Posts Tagged ‘Managers’
Challenges faced by Human Resource Managers in the Era of Gloablization
Challenges faced by Human Resource Managers in the Era of Gloablization
“The real wealth of a nation is its people. And the purpose of development is to create an enabling environment for people to enjoy long, healthy and creative lives. This simple but powerful truth is too often forgotten in the pursuit of material and financial wealth.”
INTRODUCTION
Globalization of Indian economy is compelling organization to rethink their future strategies. It is now widely recognized that transformation is a pre-requisite to their survival and growth. Business organization in India especially public enterprises are experiencing winds of change. For the HR function, there would not be a more existing and challenging opportunity than managing the complexities of change and transformation. HR today is playing a lead role along with business functions in creating the necessary momentum and internal capabilities.
Now first let us understand what we mean by globalization.
WHAT IS GLOBALIZATION?
Every day we hear it on news, we read it in the newspapers, we overhear people talking about it… and in every single moment the word ‘globalization’ seems to have a different meaning. So what is globalization?
“…integration of business activities across geographical and organizational boundaries.”
“The capacity to treat the world as one market while…dealing with many culturally diverse merchants.”
“…the process by which markets expands to include competitors for customers and productive inputs without regard to national boundaries”.
“…doing business with a world wide focus… rather than doing business in an international market with the focus from a home-country viewpoint.”
Globalization is not just a recent phenomenon. Some analysts have argued that the world economy was just a globalized 100 years ago as it is today. Yet the term is used since the 1980’s, reflecting technological advances that have made it easier and quicker to complete international transactions, both trade and financial flows. The most striking aspect of this has been the integration of financial markets made possible by modern electronic communication.
At a political and economic level, globalization is the process of denationalization of markets, politics and legal systems i.e. the use of the so-called global economy. Globalization refers to an extension beyond national borders of the same market forces that have operated for centuries at all levels of human economic activity (village markets, urban industries, or financial centers). It means that world trade and financial markets are becoming more integrated.
At a business level, we talk of globalization when organization decides to take part in the emerging global economy and establish themselves in foreign markets. First they will adapt their products or services to the customer’s linguistic and cultural requirements. Then, they might take advantage of the internet revolution and establish a virtual presence on the international market place with a multilingual corporate website or even as an e-business.
Overall, globalization requires a combination of linguistic, engineering and marketing knowledge that is not easily available. (Sparrow, Paul, R, 2006)
Globalization is linked to four major aspects:
Trade Capital movements Movement of people Spread of knowledge
DRIVERS OF GLOBALIZATION
Driving factors of globalization can be divided into four groups:
MARKET DRIVERS
Convergence of per capita income Convergence of life styles Organizations behavior as global customers
COST DRIVERS
Push for economics of scale Advances in transportation Emergence of newly industrialized countries with productive capability and low labor costs
COMPETITIVE DRIVERS
Growth of global networks making countries interdependent Rise of new competitors intent on becoming global competitors Increased formation of global strategies alliances
GOVERNMENT DRIVERS
Reduction on tariffs and other trade barriers Privatization of industry in many parts of the world Creation of trading blocks (i.e. EU)
Globalization has elevated the importance of HRM development in organization. These changes have led to the notion of the HR system as a strategic asset. Many of the arguments about processes of globalization within the HR function rest on the assumption that there has and continues to be longitudinal change in the conduct of HR. in the intervening seven years a wide range of contextual changes have led to significant globalization of activity, including: the transfer of work abroad, either to outsourced providers or on a global in-sourcing basis; the e-enablement of many HR process; greater sophistication in the HR information technology, new structures for international HR functions; greater competition for talented staff at all levels of organization; more protracted and strategic talent pipelines. In particular, there has been a very strong marketing, corporate communication and IT influence on the HR function. The HR function is realigning itself in response to this process of cross-function globalization (building new alliances with these functions) creating new activity streams and new roles and skills required of the HR function (Sparrow, Brewster and Harris, 2004).
HUMAN RESOURCE MANAGERS: THEIR ROLE IN A CHANGING ENVIRONMENT
Issues facing HR are expected to change dramatically in the next decades. Thus, HR professionals must play special roles in dealing with these changes and must develop specific competencies to support these roles.
