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VSRD-IJBMR, Vol. 1 (6), 2011, 370-375


The Fundamental of Human Resource Management: A Global Phenomenon 1

Ajir Chaturvedi*, 2Rishikant Agnihotri and 3Gaurav Sonkar

ABSTRACT With the increase in competition, locally or globally, organizations must become more adaptable, flexible, agile, and customer-focused to succeed. And within this change in environment, the HR professional has to evolve to become a strategic partner, an employee sponsor or advocate, and a change mentor within the organization. In order to succeed, HR must be a business driven function with a thorough understanding of the organization’s big picture and be able to influence key decisions and policies. China continues to receive from the impact of economic globalization. And China's human resources management is also facing challenges of economic globalization. This paper will highlight on how a HR manager can meet the challenges of workplace diversity, how to motivate employees through gain-sharing and executive information system through proper planning, organizing, leading and controlling their human resources. Keywords: Global Trends in HRM.

1. INTRODUCTION Human resource is a complex, multifaceted field that requires professionals to have the ability to juggle priorities and excel at a number of tasks often strategically. It takes knowing what to sharpen in on and what to delegate, staying on top of the latest trends in compensation and always having a finger on the pulse of employee relations. This paper deals with the complexity of “Human Resource Management” in context of global business. The global trends in HRM are shaped by competitiveness, downsizing, outsourcing, more diverse workforce, and an ageing population. On the contrary, the cultural differences significantly affect many aspects of “Human ____________________________ 123

Assistant Professor, MBA Department, Naraina College of Engineering & Technology, Kanpur, Uttar Pradesh, INDIA. *Correspondence :

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Resource Management”, such as recruitment and selection, performance appraisal, compensation and career development. The problem here is to balancing the global trends in HRM with the influence of national cultures.

2. NEW TRENDS IN HRM Human Resource Management is a process of bringing people and organizations together so that the goals of each other are met. The role of HR manager is shifting from that of a protector and screener to the role of a planner and change agent. Personnel Directors are the new corporate heroes. The name of the game today in business is personnel. These days it is not possible to show a good financial or operating report unless your personnel relations are in order. Over the years, highly skilled and knowledge based jobs are increasing while low skilled jobs are decreasing. This calls for future skill mapping through proper HRM initiatives. Indian organizations are also witnessing a change in systems, management cultures and philosophy due to the global alignment of Indian organizations. There is a need for multi skill development. Role of HRM is becoming all the more important. The goal of the paper is to investigate the global trends and to make comparative analysis of national trends and values in HRM on the basis of several industrialized economies. The objectives of the paper are : 

What are the global trends in HRM

What are the main trends and values of HRM professional in several countries

What are the manager’s value related to HRM in several industrialized economies

Some of the recent trends that are being observed are as follows: 

The recent quality management standards ISO 9001 and ISO 9004 of 2000 focus more on people centric organizations. Organizations now need to prepare themselves in order to address people centered issues with commitment from the top management, with renewed thrust on HR issues, more particularly on training.

Charles Handy also advocated future organizational models like Shamrock, Federal and Triple I. Such organizational models also refocus on people centric issues and call for redefining the future role of HR professionals.

To leapfrog ahead of competition in this world of uncertainty, organizations have introduced six- sigma practices. Six- sigma uses rigorous analytical tools with leadership from the top and develops a method for sustainable improvement. These practices improve organizational values and helps in creating defect free product or services at minimum cost.

Human resource outsourcing is a new accession that makes a conventional HR department redundant in an organization. Exult, the international pioneer in HR BPO already roped in Bank of America,

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international players BP Amoco & over the years plan to spread their business to most of the Fortune 500 companies. 

With the increase of global job mobility, recruiting competent people is also increasingly becoming difficult, especially in India. Therefore by creating an enabling culture, organizations are also required to work out a retention strategy for the existing skilled manpower.

3. NEW TRENDS IN INTERNATIONAL HRM International HRM places greater emphasis on a number of responsibilities and functions such as relocation, orientation and translation services to help employees adapt to a new a different environment outside their own country. 

Selection of employees requires careful evaluation of the personal characteristics of the candidate and his/her spouse.

Training and development extends beyond information and orientation training to include sensitivity training and field experiences that will enable the manager to understand cultural differences better. Managers need to be protected from career development risks, re-entry problems and culture shock.

Compensation systems should support the overall strategic intent of the organization but should be customized for local conditions.

To balance the pros and cons of home country and host country evaluations, performance evaluations should combine the two sources of appraisal information.

In many European countries – Germany for one, law establishes representation. Organizations typically negotiate the agreement with the unions at a national level. In Europe it is more likely for salaried employees and managers to be unionized.


Workplace Diversity

Planning & Mentoring Program

Organizing Talents Strategically

Leading The Talk

Evaluate & Control The Result

Motivating The Workforce

Mutual Gain-sharing

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Generate Executive Information System That Support Organization’s Strategic Planning And Day To Day Tasks.

5. THE CHALLENGES OF WORKFORCE DIVERSITY The future success of any organizations relies on the ability to manage a diverse body of talent that can bring innovative ideas, perspectives and views to their work. With the mixture of talents of diverse cultural backgrounds, genders, ages and lifestyles, an organization can respond to business opportunities more rapidly and creatively, especially in the global arena. More importantly, if the organizational environment does not support diversity broadly, one risk can be arise that could be losing talent to competitors. This is especially true for multinational companies (MNCs) who have operations on a global scale and employ people of different countries, ethical and cultural backgrounds. Thus, a manager HR needs to be mindful and may employ a ‘Think Global, Act Local’ approach in most situation.

