Human Resource Management Policies and Globalization in Australia - Case Study Example

HRM Policies and Globalization in Australia (Name) (University) HRM Policies Globalization in Australia Introduction The increasing connections and reliance of the world’s social and economic structures has made it critical to evaluate human interaction within these respective structures in order to respond to the changes and trends. In the recent past, the growth of new markets such as Russia and China and increased globalization has created the need for studies in international human resource management (Cullen, 2013). The main objective repeatedly falls under the need to comparatively comprehend human resource management in regional, national and international organizations. It is evident that effective human resource management results to tremendous organizational performance. The need therefore to continuously improve on the management of human resources is largely influenced by globalization (Cullen, 2013). In retro respect, this paper seeks to discuss human resource policies and practices and globalization then effectively relate to its impact on Australia as country. The following section thus discusses the globalization and its impact on human resource management. Human resource management and globalization With the world becoming a smaller place because of globalization, human resource management has had to respond adequately to conform to the global trends. Globalization involves the integration of companies’ operations, processes and services into different and diverse cultures, products, services and ideas (Baylis, 2013). Due to the emphasis of globalization on diversity, the impact is felt within organizations especially in the management of their employees. The comprehension of the effects of globalization on human resources is vital in aiding managers to act better in handling their organizations in the dynamic global business environment. The effect of globalization is such that different companies currently interact with clients and customers from diverse backgrounds, languages and cultures. The need to satisfy these customers and equally maintain their loyalty has led managers to recruit diversely as they recognize the importance of having staff member to whom their customers can relate to in a better way and additionally increase the intellectual input to the organization on their customers (Baylis, 2013). The increase in the need for professional development among organizational employees has resulted to institutions providing their employees with opportunities to advance and achieve their various career objectives (Robbins et al, 2013). The wide array of skills and competence that these employees acquire benefits the organizations enormously, given the nature of education that is equally dynamic and evolved in recent times. Globalization has additionally created a greater emphasis on the need to train employees on professionalism and other skills needed to provide better services to their clientele (Peng, 2013). Basing on the diversity of employees, organizations with staff from different backgrounds and cultures stand to better profit from training their employees based on firsthand knowledge from their colleagues. Another imperative effect of globalization is the need to manage and apply the laws of different regions on the particular business. Local and regional laws of a country would not apply the same way to multinational corporations thus eliciting the need to manage laws across various jurisdictions (Habermas, 2015). As a result of this, different countries have affected laws that apply to organizations which operate from different local regions, states or countries. The following section will address the human resource practices and policies in Australia and how they have been influenced by global trends. The Culture of Australia and its Impact on HRM Various studies have effectively demonstrated how well HR practices are suited to the culture in which they are implemented if done correctly. Culture encompasses beliefs, customs, languages and norms. The development of policies in countries need to take into consideration the culture and values of the particular country and tailor them to the various practices such as human resource management practices. One particular culture that is respective and common to the people of Australia is that of individualism (Alesina, 2013). This means that the Australian focuses on personal accomplishments as opposed to working as a team to achieve a certain objective. The culture of individualism further implies that the Australian people prefer to rise in the employment hierarchy through individual hard work and exemplary performance. Studies by Van de Vijver, Van Hemert, & Poortinga (2015) suggest that the economic well being of a country is highly influenced by the level of individualism. Individualism is thus imperative to human resource management as it results to greater work productivity. It is argued that people who have their personal goals to achieve are greater motivated as they sacrifice their time to achieve these goals without focusing on what role others are playing (Reeve, 2014). Individualism might however decrease efficiency as it is dependent on every employee being personally motivated (Alesina, 2013). A strong workforce is arguably maintained through teamwork and therefore the concept personal motivation is liable to create differences among employees and reduce organizational performance. In Australia, individualism allows for successful mentorship since each employee has an exceptional desire regarding what they would love to accomplish. The establishment of a strong relationship with mentors is an imperatively successful human resource practice. The practice of workplace mentorship in Australia