Navigating the Challenges of Global Human Resources Management (HRM)

Navigating the Challenges of Global Human Resources Management (HRM)       

Sap Prasanna

History of HRM:


Human Resource Management (HRM) is the process of collecting, training, evaluating, and rewarding employees, as well as attending to their labour relations, health and safety, and justice concerns (Dessler, 2020). The organizations perform a wide range of operational functions. HRM division is one of the functions that is involved with an organization's tasks. In the early 1970s, there was no Human Resource Department or Division. By that time, the organization's labor-related component was just known as "Personnel"(The Borgen Project, 2003).
 Personal Management was established at the end of the nineteenth century. This was centered on the welfare of workers in organizations at the time. The officers of the Personnel Department were referred to as "Welfare Officers" based on the tasks they completed. The main purpose of them was to pay salaries and manage employee difficulties, as well as to play a welfare role (Lasha and Zuzana, 2021,3).  
 Employee loyalty to employers declined after the 1970s, as workers realized they had a wide range of employment options. They no longer valued long-term employment and devotion to the firm. As a result, organizations extended and enhanced the responsibility of the personnel management department, which was entrusted with finding solutions to declining employee loyalty. Personnel management became scientific and was founded on earlier research of organizational behaviour (HRM handbook, 2023).

HR Policies :

The overall HR policy defines how the organization fulfills its social responsibilities to its employees and sets out its attitudes toward them. It is an expression of its values or beliefs about how people should be treated. Peters and Waterman (1982) wrote that if they were asked for one all-purpose bit of advice for management, one truth that they could distil from all their research on what makes an organization excellent, it would be: ‘Figure out your value system. Decide what the organization stands for.’ HR Policies 989 Selznick (1957) emphasized the key role of values in organizations when he wrote: ‘The formation of an institution is marked by the making of value commitments, that is, choices which fi x the assumptions of policymakers as to the nature of the enterprise, its distinctive aims, methods and roles.’

 Procedures:

HR procedures set out the ways in which certain actions concerning people should be carried out by the management or individual managers. In effect they constitute a formalized approach to dealing with specific matters of policy and practice. These describe the approach the organization adopts to various aspects of people management and define key aspects of the employment relationship. They serve as guidelines on people management practices but do not necessarily lay down precisely the steps that should be taken in particular situations. Procedures are more exacting: they state what must be done as well as spelling out how to do it .
It is desirable to have the key HR procedures written down to ensure that HR policies are applied consistently and in accordance with both legal requirements and ethical considerations. The existence of a written and well-publicized procedure ensures that everyone knows precisely what steps need to be taken when dealing with certain significant and possibly recurring employment issues.





HRM Functions :


  • Planning - The role of HRM in planning procedures is to ensure that the company has the resources to achieve its goals. This includes ensuring that the company has the right employees with the correct skills, as well as the necessary financial and other resources.(hrm handbook,2019-2023)
  • Staffing - Staffing refers to the continuous process of finding, selecting evaluating and developing a working relationship with current or future employees. The main goal of staffing is to fill the various roles within the company with suitable candidates (Darwinbox ,2023)
  • Developing - Human resource development seeks to improve employee performance and ability. This framework guides organisations about training employees, providing career development opportunities, and ensuring motivation.(Study.com,2023)
  • Motivating-Motivation and opportunity to maximize work performance in the organization. Motivation refers to external and internal factors that influence employees to perform a particular task or job well. Stone (2013) explains that knowing how to motivate employees can help the organization to increase productivity and improve customer service and is one factor that creates a competitive advantage over competitors.
  • Managing Change - HR can play a dual role in change management by initiating and leading the change and by serving as a facilitator for changes that other leaders and departments initiated. The HR department performs a variety of functions associated with the communication, implementation and tracking of major changes.(SHRM,2023) 
  • Maintaining Relationship - Employee relations look specifically to developing and maintaining positive relationships with a company’s employees. While employee relations is a function of HR, its major role is liaising between employer and employees as well as building in benefits and policies to create a healthy workplace (UNIVERSITY OF LINCOLAN,2021)
  • Evaluating- Evaluations are a mechanism to provide feedback and documentation about an employee's performance through a defined time period and can provide clear communication of job expectations and goals.( The University of Kansas (2023)
  • Appraising - Human resource department plays an important role in designing and implementing performance appraisals. In fact, the HR team acts as mediator between the functional heads or reviewing authorities and the employee. It is the human resource team's responsibility to ensure a smooth implementation of the appraisal process.( Management Study Guide,2013)

Roles of HR




Strategic Human Resource Management (SHRM)



Recruitment: Choose the best candidates for the job.
Retention: Confirm that trustworthy staff stay with the organization.
Development: Provide training and career advancement opportunities so employees can grow within the organization.
Compensation: Pay employees fairly based on their skills and experience level.
Engagement: Make employees feel like their opinions matter by including them in decision-making processes.

