International HRM

International HRM

International Human Resource Management (IHRM) can be defined as a set of activities targeting human resource management at the international level. It strives to meet organizational objectives and achieve a competitive advantage over competitors at the national and international levels.

Boxall, (1992) defined International Human Resource Management (IHRM) as ‘concerned with the human resource problems of multinational firms in foreign subsidiaries (such as expatriate management) or more broadly, with the unfolding HRM issues that are associated with the various stages of the internationalization process. International human resource management is the process of managing people across international boundaries by multinational companies. It involves the worldwide management of people, not just the management of expatriates (Armstrong, 2009).

Challenges faced by International HRM

·         Cross-culture issues.

·         Training and Development to a set of people from different nations.

·         Remuneration and salary package.

·         Setting standard performance appraisal to people from different cultures.

·         Managing international staffing.

As reported by Welfare (2006), the main contrast between national and global HR practice is the need to see the bigger picture: ‘The difference is the higher complexity and the need for sensitivity to different cultures and different business environments.

International HRM/  Source: www.slideshare.net

Advantages of International HRM

• Groups within the subsidiary can gain in status
• Groups within the subsidiary become more cohesive, fostering group identity
• IHRM takes place within a culture appropriate to the local workforce and customers

Disadvantages of International HRM

• Tendency to become 'exclusive'.
• Loss of central control, higher administrative costs as HRM function is sent 'down the line
• Loss of organizational control and organizational identity

Globalization & HR: Certain Uncertainty/ Source: www.youtube.com

Due to globalization and the implementation of IHRM, the Srilankan economy and people receive more advantages, for example, foreign investment is a significant driver of economic development. The investments contribute and improve work ethics, discipline, skills, and knowledge of workers. It is an important means of technology transfer and transmission of best practices in management and often brings with them international markets (Weerakkody, 2016).

References

Armstrong, M. (2009). Armstrong's Handbook of Human Resource Management Practice. London: Kogan Page.

Boxall, C. P. (1992). Strategic human resource management: where have we come from and where should we be going? UK.

Weerakkody, D. (2016, November 04). Daily Mirror. Retrieved October 05, 2019, from Daily Mirror: http://www.dailymirror.lk/article/The-need-for-BOI-to-become-more-competitive--118657.html

Welfare, S (2006) A whole world out there: managing global HR, IRS Employment Review, 862, 29 December

Soumya Sahoo (2012). International hrm. [online] Available at: https://www.slideshare.net/SoumyaSahoo1/international-hrm-15512350 [Accessed 21 Jun. 2020].

studyofwork (2014). Globalization & HR: Certain Uncertainty. YouTube. Available at: https://www.youtube.com/watch?v=kqr8r8r95x0 [Accessed 19 Oct. 2019].

Corporate Social Responsibility in HRM

Introduction

Today’s organizations are immersed in a global market any detail can provide a competitive advantage over rival companies and condition their sustainability. Corporate Social Responsibility and Human Resource Management have become very powerful tools within companies.

Armstrong (2014) noted that corporate social responsibility is exercised by organizations when they carry on their business in an ethical way, taking account of the social, environmental and economic impact of how they operate and going beyond compliance.

CSR and its growing importance/ Source: greatepeopleinside.com 

CSR in the Global context

Companies agree that CSR will lead the progress toward long-term societal improvement. Once meant a couple of big financial donations a year, but now organizations are investing more than just their money. Current CSR trends are much more about strategically aligning philanthropic work with business goals in order to bolster both.

2020 CSR Trends

·         Sustainable Development Goals

·         Synergistic Approach

·         Measurement

·         Corporate Activism

·         Employee Volunteer Programs

CSR in ABC Bank

ABC bank considers CSR as an ingrained aspect of the organization process and hence strives to develop a sustainable existence for all stakeholder categories of society through CSR initiatives. The CSR initiatives of the Bank go beyond the natural obligations which govern our activities in the ordinary course of business and aspire to attain the ultimate objective of the CSR by being sensitive to societal needs.

With proven expertise and professionalism in banking and finance, the Bank mainly focuses its CSR efforts towards economic development growth of the individual and society at large.

