The Impact of Globalization on Human Resource Management - Assignment Example

Running Head: HUMAN RESOURCE MANAGEMENT The Impact Of Globalization On Human Resource Management [Name Of Student] [Name Of Institution] TABLE OF CONTENTS 3.1 Future Directions 15 ABSTRACT The present age of business is extremely competitive and the only tool for survival is adaptability which comes through constant change. Vested deeply in leadership styles, culture and communication, successful change is vital and yet hard to describe. The role of human resource as an active partner, focusing on the company’s vision and ensuring open communication channels is fundamental for change in the organization. Change in any organization may be a result of a combination of elements; social, cultural, economic and/or environmental (Kanter, 2003). Also, a lot of companies indulge in the change process to improve their overall efficiency. It is quite established that any kind of change in the organization, triggers emotions as the employees face the effects and end results of the transformation. The way and extent to which employees may experience emotions is largely shaped and influenced by the culture of the organization (Beer, 2002). Research suggests that when the employees’ values were consistent with the organization, they embrace the changes more easily (Beardwell, 2004). However, the emotional response to cultural change is usually of a severe nature. It is known that when emotions were taken into account and respected the employees positively adapt to the change. All this falls under human resource management which is without any doubt heavily influenced by the pace of globalization. CHAPTER 01 INTRODUCTION In recent times a major development in the area of working of organizations is the growing significance of human resources. Additional stress is laid on motivating employees and fostering an environment where there exists a sense of belonging, self esteem and self realization. This revolution that is a result of humanization all across the globe has made a strong impact on the principles that applied to human resource management in different organizations. Giving opportunities to people for their development, encouraging healthy competition and in the process developing the organization as a whole have become the key concerns of human resource management. Statistical methods aid this decision making. Hence to comprehend the variability and the control of change brought by globalization, it is essential to know the fundamental statistical concepts. These are easy to implement and serve as influential tools to managers for superior productivity and outstanding service. It must also be kept in mind that failure to identify with change creates collapse to process control for which managers are accountable. The progress that has taken place in the field of strategic management in the past twenty years is fairly impressive. The present field of strategic management is purely based on theory with its roots deeply planted in more applied regions that are also known as ‘business policies’. Backed up with a large amount of research this field is basically diverse in nature. As a standpoint for strategic management, vague classifications hamper recommendation and inert methods demote causality to a notion of black box (Robbins, 2005). 1.1 Objective Of Research It was once said by Richard Whittington that even though strategic management books are cheap, yet organizations fail to develop successful strategies? Either there is something wrong with literature or maybe even the concept itself? Whittingtons (2000) point begs a number of questions and raises significant issues that need to be fully understood when attempting to understand strategic management. This paper is an essay that draws upon critical analysis of the literature to answer and make connection between the following questions: 1- Based on the disparate school of thought on strategy, what do you consider to be strategy? 2-Drawing from the above how would you describe the strategy process in the current age of globalization? 3-How can strategy and the strategy process be drawn upon and used by contemporary built environment organizations within the current climate of globalization? 1.2 Defining Human Resource Management The Human Resources Management (HRM) role encompasses a diverse and broad range of activities, and most significant amongst them is fixing the staffing requirements, deciding whether to outsource to contractors or employ people to attend to those needs, hiring and then retaining the best possible workforce, training employees to adjust them to changing requirements, ensuring optimum performance from each hired employees, handling issues related with overall performance and above all making sure that the management practices truly depict the culture of the organization and under all circumstances stick to the company’s set of regulations (Chattopadhyay, S., & Pareek, 20001). 1.3 Defining Strategic Management Strategic management is all in all related to be able to see the broad perspective of management. The entire basis of strategy is recognizing the objectives of the business, identifying its resources and devising ways so that those resources can be used in the most efficient manner to reach the strategic goals of the organization. In the present times, strategic management also provides the core basis and guidelines for better decision making inside the organization (Schendel, 2000). This however, is an ongoing procedure. The strategic plan of any organization is actually a living manuscript of its HRM which happens to be continually referred to and if need be revised as well. It is somewhat dynamic in nature as with the discovery of new information it is revised to accommodate changes and adjustments. Stated in concise terms strategy is primarily about managing flexibility (Clegg, 2005). The objective of the procedure is not merely to create a strategic plan that is organization and rigid; rather it is an ever evolving and a fluid document. The strategic management process is as vital as the strategic plan of the organization (Collis, 2004). Strategic planning is not an activity that organizations in present times carry out on a yearly basis rather in this highly competitive age of cut throat business, it has become a vital and inherent part of every organization’s main tasks. Moreover, it is not an individual and a detached function reserved for only the strategic planners but something which has key importance on every employee’s plan (Robbins, 2005). Furthermore, it is a process that in current times outlines the association of fundamentally all organizational staff. Employees that are not even directly concerned with the planning are considered as a helpful input to the practice (Clegg, 2005). The idea behind this is dictated by the often overlooked fact that employees at the front line who are working in boundary spanning positions are often in a better position to provide crucial insights about the environmental modifications of the exterior specifically about the changing needs of the customers. CHAPTER 02 LITERATURE REVIEW The pace at which the field of strategic management has