A Home Assignment on
Submitted By: Umesh Singh (07BS4658)
Introduction With better means of Communication, Breakthrough technologies and dismantling of economic and social barriers, the world is becoming borderless and the countries are fast integrating into a truly global economy. Also, we can say with globalization, as the world changes, so does does the the work workpl plac ace. e. Mana Manage gers rs of the the 21st Cent Centur ury y oper operat ate e in envi enviro ronm nmen entt quit quite e unli unlike ke thos those e they they firs firstt ente entere red, d, and and must must generally update their skills to meet the challenges of a dynamic global market and a more diverse workforce. In this scenario the role of an HR manager has assumed much greater significance as he is expected to create conditions in an organization where the employees from diverse background, culture and nationality could work together with ease and flourish. In other words we can say that the Human Resource Manag Managem emen entt is unde underg rgoi oing ng a mass massiv ive e tran transf sfor orma mati tion on that that will will change career path in as yet uncertain ways. Employees are placing the greater emphasis on business acumen and are automating and outsourcing many administrative functions, which will force many HR professionals to demonstrate new skills and compete for new, sometimes unfamiliar roles.
Globalization and HR When it comes to business, the world is indeed becoming a smal smalle lerr plac place. e. More More and and more more comp compan anie ies s are are oper operat ating ing acro across ss geographic and cultural boundaries. While most have adapted to the glob global al real realit ity y in thei theirr oper operat atio ions ns,, many many are are lagg laggin ing g behi behind nd in developi developing ng the human human resource resource policies, policies, structures, structures, and services services that support globalization. The human resource function faces many challe challenge nges s during during the global globaliza izatio tion n proces process, s, includ including ing creati creating ng a global global mind-set mind-set within the HR group, creating creating practices practices that will be cons consis iste tent ntly ly appl applie ied d in diffe iffere rent nt loca locati tion ons/ s/of offi fice ces s whil while e also also mainta ntaining the various local cultures and practices, and commun communica icatin ting g a consis consisten tentt corpor corporate ate cultur culture e across across the entire entire organization. To meet these challenges, organizations need to consider the HR function not as just an administrative service but as a strategic business partner. Comp Compan anie ies s sh shoul ould d invo involv lve e the the huma human n reso resour urce ces s depa depart rtme ment nt in developing and implementing both business and people strategies. This type of partnership is necessary if an organization wants to change potentially inaccurate perceptions of HR and reiterate the HR func functi tion on’s ’s purp purpos ose e and and impo import rtan ance ce thro throug ugho hout ut its its glob global al envi enviro ronm nmen ent. t. Orga Organi niza zati tion ons s will will also also disco iscove verr that that HR can can be invaluable in facilitating the development of a unifying corporate culture and finding and cultivating much needed leadership talent around the world. The process of globalizing resources, both human and otherwise, is challenging for any company. Organizations should realize that their global HR function can help them utilize their existing human talent from across multiple geographic and cultura ural boundaries. International organizations need to assist and incorporate their HR
function to meet the challenges they face if they want to create a truly global workforce.
Impact of Globalization on HR In today’ today’s s econom economy, y, busine businesse sses s are forced forced to rapidl rapidly y expand expand beyond their immediate borders into the global marketplace with two very different goals:1.
2.
To manage extreme extreme growth by opening new markets, or; to manage extreme cost reductions by taking advantage of resources in low-cost regions of the world
Globaliza Globalization tion presents presents organizat organizations ions with a significa significant nt set of challenge challenges s – the localization localization of brands, brands, translation translation of material materials s and web sites, global program management, building and managing a network network of outsourcers, outsourcers, and more. more. In addition addition to these corporate corporate issues, the global trends we see in emerging technologies can be intimidating to organizations of any size. All these factors would give rise to many trends in the field of Human Resource (HR) which in turn have major impact and, lead to more challenges, and more opportunity to the HR Managers of the future. The following points are an attempt to list down the impact of Globalization on HR :1.
What trends in HR will emerge tomorrow: tomorrow: Changing technology, economic economic globaliz globalizatio ation n and the uncertai uncertainty nty of future future will give give rise to many trends. This would result in more challenges & even more opportunities to the HR of future.
2.
