Impact of Human Resource Management for the changing global scenario.

 



Assignment

On
Impact of Human Resource Management for the changing global scenario.




  Submitted To: 
Dr. Md. Waliar Rahman
  Asian University of Bangladesh




   
  Submitted By:

 
 
 
 





Date of Submission: 20 July 2009

July 20, 2009



Dr. Md. Waliar Rahman
Asian University of Bangladesh
Uttara, Dhaka.
Bangladesh


Subject: Submission of Assignment.

Dear Sir,
As per requirements for the fulfillment of the internship program, we aresubmitting the assignment report entitled “Impact of Human Resource Management for the changing global scenario”. For all the necessary information and assistance, we would like to thank Dr. Md. Waliar Rahman.I must mention here the name of some of my friends, who helped me a lot in preparing this assignment.

I hope you will accept the assignment and that it meets the requirements of assignment.




Thanking You,  
Md. Jowel



















Assignment topic:




Impact of Human Resource Management for the changing global scenario.











  Creating an effective global work force means knowing when to use "experts," when to hire "locals" and how to create that new class of employees -- the "glopats.











Introduction

  Human resource management is the basic thing for the changing global scenario. The entire thing of the world is changing because of human resource management. Competency based human resources are very crucial to develop the global scenario. If we can utilize the human resource properly, global scenario will be changed rapidly. Many organizations are using competencies as the means for identifying and developing this talent. Our experience shows that unless the competency framework is well planned and defined, organizations will not have the proper foundation for developing and implementing a system of human resource programs and initiatives for renewal and sustained success. Our years of experience in implementing competency-based human resource management programs have shown that, as with any other significant change initiative, there must be a compelling need and will to change.
The human resource function has gone from the traditional hire and fire role to a strategic partner at the table with finance, operations and other business centers that are not centers of profit for the organization. The job of HR, as is the job of all such departments, is to ensure that the business gets the most out of its employees. Another way to put this is that the human resource management needs to provide a high return on the business's investment in its people. This makes it a highly complex function - because it deals with not just management issues but human ones as well.
  That means to change the global world we have to emphasis the competency based human resource. In our country there has huge number of human resource but we are unable to utilize this resource. As a result we could not develop our country as minimum as possible. On the other hand some of the countries have achieved his goal by using their human resource with technology and also made competency based human resource.















Human Resource Management

  Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human Resource Management can also be performed by line managers.

  Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. 

  Any human effort exerted during production is considered a human resource. The effort can be either physical or intellectual Assembly-line workers, ministers, and store clerks all are human resources.

  I believe that a human resource is something that us humans need or rely on to achieve a certain goal. Some example of a human resource could vary from, family members, store clerks, friends or even bus drivers. 


Competency-based Human Resource Management 

  A competency is "any skill, knowledge, or other attribute that is observable and identifies successful performance". Effectively, competencies translate the strategic vision and goals for the organization into measurable and observable behaviors or actions that employee must display.

  A common framework of competencies provides the means for integrating all aspects of the HR system so that employees are selected, evaluated, developed, promoted and rewarded based on competencies that support organizational success.

  By communicating these competencies, organizations empower employees to take charge of their careers, direct their own personal development, and continually self-evaluate and improve. At the same time, the framework allows the organization to pro-actively plan for its human resource needs both in the immediate and long term, and to establish programs that support employees in acquiring the competencies needed for organizational success.

 






Globalization 

  Globalization is the tendency of businesses, technologies, or philosophies to spread throughout the world, or the process of making this happen. The global economy is sometimes referred to as globality, characterized as a totally interconnected marketplace, unhampered by time zones or national boundaries.. 

  Whether or not the establishment of the global marketplace will be beneficial is in dispute. Proponents believe that globalization has the potential to create greater opportunities for growth throughout the world, benefiting the developed nations while leveling the playing field everywhere else; opponents of globalization believe that it will merely increase the opportunities for the wealthier nations to take advantage of the poorer ones and, furthermore, could eradicate regional diversity and lead to a homogenized world culture. 

Some examples of globalization are things like: blending of cultures, companies outsourcing, and technology. These things happen because of countries competing and/or working together to get more money (thats what most people want). Most people think its a good thing, but some think its bad. I think it is good but only to an extent. 

Poorer or underdeveloped countries get left behind in many ways because they can't afford things like new technologies that North American's can afford. China opening to the free market had a big impact on everyone. Some good, some bad. 

Just look at it this way, anything thats good for you, isn't going to be good for everyone else. Someone is going to be left behind or left out along the way.


