critical Approach. Each approach helps in explaining how diversity helps various organizations in developing effective strategies for reaching the organizational goals.
As far as the general approach towards diversity management is concerned, Institutional Theory recognizes that for determining the structure of the organization it is not possible to separate the social environment within the organization (Evans 2014). The structure of an organization is understood by referring to the behavior of the employees within organizations where the organization itself is determined by the limiting factors that includes laws, rules and legislations, professional and social norms. The similar norms and regulations within organizations results in the development of the similar administrative structure. On the hand, the Resource Based Theory focuses on the ways of implementation of diversity that would influence the resources of the organization (Hitt, Xu and Carnes 2016). An organization has four categories of resources which includes human, financial, corporate and the physical capital resources. Such resources can either inhibit or assist operations within organization.
The specific approaches of the diversity management begins with the Practitioner Approach where the primary focus lies in ways of making an workplace increasingly diverse through increasing productivity (Jablonski 2017). In other words, the approach focused on positive aspects of making a workplace increasingly diverse for enhancing productivity. In fact, this approach towards the management of diversity helps the employees in better understanding the needs of diverse customer base. Mainstream Approach which is another approach to diversity management supported by the theories of self categorization and social identity (Oswick and Noon 2014). Self-categorization happens when the people stereotypes themselves by attributing to the behavior, attributes and the other approaches that remains associated with the membership of a specific group. Social identity however refers to the group behavior and member within group. Now as far as the critical approaches to diversity management are concerned, Gotsis and Kortezi (2013) puts forward that it is necessary to identify the problems created by discrimination and inequality and the impacts that the concepts has on the outcomes of an organization.
The example provided in the case study shows that the absence of diversity within a workplace results in various problems. The organization ‘No Name’ should realize that management of diversity could lead to the creation of competitive advantage since diversity involves not only the appreciation of the other cultures but also a means of knowing people. As far as the diversity management is concerned, the company has been intolerant in working with employees from different generations and with disabilities. Besides, the human resource also did not put across clarity of practices that would help the employees in understanding one another.
According to O’Reilly et al. (2014), the culture of an organization is defined as the appropriate way of behaving within organization. The culture is primarily related to the shared values and beliefs established by the leaders and is then reinforced and communicated through the various methods that ultimately shape the behavior, perception and the understanding of the employees. The organizational culture is known to set the context of each and everything done within an organization. As situations and industries varies in a significant manner so there does not exists any particular culture template that is able to universally meet all organizational needs.
A stronger culture acts as the common denominator amongst successful companies. Most of the organization bears a consensus regarding the cultural priorities whose values focus not on the individual employees but on the goals and the organization. Leaders within successful companies live their culture on a day to day basis and move out of the way in communicating the cultural identities to the employees and the newer hires. They remain clear about the values and how such values define the organization and determine the running of the organization.
It has been found that the cultural values represent the part of external factors that influences the practices of the human resource (HR). The behavior of the employees are found to be influenced by the quite a number of cultural values. An organizational culture that has higher level of employee involvement is quite common and likely to possess higher levels of employee motivation and satisfaction in comparison to the ones that does not have an employee involvement (Choo 2013). In this context, it can be said that HR plays a key role in providing an organization with the efficient means of facilitating organizational culture. The HR practices a going training, helps in creating constant channels of communication, involve employees, establish clear set of goals along with an unbiased reward system, develop employees and flatten organizational structure. These represent ways with the help of which a desired structure of an organization is promoted. Besides, HR plays a key role in the development of the company culture. They represent the gateway via which newer employees are able to enter a workforce. The HR acts as a bridge in communicating the expectations and values to the new hires during the orientation and the recruitment process. Through laying groundwork, they are able to aid the employees in having good beginning in relation to the forming of relationships that promotes and aligns the values of the company.
Thus, culture is a key aspect of the business strategy of an organization since it strengthens or undermines the objectives. Positive culture holds significance that is able to attract newer talents (Stahl and Tung 2015). On the other hand employees with poor culture suffer from the lack of newer ideas and motivation. Poor culture is recognized by lack of leadership where employees act indifferent or hostile. The impact of this poor culture is visible in ‘No Name’ where workers follow a strategy of ‘near enough is good enough’. The staff also puts across an impression of resistance towards any attempt adopted in making the change. Besides, there exists no integration across teams. In addition to this, both the horizontal and the lateral communications are compromised and the staff members seem to be complaining regarding not having sufficient information. This has led to the fall in quality of the products produced by the company thereby affecting its profitability.
International Performance Management is described as the procedure that aids a multinational enterprise in the evaluation and constant improvement of corporate and performance at the individual level with respect to the pre defined goals and the target (Budworth, Latham and Manroop 2015). Development of a system that works successfully across the market has been a significant challenge for a human resource manager on an international scale. The aim of the international performance system lies in facilitating, defining and encouraging the performance of the employees and teams that they work for. The international performance management system of a company enables a manager in setting measurable, realistic and specific goals that feeds into the objectives of a business.
Performance appraisal is a vital part of international performance management process and is based on the strength and the weakness of individual, evaluation of training needs, planning for future development and providing necessary motivation that would serve as basis for career feedback and reward (Gupta and Kumar 2013). In fact, the performance appraisal includes observation and two process judgment through the development and the evaluation of performance. International performance appraisal (IPA) has been considered as the strategic process that would help a multinational corporation in constantly improving the global operations by aligning with pre-set objectives. Nevertheless, performance appraisal of expatriates is considered crucial as it raises the probability of the conflict between the headquarters and subsidiary managers. Here, the subsidiary managers remain responsible for setting specific targets and establishing clear criteria for the performance management and avoid conflict. Besides, there are other factors also that determine the performance appraisal of the expatriate. These factors include job roles and task, cultural adjustments, compensation and the support from the host environment and the headquarters. Hence, it is necessary to take every aspect into account for determining the performance variable.
