BUS1005 Globalization And Its Influence On Human Resource Practices Assessment 3 Answer
Human resource management is concerned with the management of the hiring, motivating and maintaining the workforce in the organization which includes the issues related to the employees such as hiring, training, compensation, motivation and administration as the success of the business or company depends upon the performance of the employees (Nankervis et al. 2019). The Human Resource department's responsibilities have gradually been broadened and become more strategic since the time people in business incorporated personal departments in their business or organization charts. Before, personnel in most organizations first undertake the practices of hiring and firing, administered benefit plans, and ran payroll departments (Kianto et al. 2017). Today, the globalization of the economy around the world, including several other trends, continues to trigger changes in the manner in which organizations organize, manage, and use their HR departments/personnel (Guest, 2017). About the changing environment of HR management (globalization, workforce diversity and changing work nature), functions of management are important to consider, in addition to the utilization of the management skills, motivated workforce regarding the HR management trends, and the manner in which diversity plays a critical role and the application of the HR management principles. This essay aims at highlighting one key change that is "globalization" and its influence on human resource practices. Also, it deals with the analysis of related ethical and legal frameworks.
One key change in the current workplace environment
Let’s take an example of globalization - As globalization leads to expand the workplace. It helps workplaces to access more resources which in turn help to increase their productivity as the company start trading outside the domestic country that has to face the cultural and technology differences.
Globalization is a major factor of the changing environment in HRM, increases competition across the world as firms or companies who competed locally are now forced to compete with multinational companies (Looise and Riemsdijket 2020). Globalization has triggered the emergence of the MNCs (multinational corporations), which according to Eaton 2017, are characterized by intensified competition, cultural diversities, business practices competition, among others. In some years to come, HRM will likely experience many challenges, which include formulating selection, compensation and training policies and majorly cultural competence among the employees. Thus, one management function – leading – and is characterized by skills to influence people. For instance, the success of a company to compete on a multinational level involves direction, communication, motivation, and cultural coordination of the people, while establishing a positive attitude within a company to work towards its goals and objectives to go global (Eaton 2017).
Globalization change has brought about massive changes in the manner in which thing operate or are operated in an organization and, thus, the importance of this function of management, especially in measuring the individual performance, finding deviations in how things were and are handled by comparing, correcting the anomalies brought about, for example, by technology (Burman and Fernandes 2017). Technological change – has altered occupational and employment pattern. Technology, for instance, has become the distinctive feature of the modern-day organizations due to globalization. This implies that the workforce is being replaced by technology (machinery); for example, manufacturing technology in most organizations has changed to the use of robots and automation. Similar changes, according to Buenechea et al. 2017, are occurring in office automation where work processing, personal computers, and MIS (management information system) continue to revolutionize the nature and how officers work is handled or operated. Additionally, the rapid growth of IT connected to the Internet has led to numerous changes across the organization.
Along with globalization brings the changing nature of work and results in the changing environment of HRM. The introduction of changes in technology led to the use of fax machines, personal computers, and information technology, which have forced the companies to recruit more part-time or temporary instead of the full-time workforce (Goyal 2020). For instance, one important change like the workforce has shifted from manual to knowledge/mental work. According to Lina 2018, the changing environment is evidenced by a knowledge-based business that is composed primarily of workforce specialist who determines their performances via organized and determined feedback from the colleagues, customers, and headquarters. Organizing – the second management function – has been critical of the changing nature of work. In this case, part of the changing nature of work understands how activities and resources within the organization are coordinated and assembled given the increase in the number of part-time workers (Conrad 2017). Accordingly, organizing is part of the management and is involved with the creation of intentional structure functions or roles for workers to fill in the organization without necessarily disregarding the changes in the nature of work.
Influence of this change on Human Resource Practices (HRM)
The change in the workplace has a significant impact on human resource development. Human resource practices must adapt their thinking which includes the cultural differences, foreign rules and technological changes between the nationalities. Multi-national corporations have to recognise and accept these cultural differences in managing employees through HR practices. To survive and succeed, every organization – from governmental to for-profit to non-profit – has to understand ways of navigating the inevitable change. Amar & Walsh (2016) put forth that 74% of all change initiatives taken are bound for failure, which means the management team suffers in terms of their careers and, thus, the need for proper management skills. Internally, the implication on most organizations includes low trust in leadership, dwindling morale, low expectations and low cultural security (Han and Beyerlein 2016).
For example - Mu Sigma Company which have headquartered in the foreign country and India have headquarters in Bangalore so culture, technology differs in the foreign country and India. So the employees are given adequate and proper training so that they are able to work on their software. Location, the product market differs in various nationalities which will affect the HR practices. It also helps to build a closer relationship with other countries. According to Ayega and Muathe 2018, cultural security is the major challenge for HRM for reducing multicultural differences and attaining discrimination-free environment.