Importance of human resources management in an organization:
  HRM is the legal relationship between the organization and the employees; they are to uphold the employment. Corporations are always searching for better ways to produce goods and services. When new technological developments give some organizations a competitive advantage, their rivals try to catch up by adopting and improving on the new technologies. 

  Example: the effect of globalization
  Ford has put many of Toyota's technical advances to work in its own plants, and General Motors has spent over $50 billion in the last decade to modernize its production facilities to develop skills in flexible manufacturing. 

  A large part of this growth is the Human Resources department of these companies, who are responsible for hiring the people with the knowledge to bring new technology into a company. To be successful in the automotive market, these companies needs a highly skilled, flexible and committed work force, a flexible and innovative management, the ability to retain developed talent, and a strong partnership between management and labor unions.
  To achieve these goals, the company needs a talented HR department. Besides hiring the right people to manage and perform specific jobs, HR managers have to build up commitment and loyalty among the workforce by keeping them up to date about company plans, and laying out the implications for job security and working conditions.

   
  From the interview process to my exit interview at the end of the summer, the HR department was every employee's main connection between the production floor and the upper management. The HR department kept us informed via bi-weekly meetings, a company newsletter, and bulletin-board postings throughout the plant. 
The backbone of any successful company is the HR department, and without a talented group of people to hire, culture, and inform employees, the company is doomed for failure


  Why human resource management is important for an organization?

  Human resource management is important for an organization because of the following reasons:  

when any organization start to visualize their business, their first priority is to hire competent work force means right person on the right job after that this man power decide about other tangible and intangible resources, where to get? How to get? How to manage efficiently? What modification required? Other resources depend on human resource without which they are worthless because if their would be no human then who will plan, organize, or monitor the other resources. The manager is recognized as a holder of organization by his knowledge and art. The running of these arts and knowledge needs supporter which called staffs and are human resource of the organization. 


• HR can improve the level of management, be helper to increase the efficiency, and let the manager to be effective. 

So Human resource is as strategic assets of an organization

The Global Picture
  When it comes to business, the world is indeed becoming a smaller place. More and more companies are operating across geographic and cultural boundaries. While most have adapted to the global reality in their operations, many are lagging behind in developing the human resource policies, structures, and services that support globalization. The human resource function faces many challenges during the globalization process, including creating a global mind-set within the HR group, creating practices that will be consistently applied in different locations/offices while also maintaining the various local cultures and practices, and communicating consistent corporate culture across the entire organization. To meet these challenges, organizations need to
Consider the HR function not as just an administrative service but as a strategic business partner.
Human resource management in Bangladesh 
  Human resources constitute the most important component of modern organizations. The accomplishment of organizational missions and objectives depends, to a large extent, on having right persons in right positions as well as the commitment and contributions of those involved. This is why human resource management has acquired a growing significance in current organization theory and practice. As a matter of fact, a sound and effective human resource management is seen as the most significant variable that determines the performance of enterprise.Thus theorists and practitioners alike attach a considerable importance on the need for ensuring an efficient and effective use of human talents. Tyson and York are among others who look at human resource management as a system, a set of interdependent parts each providing an input to another. They show the logical relationships between various elements of human resource management and underscore the importance of integrating them with the overall framework of the organization.

  The matter has gained even more prominence in the recent conceptualization of human resource management. Better known as Strategic Human Resource Management, it emphasizes, among other things, the following: (i) that it is human capability and commitment which distinguish successful organizations from others; (ii) that managing human resources is a matter of truly strategic importance; (iii) that human resource management is an activity which is to be owned by all managers.

Important things to be considered:
• International Staffing: Abroad Challenges For A Human Resource Manager
• Optimizes Global Human Resources Management With Integrated Solution
• The Globalization of Human Resource Practices
• International Human Resource Management: A Comparative Analysis of HRM Practices.
• The Internationalization of Human Resource Management






 The role of international HRM includes:
• Selecting individuals with requisite skills to do a particular job,
• Tool for developing and promoting corporate culture.
• The various types of staffing policies are ethnocentric, polycentric, and geocentric. 

  Since the concept of HRM is globally, as a result the expatriates play a very crucial role. The global IHRM thus have benefited the organization.


How to create online marketplaces for global audiences

  When the world is the customer and the Web is your marketplace, even great slogans can become a barrier to entry for a prospective buyer. A memorable slogan resonates in the language it's written but is easily lost in translation.