Workplace flexibility is expected to be on the rise as the future workplace, the ‘virtual office’ is characterized by creative and flexible work arrangements. As more employees work off-site-up to two thirds of an organization in the 21st century – there will be an increase in emphasis on performance and results as opposed to the number of hours worked. In addition, off-site employees can expect to attend fewer meetings. Specified work will become much more collaborative and management will spend nearly all its time managing cross-functional work teams who enjoy a lot of autonomy. In essence, there will be a movement, a trend towards a decentralized model of HR.
HR managers will have to accommodate employees in their virtual work locations and find ways to manage corporate culture, socialization and employee orientation. In order to obtain and maintain a competent workforce, they must act as organizational performance experts and shape employees behavior without face to face meetings.
Another expected change in HR is the ‘Global Business’ concept world trade knew a major growth during the last years and there is forecasted as well the growth of international businesses, especially among small firms. Organization rely more and more organization HR specialists as the facilitators of work across borders and among different cultures. Therefore, they must be knowledgeable of other cultures, languages and business practices. They will be required to develop and manage an international workforce, maintain written and unwritten corporate polices for transportability to other cultures, keep top management informed of the costs of not paying attention to the transnational issues and provide their services to a variety of locations world wide.
Concerning the recruitment in the above mentioned ‘global business’ it will be important which strategy will be adopted by the management.
Globalization will impact HR managers by requiring new skills such as language capabilities. For e.g., in order to recruit employees from other cultures, HR managers will either have to learn new languages or else they will certainly have to have foreign speakers on staff. But in order to facilitate communication among people coming from a wide range of language backgrounds, in most multinationals, it is preferred to speak English.
However, when we talk about Globalization and culture, then how does this relation influence businesses and HR professionals’ attitudes?
Organization must take into account cultural differences that shape managerial attitudes, when developing multinational management programs. For e.g., British managers value individual achievement and autonomy, whereas French managers appreciate competent supervision, fringe benefits, security and comfortable conditions, while Indian managers gives more importance of their culture and tradition.
HR managers must therefore be familiar with and understand other cultural norms to promote organization diversity. An organization that recognizes and promotes cultural diversity will benefit because it will be employing the market that it serves. With increasing globalization and competition within the market, a diverse workforce is conducive to attracting and retaining a strong client base. While competing in an international market, employees from diverse national backgrounds provide language skills and understanding of other cultures. HR professionals will also be responsible for providing cultural sensitivity training for the organizations employees and for managers throughout the entire organization. (Czebter, Anamaria, 2002)
DILEMMAS FACED BY AN HR HEAD
Unlike the other industries where HR is considered as a functional need, there is a need to view HR as a partner or a business enabler. One of the constant challenges faced in this area is to align HR to business. The five R’s therefore, assume utmost significance in HR strategy. The HR team needs to get in right from the stage of defining the business strategy to Resourcing, Recruiting the right talent, Retaining the talent, Retraining and Restructuring.
However, if we see the scenario of HR in IT company, we find that flexibility appears to be the key for success and survival as IT has become such a dynamic field due to the constant developments and upgradation in the area of technology and changing customer requirements. Topping all these reasons is also the trend of globalization, which tries the HR test of endurance. The ability and the willingness to modify job structure, job classification and the organizational structure as often and as quickly as necessary are important elements in a successful recruitment and retention strategy for IT professionals. This challenges of managing expectations and change puts constant pressure on the professionals.
The challenge does not stop with recruiting the right person but with how we are going to manage the performance of our employees. The challenge would be to create a performance culture where in opportunities are provided for enhanced performance and where giving out optimum performance becomes a way of life.
Training and development is another area. In the IT industry training takes on a new connotation. It is not just about identifying training needs and giving the required training. It is foreseeing and anticipating the requirements and developing suitable training so that the employees are well-equipped to handle the challenges.
Another major challenge is how we are able to incorporate all the sub-systems in HR and help them in achieving the ultimate goal – exceptional performance. People have to be groomed to get in tune with the performance culture. Creating an environment that stimulates the creation of knowledge and its sustenance throughout the organization is big challenge. No longer can the HR department carry on with its traditional functions. However, Human Resource Information Systems (HRIS) is to be put in place – to build and sustain a performance – driven culture. The role will shift to that of facilitator. HR will have to involve the whole organization in this process and act as a counselor and facilitator and that is the most gigantic challenge the HR of any organization faces.
