Date of Submission
Globalization of Innovation is the key for the production as well as processing of knowledge in an organization for last few decades. Indeed organizations ability to convert knowledge into wealth and social good through the process of innovation determines its future.
The companies are facing a great development in the global markets resulted from globalization. Therefore, they are thinking of a new generation of managers, which we call global managers. They have a wide viewpoint of unexpected environmental changes that needs a fast and right decision to make. The old generations of managers don’t have this competency. So, they can’t adapt with the new environment. (Kanter, 1995,p.149).
The entry of multinationals has also brought in fundamental changes in the work culture, work ethics and remunerating patterns in many countries, all of which have a clear bearing on the career growth path of individuals. Added to this are the rapid changes taking place on the technological front, flattening hierarchies and making people come together more than ever before. Amidst all this change, the high ethical standards of an individual, be it a workman on the shop floor or the global manager, matter more now than ever. The dual ethical standards often maintained by people front-often the exact opposites when it comes of the way they conduct business are counterproductive in the long run. The new authority is emerging and organizations are member led, officer driven, customer focused; a team environment where the whole is greater than the sum of its parts; a flat management structure where employees and managers are learning rather than blame; a clear since of direction and purpose. A firm commitment to delivering high quality public services through a combination of direct-provision and effective partnerships.
The global manager must be open-minded and ready to accept changes. He must be well oriented and trained on the new technologies, good communicator and good negotiator, too. All of that makes him more efficient, competitive and globally opened without distinguishing between religions, colors, genders and roots.
Human resource Management in Global context
Human resource Management is, perhaps, the oldest and most widely researched subject in management. Yet, as technologies change, cultural diversities occur and people’s expectations undergo fundamental shifts towards newer and newer dimensions. For instance, professionals are gaining more say in the running of organizations. Even where governance is by people who own the majority stakes, their own positions and the respect they command are contingent upon their competence rather than ownership.
“ Management is the art of getting things done through other people. Management is the dynamic, life-giving element in every business. Without it the resources of production remain resources and never become production.” (Prasad, 2006,p.260)
This definition emphasizes that the global managers achieve organizational objectives getting things done through the employees. Human resource Management is very essential for successful running of an enterprise. It ensures proper use of physical and human resources by deriving the best results. It leads to efficient performance and higher productivity. Human Resource Management is very essential for every organization to make productive use of human physical and financial resources or the achievement of the organizational goals. It helps in determination of objectives. No organization can succeed in tits mission unless its objectives an identified and well denied. Management helps in achieving these objectives by the efficient use of resources.
Cross Cultural Management:
First, no organization can be isolated from cultural environment, that is, organization as a social unit must operate within the framework of the larger cultural system. As such, a congruency has to be maintained with the values of total culture. Second, organization may be considered as a subculture within the framework of total broader culture. No doubt, every organization develops its own norms and cultural pattern of behavior; these elements are developed within the context of the larger cultural pattern. No part of the system should go against it if both have to succeed. From this point of view, the culture affects the functioning of an organization. (Buchanan, 1974,p.534)
The study of the behavior of individuals in organization around the world. This study attempts to extend the study of demotic management to take in global and multicultural consideration.
Skills require for the new global MGT:
Global strategic skills:
When the managers try to shift their work globally, they will need working knowledge such as:
Ø International relationships.
Ø Foreign affairs.
Ø Global financial market
Ø International law
Ø Exchange rate movement
And they must understand:
Ø Global economies of scale
Ø Work ethics of employees
Ø Host government policies
Team Building Skills:
The need of work teams increased as a result of the complexity of global operations. These teams work include culturally diverse groups. These kinds of teams have many advantages; one of these advantages is to avoid cultural dominance. (Buchanan, 1974,p.538)
Cross-cultural communication often results in misunderstanding caused by misperception, misinterpretation, and misevaluation. This misunderstanding can be avoided if managers possessed multilingual skills and high levels of cross cultural awareness and sensitivity
MULTINATIONAL CORPORATION (MNC)
Head quartered in one country, with operations in different nations. Each operation is viewed as a separate enterprise, pursuing a specialized market with a particular product.
Human Resources for International Assignment:
Host country nationals, workers from local population. For example, P&G employed Saudi workers for its operation.
Parent country nationals, employees sent from the country in which the organization is headquartered.
Third country nationals, employees that from country other than where the parent organization’s headquarters are located.
The changing face of British organizations
The 1980’s and 1990’s have been a period of intense change in what might be termed as the ‘external face’ of organizations in the UK, with profound implications of organizational structure. Four developments have been especially important, namely the changing portfolios of many companies, internationalization, privatization and externalization.
