Global HRM subject for MBA students, study cocnept

Challenges and opportunities:

            The ability of a country to adjust with the pressure at globalization led by new economy.

●        Globalization is a result of advancement in information system

●        The HR should be involved in all management decisions at all time

Influence of HR practices on an organization:

                                                            HR practices

                                                            Business

                                                            Challenges

                                                            Information

                                                            System

                                                            Business

                                                            Solutions

Leading practices for managing HR:

Recruitment:  The recruitment of skilled employees should be done proactively and on timely basis.

a global organization needs to recruit the required kind of people from different parts of the world to build an international culture.

Pay structure: The pay structure should be at par with other industries. Other perks like health, schooling, vacations etc also need to be taken care of.

Maintaining work-life balance:

            Employees working in almost all leading organizations face the problem of balancing the time spread work & home.

a balance between work & family life will give opportunity to reduce to a great extent.

Appraisal practices:

            Performance appraisal should be done on timely basis.

●        Proper feedback needs to be given during each process cycle.

●        Required training may be recommended which may be technical/soft skilled in the next appraisal cycle.

●        Feedback plays an important role

●        This will help the appraisal to do any job rotation if required.

Good management practice:

●        There should be proper understanding between the employee and employer

●        Putting proper & independent responsibility which gives more satisfaction

●        People of skilled class do not leave organizations because of less pay/perks

Structuring organization:

            Globalization will require that the people are there for 24 hours & 7 days a week.

There should be a concept of working from home and also sometimes flexibility is provided

Education: organizations need to keep their employees update with the latest advancements in education in a globally acceptable fashion

Concept of E-learning in merits important.

Managing people & leveraging human resources for competitive advantage:

Globalization requires that organizations increase their ability, to learn & collaborate & to manage diversity. Complexity & ambiguity because they will no longer exist in a protected national market, rather they will be required to face the vagaries of a global market

●      Globalization & workplace changes

●      The charging role of managers

●      HR in the changing scenario

●      Leveraging HR for competitiveness

●      The new role of HR

Globalization & workplace changes:

Globalization will bring change & non-stop change. Constant change should be created by the organization.

●      Healthy discomfort with status quo

●      Ability to detect emerging trends quicker than competitors

●      Ability to make rapid decisions

●      Ability to seek new way of doing business

●      Quickly turn strategy into action

●      Maximize employee’s contribution & commitment

●      Create conditions for constant change

●      The global market decides the cost of talent

●      Talent & not capital is a scare resource

●      Mobility of talent has increased

Knowledge has become a direct competitive advantage

The changing role of managers:

Tomorrows managers have to create the role & structure that will ensure their people are always looking around for new opportunities. These roles will include.

Converters: people responsible for finding new niches & customers.

Expeditors: by pass red tape & bureaucratic regulations

Browsers: employees who can scan related industries, technologies & professions for ideas their organization can use

Talent scouts: those who look for people with potential to become masters.

HR in the changing scenario:

In changing scenario the HR professional has to begin his day by asking the following questions to himself

●      Is the HR profession contributing enough to justify its existence or it s a burden

●      Is the HR professional contributing to the profit making abilities of the organization?

●      Are the specifications for recruitment being modified from time to suit the changing talent market? Are we getting the best people ?

●      Do employees & executives at all levels including the trade unions talk in terms of ‘we’ & ‘us’ rather than ‘you’ & ‘I’ while talking about the company

●      What is their level of satisfaction?

Leveraging HR for competitiveness:

●      The fundamental basics of competition have begun to change the scare resource & the primary source of competitive advantage are no longer physical or financial capital but human capital

●      A comprehensive HR strategies rooted firmly on a core set of shared beliefs & values & property aligned with the corporate strategy can only help an organization leverage its true competitive advantage

●      The role of HR lies in being enable to help the organization to meet these challenges

The new role of HR:

Becoming a strategic partner:

New HR role as strategic partner lies in aligning HR strategies with all over business strategies that would ensure that each of HR’s activities.

Become an administrative expert: as an administrative expert facilitates by improving the efficiency of both their own functions and the entire organization.

Become an employee champion: it trains the management about imparting high employee morale & how to achieve it employees must know HR is their voice.

Become a change agent:

As a change agent HR makes sure that change initiatives that are focused on creating high performing teams, reducing cycle time.

Cross culture skills

Culture: A populations taken for granted assumptions values beliefs & symbols that foster patterned behavior

Cross culture management:

The important global pressures impacting HR practices in MNC’s have grown in number variety & complexity in recent times.

●      The changes in information technology dismantling of tariffs, differential labor laws, cultural & language barriers, bargaining practices etc.

●      Getting the right people with request skills, motivating them to accept the challenges in a foreign local & extending family support through cultural orientation.

●      Sense of self & space

●      Language

●      Dress & appearance

●      Food, eating habits & perceptual problems

●      Time & time consciousnessHR

●      Relationships

●      Value & norms

●      Beliefs & attitudes

●      Mental processes & learning

●      Work habits & practices

Globalization & HR issues & concerns:

●      Post liberalization India has passed through radical change so for as business & organizational process are concerned

●      Organizational re-structuring, diversification merges & acquisitions, right sizing, outsourcing etc are the current buzz words in the business world.

●      Another challenge that HR manager face is handling issue related to international workforce.

Emerging changes:

New industries at green field sites with new technology:

Large industrial houses which are looking for investment in new projects are eyeing at backward and economical UN developed locations to set up their manufacturing sit.

In addition these units are supposed to be hi-tech & capital intensive units requiring a different skill mix among the workforce that are not locally available and need to be hired from diverse sources.

Change in production technology:

Every industry is undertaking exercises to upgrade its technology to meet the growing demand to increased production and productivity for facing the though competition in the open & liberalized market.

Excess capacities & competition:

The order of the day has been large-scale production & a giant size organization. The economies of scales, as profit managers are becoming thinner & thinner day-by-day

Mergers & acquisitions:

To strengthen & reinforce their core competency areas they are going for mergers & acquisitions. Small units are being merged to get financial strength. Instead of going for new projects, organizations are acquiring existing units.

Privatization of PSUs:

Government is going for disinvestment of public sector undertaking there by allowing private participation in public sector companies

Information technology advances:

IT industries have become an important sector in the entire economy for high potentiality of employment. The dynamics prevailing in IT sector are vastly influencing the HR practices in other organizations.

Small office-home office:

Particularly in the service sector are re-organizing their workplaces allowing a lot of flexibility, small office – home office are increasing with the workforce

Knowledge workers:

The profile of the workforce is also changing very fast increase the skills. Knowledge and highly literate workforce are recruited.

Out sourcing :

Most of the organizations are out sourcing their non-core activities and concentrating on their core business operations. Activities like security, transport, sanitation, maintenance and event a  part of the HR job like payroll, training etc are largely outsourced rather than being managed by regular workforce.