evolved is quite amazing. Starting as just a subject in business schools curricula, it has now become a full fledged field of study. Moreover, in a very short span of time a lot of development has been witnessed in this field. Due to its core nature as of a relatively applied field, strategic management has conventionally paid a lot of stress on ideas that directly affect any organization’s performance (Collis, 2004). Therefore it is important to discuss the main theories and procedures of strategic management. Typically, strategic management happens to be eclectic in nature but with the latest development of organization’s resource-based view, focus has again shifted to the internal strengths and flaws of the organization as compared to the external threats or even opportunities. In the earlier era of development, a large number of scholars contributed researches that shaped the way we see the field of HRM and more particularly, strategic management today. Amongst them the names of Chandler (Strategy and Structure), Ansoff (Corporate Strategy), and Learned (Business Policy: Text and Cases) are specially worth mentioning (Whittington, 2000). Although not clearly stated, the traces of the former models in management can still be noted in this era of developed and contemporary strategic management (Clegg, 2005). A case worth mentioning here is the detailed account by Barnard regarding the support and associations in business organizations, along with the managerial roles and progressions within, which laid a firm foundation upon which succeeding researches in strategic management were assembled. Similarly in Selzinck’s work the stress that was laid on ‘distinctive competence’ followed by due emphasis on leadership coincides well with former scholars in the field of strategy who focused on the inner strengths and managerial aptitudes of the organization (Whittington, 2000). Likewise, Penrose linked organization development and growth to the resources that were ‘inherent’, in particular managerial competencies possessed by any organization. 2.1 The Components Of The Strategic Management Process According to definition, strategic management is a future-oriented procedure that facilitates the business to formulate well-versed choices to secure a position for itself that will ensure accomplishments in the future, which has become necessary with globalization’s influence on HRM. A further conventional vision of strategic management makes use of a linear approach with the help of which a proper inspection of the organization's surroundings is performed both inside and on the outside, a policy is devised, that strategy is put into operation and the business’ advancement in the direction of that strategy is then estimated (Robbins, 2005). In present times the rate of amendments state that the formulation and execution segments be further strictly incorporated to make certain that as transformations take place and execution problems come up, the strategy is revised to accommodate those changes and that too on a regular basis. With globalization influencing every aspect of business world and more prominently the human resources, the surroundings scan for any organization comprise of both external and internal elements. As the majority of the organizations find it easier to scan their internal settings, they find it rather challenging to deal with the external environment (Whittington, 2000). This deprives them of the better half of the equation that is essential for effective decision making for the organization (Pareek, 2002). Some variables in the exterior settings that must be investigated are analysis of the business as a complete entity, its competitors, changing social trends especially in key areas such as technology, politics, economics and culture. One of the most basic instruments for strategic management is the SWOT analysis which is produced from the environmental inspection segment (Powell,2002). This helps the organization to determine its strengths, weaknesses, threats and opportunities. This, then, becomes the basis for strategy formulation for the success of the business organization. The three main levels of strategy in bigger organizations are corporate, functional/operational and business strategy. Corporate strategy decides the areas where the organization should operate in. The manner in which the company will participate in the selected areas is governed by business strategy and lastly operational strategy decides how each functional domain, for example, finance or human resources will in reality assist the already outlined business and corporate strategies. Moreover, collectively all the above mentioned strategies should be closely connected to guarantee that the organization accomplishes the set goals (Barney, 2006). The information which is collected after a through scan of the surroundings is utilized in drafting a strategic plan for the organization which is implemented to yield better results. It is imperative for the success of any organization that it plans in such a way that it can exercise control over its future too. Almost every employee is involved in the implementation phase and hence as a consequence, companies have now started to involve all the staff members in the strategic planning process (Whittington, 2000). The last element of the strategic management process is the assessment and screening of the organization's advancement to accomplish its strategic goals. One important thing to note here is that even after implementation the process does not end as it requires constant monitoring to check the progress of the organization. Strategic planning considers the desired future and sets a strategic course to make decisions today that will affect the future of the organization. Strategic planning is not forecasting. It doesn't eliminate risk. But it does help service leaders review alternatives and consider the risks they must take. (Clegg, 2005) And, it will assist an organization to create the future it desires. The key is to think and act strategically. Most organizations get strategic and operational planning confused. We also understand the difference between the strategies and the need to apply those strategies through the development of operational tactics. The exact same difference applies to strategic planning as compared with operational planning. We have become very good at the operational issues but, in many cases, have failed to realize the importance of the strategies guiding those operations (Bowen, 2000). Other eminent scholars have focused on the more basic contribution of assets to sustainable gain for organizations by investigating why and/or how resources add to the benefit of any organization over any other in any given market setting or product nature. This remains a business-level query of how to contend is fundamental in shaping both the resource based view’s theoretical base and its likely offerings to strategic management. As an emergent organization reaches a suitable and logically sheltered standing in its original production and produces resources in surplus of those that are wanted for preserving the given position, it might appear as prospect openings for diversification. In the current