Future Challenges of Global HRM

As organizations continue to expand globally, the challenges of managing a diverse and multicultural workforce become increasingly complex. Global Human Resources Management (HRM) is faced with the challenge of balancing local and global HR practices while complying with different labor laws and regulations in different countries. One of the biggest future challenges of global HRM is to ensure cultural competence and sensitivity in the management of a diverse workforce. This requires HR managers to understand cultural nuances, language barriers, and communication styles to ensure effective collaboration across different regions. Another major challenge is to leverage technology to enhance HR processes and systems while ensuring data privacy and security across multiple jurisdictions. Effective global HRM requires a strategic approach that balances local needs with global strategies to ensure a cohesive and productive workforce.





REFERENCES

British Library (2022) Business and management. [online] UK:national library. Available from https://www.bl.uk/people/elton-mayo [Accessed 21 March 2023].

Dessler, G. (2017) Human Resource Management. 15th edition. Boston: Pearson.

HRM handbook (2023) HR Management in 70s and 80s of 20th Century. [online] Available from https://hrmhandbook.com/hrt/history/early-hr-management/ [Accessed 21 March 2023].

Mulholland, G, Özbilgin, M and Worman, D (2005) Managing Diversity: Linking theory and practice to business performance, CIPD, London 

Armstrong.M(2014), Armstrong’s Handbook of Human Resource Management Practice(13th edition) [Online] Available at  https://www.google.com/search?q=e-book+of+ARMSTRONG%E2%80%99S+HANDBOOK+OF+HUMAN+RESOURCE+MANAGEMENT+PRACTICE.[Accessed on 4th April 2023]

evelinadebora (2017). Peran HR Menurut Dave Ulrich. [online] Evelina Damanik_blog. Available at: https://evelinadamanik.wordpress.com/2017/12/10/peran-hrd-menurut-dave-ulrich/ [Accessed 15 Apr. 2023].

Fechter, J. (2021). What is Strategic Human Resource Management? - HR University. HR University. [online] 18 Dec. Available at: https://hr.university/shrm/strategic-human-resource-management/.



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6 Comments

  1. It is interesting to know that the future of HR will be characterized by increased automation and data-driven decision making, artificial intelligence and machine learning for streamlined and efficient HR processes. A critical role is played by HR professionals to promote diversity, equity, and inclusion in the workplace, creating inclusive cultures and addressing societal issues. Good article.

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  2. International Human Resource Management (IHRM) refers to the process of managing human resources in a multinational organization. IHRM faces several challenges, including cultural differences, language barriers, legal and regulatory issues, and differences in labor practices.
    To overcome these challenges, IHRM can develop several strategies. create a diverse and inclusive work ,environment, provide training and development opportunities for employees & also develop policies and procedures that are consistent across all locations those are the key to success in IHRM

    very good article. well done!

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  3. This article provides valuable insight into the evolution of human resource management (HRM) from personnel management to its current functions of planning, staffing, developing, motivating, managing change, maintaining relationships, evaluating and assessing. It also emphasizes the importance of HR policies and procedures to ensure that an organization upholds its values when dealing with its employees. Well done..!!

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  4. To navigate these challenges, organizations should develop a global HR strategy that takes into account the cultural, legal, and regulatory environments of each country they operate in. This may involve partnering with local HR experts, implementing technology solutions to streamline HR processes, and investing in employee training and development programs. Organizations can improve their HR operations and achieve success in a global marketplace by taking a proactive approach to global HR management. Well done.

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  5. Thank you all for your encouraging comments.

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  6. Good topic !
    Human resource management can easily become complex as more businesses attempt to hire globally. Since the start of the COVID-19 epidemic, a number of nations—including Italy, Australia, the United Kingdom, Canada, and Indonesia—have boosted the number of people they hire abroad. Effective human resource management is becoming more and more crucial as businesses attempt to hire workers from a worldwide talent pool.

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