6. PLANNING & MENTORING PROGRAM One of the best ways to handle workplace diversity issues is through initiating a Diversity Mentoring Program. This could involve different departmental managers in a mentoring program to coach and provide feedback to employees who are different from them. More importantly, the purpose of a Diversity Mentoring Program seeks to encourage members to move beyond their own cultural frame of reference to recognize and take full advantage of the productivity potential inherent in a diverse population.

7. ORGANIZING TALENTS STRATEGICALLY Many companies are now realizing the advantages of a diverse workplace. As more and more companies are going global in their market expansions either physically or virtually (for example, E-commerce-related companies or Virtual Organization), there is a necessity to employ diverse talents to understand the various niches of the market. For example, when China was opening up its markets and exporting their products globally in the late 1980s, the Chinese companies (such as China’s electronic giants such as Haier) were seeking the marketing expertise of Singaporeans. This is because Singapore’s marketing talents were able to understand the local China markets relatively well (almost 75% of Singaporeans are of Chinese descent) and as well as being attuned to the markets in the West due to Singapore’s open economic policies and English language abilities. With this trend in place, a HR Manager must be able to organize the pool of diverse talents strategically for the organization.

8. LEADING THE TALK A Manager HR needs to advocate a diverse workforce by making diversity evident at all organizational levels. Otherwise, some employees will quickly conclude that there is no future for them in the company. A Manager HR must also show a high level of commitment and be able to resolve issues of workplace in an ethical and responsible manner.

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9. EVALUATE & CONTROL THE RESULT To minimize the gap between desired outcome and actual outcome of the company’s workplace, a Manager HR must conduct regular organizational assessments on issues like pay, benefits, work environment, management and promotional opportunities to assess the progress over the long term. There is also a need to develop appropriate measuring tools such as organization-wide feedback surveys and other methods.

10. MOTIVATING THE WORKFORCE Workplace motivation can be defined as the influence that makes us do things to achieve organizational goals: this is a result of our individual needs being satisfied so that we are motivated to complete organizational tasks effectively. As these needs vary from person to person, an organization must be able to utilize different motivational tools to encourage their employees to put in the required effort and increase productivity for the company. The development of an appropriate organizational reward system is probably one of the strongest motivational factors. This can influence both job satisfaction and employee motivation. The reward system affects job satisfaction by making the employee more comfortable and contented as a result of the rewards received. In this paper, I will be touching on the one of the more popular methods of reward systems, mutual gain-sharing.

11. MUTUAL GAIN-SHARING Gain-sharing programs generally refer to incentive plans that involve employees in a common effort to improve organizational performance, and are based on the concept that the resulting incremental economic gains are shared among employees and the company.

12. EXECUTIVE INFORMATION SYSTEMS It is a computer aided information system that tracks the essential data of a business' daily performance and present it to managers as an aid to their planning and decision-making. EIS will aid in spotting significant variations from "normal" trends almost as soon as it develops, giving the company the maximum amount of time to make decisions and implement required changes to put your business back on the right track. This would enable EIS to be a useful tool in an organization’s strategic planning, as well as day-to-day management.

13. RESEARCH METHODOLOGY Method of Research

- Secondary Data Analysis

Method Employed

- Literature Review

Research Design

- Exploratory Research Design

14. CONCLUSION The role of the HR manager is more important to meet the global HR trends and bridge the gap between local and global HRM trends. Successful organizations are becoming more adaptable, elastic, quick to change

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directions, and customer-centered. Within the environment such as “think globally, act locally” the HR professional must learn how to manage effectively through planning, organizing, leading and controlling the human resource and be knowledgeable of emerging trends in training and employee development. The world of business has become a struggle to gain competitive advantage in a much larger and more demanding marketplace. Markets now stretch across international boundaries, trade barriers have crumbled and distribution channels have become more efficient. In order to survive, the strategic human resource management provides support to the executives for formulating successful strategies. The strategic management is concerned with policy decisions effecting the entire organization, overall objective being to position the organization to deal effectively with its environment. Strategic HRM aims to provide a sense of direction in an often turbulent environment so that organizational and business needs can be translated into coherent and practical policies and programs. It provides competitive advantage over the others. The goal of a strategic human resource manager is to identify key HR areas where strategies can be implemented in the long run to improve the overall employee motivation and productivity. In fact, there is a need of commitment of the high quality of HRM within the organization which will bring more productivity in the organization. Similarly a strong leadership is required to exploit the human and non-human resources.

15. REFERENCES [1] Bechler, S. Links between business strategy and HRM strategy in US based Japanese subsidiaries // Journal of International Business Studies, 1995, Vol. 26. [2] Article












url [3] Article on Emergence of Strategic Human Resource Management Historical Perspective by Nadeem Malik, Lecturer, Commerce Department, University of Balochistan Quetta [4] Article on the most recent trends and emerging values in HRM : comparative analysis by Rima Cesyniene, Vilniaus University // Journal of Engineering Economics 2005, No 4 (44). [5] Armstrong, M and Long, P (1994) the reality of strategic HRM, Institute of Personnel and Development, London. [6] BoxallBoxall, P F (1993) ‘ The significance of human resource management: a reconsideration of the evidence’, The international journal of Human Resource Management, vol 4 no 3, pp 645-665. [7] [8] [9] [10] [11]


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3 ajir chaturvedi research communication aug 2011  
3 ajir chaturvedi research communication aug 2011