In the face of such challenges faced by HR managers, a question arises as to what competencies an HR manager needs to equip them in order to survive in the turbulent phase of globalization.
COMPETENCIES FOR A HR MANAGER
In order to effectively deal with all the changes, HR professionals must develop competencies that will allow them to carry out their roles, competences like:
Flexibility Team work Communication Decisiveness Leadership Strategic planning Network building Client service orientation Organizational awareness Self confidence Sharing of expertise Global and cultural understanding Multiple language competencies
In addition to increasing and sustaining technological skills relating to communication developments, HR professionals will may also be required to increase their numerical and data compilations skills. As increasing demands merge to provide specific measurable results that prove effectiveness in their area, HR professionals will be required that produce quantifiable results that prove that their department is delivering specified outcomes based on the objectives and goals set forth by the organization.
In addition to delivering specific measurable developments, managers will also need to know what contributed to the results declared. This may mean that HR professionals will be required to be familiar with and administer employee survey and provide for accurate data compilation and regression analysis.
As a result of the increase in technology, innovation and globalization over the last 20 years, HR professionals around the world are forced to be more efficient, more effective and more competitive. They need to respond to the demands of global competitiveness by becoming more familiar with language skills, cultural awareness and diversity promotion. Additionally, HR professionals must be committed to continuous learning, being familiar with cutting edge communication. If HR managers won’t pay enough attention to their changing role, serous consequences could result, including the deterioration or even perhaps the elimination of the HR department. (Halcrow A, 1998)
TO SUM UP
However, the research has shown that the HR function in international organization has to meet a series of challenges. Three key conclusions about the role of HR professionals working in the field of international recruitment selection and assessment can be drawn:
The added value of the HR function in an international firm lies in its ability to manage the delicate, balance between globally coordinated systems and sensitivity to local needs, including cultural differences, in a way that align with both business needs and senior management philosophy. There now appear to be a distinction to be made between international HRM and global HRM. In this transition, the old functional divides between international recruitment, international management development and international reward management have become increasingly weak.
Over the last 20 years, the workplace has changed in more ways that one could have ever imagined, resulting from the increase in technology, innovation and globalization. The next decade will bring even greater change, impacting all facets of the workplace, including major changes for the HR department and HR managers. In order to respond to the demands of globalization, HR managers will require new skills and competencies relating to language and culture, technology capabilities to facilitate overseas communication, methods to measure and quantify effectiveness and evaluate strategies and return on investment. Evidently, these new skills and competencies will result in an emerging new role for HR managers, requiring them to be strategic business partner, supportive of the overall corporate strategy.
The future role of HR professional will change from a less administrative role to more of a strategic role. HR managers will continually be required to prove their effectiveness and their existence. They will be expected to understand international business practices and promote cultural diversity within the organization. They will need to understand the core business of the organization and become partners with line managers. They will need to prove that their initiatives and programs are result-oriented, providing specific measurable results in terms of business competitiveness that contribute positively to the bottom-line of the organization. They will be required to stay current with leading edge as more and more organization is faced with the demands of globalization and strategic alliances with other organization around the world.
REFERENCE
Czebter, Anamaria, (2002), ‘Labor market and Gloablization: Human Resources management in global enterprises, Centre International de Formation Europeenne, Nice. Halcrow A, (1998), ‘Survey shows HR in Transition workforce’. Sparrow, Paul, R., (2006) ‘Globalization of HR at function level: Exploring the issues through International Recruitment, Selection and Assessment Process, working papers, Cornell University. Sparrow, Paul, R., Brewster, C., and Harris, H. (2004), ‘Globalizing Human Resource Management’, London, Routledge.
Article from articlesbase.com
How can I find a project manager’s job without prior experience but a MS degree in Engineering Management?
I have 1 year experience as Project Leader and a MS degree in Engineering Management from a decent University. How can I find a project manager’s job? All the PM’s requirements ask for 5 years experience.
“How Human Resource management concepts and techniques can be of use to all managers.”?
Conduct a discussion on the discussion board on the topic of, “How Human Resource management concepts and techniques can be of use to all managers.” This is done via posting engaging in dialogue with each other.