The role of culture within an organization plays a major role in the implementation of strategic management. A strong foundation of culture helps to establish the longevity of an organization. An organization must facilitate an atmosphere of culture and constantly reinforce these practices. Culture directly impacts human resource management. It is a determinate of decisions concerning employees, regarding hiring decisions, training and compensation. Global organizations must make a full commitment to fully understanding how culture is vital. It influences the human resource department approaches the hiring and interviewing process, communication tactics, coaching techniques, and understanding the benefits of cultural diversity (Newhouse 2018).
A lack of understanding of cultural diversity can lead to discrimination even during the interviewing stage. Job candidates have different personalities based on their cultural backgrounds and personal beliefs. A candidate could perform poorly during the interview process and become overlooked for a position despite their work experience, educational background, test scores and any letters of recommendation (Obeidat et al. 2016). Hiring personnel need the guidance of human resources to minimize and changes of judgment regarding a candidate's cultural background or beliefs. To facilitate impartiality and preconceived assumptions hiring personnel should be knowledgeable of cultural norms, provide empathy and consideration when utilizing recruiting and assessment tools. Every candidate has the right to be interviewed without a predetermined stereotype. In various ways, cultural diversity can influence the workplace. Negative consequences can include miscommunication, barrier formation, and habits of dysfunctional adapting. Positive consequences can involve the creation of a strong knowledge base of in-house expertise that can render the company more seamlessly incorporated with international cultures. (Sarayrah et al. 2016).
Employee development and training tactics are also summarized by the culture of an organization. However, culture varies among companies. Some companies view organizational culture as the responsibility of employees. For example, some employees are responsible for funding their training, equipment, and other expenses. Companies such as these view employees' success as their issue. If an employee does not take the extra initiatives to better themselves then they will remain stagnant within the company (Syed and Kramar 2017). An organizational culture that is the opposite as the one previously mentioned, frequently coaches employees on how to be better and provide opportunities for advancement at the cost of the company. In such cases, the difference between these two cultures will be obvious. Organizational culture determines the occurrences in which employees are educated and trained (Syed and Kramar 2017).
Culture varies not only within companies but from location to location. For companies that participate in markets globally, there are local cultures that impact the way employees view each other and management. In some cultures, for instance, that is no social rules that prohibit discrimination against people based on their differences (Garcíaet al. 2018). Even with rules and laws that oppose discrimination, they are not strictly enforced as they are within many countries. These practices allow people and companies to act in ways that are socially normal for the area they are located in.
Organizational culture impacts how individuals view others within the workplace. An example, in many Middle Eastern countries women still do not have the same equal rights as their male counterparts. Many global companies have policies that outline what is considered discrimination. Companies, however, have to determine whether someone can properly represent them globally and if this person will be effective within the local culture of that company or persons. Larger corporations undoubtedly have the power to make decisions regarding management and employee practices regardless of the local practices (Cooke and Kim 2017). Most people seek to deal with these larger corporations and respect their practices. Not the same can be said for lesser-known and smaller companies that will need to carefully select which employees can represent them. They rely heavily on their corporations’ representatives to build a name for them.
The relevant ethical and/or legal (regulatory) frameworks
Change in the workplace affects the ethical/legal framework -As the globalization give rise to new ethical challenges for multi-national corporations as companies diversify their operations across the national boundaries which also lead to diverse changes in the ethical and legal frameworks. Moral dilemmas arise in labour standards, human rights, marketing practices, corruption, etc. For example - It increased the global competition which results in depletion of the environment and natural resources with the aim of gaining market share, exploitation of workers. As some company do not want to share their data but due to globalization their data is insecure (Michael 2019).
As per the legal framework in Australia, There are federal regulations on human rights and discrimination, which operate with various state and territorial legislation that control how corporations are to handle workers (RMIT 2020). These regulations protect people against adverse abuse and assault based on cultural differences. But in many countries, it has been observed that due to globalization and need for English communication HRM opts for employees who have good communication skills and neglect native languages. Also, many employees have been fired from their jobs as they could not communicate with global employees due to lack of communication and cultural awareness (Cooke and Kim 2017). This is the legal requirement for the companies but is against human rights as no-one should be fired based on their native language and lack of English speaking skills (Cooke and Kim 2017).
In preserving and promoting employee well-being, ethical frameworks can be applied by better setting a paradigm where an employee can bring up his thoughts without fear of retribution from colleagues or his superiors without facing any cultural discrimination in the global economy (Reyes, 2019). A model should be developed that offers a person with the opportunity to meet the directors or supervisors directly, and a consistent system should be developed. Formulated when an employee would understand that his job is at risk with no warning or sufficient explanation due to the reasons listed other than explicitly sacking him (Michael 2019). The legislative or regulatory system may also lead to maintaining the well-being of an employee within the company by formulating functional rules that recognise the employee's cultural point of view by changing the existing legislation. Organizations will control their temporary worker's regulations, leaving them unaware of job protection since they are still subject to the legislation. Owing to all of the unexplained causes, the danger of losing the job.
Change in the workplace affects human rights and ethical/legal frameworks. As cultural differences, technology changes take place which can be handle by appropriate strategy and proper training to face the changes and manage their performance. Better performance and productivity are the key factors for the success of the company. For overcoming the cultural differences and associated problems HRM should focus on training employees and making them culturally competent.