Global Leadership Development and International Human Resources Management Practices - Essay Example

GLOBAL LEADERSHIP DEVELOPMENT AND IHRM PRACTICES (Student Name) (Course No.) (Lecturer) (University) (Date) Introduction Leadership is the backbone of every organisation with the drive to success. Many literatures provide different models of leadership with the major considerations being the current development and environment. However, the performance of an individual especially in the Human Resource Management is based on the adaptability and competence can heighten the motivation, morale and performance of the employee. Adequate understanding of leadership role in IHRM can be supportive in achieving goals and objectives within the working environment. Various organisations have explored the effect of leadership in connection to HRM and how is can influence the performance of the organisation. The roles and responsibilities of Human Resource personnel can be described as the expected strategies that will be deployed in job incumbent (Dennis et al, 2012, 24). Relationship in the organisation is also an important leadership element that is determined by roles and performance within an organisation. For example, some of the tasks can be managed individually while other needs to be carried out collectively with members of the organisation. Concerning the nature of the task, roles and responsibilities will be identified and the exact people that will need to interact to complete the task. Therefore, roles, responsibility and relationship are some of the most important instruments in the International human resource management practices. This report gives a comprehensive analysis of the IHRM practices and how it is carried out, providing an explanation on some of the leadership developments that influence the department. Recruitment and Retention in IHRM The current perception in the recruitment process has realised that the activity is becoming more difficult. However, the process has not failed but call for development and promotion of incentives. There is also a need to reduce the duration for creating the job opportunities and safeguarding the hired contractual obligation. Other findings have realised the staff shortage. However, these findings are not on record and cannot be applied to every region. The current economy is under serious competition, and this can be realised within regional markets, national or global market. Due to the competition, it has become clear that most people are not in a position of depending entirely on salary incentives. This has brought an alternative perception where organisations have to think critically and come up with strategies that will help in retaining the employees (Chris & Malcolm, 2013, 82). The current trend in the global organisations draws more attention to retaining employees that employing new staff. This is unlike the past times when it was easy losing staff, and the organisation could quickly invest in others to escalate to development. The organisations have since realised that it is more expensive to hire new staffs than losing good ones. The reason behind this realisation is the expense the organisation will undergo trying to train the new staff; however, retaining the old staff will be efficient for the company or organisation to compete globally with the advancement in the global market. Therefore, the organisations have deployed engagement as leadership strategy in the IHRM practices. In order to help the organisation in achieving its goals and objective, the organisations have formed a strategy whereby they engage the potential employees at all levels. The strategy has seen some international organisations realise good returns and the clients being served are feeling the impact as their demands are met. A research conducted by some organisations realised that employees who dedicated their time and worked 57 percent harder, are nine times less likely to leave the organisation. The very companies realised a revenue growth of 20.1% compared to the average industrial growth of 8.9% globally. The tremendous progress has established a global mindset of incorporating global leadership development in the IHRM practices. The leadership strategy is to manage the organisational adaptability, uncertainties, complexities and personal learning within the organisation. The leadership factors considered in the strategy can be categorised into three main stages, that is transformational leadership, transactional leadership and laissez faire leadership. Human Resource Management is all about managing people. Therefore, factors to consider while offering the transformational leadership in IHRM practices is to come up with ideas that influence personality (Chris & Malcolm, 2013, 392). This can be done together with other factors such as inspirational motivation, intellectual stimulation and individualized considerations. Alternatively, transformational leadership in IHRM can take the approach of transactional leadership strategy whereby the organisation can offer contingent rewards and carry out constructive transactions that will retain the good employees. The strategy also calls for the organisation to adopt an exceptional management with active and passive corrective transactions (Dennis et al, 2012, 183). The last factor to consider is laissez-faire leadership strategy, which is non-transactional. While carrying out the recruitment process, HRM are tasked with the responsibility of selecting a perfect candidate that the company desires. Therefore, the HRM are to develop a good job description, do candidate specification and identify the criteria that will lead to the potential candidate. The department must also come up with strategies that will see the perfect candidate come on board by availing dealings that are attractive. However, in the recruitment process, some of the organisation experience some kind of setbacks, therefore, the recruiting agency should have diverse requirements in from the management that will lead to the classical selection and recruitment process. The IHRM are considered to be unique and situational when it come to the recruitment process. Despite the uniqueness, failure is not an option for the organisation after completing the task, there are candidates that lack leadership skills when delivering their responsibilities. Therefore, the company need to look at both sides of the coin of a person, which is the leadership ability and performance capability. In the recruitment and retention process, IHRM are keen on looking at the transformational leadership qualities, which give a description of how the organisation can develop and transform the organisation to enable it achieves its goals and objectives. The focus of the organisation, therefore, is to empower, nature, stimulate changes in the organisation that create a good