As far as the international performance management of ‘No Name’ considered then it has been found that there exist no official procedure for performance appraisal of the expatriates. The headquarters mostly take into account an ad hoc based approach and do not take into account economic factors that influence the business target. Thus, it can be said that there is no such policy that underpin performance management at the given company.
Training and development acts as a subsystem of the organization that emphasizes on improving performance of the individuals and the group (Lamba and Choudhary 2013). Training represents the educational process involving sharpening of the concepts, skills, change of attitude and acquirement of knowledge for the enhancement of the employee performance. Better training of the employees helps in building the knowledge and the skills that leads to the improvement of the company. In order to constantly improve, it is necessary for organizations to implement regularized development and training programs for employees. Training of employees is necessary for continuous learning of newer skills in this competitive and changing business environment. Training and development leads to the optimized utilization of the human resources, development of leadership, team and time management skills, enhancement of employee motivation and team spirit and enhancement of quality and profitability of the organization (Hassan 2016).
Training and development has been beneficial for companies in the longer run since they aid the employee in the development of newer skills and enhancement of the knowledge. Besides, it has also been found to improve the productivity and efficiency of the teams and the individuals. It has been found that appropriate development and training is known for removing the bottle necks in any operation (Saunila, Tikkamäki and Ukko 2015). Further, it also keeps the employees refreshed and motivated in terms of contribution level, ambitions and goals.
However, as far as training and development is concerned in regard to the organization of the case study it has been found that ‘No Name’ provides expatriate training only to those leaving the home country only for half of the day. The HR mostly refers staffs to the online resources under the assumption that each individual possess the same need while taking up work in a different country. Besides, the employees do not have any avenues for feedback for commenting on quality of expatriate training. The company also does not have systematic procedure of development of management and workforce planning. Employees thus remain unaware of the career prospects since the company do not use its career development plans.
Conclusion and Recommendation
On a concluding note, it can be said that the report provides a detailed analysis of culture, diversity management, training and development and international performance management, and the role they play within an organization. Through the analysis it has been found the case study company lacks all the aspects of organizational HRM like diversity management, international performance management, culture, training and development for driving it towards the path of growth. Therefore, ‘No Name’ can adopt the following recommendations for improving the aspects of culture, diversity management, development and training and the international performance management.
These include:
References:
Alvesson, M. and Sveningsson, S., 2015. Changing organizational culture: Cultural change work in progress. Routledge.
Budworth, M.H., Latham, G.P. and Manroop, L., 2015. Looking forward to performance improvement: A field test of the feedforward interview for performance management. Human Resource Management, 54(1), pp.45-54.
Choo, C.W., 2013. Information culture and organizational effectiveness. International Journal of Information Management, 33(5), pp.775-779.
DeNisi, A. and Smith, C.E., 2014. Performance appraisal, performance management, and firm-level performance: A review, a proposed model, and new directions for future research. Academy of Management Annals, 8(1), pp.127-179.
Evans, C., 2014. Diversity management and organizational change: what can institutional theory contribute to our understanding of the lack of radical change?. Equality, Diversity and Inclusion: An International Journal, 33(6), pp.482-493.
Gotsis, G. and Kortezi, Z., 2013. Ethical paradigms as potential foundations of diversity management initiatives in business organizations. Journal of Organizational Change Management, 26(6), pp.948-976.
Gupta, V. and Kumar, S., 2013. Impact of performance appraisal justice on employee engagement: a study of Indian professionals. Employee relations.
Harvey, C.P. and Allard, M., 2015. Understanding and managing diversity: Readings, cases, and exercises. Pearson.
Hassan, S., 2016. Impact of HRM practices on employee’s performance. International Journal of Academic Research in Accounting, Finance and Management Sciences, 6(1), pp.15-22.
Hitt, M.A., Xu, K. and Carnes, C.M., 2016. Resource based theory in operations management research. Journal of Operations Management, 41, pp.77-94.
Jablonski, H.W., 2017. Corporate diversity consulting: reflections from a practitioner. In Corporate Social Responsibility and Diversity Management (pp. 239-251). Springer, Cham.
Lamba, S. and Choudhary, N., 2013. Impact of HRM practices on organizational commitment of employees. International Journal of Advancements in Research & Technology, 2(4), pp.407-423.
Latif, K.F., Jan, S. and Shaheen, N., 2013. Association of Training Satisfaction with Employee Development aspect of Job Satisfaction. Journal of managerial sciences, 7(1).
Martin, G.C., 2014. The effects of cultural diversity in the workplace. Journal of Diversity Management (JDM), 9(2), pp.89-92.
O’Reilly III, C.A., Caldwell, D.F., Chatman, J.A. and Doerr, B., 2014. The promise and problems of organizational culture: CEO personality, culture, and firm performance. Group & Organization Management, 39(6), pp.595-625.
Oswick, C. and Noon, M., 2014. Discourses of diversity, equality and inclusion: trenchant formulations or transient fashions?. British Journal of Management, 25(1), pp.23-39.
Saunila, M., Tikkamäki, K. and Ukko, J., 2015. Managing performance and learning through reflective practices. Journal of Organizational Effectiveness: People and Performance, 2(4), pp.370-390.
Stahl, G.K. and Tung, R.L., 2015. Towards a more balanced treatment of culture in international business studies: The need for positive cross-cultural scholarship. Journal of International Business Studies, 46(4), pp.391-414.
Wieczorek-Szyma?ska, A., 2017. Organisational Maturity in Diversity Management. Journal of Corporate Responsibility and Leadership, 4(1), pp.79-91.
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