The table below gives some impression of the sheer magnitude of the change-taking place in the composition of the portfolios the UK companies. It comes from the Second Company Level Industrial Relations Survey (CLIRS) of 176 companies, with more than 1,000 employees in the UK carried out in 1995 by the Industrial Relations Research unit. Over the previous five years, more than two thirds reported cases of merger and acquisitions and similar number reported investments in new countries (Tyson, 2003, p.58)
Extent and sources of organizational change due to globalization
Percent mentioning UK Dom UK Int.` O/seas All
No change 6 8 3 7
Extent of changes in UK enterprise over 5-year period
Merger and acquisition 65 78 67 70
Investments in new locations 72 66 64 65
Expansion at existing sites 58 72 69 66
Formation of joint ventures 24 52 33 36
Sources of changes in internal structure
Internal growth of business 54 58 44 53
Major new acquisitions 44 38 36 40
Major new diversification 14 15 21 16
Shift from production to market logic 25 22 31 25
Increased accountability to business unit 43 57 67 53
Decentralization 22 32 21 26
Base: All companies
Source: Marginson et al (1995:21)
FACTORS IN EXPATRIATE MANAGERS’ SUCCESS & FAILURE:
In an organization, the activities of global manager directed towards meeting the following general objectives for Improving Productivity for Teams:
i. Optimum utilization of resources.
The main objective global manager in international organizations is to secure maximum output with minimum efforts and resources. Human Resource management is basically concerned with utilizing the human and material resources available to enterprise for deriving the best results. This leads to reduction in the cost of production.
ii. Increasing efficiency of factors of production.
Through proper utilization of various factors of production like capital and labor, global manager leads to avoidance of wastage of time money and efforts, This leads to increase in the productivity of all factors of production and thus encourages the growth of an enterprise in global environment.
iii. Securing maximum prosperity for employers and employees.
This is one of the main objectives of global manager in an organization and aims at securing maximum prosperity for the employers by generating high profits at minimum cost. It also aims at prosperity for the employees by providing reasonable remuneration and other benefits for their services to the organization.
iv. Ensuring human betterment and social justice.
Global managers in an organization also aim to raise the standard of living and quality of life of people. It provides more leisure and amenities to people. Management provides social justice through its uniform policies.
What does it take to be a global manager?
Globalization is at different levels have tremendous influence over International HRM policies and practices an organization. In side an organization at various levels, processes of functional realignment taking place in response to globalization (Sparrow, Brewster and Harris, 2004;p. 125).
There are five factors that drives for International human resource function in the organizational strategy of globalizing firms are:
Ø Efficiency of the organization
Ø Information exchange/organizational learning
Ø Global provision
Ø Core business process convergence; and
Ø Localization (Brewster, Sparrow and Harris, 2005, p. 945)
The External Environment
Global organization is also affected by the economic, political, legal, social, technological and international variables of the times. All global managers, whether they work in the public or private sector, operate in the same external environment. They face common pressures that the environment exerts on them. However, the nature of their work and the type of organization they work for will determine how these common environmental factors are perceived – whether they are seen as positive or negative, threats or opportunities. (Yvonne 15)
As well as being aware of the influence of the external environment, managers should also be conscious of the internal environment of their organization. Factors to consider include: the culture/climate of the organization; the pressures being generated by change (whether the introduction of new technology or a recent takeover or merger); union or professional association activities; changing workloads; staffing issues; the nature of reporting and communication channels; level of morale; the profitability and/or effectiveness of the organization.
Global Managers should keep informed about important factors and developments in both their external and internal environments. They can do this by constantly ‘scanning’ their environment, which is, by establishing and maintaining a network of contacts, maintaining good communication channels, keeping up-to-date in their field and monitoring important issues and activities. (Yvonne 16)
Global managers adapt various human resources strategies and the
Objectives: transformational change- change to what happens
Aimed at: organizational renewal
Subjects: Organizational development, change management, culture values
Objectives: transactional change- changes to procedures, systems processes
Aimed at: Particular sources of competitive advantage
Subjects: Employee sourcing Differentiated according to
Employee development management ideologies
Employee relations e.g. ‘hard v soft’ contracting
Examples: Revised employments contract, total compensation approaches new forms of consultations.
Source: Tyson, 2003, page 17
A specific need for global skills training:
Training and Development
Global managers should focus on training activity, which provides employees with knowledge, and activities, which provides employees with knowledge and skill to satisfy immediate job requirements. Development refers to more general activities, which prepare employees for longer-tem opportunities (Yvonne, 1999,p.85).
Providing training and development usually follows four steps:
(a) Identifying employees training and development needs;
(b) Developing a training plan for each individual;
(c) Selecting or designing or conducting training activities;
(d) Evaluating the results.