times of globalization, strategic planning is an ongoing process that requires specific steps be taken in a particular sequence (Michalisin, 2004). Sometimes, steps are repeated when found necessary. But, it is a cyclic process that, once adopted, will continue forever. The better an organization gets at it, the easier it will be to create an ideal future that many can just dream of (Casio, 2005). The steps of the model, which are described later, include the following: Identifying the organization's values. Planning to plan strategically. Selecting a strategic planning process. Identifying the organization's mandates. Developing the mission of the organization. Creating a philosophy of operations. Opportunities and threats--assessing the external environment. Strengths and weaknesses--assessing the internal environment. Identifying the strategic issues of the organization. Creating strategies for strategic issues. Proactive futuring--creating your organization's ideal future. Operational planning from a strategic perspective. Organizations that wish to survive in the ever changing world of globalization see the future as a direct extension of the present choose to "map out" where they are leaving in relation to where they are at the moment and where they have been in the past. There are a number of distinctive features in the field of strategic management that comprise of practitioners and truly giving value to preparation. Meyer has distinguished, for instance, that as factual to its universal administration direction; the field of strategy also includes constantly used business stage presentation as the ultimate reliant variable (Casio, 2005). On the other hand another researcher declared that most research queries are intrinsically unexciting or inconsequential unless they take account of an explicated connection to presentation and business accomplishments. As a result, a basic question for researchers in the field of strategy management is the effectiveness of the resource based view in shaping consequential management instruments in the shape of actionable recommendations for practitioners (Fredrickson, 2000). 2.2 The Importance Of Globalization As An Agent For Change It has become necessary for organizations to reduce their disadvantages and to adapt to the new conditions in the environment that are a byproduct of the process of globalization’s outcomes on human resources (Casio, 2005). This is only possible through a properly implemented change process. A successful change mechanism includes structural readjustments, procedural change, cultural alignments and also technological up-gradation (Miller, 2000). This implies that the businesses must identify the opportunities offered by the change management process as the global market becomes more and more, an arena for competing with corporate giants. In order to survive the cutthroat competition and to gain an edge over others firms, timely and properly implemented change is essential (Patterson, et al, 2005). Organizations have to understand that international involvement is not merely finding consumers or suppliers in different nations; rather, it entails a strong concept, a far-reaching vision, commitment and long term strategy together with dedicated leadership to motivate a vibrant team. Global leaders are those who have the potential to steer through the intricacies of the transactional business world. (Kanter, 2003) They express the vision and plan in a multi-environment from a multiple functionality perspective so that they are able to pull along the entire team (London, 2001). This requires setting up examples thorough determined leadership and sharing the views of the team members. This implies fast paced development for individuals with potential along with a multi-cultural exposure, performance appraisals and developmental opportunities to keep them motivated. The teams led by global managers need a vision and a global fellow feeling (Kanter, 2003). This means that high performance global organizations’ human resources should create an all-encompassing culture where people feel that their interests match with those of the organization and hence they remain self-challenged. In such an environment, a sense of belonging prevails and motivation stems from common values and ideals, being involved in work that is both challenging and has meaning too. (Miller, 2000) Such organizations are not distracted by inward issues. They have a clear agenda and focus on competition, consumers and communities. CHAPTER 03 CONCLUSION Analyzing the history of the work done in the field of research management, it is quite clear that there has been a significant impact on the past theories on the present ones. The former theories have more importantly enlarged the domain of this field and thus have lead to a wider diversion of research queries (Black, 2004). Research on topics such as organizational economics persists to step forward, but is typically following the trail of strategic management. My fundamental empirical finding from the above research is that strategic planning has value. Strategic planning may be unsuccessful for the reason that an association does it poorly, but it's more liable to fail because the form chosen is a dire fit for the organization in question. Like it is known that mapping will probably function in places that choose stability rather than dynamic changes, but since the circumstances of majority of the organizations are not expected to continue at some stable state for a long period of time, a comprehensive map is not at all times useful for steering and deciding for the future (Barney, 2001). 3.1 Future Directions The biggest issue and yet the most captivating feature of strategic management as an academic order is the ever-growing character of its study with globalization (Casio, 2005). The flexibility of a lot of strategic problems calls for strategy researchers to carry on, preceding the existing body of facts. With the dawn of the current century there has evolved a totally new and competitive environment, composed of swift technological amendments and growing globalization, will persist to facade diverse research issues for strategic management scholars. These people will be more and more challenged to act in response to recurrent, irregular alterations and supply solutions to new issues (Shrivastava, 2007). Moreover, the outcomes of the research of strategic management will grow to be progressively more vital for contemporary executives and in enlightening future scholars too. Overall the type of investigations and its capability to offer solutions to crucial policies shapes a novel necessity with the extremely energetic cutthroat background. The type of strategy issues is such that they cannot be effortlessly outlined within a permanent paradigm (Whittington, 2000). Hence, strategic management is essentially a multi-paradigmatic order that calls for diverse hypothetical views and methodologies. In addition, it can also be concluded that strategic management as a ground of examination is determinedly stranded in application and exists since the significance of its matter. REFERENCES Barney, J. B. 2001. 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