  And that can translate into a lot of lost business. More than 85% of the world's computer-literate consumers use the Internet to make a purchase, according to recent research from The Nielsen Co., boosting the market for online shopping by 40% in two years. When those buyers search the Web, the language of choice is their native tongue.

  Companies with something to sell are paying mind, tailoring their online marketplaces to global audiences.


Importance of human resource management thesis
  To find out the importance of human resource management thesis I have to consider the following points.
1. Contributions of Internal Branding Practices to Corporate Brand Success:
2. The Subtleties of Retention - A Human Resource Management Perspective
3. To move or not to move : Factors affecting the career mobility of engineers
4. Talent Management : How firms in Sweden find and nurture value adding human resources
5. International human resource management practices for Swedish companies in California : an extension of the multinational Best IHRM Practices Project


Global Strategic Planning for the Human Resource Management:
  This planning report was created for global strategic planners who cannot be content with traditional methods of segmenting world markets. With the advent of a “borderless world”, cities become more important criteria in prioritizing markets, as opposed to regions, continents, or countries. 

The Methodology
In order to estimate the latent demand for human resource management systems (HRMS) on a city-by-city basis, I used a multi-stage approach. 

Step 1. Product Definition and Data Collection

Step 2. Filtering and Smoothing

Step 3. Filling in Missing Values

Step 4. Varying Parameter, Non-linear Estimation


Step 5. Fixed-Parameter Linear Estimation

Step 6. Aggregation and Benchmarking


Development of Human Resources in Bangladesh: 

  An Analysis of Institutional Supports 

  Bangladesh, although an agricultural country, cannot accommodate its growing population in this sector. To generate employment opportunities for the surplus workforce, it has emphasized industrialization. However, there is dearth of skilled manpower in Bangladesh both in technical and management areas.

  The focus is on:
a) The development of general work skills,  
b) Personnel skills, 
c) Financial management.

  Development in these areas is essential for the industrial development of Bangladesh. The open of the industrial sector for private investment increased the need for skilled manpower tremendously in Bangladesh.





Bangladesh: Social Welfare & Human Development

Social Welfare: 
  Since poverty alleviation is a major goal of the Government, thrust is being given on socio-economic development of the underprivileged groups. 
  The government has been implementing the following programs in the Social Welfare sector: 
(a) Urban and rural community development program. 
(b) Development services for the physically and the mentally disabled. 
(c) Development services for children. 
(d) Welfare services for the juvenile and the distressed women. 
(e) Welfare services for the aged and the infirm. 
(f) Rehabilitation program for the addicts. 
(g) Social welfare services for the beggars. 
(h) Social welfare services by non-government organizations 
Rural Development:
  More than 50% of the country's GDP comes from the rural sector. Development of this sector is thus crucial for national development. The Rural Development and Cooperatives Division of the Government are responsible for planning implementation. monitoring and evaluation of rural development programs. 

  Major function of the rural development agencies include employment and income generation, provision of credit and institutional support to rural target groups, vulnerable group development, formation of rural cooperatives, provision of health care, sanitation, safe drinking water, education etc. 

Labor and Employment:
  The present government has undertaken various measures to expand the opportunities for domestic and overseas employment. Remittances from Bangladeshis working abroad have marked a steep rise during the nineties due to a massive outflow of workers from Bangladesh.

Women and Children Affairs:
  The government is trying hard to integrate the womenfolk of the country into the mainstream of the development process which is one of the main strategies for overall economic development. Poverty, malnutrition, hunger, illiteracy, etc. are largely concentrated around womenfolk
  The National Women's Development Policy announced by the present government aims at improving the lot of the neglected womenfolk of the country, ensure equality of men and women in all spheres of national life including state, society, family, politics, administrative and economic arena.

Youth Development: 
  The youths are potentially the most productive force in Bangladesh. They constitute 36% of the total civilian labor force. Recognizing the fact that a disciplined and, organized, trained and educated youth community can make significant contribution to the development process, the government has taken up various programs for their socio- economic uplift. 
  The main objective of the youth development program is to organize and mobilize the youth community for enabling them to participate effectively in national development. 
  The major programs of the government for youth development include: - rural youth development, skill development training, sell-employment program and community development program. The youth development program is now being expanded through increased training and credit facilities.