Merger Mergers s & Ac Acqui quisit sition ions s and HRM: HRM: Promot Promotion ions, s, ego-cl ego-clash ashes, es, civilizat civilization ion and work cultures cultures are some of the importan importantt aspects aspects
to look into during M & As. In the Ottawa Citizen Online Article “Manag “Managing ing Post-m Post-merg erger er consol consolida idatio tion”, n”, human human resour resource ce guru guru Jefferey Sonenfeld says says “Take at least as much time as you spend with your financial analysts and spend it with your employees. Peop People le care care abou aboutt wher where e they they work work.. Make Make them them a stra strate tegi gic c partner”.
3.
The emerging role of Benchmarking in Human resources: Benc Benchm hmar arki king ng is ofte often n defi define ned d as the the cont contin inuo uous us proc proces ess s of meas measur urin ing g prod produc ucts ts,, serv servic ices es and and prac practi tice ces s agai agains nstt HRM, HRM, benchmarking allows a HR manager show senior management the human resource contribution to the organization – to show that Human Resource is not only an expense partner- but that it actually adds value to the organization. Internal human resource benchmarking can aid in improving staff functions such as the hiring process or the exit interview process. Benchmarking can sho sh ow the Hum Human Resou esourrce manag anager er where ere to focus ocus thei theirr priorities and attention. It can stimulate an objective review of Human Resource processes, practices, and system and present a common target for improvement.
4.
“Brand”, the new challenge for HR: Ongoing research into the workplace of the future has confirmed increasing recognition of the impact of the internal brand on business performance. Brand is also also an oppo opport rtun unit ity y to ensu ensure re that that what what empl employ oyee ees s do is alig aligne ned d with with the the comm commer erci cial al goal goals s of the the orga organi niza zati tion on.. How How effe effec ctive ive are are empl employ oyee ees s in servi ervin ng clien ients if they hey do not not unde unders rsta tand nd and and demo demons nstr trat ate e ensu ensuri ring ng that that the the empl employ oyee ees s identify the key values of the organization. Solution to this lies in the hands of the HR department.
5.
Outsourc Outsourcing: ing: HRO is certainl certainly y the order of today. today. Outsourci Outsourcing ng Serv Servic ice e prov provid ider ers s prov provid ide e sp spec ecia iali liza zati tion on and and cutt cuttin ing g edge edge techno technolog logies ies,, which which would would be imposs impossibl ible e to develo develop p in-hou in-house, se, thus providing a whole new range of possibilities and
oppo opport rtun unit itie ies s to corp corpor orat atio ions ns.. It has has been been made made evid eviden entt by several research firms that HR Outsourcing is heading towards a positi positive ve direct direction ion showin showing g a treme tremend ndous ous growt growth. h. Some Some of the roles in HR outsourcing are payroll and benefits administration. HR Outsourcing is not only a business strategy that is applicable for for mult multin inat atiional onal fir firm bec because ause even ven small all and and mid size sized d companies would be able to benefit from this type outsourcing.
6.
Know Knowle ledg dge e Mana Manage geme ment nt:: In this this comp compet etit itiv ive e know knowle ledg dge e econ econo omy, my, an orga organi niza zati tion on’s ’s most ost val valuabl uable e ass sset ets s is the knowledge asset. It is often said that, in this economy it is not what organizations “own” but the “know” that would give the competitive advantage. Knowledge management strengthens the organization’s competitive advantage. It also deliver on strategic priorities and business goals like Growth, Innovation, Speed of response, Quality of response, faster time to market, Strengthen orga organi niza zati tion onal al lear learni ning ng,, Prot Protec ectt func functi tion onal al and and oper operat atio iona nall excellence in a disaggregated organizational organizational structure.
Conclusion From the above discussion we can conclude the following:1. Internatio International nal organizations organizations use consistent consistent HR practices practices to help deve develo lop p a comm common on corp corpor orat ate e cult cultur ure e and and to imp improve rove the the effectiveness of the HR function. 2. Domestic Domestic organizati organizations ons are creating consiste consistent nt HR practices practices to improve both the effectiveness and the efficiency of the HR function. 3. Organ rganiz izat atiions ons Creat reate e global obal polic olicie ies s/pr /proce ocess sses es for for data ata mana manage geme ment nt,, perf perfor orma manc nce e mana manage geme ment nt,, comp compen ensa sati tion on,, education, and development. development. 4. Selection practices vary greatly across locations in internation international al organizat organizations. ions. Selecti Selection on practices practices that vary the most include: •
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Assessments (role plays and simulations). Testing for selection selection purposes. Internet advertising (recruiting).