The bank's CSR initiative is tripartite in nature and is facilitated through the contribution by the Bank, Team and the Community

What is corporate social responsibility/ Source: www.youtube.com

Conclusion

Corporate Social Responsibility (CSR) and Human Resource Management (HRM) have evolved and interacted over time, but both are described and analyzed from different perspectives. CSR and HRM-related because of their ecological foundations, but also economic and social, although not without controversy, with sustainability. The implementation of CSR in business organizations and the interconnection with all its subsystems, in particular with HR, has awakened interest, causing literary production that interrelates CSR and HRM.

Post-Author: Sameera Galagoda

Reference         

                       

Armstrong, M (2014) Armstrong’s Handbook of Human Resource Management Practice. London, Koganpage

EVERFI. (2019). 5 Corporate Social Responsibility Trends for 2020 | EVERFI CSR. [online] Available at: https://everfi.com/blog/community-engagement/corporate-social-responsibility-trends/.

great people inside (2018). CSR and Its Growing Importance - Great People Inside. [online] Great People Inside. Available at: https://greatpeopleinside.com/csr-growing-importance/ [Accessed 11 Dec. 2019].

Servier International (2019). What is Corporate social responsibility (#CSR) ? YouTube. Available at: https://www.youtube.com/watch?v=1bpf_sHebLI [Accessed 18 Jun. 2020].

Employee Engagement towards high performance

Introduction

The importance of employee engagement is it helps to improve productivity and efficiency, retain customers, and make more profits. Most importantly, when the employee engaged, it means everything the employee does with purpose, energy, and enthusiasm.

The Gallup Organization (2006), simply states that it ‘is the involvement with, and enthusiasm for, work’ (Vance2006a, b).  Further, It has elaborated by referring to engaged employees as those who ‘work with a passion and feel a profound connection to their company and drive innovation and move the organization forward ( Gallup Organization, 2006 cited in Storey et al.2009,p.300).

Employee engagement measured/Source:hr.toolbox.com

Global trends in employee engagement – Air Canada (Durinski, 2020)

• At the 2019 ACE conference for HR innovators, people leaders at Air Canada, shared their best practices for engaging their people in 2020.
• Air Canada employees have non-traditional jobs. They may be working with a colleague or crew they’ve never met before, so Air Canada has to work very hard to help employees feel connected to the company. 
• In order to address the challenge, Air Canada finds other nimble ways to interact with staff. That includes managers having a quick huddle at the aircraft before the crew boards or managers flying with the crew to spend time with them during layovers.
• Rewarding employee publicly and regularly. Even when managers fly with the crew and recognize their accomplishments, public glory can still be more rewarding than just private ones. 

Employee engagement Air Canada/ Source:sproutsocial.com

Employee engagement of ABC Bank

• Career growth

All staff members of ABC Bank are entitled for promotions once  they complete the promotion criteria

• Opportunity for innovation

It is necessary to provide new ideas and Management consider such innovative concepts when making policy decisions.

• Encouragement for personal development

Every employee should acquire academic and professional qualifications in order to go through the annual evaluation process.

• Proper communication

Well organized communication system is established throughout the bank. Employees are encouraged to communicate with top management at any time.

Daniel Goleman's Reponse to Gallup Employee Engagement Survey/ Source: www.youtube.com

Conclusion

Employee engagement cannot be identified as employee satisfaction. Many Organizations have employee satisfaction, but a satisfied employee might work for the organization without any complaint. But might not go the extra effort on own.

Therefore, the concept of employee engagement will go beyond employee satisfaction. An engaged employee will go extra mile for the organization and will be loyal too.

Post-Author: Sameera Galagoda

Reference

Durinski, T., 2020. 2020 Employee Engagement Trends Tips from Today’s Leading CHROs and HR Executives. 1st ed. https://www.humanresourcestoday.com/2020/

employee-engagement/trends/?open-article-id=12620673&article-title=2020-employee-engagement-trends&blog-domain=achievers.com&blog-title=achievers-: Human Resource Today.

Sprout Social. 2020. The Importance of Employee Engagement | Sprout Social. [ONLINE] Available at: https://sproutsocial.com/insights/importance-of-employee-engagement/.

Storey, J., Ulrich, D., Write, P. and Welbourn, T., 2009. The Routledge Companion to Strategic Human Resource Management. 1st ed. British Library cataloging publication, Keystock , 28, High street, Tettonhall, wolverhampton: British Library cataloging publication.

YouTube. 2020. YouTube. [ONLINE] Available at: https://www.youtube.com/watch?v=Aklzn18EIcM. [Accessed 20 June 2020].