The use and impact of human resource information systems on human resource management professionals:
  Human resource information systems usage allows the human resource professional to become a strategic player. With both increasing functionality and affordability, HRIS are being used extensively in organizations of all sizes. Despite this, surprisingly little is known about the current usage, whether disparities exist between companies of different sizes, or about the impact HRIS has on the general professional standing of the HR professional. We developed and administered a survey and gave structured interviews to assess and compare the specific areas of use and to introduce a taxonomy that provides a framework for academic discussion and comparison. We further determined whether HRIS usage was strategic, a perceived value-add for the organization, and its impact on professional standing for HR professionals. These findings were compared to those for other professions that also use MIS. Our results showed that, on average, few differences exist between SME and large company usage. Moreover, we found that the professional standing of HR professionals has been enhanced by the specific use of HRIS for strategic partnering but that this is not as pronounced as that experienced by those from other professions.


Role of Human Resource Management in Today’s Business World

  Human resources are one of the most important features of many businesses, especially in an economy where there is an increasing shift towards service-based industries. Human resources account for a large proportion of many businesses costs and it is the people that invariably drive a business.

Management of these resources therefore is an integral part of business success. The main aim of this unit is to develop an understanding of how management functions can affect the performance of business. The measure roles of human resource management are as follows:

  1. Reduce absenteeism: if staff is absent from work they are not able to carry out the function for which they have been employed. In many businesses, these functions have to be taken on by someone else- if not, the customer could suffer. Reducing absenteeism is an important feature of human resource management.

  2. Motivate the staff: motivation is an important part in reducing staff turnover and minimizing staff absenteeism. Motivation can be done by work environment and work atmosphere. Motivation is done by creating interest in the job of the staff by taking suggestion schemes, and giving out some gifts for best suggestion will definitely motivate the staff.

  3. Team work: many business places give more importance to team work. A good team consists of people with different skills, abilities and characters.
  4. Recruitment and Selection: when candidate apply for a job, a business will have to make a shortlist and draw up plans for the interview process. After short listing their is psychometric tests conducted. Psychometric tests means 3 types of tests i.e. ability test, personality test and interest test. Finally the selection is conducted.

6. Providing training programmers for the staff: The main role of human resource management is to provide its staff with training programmers on the current topics with which they can develop themselves with the present situation.


Impact of Globalization on the Human Resource Management Function 
  Globalization has a major impact on the management of human resources in developing countries. It has led to homogenization and convergence in organization strategies, structures and processes as well as in consumer choice. With accelerating globalization, organizations have had to change and new trends have set in even in the management of human resources. Globalization has led to changes in organization design and organization structures are leaner thus improving efficiency but having a negative impact on staff numbers which have had to be reduced. This means employees have been retrenched in many sectors like telecommunications, the Kenya Railways and the Kenya public service sectors in order for those organizations to gain competitive advantage. Reward management systems have changed and even the human resource planning strategy is to have a leaner staff in the core areas and to hire part time workers in a bid to reduce costs and to enable the business to run profitably and efficiently. The non-core jobs have been outsourced which has led to an increase in independent contractors to service industries. However the homogeneity that results from globalization has had a major effect in developing countries because of brain drain. Globalization can therefore be said to have had a phenomenal impact on a developing economy like Kenya which is both positive and negative as explored in the paper.


Ten Steps to a Global Human Resources Strategy

  The scarcity of qualified managers has become a major constraint on the speed with which multinational companies can expand their international sales. The growth of the knowledge-based society, along with the pressures of opening up emerging markets, has led cutting-edge global companies to recognize now more than ever that human resources and intellectual capital are as significant as financial assets in building sustainable competitive advantage. 
  The solution for multinationals is to find a way to emulate companies that have decades of experience in recruiting, training and retaining good employees across the globe. Many of these multinational companies are European, but not all. Both Unilever and the International Business Machines Corporation, for example, leverage their worldwide H.R. function as a source of competitive advantage. 

  Implementing these ideas can be broken down into 10 steps. By taking these steps, a company should be able to put into place an effective global human resources program within three to four years. 

  1. Break all the "local national" glass ceilings: The first, and perhaps most fundamental, step toward building a global H.R. program is to end all favoritism toward managers who are nationals of the country in which the company is based. Companies tend to consider nationals of their headquarters country as potential expatriates and to regard everyone else as "local nationals." But in today's global markets, such "us-versus-them" distinctions can put companies at a clear disadvantage, and there are strong reasons to discard them: 

  2. Trace your lifeline: Based on your company's business strategy, identify the activities that are essential to achieving success around the world and specify the positions that hold responsibility for performing them. These positions represent the "lifeline" of your company. Typically, they account for about 10 percent of management. 

