Human Resource Management in the Global Environment - Coursework Example

Human resource management in the global environment Insert Name of the Student Insert Name of the Instructor Insert Name of the Course Insert Code of the Course Insert Submission Date Introduction Globalisation is the dynamic process brought about by technology and rapid and free information sharing across the globe. In an environment influenced by globalisation, human resource management is facing increased pressure to conform to the new changes. Adaptability of the organisation to technology, culture diversity management, and changing expectations of employees and customers is vital (Schuler, 2000, p. 241). This paper will identify and discuss the issues that a human resource manager would consider when relocating a manager from Australia to manage a local branch of an Australian organisation based in Tokyo. It will apply a conceptual framework for assessing human resource management systems in different cultures, evaluate current professional and academic literature about international and national approaches to human resource management, and explain the use of HRM concepts in international and domestic contexts. In addition, it will analyse the influence of international forces on human resource management as a discipline, and assess contemporary issues and future trends of HRM as an international activity. Conceptual framework for assessing human resource management systems in different cultural/national settings Barmeye 2008 in Marcoux &Ouedraogo (2012, p. 35) asserts that the distinct national settings and cultural values influence the conduct of business activities and serve as a basis for setting up human resource management systems for international companies. Human resource management has four dimensions: Staffing, training, managing employee, and pay systems. The effectiveness of the four dimensions is dependent on the cultural context within which they are applied. Such Cultural context is influenced by time, communication, power distance, individualism or collectivism, universalism or particularism, specific or diffused culture, and will or refusal to control nature (Marcoux & Ouedraogo 2012, p. 38). The figure below represents the conceptual framework used in assessing human resource management systems in different cultures. Fig. 1: Conceptual model Conceptual model (Marcoux & Ouedraogo 2012, p. 38) Time aspect is explained in terms of monochromic or polychromic. A monochromic culture is time conscious and plans its activities in small-interlinked small blocks of time unlike a polychromic culture that has places less emphasis on punctuality. In Japan, time is significant. Confirmation for business meetings should be one or two hours prior by telephone, lateness at least one hour prior, and arrival at least ten minutes before schedule (Japanese business etiquette). Communication is either rich or poor. Rich implies heavy use of symbols while poor implies more emphasis on vocabulary than symbols to express oneself. The Japanese use a lot of symbols and facial expressions and gestures are important than words. An individualistic society such as the US values personal effort and functional specialization whereas a collectivist culture such as Japan values teamwork and cross-functional rotation (Tung, 1993, p. 463). Power distance refers to the relative distribution of power amongst a culture’s members (Marcoux & Ouedraogo, 2012, p. 36). In a Japanese business meeting for example, the sitting arrangement is rank-based. The highest ranked individual sits at the head of the table with the rest around him in seniority rank from the head (Doing business in Japan). Universalism refers to the ease with which universal practices are applied in an organisation whereas particularism refers to the consideration of cultural influence in management practices (Marcoux & Ouedraogo, 2012, p. 37). Japan has a particulate culture with deeply entrenched cultural values. International human resource management systems have to integrate their business practices with that of the Japanese culture. Specific or diffused culture assesses the integration of personal life and professional life (Marcoux & Ouedraogo, 2012, p. 37). The Japanese have a habit of inviting the business associates to dinner after work hours. However, the dinner is usually at restaurants not homes and it may have nothing to do with the business especially during first encounters (Doing business in Japan). Will or refusal to control nature assesses the extent to which humans believe they can control their environment (Marcoux & Ouedraogo, 2012, p. 37). The Japanese are harmonious with their environment and will seldom try to change it. Current professional and academic literature about international and national approaches to human resource management (HRM) Current academic literature focuses on human resource management as a learning process for both the individual and the organisation unlike the traditional literature that defined human resource management as developing human capital at an individual level only. Professionally the domestic market faces more external influence than before due to globalisation. The dilemma is whether to develop own skills or buy from outside as expatriates (Zhu, 2004, 338). In Japan, the government is facing increased pressure from stakeholders to develop HRM courses that are relevant to specific job market requirements to absorb the increasing number of unemployed graduates. The Australian HR manager should therefore consider the Japanese government’s take on expatriate employment when its people need employment. Globalisation also presents the challenge of using current universal practices, domestic cultural practices, and integrating them with organisational goals operating in different countries. This challenge led to development of Strategic International Human Resource Management (SIHRM) (Schuler, Dowling, & Cieri, 1993, p. 421). This new style enables multi-nationals to strategise the inclusion of such practices as life-term employment common in Japan with deployment of expatriates (Dartey-Baah, 2013, p. 2013). The current trend for expatriates is towards short-term assignments as opposed to the traditional long-term assignments (Jayasekara & Takahashi, 2013, p. 281). However, this presents challenges of investing much capital on expatriate