Organizational Culture and Employee Turnover

Organizational Culture

Organizational culture works a lot like this. Every company has its own unique personality, just like people do. The unique personality of an organization is referred to as its culture. In groups of people who work together, organizational culture is an invisible but powerful force that influences the behavior of the members of that group.

Under this set of definitions, organizational culture is a set of shared assumptions that guide what happens in organizations by defining appropriate behavior for various situations (Ravasi & Schultz, 2006). Organizational culture affects the way people and groups interact with each other, with clients, and with stakeholders. Also, organizational culture may influence how much employees identify with their organization (Schrodt, 2002).

Relationship between Organizational Culture and Employee Turnover

Turnover is the number or percentage of employees who leave an organization either voluntarily or involuntarily and are replaced by new employees. Employee turnover is one of the most costly human resource challenges confronting both public and private organizations. High turnover has been experienced in many organizations due to globalization and technological advancement which have increased mobility of highly skilled employees and also competition. As per Armstrong (2009), a high rate of attrition can destabilize business and demotivate those who attempt to maintain a level of service and output against a background of vacant posts, experienced staff, and general discontent. So the culture or behavior has a direct impact on employee turnover ratio. A motivational and inspired culture will positively impact employee turnover and which directly connect with employee satisfaction as per Smith, Kendall, and Huhn (1969) contend that satisfied employees are those who have a positive attitude and achieve positive results for their organization as well as in relation to their jobs.   

Source : YouTube - Employee Turnover

References

Armstrong, M. (2009). Armstrong's handbook of human resource management

Ravasi, D.; Schultz, M. (2006). “Responding to organizational identity threats: Exploring the role of organizational culture”. Academy of Management Journal.

Schrodt, P (2002). “The relationship between organizational identification and organizational culture: Employee perceptions of culture and identification in a retail sales organization”. Communication Studies 53: 189–202.

Smith K, Kendall LJ (1969). Hulin. Measurement of Satisfaction, 3. Smith PC, Kendall LM, Huhn CL (1969). The measurement of satisfaction in work and retirement Chicago Rand McNally

Job Design

Job design is the process of organizing work into the tasks required to perform a specific job in an organization. This means task, duties, responsibilities, qualifications, methods and relationships required to perform the given set of a job.

Job  design  is  in  fact  a  combination  of  job  content  and  the  work  method  which  has  been  adopted  in  the performance of the job (Durai, 2010). Further, job rotation and job enlargement were developed in order to be benefited from the job specialization stemming from the job engineering approach (Ali & Aroosiya, 2012). Job design should start with an analysis of task requirements, namely what should be done, and then it should take into account the following motivating characteristics: autonomy, responsibility, discretion, and finally self-control (Armstrong, 2003).

There are several important methods and techniques that the management uses while designing the jobs. Those are.

Source: Business Jargon

Job Simplification: The job is simplified by breaking it down into small sub-parts. Then, each part of the job is assigned to a worker who does the same task over and over again.

Job Rotation: Job rotation implies the moving of employees from job to job without any change in the job.

Job Enrichment: Job enrichment involves adding motivating factors to a job. Thus, job enrichment is a vertical expansion of a job by adding more responsibility and freedom to do it.

Job Enlargement: Job enlargement involves adding more tasks to a job. This is a horizontal expansion in a job by adding more tasks to the job.

Advantages of Job Design

• Job design helps create a job profile which can motivate the employees at the workplace and reduce dissatisfaction.
• This ensures that the job is simplified or broken down to employees, especially for those who have limited skills and are lesser learned.
• Effective job design can expose the employees to a wider set of roles and help them understand the best role suited to them.
• Job enrichment method of the design ensures more value addition & decision-making power, which ensures personal as well as professional growth.
• Job design also sees what training and development is required for employees to increase employee productivity.
• It can help understand the employee output, efficiency, work-load and the number of hours required for work vs rest.

Source: YouTube – Job design in organizations

References

Ali, H., & Aroosiya, M. (2012). Digital Respository. Retrieved Jun 2020, from University of Kelaniya: http://repository.kln.ac.lk/handle/123456789/7162

Armstrong, M. (2003). A Handbook of Human Resource Management Practice. Kogan Page.

Durai, P. (2010). Human Resource Management. Pearson Education India: Delhi.

Employee Relations

Employee Relations

The relationship between employee and employer is very important for any organization. To keep the relationship almost every organization have their methods to communicate the employee needs and managing organizational change to motivate their employees. 