  3. Build a global database to know who and where your talent is: The main tool of a global H.R. policy has to be a global database simply because multinational companies now have many more strategic posts scattered around the globe and must monitor the career development of many more managers. Although some multinational companies have been compiling worldwide H.R. databases over the past decade, these still tend to concentrate on posts at the top of the organization, neglecting the middle managers in the country markets and potential stars coming through the ranks. 

  4. Construct a mobility pyramid: Evaluate your managers in terms of their willingness to move to new locations as well as their ability and experience. Most H.R. departments look at mobility in black-or-white terms: "movable" or "not movable." But in today's global markets this concept should be viewed as a graduated scale and constantly reassessed because of changing circumstances in managers' lives and company opportunities. This will encourage many more managers to opt for overseas assignments and open the thinking of line and H.R. managers to different ways to use available in-house talent. 


  5. Identify your leadership capital: Build a database of your company's mix of managerial skills by persuading people to describe the information in their c.v.'s, their management talents and their potential on standard personal-profile templates. Jump-start the process by having your senior managers and those in the lifeline posts complete the forms first. Add others worldwide with the potential to move up. Include functional specialists who show general management potential. 

  6. Assess your bench strength and skills gap: Ask each executive to compare his or her skills and characteristics with the ideal requirements defined for the executive's current post and preferred next post. Invite each to propose ways to close any personal skills gaps -- for example, through in-house training, mentoring, outside courses or participation in cross-border task forces. 



  7. Recruit regularly: Search for new recruits in every important local market as regularly as you do in the headquarters country. Develop a reputation as "the company to join" among graduates of the best universities, as Citibank has in India, for example. 


  8. Advertise your posts internally: Run your own global labor market. In a large company, it is hard to keep track of the best candidates. For this reason, I.B.M. now advertises many of its posts on its worldwide Intranet. Unilever usually advertises only posts in the lower two pools, but this policy varies by country and by business unit. 


  9. Institute succession planning: Every manager in a lifeline job should be required to nominate up to three candidates who could take over that post in the next week, in three months or within a year, and their bosses should sign off on the nominations. This should go a long way toward solving succession questions, but it will not resolve them completely. 

  10. Challenge and retain your talent: Global networks that transfer knowledge and good practices run on people-to-people contact and continuity. Executive continuity also cuts down on turnover, recruitment and opportunity costs. As international competition for talent intensifies, therefore, it becomes increasingly important for companies to retain their good managers. Monetary incentives are not sufficient: the package must include challenge, personal growth and job satisfaction. 

General Challenges for Global HR Function

  Functions such as operations, sales, and marketing have generally made great progress in adapting to the global reality. However, the HR function has typically lagged behind in developing policies and structures that support globalization. The top challenges HR faces in the globalization process include:

  Coordination of activities in many different locations.

International Human Resource Solution 
  Profiles International human resources management solutions are proven and deliver significant results that will help you take your organization to the next level.
Employee Assessments 

  Through the use of Profiles International employee assessments, solutions are found for employee related problems that may have persisted for years. Our innovative and versatile employee assessments often uncover information about people that leads to revelation, perception, and understanding. This information is helpful for self-understanding, improved management, and better communication. 

 
  What is work, if not a process of continually finding solutions to problems? Each day situations arise that require evaluation, consideration, and decision. The ability to make more positive decisions than negative is the mark of successful leadership. 

  Decisions leading to satisfying solutions for the challenges you face are based on having accurate facts, statistics, and numbers. A valuable function of Profiles International employee assessments is their presentation of objective, quantified data about employees. This data is invaluable when solving people problems. 
 

  Our human resource management solutions are proven and deliver results. We measure the essential data employers need to make the best possible hiring, training, managing, and promoting decisions. Profiles International is different. Our human resource management solutions and industry leading employee assessments will help your organization succeed!
Conclusion:
  Most multinational companies now do a good job of globalizing the supply chains for all their essential raw materials -- except human resources. Players in global markets can no longer afford this blind spot. Competition for talent is intensifying, and demand far outstrips supply. To have the multicultural skills and vision they need to succeed, companies will have to put into place programs that recruit, train and retain managers in all their markets. 

  If companies are to handle the challenges of globalization and shift to a knowledge-based economy, they must develop systems that "walk their talk" that people are their most valuable resource. The purpose of a global H.R. program is to insure that a multinational company has the right talent, managerial mobility and cultural mix to manage effectively all of its operating units and growth opportunities and that its managers mesh into a knowledge-sharing network with common values.  


  Human resource management is very important for the changing the global scenario. Actually Human resource management is the basic thing for the changing global world. All thing of the world is changing because of human resource management.

Assigment prepared by Jowel

BBA and  MBA 

AUB