cultural and social policy. The leadership development in IHRM practices has seen the creation of organisational policies. According to Hill’s model for team leadership in IHRM practices, the organisation is responsible for providing leadership decisions which include monitoring and taking actions, roles and relations within the business. The organisation is also responsible for the effectiveness of the team where it look into the performance and development of an employee. Within the leadership model, the IHRM practices create an internal and external leadership action. In the internal leadership action policy, address tasks that focus on goals, result, facilitated decision-making and setting of standards. On the same note, the internal action also focuses on the rationality of the person through coaching, collaboration, conflict management, commitment and satisfying the organisational requirements. Considering the external environment, the model factors in the networking of the organisation as well as advocacy, assessment, information sharing and supported negotiation. IHRM practices in most countries have policies that guide the recruitment process. The policies address the legal issues that entail the hiring of non-national citizens and the regulation of pension payments and social security among other benefits that are recommended by the national law. Conversely, the selection process in HRM is not always the same because it depends on the nature of the business or the organisation. Some of the organisations apply the informal selection process that look at the seniority bit in the organisation culture. However, most IHRM practices consider the formal practice that consists of leadership practices. The formal criteria consist of assessing the skill and ability to deliver. Other common practices include interviews, a reference that look and the person, and find out if the applicant is fit to carry out the organisational tasks. In the developing countries, the HRM practices are still influenced by gender and ethnicity. The influence to a greater extent affects even the developed countries like UK, USA and part of Asia. The influence still exists in some organisations whereby the certain individuals are still favoured over others with regards to the person in charge (Dennis et al, 2012, 425). This issue of discriminatory hiring is considered illegal in IHRM practices and may lead to an organisational collapse, or it may not be in the same level of development with others being managed fairly and professionally. Development of IHRM Practices The application of HRM functions is dependent of the development that takes place within the organisation. The development and changes consider the nature of work to be done, and the place where the work should be done as well as the organisation goals and objectives. In Germany and India, the application of leadership in HRM roles is more centralised and have a common of establishing a structure of schemes and practices that are aimed at promoting effective management. The technological advancement and level of competition among organisations and business has created a norm whereby businesses develop business partners. The reason for this strategy is to benchmark so that the good practices can be shared to promote development. The partnership in the business is also shared in the HRM practices to ensure the organisation function as one to bring change in the economy. One of the major development in the IHRM practices is the adoption of electronic management and information system. The system link Human Resource Management data and other stored information in organisations. The importance of linking information and sharing the information is to promote a sophisticated management information and to reduce the time spend in searching for ideas with other HR personnel. The application of IHRM practices requires the organisation to look for some of the leadership qualities that are possessed by the qualified team players. The first consideration is based on the performance management. Global organisations evaluate the employees on merit by paying according to the performance outcome. The evaluation criterion is carried out differently whereby those that are academically qualified are evaluated differently to the staff members that are not academically qualified. The evaluation process has however raised debates in the IHRM of whether the approach is appropriate for measuring performance. The reason for the debate is because in some cases, work environment, for example, poor incentives can affect the performance of qualified personnel. Secondly, leadership development is considered in the labour planning ability. This is a systematic approach used by IHRM practices to identify the different skills that the staff required to perform the organisation requirements efficiently within a fixed budget. Every organisation globally has goals to be achieved, and some of the operations have a restricted budget. Therefore, leadership development in the HRM is critical when selecting and hiring appropriate candidates. Leadership development in the HRM practices is an important skill that is being applied at an international level and in every region of the world to establish a common ground to realise skills and develop forecast individuals that can realise organisational goal. The program of workforce planning has been developed in many institutions globally and is achieving the expected objectives. Role of headquarters and subsidiaries in IHRM Human Resource is a very important office in every organisation, both for an independent organisation to an international organisation. The office roles and responsibilities are always the same, which is to provide the best people that are able to deliver to the organisation. Therefore, the HRM as a department has a head organ and subsidiaries that carry out research and development to find the qualities in people, which if natured will enhance the performance of HRM practices. The primary function of the headquarters and subsidiary bodies is to develop programs that can be applied in every region of the globe to ensure the organisation is operating uniformly. The application of these programs such as leadership development is done through training and development. The training and development programs are important in increasing the importance of HR products and services to the organisations. The high authorities are also keen on ensuring flexibility and the application of the current technologies in the HRM practices and operations. Most importantly, the IHRM subsidiaries are responsible for providing adequate advice for organisations. The most common is delayering and downsizing in organisations with several employees that are not performing. The strategy to provide the advice is done in accordance to the organisation