Next, review and analyze the discussion board postings. Post your own summary of key concepts discussed (one paragraph) and a second paragraph on five specific ways in which you feel these concepts are useful. Remember to include ways in which implementation and usage could have important consequences for an organization.
What are some advantages and disadvantages of marketing managers?
I am doing a paper and I need to know what are some advantages and disadvantages of being a marketing manager? I am having a hard time finding the answer to this with examples.
I would appreciate any and all sources so I can look up the info.
Comments from actual marketing managers would help as they would know the advantages and disadvantages of their job.
daynee your comment is irrelevant and is shows you obviously have not extended your education.
Does anyone know how much account marketing managers start off at? Is it good money?
I have an interview for an account marketing manager position tommorow, and was wondering how much they would start me off at? Is this a good job? They told me they would start me off at entry level. What does that mean?
How to find a good property management company in Houston? What services do property managers offer?
I bought a house ( closure is in process) I need to rent it out and I am looking for a good property management company in Houston.
What do these guys do ? Where do I find them?
I am working overseas and I cannot personally visit the property every other month. What should I do?
What are Common in Sports Umpires and Business Managers?
“Respect is important in sports and in business. You can not be successful without respect for the customer or the competitors. Respecting the rules means respect the referee”. Perluigi Collina, Retired International soccer referee, a respected figure among soccer referees in the world.
Collina says, both sports and business are similar when it comes the decision making, a wrong decision can be fatal for both business and soccer. If your decision is getting wrong-footed, you may be ended up in hot water, however if you take the decision under good judgment and the decision should be for the benefit of the business and for the sports, however the wrong decisions may lead to on field battle by the players and spectators and in business doubts created about the credibility of the manager. He says, there are things that could be very similar between his activity and the business world, as for a manger, he has to take decisions very quickly under pressure. Important decisions will have big consequences, if it goes wrong. Another key is that decisions are all about building relationships with players on the pitch and employees in the organizations. Sometimes, the decision the referee takes is accepted not only because it is correct but because the relationships are positive.
The final goal for the referee and for a manger that they are to be accepted even when they are wrong. It means that the players trust the referee, as if someone trusts the business manger even if he is wrong. The referee is accepted not because of the role but because of what he does on the field. This is similar the case of a manager. The manager can not be accepted because he is a CEO, but the manager is accepted because he has shown everybody that his way to run a company is correct.
Business leaders need to have an insight into coping under pressure could do worse that to follow the referees, who do not betray some nerves prior to the game probably should not be there. Like referees the manager needs to be little nervous just before taking a big decision. If a manager feels powerful more strong, but there is a limit. If he takes it too far, nerves reduce his performance. Everything which happens on a pitch that also happens round the table. Both the manager and referee face challenges and have to have criticisms, when something happens, the like the manager, referee has also to change the things what can be changed and look to the future and this what the referees and manager do.
The vital and important key of a soccer referee is the instant and immediate decision making ability, that too in split seconds, there is some relief to the cricket umpires that in cricket matches, the umpire can refer to third umpire for decisions and let them decide, however in soccer no such assistance can be taken from the replays or third umpire, he has to take the decision instantly and immediately and we can see from the replays that 99% of the decisions were correct, in fact referees are not playing spoiling sport, he actually manage a business of 2.00 hours, he can not be partial, even if the spectators think so. They have nothing to do if a team win or loss, they are just managers of a soccer match and once the match is over, they go another assignment. In most of the decisions, though players and their coaches could still be argued the decision is wrong. It becomes more crucial for referee that when taking decisions in a match, which is being watched by millions of spectators around the globe.
If the referee wants to do his best i.e. to referee in big matches, from Arsenal vs Man United to world cup matches, even though it’s still just a game of football and nothing else. Making good decisions is essential even either in EPL matches or in the small matches. There’s been an explosion of exposure lately – every single incident gets noticed and analyzed. Like soccer, the managers are also watched by the directors and stake holders, then the decision should be correct to the great extent. If the referee, they had a couple of cameras at a game 10 years; nowadays for a live match there are numerous cameras, capturing every decision the referee is going to take. If a referee makes a mistake, millions of people are there to blame him, he should be affected only by his desire to do a good job, not adverse publicity. This is similar to the business managers, as these days the media closely watches all the decisions they take.