has been effective in aiding employees to discover and expound on their potential and maximize on using their talent. Furthermore, employees who have been mentored are resourceful in providing personal mentorship to new recruits who in turn handle the workplace much more effectively and improve organizational performance. National culture is vital in the determination of a country’s management of the human resources. The cultural practices of organizations are fundamentally most applicable to those of the entire nation (Ting-Toomey, 2012). The culture of individualism in Australia is seen through the local organizations where every individual strives to achieve their personal best in their field of practice. In the next section, the institutional avenue of Australia will be addressed with regards to its impact on the management of human resources. The Institutional Framework of Australia and its Impact on HRM Given the prevalence of multinational corporations in Australia, the number of investors and individuals seeking employment in the country is relatively high. MNCs play a critical role in Australia as the foreign direct investment greatly contributes to the nation’s economy. The sectors mostly owned by MNCs include retail and wholesale trade; financial and business services; and ICT services (Bahn, 2013). Despite the presence of Australian laws governing MNCs in the country, most of the HR functions are based on the HR practices of the firm’s country of origin. An example is the British American Tobacco Australia. A number of the multinational corporations in Australia utilize human resource information systems to keep data on the large global workforce that is under them. These companies include Globe International and Servcorp. This shows the effect of technology on human resource practices particularly in Australia (Bahn, 2013). The technological impact of globalization is thus witnessed through their use by multinational corporations. The MNCs in Australia mostly utilize a single integrated appraisal system to carry out performance appraisal for the employees (Cullen, 2013). The appraisals are carried out based on the categories assigned to the various employees such as management, employees and subordinate staff. Given the diverse nature of multinational corporations, most of these enterprises spend about four percent of their revenue on training and development. The primary focus of the management of talent is to develop broad competencies for the individual employees which enable them to be viable for various positions in the company as opposed to filling specified roles. The training programs are normally global oriented due to the global nature of the corporation themselves. The use of employee involvement practices is widespread and as such the employees have the responsibility of organizing their own work. The various employee groups of MNCs meet to discuss their productivity, service delivery and production. The entry of MNCs in Australia has been effective in improving their economic status, technological function and social interaction. With increased FDI, companies in Australia have also become multinational and thus integrating the various human resource practices used globally (Lewis, 2015). Conclusion In conclusion, management practices and values are dissimilar in various nations based on each region’s exclusive cultures and backgrounds. The literary legacy of most nations has a momentous authority on its economic, political and societal constitution. These shape the development of management practices and values found and practiced in the country. Effectual management of human resources is absolutely linked to economic and organizational performance. The best HRM practices are however not always convenient across countries because of institutional and cultural differences. The generalization of HRM practices may not be feasible across different nations because of contradictory cultures, laws and policies. Similarly, differences in culture may influence how HR roles across boundaries are implemented. HRM practices are embedded in literary ideology that reflects the standard assumptions and values of the nationwide culture in which organizations are grafted into. It therefore shows that effective and consequential HRM systems may be unsuccessful in a different region. In the world’s every culture the specifics such as authority, bureaucracy, accountability, and resourcefulness are dealt in an assortment of ways. People start organizations based on their principles, and societies are comprised of organizations and institutions that reflect the established values found in their culture References Alesina, A., & Giuliano, P. (2013). Culture and institutions (No. w19750). National Bureau of Economic Research. Bahn, S., & Cameron, R. (2013). Sourcing specialised skilled labour in the global arena: A change in the way we view work in Australia?. Australian Bulletin of Labour, 39(1), 19. Baylis, J., Smith, S., & Owens, P. (2013). The globalization of world politics: An introduction to international relations. Oxford University Press. Cullen, J., & Parboteeah, K. P. (2013). Multinational management. Cengage Learning. Habermas, J. (2015). The postnational constellation: Political essays. John Wiley & Sons. Lewis, W. A. (2015). The evolution of the international economic order. Princeton University Press. Peng, M. (2013). Global strategy. Cengage learning. Reeve, J. (2014). Understanding motivation and emotion. John Wiley & Sons. Robbins, S., Judge, T. A., Millett, B., & Boyle, M. (2013). Organisational behaviour. Pearson Higher Education AU. Ting-Toomey, S. (2012). Communicating across cultures. Guilford Press. Van de Vijver, F. J., Van Hemert, D. A., & Poortinga, Y. H. (2015). Multilevel analysis of individuals and cultures. Psychology Press. Read More