performance GAP, consultancy and need analysis. Headquarter is also responsible for staff development through international assignments. This is done through organizational development that consists of the accumulation of stock knowledge, abilities and skills. Through organisational development, the subsidiaries create a global mindset in HR whereby any person can leave the mother country and be able to apply the same knowledge and skills in another country. The program, therefore, creates expatriates under unswerving control and socialization in the development and transfer of HRM knowledge and capability (Chris & Malcolm, 2013, 261). Through the headquarters and subsidiaries, the HRM has adopted the leadership skill that is necessary for the IHRM practices. The transformation from the usual HRM to IHRM practiced come with various benefits that are good for the department and the organisation. The program has foster innovation, learning in the organisation and transfer of the desired knowledge in the HR practices. The IHRM practice is also breaking the functionality of HRM and the existing international boundaries by creating a common functionality. The practice has since promoted diversity in the global market for HRM as well as developing shared principles. The diversity is not restricted to developed countries only, but it is also applied to the third world countries in every part of the world. Challenges to IHRM practices The role of IHRM practices is to offer a solution to businesses and organisations to realise their goals and objectives. The attempt to apply some of the good leadership development strategies are faced with some challenges in most cases. The first challenge to consider is the demographic change. Since the organisations are faced with the competition for development, some of the organisations tend to outsource some of the professionals from other regions. The people being outsource believe that they will have the best rewards and good working conditions but end up getting the unexpected hence are getting discouraged. The pressure at work always sees some of the seek early retirement to engage in personal activities (Chris & Malcolm, 2013, 32). Organisations, on the other hand, are not able to perform to the fullest due to the mass retirement. In some countries like South Africa, the high rate of retirement has been realised and has seen some of the organisations fail. Economic recession is another challenge to the IHRM practices. The skilled personnel may sometimes leave to go work in other regions with an expectation that the economic condition may be favourable. Considering the sense of scale and that, the economic situation is not likely to change, the person ends up turning down the offer. The economic recession can also lead to the company of the organisation to downsize on the number of employees so that they can retain the number that they can sustain. Other challenges relate to the convergence and divergence when it comes to international transfers. Because IHRM practices are becoming a global phenomenon, the final convergence is that the countries will become equal in delivering HR practices. Signing of expatriates is another challenge that influences the application of leadership development strategies in the IHRM practices. Most organisations have realised that hiring experts is very expensive compared to training of the upcoming experts. The experts are sometimes perceived to problematic and calling for offers that the organisation is unable to sustain. Some of the organisations are also afraid of adopting the leadership development in the IHRM practices. The main challenging issue in implementing leadership development in IHRM practices is related to the cultural differences. The difference has since found out that some regions easily adopt the changes while others are persistent in adopting and implementing the developments. The contributing factors behind these cultural differences can be politically instigated or the reluctance to adopt the new strategies due to expenses. Institutions and IHRM subsidiaries can also influence the adoption of new strategies since the institutions are the responsible for ensuring the policies are implemented (Chris & Malcolm, 2013, 184). Summary Global leadership development in the IHRM practices to develop a strategic plan for organisations to realise the good potentials in people to deliver and to expand the role of HRM globally. The influence and ability of Leadership in the HRM practices is necessary to transfer knowledge easily across borders and to tighten the links in the Human Resource Management operations. Leadership ability is important in ensuring that the organisations achieve their goals and objectives, as well as building personal competitiveness and reputation in the global market. Leadership development as an advancement element in HRM practices build trust enhance communication among the organisations; subsidiary bodies hence creating more demand for HRM in the international companies. The global leadership development in IHRM practices is motivated by the desire of some organisations policies that would in helpful in competing in the current development plans. Therefore, instead of the firms just producing goods and offering services, it is necessary to build the firm reputation and confidence within the social settings. The advancement in the IHRM, moreover, expands the market by developing global leadership practices that contribute to the firm success and reputations. With the development that is carried out through training and capacity building, the qualified personnel’s can confidently fit in the organisation without having to worry about his or her ability to perform. Conclusion Compared to the traditional HRM practices, which was narrow and lacked global leadership programs, the adoption of leadership development in the IHRM has created more opportunities for people to handle international issues that deal with technical administration issues. Therefore, the leadership strategy is a significant contribution to the HRM program in enhancing the performance and reputation of the organisation. The strategy also enhances control and coordination in the HR organisations framework. To conclude, it is important for the organisations with the greatest desire to succeed to adopt the developed IHRM practices with the leadership aspect in it. More dedications and research should be put on how to implement the advancements effectively to the organisations globally as a way of ensuring continuous interactions among every employee. References Dennis B., Randall S., Ibraiz T., 2012. International Human Resource Management: Policies and Practices for Multinational Enterprises. Taylor & Francis, New York Chris R. and Malcolm W., 2013,. Globalizing International Human Resource Management. Routledge. England Read More