Both in the business and in sports, the respect is very important; giving and taking the respect, nobody can be successful without giving respect and getting respected for the customers, or the competitors and once you get the respect and trust of players and employees, you are successful and your decisions are respected by everybody. People may not instantly put a name to the face, but once they realize that this is the man who is credited with being the most outstanding referee/businessman, the penny drops. There is some dissimilarity too, in football it is mandatory to retire referee at the age of 45, irrespective of they mental and physical strength, but in business there is no such restrictions, he can perform till his health allows him to do. The qualities required for a good referee and good businessman are the same; they have to have;
To stick eyes on the “ball”
Both should focus on what is going on in the pitch in case soccer and organization or market and without watching following the ball (focus) no manager can take any decision for the benefit of the organization and this is also applicable for referees, once their eyes distract from the ball, wrongful decisions can be made, it may be fatal. It may attract the ire of the spectators and can lead to loss the job. Both should stick on the focus for taking a decision for the interest of the business and the game being played amidst pressure for both sides.
Coping under pressure: Soccer officials are routinely subjected to a wide range of potential stressors, like the businessmen, as both reveal a considerable mental and physical toll. Soccer referees identify spectators, players, coaches, trainers and other personnel as sources of aggression. Unlike the businessman, at the extreme, referees and their assistants have been pushed, punched, kicked, and even shot to death by players, managers, coaches and fans. Referees and their regulating bodies are well aware of these sources of threat, and some attempts have been made to provide psychological training to help them cope.
In addition, match-specific demands are extreme. The referee must have a thorough knowledge of the current laws of soccer and implement them while keeping constant vigilance over complex activities and interactions, whereas a manager should know the market trends, customer trend . Considerable amounts of time must also be spent on pre-match preparation, travel, and post-match reports.
A few studies have examined referee responses to stress, but little was found about the mechanisms which motivate officials to continue their involvement despite the variety of potential physical, social and cognitive factors which are regularly encountered. The present study was designed to allow referees to convey their perceptions, particularly with regard to their methods for coping with demands and abuse and their reasons for remaining referees.
To deal the negativity : Social psychologists have identified a number of cognitive strategies that help people explain and deal with negative experiences. Blaming others for failure while taking personal credit for success, distorting or ignoring unpleasant information, and interpreting one’s motives as principled and righteous, are among the variety of available methods of maintaining confidence in difficult circumstances. Misrepresenting reality with ‘positive illusions’ (Taylor & Brown, 1988, 1994) can ultimately be healthy and adaptive. Indeed, they serve a vital function of removing perceptions of self-blame, protecting from external censure, and providing palatable explanations for disturbing events. In the longer term, they may lead to more positive expectations about the future, greater persistence and self-efficacy. Taylor and Brown (1988) suggest that people who fail to use these strategies are more likely to be anxious or depressed.
To expect the unexpected: Sports performers and coaches often make use of self-serving attributions to explain their own disappointing results. External factors such as bad luck or other people’s incompetence are used to deal with unpleasant experiences, defeats, and rejection, while internal factors such as skill and effort are seen as responsible for victories and other successes. Some analysis showed that players and coaches were more likely to attribute their successes to internal factors, such as skill and determination and their losses to external factors, such as cheating opponents and poor weather. These factors are closely associated with the business managers in various situations.
To decide on personal strengths : Another potentially useful mechanism is ‘illusory superiority’ or self- elevation, where people adopt the view that they have more positive qualities than others and describe their personal strengths as above average compared with those of other people their age. Individuals made more flattering judgments about themselves than others made of them. Individuals also believe their personal relationships are of a higher quality than the relationships of others and remember experiences as more successful than they really were. These factors are also existing in the managers
The managers and the umpires are the connecting link between players and spectators, likewise a manager, who is a connecting link between the employees and the board of directors, stakeholders, the job of a referee and a manager are same in most of the scenarios, though there are indeed some deviations. The keys for success for both are almost all the same – and the most important is the INSTANT DECISION MAKING POWER. Therefore, one wishes to analyze the similarities and qualities of a manager and referee, similar factors impact their performance off and on the pitch/office are vitally required for success, to get respected and to get the reputation of a good referee or a good manager.