According to Armstrong, (2014) Employee or employment relations are concerned with managing and maintaining the employment relationship. it involves handling the pay work bargain, dealing with employment practices, terms, and conditions of employment, issues arising from employment, providing employees with a voice, and communicating with employees.

The global context of employee relations

Referencing to the studies of Biswas et al., (2018) following main global Employee Relations Trends were being identified.                                        

1. "Centralization of the Employee Relation function

2.  An increasing focus on metrics and analytics

3.  Workplace safety will be in the spotlight".

Employee relations strategy of ABC bank

Proper communication and some strategies of ABC bank preserves a high-quality Sustainable Employee relationship. Its employees are rewarded, career development opportunities are highly available and employment always looks for personal and family matters like sickness, funerals, studies when they needed it.

Conclusion

The benefits of trade unions depend on their circumstances. If they face a monopsony employer they can help counterbalance the employer’s market power. In this case, they can increase wages without causing unemployment. If unions become too powerful and they force wages to be too high, then they may cause unemployment and inflation. It also depends very much on the nature of the relationship between trade unions and employers. If relations are good and constructive, the union can be a partner with the firm in maintaining a successful business, which helps protect jobs and higher wages. However, if the relationship between trade unions and the management becomes confrontational, it can escalate into destructive partnerships which cause a decline in profitability and put the long-term security of jobs at risk.

References

Armstrong, M., (2014) Hand Book of Human Resource Management, Pages 260-  13^th Edition. Kogan Page. London.

Biswas, K., Prikshat, V., Nankervis, A., & Hoquel, R. M. (2018). Bangladesh HR professionals’ competencies: Impact on firm performance and moderating effects of organisation life cycle. Emerald Publishing Limited.

Performance Management

Performance management is a key driver in enhancing organizational success. Employees are required to understand their expected contribution to business objectives and be motivated and equipped with the skills, resources, and support to achieve this. In the recent past, good performance management processes revealed in ongoing conversations on progress towards objectives. Though the measuring tools differ, people managers at all levels should reinforce the organizational purpose and link objectives at the department and individual levels by help supporting both employees and the organization, through a unique performance management system.

Performance Management is a process of both strategic and integrated approaches to delivering successful results in organizations by improving the performance and developing the capabilities of teams and individuals (Armstrong, 2009).  

Performance Management Cycle

Source: https://images.app.goo.gl/fXUfDbQn9GwvP7NJ7

Why Performance Management important

The overall objective of performance management is to develop the capacity of people to meet and exceed expectations and to achieve their full potential to the benefit of themselves and the organization. Performance management provides the basis for self-development but importantly, it is also about ensuring that the support and guidance people need to develop and improve are readily available. When employees fail in their jobs, part of the organization also fails. Performance management's target is to eliminate or at least significantly reduce this possibility (Cappelli, 2008).

Source: https://images.app.goo.gl/M7FgyYVsqUoJKFRk7

Global trends in Performance Management

Many employers today take continuous efforts to the performance management system. For example, at Toyota Motors Lexington, Kentucky, Camry plant, the supervisors don not sit with individual employees to fill out forms and appraise them. Instead of it, teams of employees monitor their results, even posting individual daily performance

Source: YouTube - Changing trends in performance management 

Performance Management in ABC Bank

Employees are given realistic targets which include in their key performance indicators based on that and closely monitoring the behavior of employees in the process. Identifying the training and development needs and the job role of employees is also recognized by the process. Employees are rewarded financially and developed personally on their performances.

Conclusion

By carrying out performance management properly, people can be rewarded by recognition through feedback, providing opportunities to achieve, identifying the scope to improve skills, and direction on a career path. The real aim of setting objectives is for people to know exactly what it is they have to do when they have done it, that they can do it, why they have to do it and that it is something they should be doing, and how they are progressing along the way

 Post Author : Sameera Galagoda

REFERENCES

Armstrong, M. (2009) Armstrong's Handbook of Human Resource Management Practice r HR. 11th ed. UK: Kogan Page.

Aguinis, H (2005) Performance Management, Upper Saddle River NJ, Pearson Education

Cappelli, P (2008) Talent on Demand: Managing talent in an uncertain age, Boston, MA, Harvard Business School Press

Changing trends in performance management. (2017). YouTube. Available at: https://www.youtube.com/watch?v=PfXEceZzND0.