The scenario of this report is based on human resource activities within a multinational organisation in order to analyze the role of leading, training and developing a workforce across the globe as well as setting up an effective global virtual team of managers.
- Determine the role of internal business practices by considering major policies.
- Discuss the characteristic of organizational and national culture in order to manager diversity easily.
- Evaluate the opportunities and challenges related to managing diverse workforce globally in order to attain organizational goals.
- Identify the factors that can provide contribution in globalized economy in order to create awareness over the accountable international policies.
- Evaluate the clear application of team working skills and cultural awareness with the help of a member of global virtual team.
Critically evaluating the opportunities and challenges of leading a workforce in a globalised economy to create value and achieve the organisational mission.
Impact of culture on HRM policies and practices
Human resource management plays an integral role in the management. They are duly responsible to handle the workforce with a greater contribution in attaining the organisational mission. This is basically on considering the fact where the HR personnel’s are directly in touch with that to the appointed workforce who then also share their concerns and grievances to them. This leads to create yet another prime responsibility of the HR’s in order to resolve such pertaining issues at the workplace with a quick and answerable approach (Brewster and et.al., 2016). It is with a special consideration of those operating at a global level that are required to work within a diversified culture of work with people coming from different socio- cultural background. This becomes important for the HR’s to handle such a varied culture at the workplace where people having distinct perceptions can easily get into a disputed state of conflict leading to create a negative environment at the workplace. This demonstrates the fact where an espoused culture is apparent to impact upon the undertaken policies and practices of HR. It is on referring to the notion of internationalization that is a necessity for almost all sorts of companies, irrespective of their nature and type of work.
This is mainly to operate at a worldwide level by enlarging the existent base of customers where adopting the tactic of internationalization as a strategic approach increases the challenges of HRM. It is basically to comply with distinct set of socio- cultural and religious opinions. A vital problem related to it is in association to handle such a diversified workforce with employees hired from distinct countries with their dissimilar values and attitude towards the work. Nationality of individuals is apparent to impact upon the means they choose to carry out and arrange the work assigned to them (Reiche and et. Al., 2016). This formed the definition of International Human Resource Management or IHRM as a procedure by which the entities operating at an international level can consider managing its workers who belongs to a different set of nation with distinct cultural morals and principles. For this, it is important for the concerned bodies of IHRM to have proper data to handle such cultural dissimilarity at the workplace by paying a special attention at the time of designing the work related policies. While framing such policies, it is important to consider whether the standardised procedures will be implemented all over the globe or not.
Beside this, there exists a direct link among the cultural variables as well as the accepted policies of HRM in an organization. Mostly, an adopted culture is known to make a direct impact on the undertaken structure of globally operating organizations (Kuusela, 2013). It also impacts upon the applied measures of recruitment by deciding the pattern of benefits and compensations, etc. This is for instance an establishment may or may not opt to pay performance based wage or incentives to its employees if it is functioning in a nation that is placed high on individualism. Below are some detailed HRM policies with a chance of getting affected from culture-
- Impact on recruitment- This is on considering the hiring policies of organisations that differs from their domestic projects with that to their overseas projects. The concept of internationalization necessitates HR to hire candidates on the basis of 3 major policies namely, Ethnocentrism, Poly-centrism and Geo-centrism. The ethnocentrism shows the dominance of an organisation expanding their operations in an internal market with similar norms and regulations as they used to follow in their domestic marketplace (Cascio, 2018). This in turn creates a sense of negativity in the workers operating in the host nation where they consider it to be a very self-centred process of work. Another is in regard to specify about the tact of polycentrism which regards distinct cultural norms of international market with a specially appointed local manager to administrate the functions of expanded market. Lastly, the concept of geo- centrism states esteems the necessity of regarding distinct socio- cultural norms where people are hired to work in any country and themselves understand such dissimilar values and beliefs.
- Impact on training- Another relative fact of working at a universal level is to understand the kind of work in a company, along with its adopted cultural standards. However, it is referred to be a challenging process for the manager to train individuals belonging to different set of culture with dissimilar choices of food, dressing practices and language, etc., (Bratton and Gold, 2017). This is for example to consider the views of American employees who believes in marinating a minimum distance of 6 inches while making interpersonal communication. Whereas, in contrast to it, the Arab people favours to communicate closely. Likewise, the importance of words as well as gestures differs from one country to another. This creates more difficulty for the individuals coming from different backgrounds to effectively interact with one another and the HR managers face challenges to train them.
- Impact on rewards and compensations- The compensation policies necessitates the organisations operating at worldwide level to consider several aspects of tax structure in a nation, pension scheme, people’s cost of living and policies of retirement, etc., (Armstrong and Taylor, 2014). It is therefore important for the HR managers to consider all such differing aspects of different nations while framing effective compensation related policies in an enterprise. Also, the payment to individuals employed to operate at international locations must get more wages in comparison to what they used to get in the domestic countries.
This is to discourse upon the abilities of global leaders by developing a key understanding of such organisational as well as national ethnic features to successfully manage a diversified workforce. For this, it is firstly important to determine the national cultural characteristics in the work setting. This is on considering the fact where the workers in a healthy work culture comprised with high morals and uprightness comes to work with a willing sense instead of coming only because they are ought to (Brewster, 2017). But, in case, maltreatment becomes a part of culture, it directly impacts upon the worker’s productivity by directly impacting upon people’s as well as organisation’s overall performance.
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