pre-training on the host’s culture, expatriate motivation, and satisfaction in short-term performance, and re-integration costs on expatriate return that is often expensive. Use of HRM concepts in international and domestic contexts Training and development in the international context mainly involves education on a foreign country’s cultural practices and values. In Japan, for example, traditional employment is based on lifetime employment focusing on base level employment to and career progression throughout the years. However, due to globalisation, organisations are now recruiting at mid level and employees are demanding pay on merit rather than seniority (Rowley, Benson, Warner, 2004, p. 922). Another concept of concern in the international context is recruitment of personnel. The recruitment of expatriates to foreign countries focuses on the ability of an individual to adapt to a foreign environment in terms of language and cultural differences. In addition, the level of skill is also important. Human resource training and development in the domestic context majorly involves learning and development of the organisational culture. It often involves on the job training. This training is usually based on the competitive needs of the organisation. Such training may include the use of technology to develop or maintain better customer-employee relations (Jacobs, 2010, p. 328). On the other hand, the recruitment of personnel on the domestic context places more emphasis on the level of skill than on cultural adaptability. The human resource manager should ensure that these two concepts are addressed before deployment. International influences on human resource management as a discipline Human resource management as a discipline is concerned with planning, directing, organising, and controlling the procurement, development, and maintenance of human resources in an organisation (Schuller, 2000, p. 240). However, it becomes more challenging to manage people within the global context. The challenge is to refocus the strategic focused human resource management to include industrial psychology and relations as one discipline. Globalisation also influenced the addition of International Human Resource Management (IHRM) to the HRM field. The IHRM increases pressure on countries to standardise their practices and policies to minimise differences across different nations and cultures. The adoption of such practices has enabled countries such as Australia and Japan to trade through the Ministry of International Trade and Industry (Rowley & Benson, 2002, p. 93). In addition, IHRM develops managers to do business in foreign countries, compensating people in foreign countries, staffing including expatriates, taxation regarding expatriates, training, and development in culture, language, and general relations (Chitakornkijsil, 2010, p. 380). The international forces have also influenced HRM to adopt technology adding into the HRM discipline called electronic human resource management (e-HRM). This is the use of technology in networking and supporting the above traditional concerns of human resource management (Strohmeier, 2007, p.25). To effectively manage organisations in multiple countries, Marler & Fischer (2013, p. 23) propose the integration of strategic management practices and e-HRM. This will not only cut on costs, but will also help manage human resource in real time. Contemporary issues and future trends of HRM as an international activity Currently, the challenge of international human resource management is to replicate human resource practices across a company’s various entities abroad. The uniform management of divergent cultures and internal organisation cultures is a big challenge to many (Morris et al., 2009, p. 974). As the cost of doing business becomes expensive, the scope of human resource management has diversified from employee based only to shareholder based. Manufacturing companies are currently partnering with consumer organisations in international markets as emphasis increases on total quality management and just-in-time manufacturing practices. The human resource department therefore has to manage relations between the company and the consumers to maintain profits (Schuler, 2000, p. 246). In addition, the integration of technology in human resource management is a contemporary issue that managers are grappling with. Technology is changing fast and to adapt to the new era, organisations are investing heavily on technology. However, some are not able to adapt at the speed of technological change and are thus incurring losses on the same (Devadas, Silong & Kraus, 2011, p.131).The future trend is to move from human resource management to human capital management as organisation’s change the view of employees as costs to employees as assets. However, the human resource managers will face challenges in keeping their personnel on the job as employees become less job-security oriented and geographical and occupational mobility becomes more mobile due to globalisation. The HRM activities will increasingly become technological based and about four to five specialists will direct the operations of entire multinationals (Paul, Oluseyi, & Christopher, 2011, p. 24). Conclusion The Australian human resource manager will have to look into the cultural influences of Japan on human resource management such as collectivism and particularism that differ with the Australian culture. Current professional and academic approaches focus on both human and organisational learning as well as strategic international human resource management (SIHRM). Human resource as a discipline has also been influenced by international forces to development of aspects such as e-HRM and IHRM. Some of the contemporary issues facing HRM are globalisation and technology adoption. Future trends will involve more technology use, fewer personnel, and more challenges in managing a geographical and occupational mobile employee. References Chitakornkijsil, P 2010, ‘The internationalization of human resource management in the host nation context & strategic approach of IHRM’, The International Journal of Organizational Innovation, vol. 19, no.2, pp. 379-400. 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Zhu, Y 2004, ‘Responding to the challenges of globalization: human resource development in Japan’, Journal of World Business, vol. 39, pp. 337-348. Read More