There are three main methods of identifying training needs in an organization:
i. New employees – training is required immediately in order for the employees to perform the work satisfactorily.
ii. Performance appraisals – an employee’s output may indicate that further training is required, or he or she may request training in a specific area.
iii. Future needs – employees are trained in anticipation of future needs (often involving the use of technology).
Improving The Work Environment
People whose work is highly specialized, repetitive and routine may become dissatisfied with their job. This dissatisfaction often shows itself by reduced output, increased absenteeism and high staff turnover. This very quickly reduces effectiveness of a work area, and influences the effectiveness of the whole organization. A number of approaches have been developed to try to overcome this problem.
Job enlargement increases the scope of the job. Employees are given more variety in order to increase job satisfaction. Usually various work functions from a horizontal slice of a work area are combined, giving employees more tasks to perform. Sometimes tasks are rearranged between several employees so that each employee gets a sense of the wholeness of a job (Yvonne, 1999,p.115).
With this approach individual employees may be given responsibility for deciding the best way to perform a particular task, and for correcting their own errors. They may also be involved in making decisions, which affect their own work areas.
Job rotation is a system whereby employees move from one job to another. This rotation may occur over various time spans, from, say, every two hours, to every week or month. It gives employees increased variety, and helps to relieve the monotony of routine, repetitive work. It also gives employees the opportunity to develop different skills, and mix with different people (Yvonne, 1999,p.135).
Semi-autonomous Work Groups
Semi-autonomous work groups are groups of employees working together, who se largely self-sufficient in terms of managing the tasks and functions for which they are responsible. This approach gives employees a sense of identity with, and responsibility to, the group. (Yvonne, 1999,p.147)
Benchmarking Outstanding Practice for Global Managers
Purpose of Human Resource Department
One of the important objective/purpose of Human Resource Department is to build the organization culture, viz.,
There is a need for benchmarking and adopting outstanding practices and processes from organizations any where in the world in order to help the organization to improve its performance. Benchmarking is an on going task at all levels of business in finding and implementing the world’s best practices. It is classical Total Quality Management (Prasad, 2006,p.262). The approach has proved to be effective not only in providing new ideas for change but also in building a commitment to change.
Total Quality Management (TQM)
Total Productive Maintenance (TPM)
Just in Time (JIT)
Quality Circles (QCs) etc.
Total Quality Management refers to an integrated organization approach in satisfying customers (both external and internal) by meeting their expectations on a continuous basis; by involving all the employees or organization, working on continuous improvement in all products/processes, and adopting structured problem-solving methods (Prasad, 2006,p.268).
The main elements of TQM are:
A quality policy and commitment to it.
Teamwork and positive culture.
Total employee involvement (TEI);
Appropriate methods/process/technology which prevent the problems
Problem solving tools/procedures (quality system approach).
Education and Training
Quality audits and reviews.
1. Total Employee Involvement (TEI), can be attained by company wide training and education in quality systems and practices. The introduction of small group activities, called quality circles, has also made employees participate in the quality improvement programme, resulting in an enhancement in quality. The implementation of TQM is an integrated approach, and for an organization in pursuit of excellence with a long-term perspective, its implementation as an integrated approach along with JIT, TPM and TEI can be more rewarding. (Prasad, 2006,p.272)
2. Total Productive Maintenance (TPM) is directed at improving equipment. TPM aims at maximizing effectiveness of equipment with a total system of preventive maintenance covering for entire lifetime of the equipment. Total Productive Maintenance involves everyone in all departments and at all levels.
3. Just in Time (JIT) is the approach to material management and control. Just in Time is more than a new way of handling material management. Just in Time is a structural approach in a manufacturing organization focused on improving timeliness; quality, productivity and flexibility initializing various resources, as well as work simplification and waste reduction.
4. Quality Circles (QC) are a small group activity to solve work-related problems, involving members performing the same task. The management should facilitate this small group activity to function more effectively. (Prasad, 2006,p.278)
Globalization refers to “the compression of the world and the intensification of consciousness of the world as a whole in thought and action, it makes the world a single place”. The most easily understandable force is the sheer shrinkage of the earth, not in diameter, but by the speed of the jet planes with which human beings move about now days. Organizations operate in increasingly fast-changing International environments, their reliance on bureaucratic, formal systems as a basis for human resource management gives way to an emphasis on informal, social mechanisms, which allow for flexibility, revisability, and a greater voice for employees. Such a shift places a strong emphasis on global manager’s commitment to the evaluation and development of colleagues and subordinates and demands of employees a tolerance of ambiguity, which can be both daunting and challenging.
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