The Evolution of HRM
For quite sometimes, in the 1990s, how human resources (HR) and the performance of an organization relate has gotten a large study. Ann Bartel (1994), says that embracing training increase the productiveness of labor in the production industry. Mark evaluated how “high-performance work practices” as well as the maneuvering of an organization relate. It was found that innovative practices result in an increased employee commitment. Therefore, it can be deduced that the practices of human resource management increase labor the performance of an organization as well as its productivity. The real query is whether the same applies to international HRM context. We ought to explore, how proper training improves multinational corporations.
Something that we ought to appreciate is that good organizational performance involves both profitability and employee satisfaction. Glenn Llopis (2013) says that in most of the times employees appreciate employers who are willing to value their the work they do. The appreciation of employees is shown by work-life programs, how payments are made and the benefits got as well as the nature of working conditions. Higher employee satisfaction is brought about by treatment of all employees fairly and consistently by companies with good employee relations (ER).
Companies and trade unions usually negotiate pay, work-life balance, and benefits. However, it feels like the labor unions have apparently lost its value today. As a result, therefore, the paper will finally explore whether collective bargaining can efficiently be employed today and “whether trade unions are an important factor in international HRM.” This gives precise feedback to “how successful employee relations, from an international HRM perspective, contribute to organizational performance?” This assignment will involve broad handling of the concept of employee voice as an efficient way of valuing the opinions of employees as well as enhancing their participation and decision making involvement.
This paper will begin by the definition of main concepts like “HRM and international HRM; the components of international HRM; HR functions and how to approach their implementation; as well as strategic HRM.”
How successful international human resources management results to organizational performance
According to a popular historical belief, HR practices started in the ancient armies, with an increased demand for good organization and command by soldiers from their leaders. In the contemporary world, when HR activities are properly executed and applied they bring about a huge benefit in business. According to professor Storey (1992), divergent explanations of HRM has two concepts which are the soft and hard management models. The first model which is soft involves employee training and other aspects such as commitment, development, as well as participation.
The Five Functions of HRM
The other model deals with an approach whereby use of human resources achieves the goals of a firm. According to Storey, human resource management means “a distinctive approach” to the employee handling. It aims at leaving the company in an appropriate place in the business society “through the strategic deployment of a highly committed and capable workforce,” making use of divergent “cultural, structural and personnel techniques” This argument implies that the workforce is of great value to the organization. Therefore, human resource and its efficient administration make an organization to maneuver well.
Over the years, the “western businesses” showed certain issues related to management and the major human resource activities. As a result, Shari Caudron came up an HRM framework to represent the associated evolution. They argue, in the 20s century the major human resource was “employees’ differences,” and therefore the major activities were “counseling of employees and psychological testing.” However, during the 50s, the major query was “employee participation,” while during 90s the concern was “workforce changes and shortages.” Hence, during that time human resource managers mostly focused on “planning, employee rights, training, flexible benefits, and computerization.”
Nowadays, human resource management seems to be strategic and international inclined. It’s claimed to be strategic because people are handled concerning business goals that are long-term. It is internationally oriented due to the concept of modernization.
With regard Brewste’s arguments, the five functions of HRM are “resourcing, performance management, reward management, training and development (T&D), and employee relations (ER).” From a strategic perspective, the most important thing is implantation of the functions aimed at promoting the future goals of the company employee and the needs of the employees. Some approaches regarding the HR implementation functions are there. According to Brewster and colleagues (2011), these are “best-practice, best-fit, and resource-based view.” The most appropriate approach of an organization to its human resource activities depends on its strategic direction.
Substantial study about “best-practice approach” implies the implementing of recurring and high performance; human resource practices makes organizations experience financial growth, work-life balance as well as employee involvement. As a result, the approach recommends certain practices as being the best for encouraging high performance and commitment. According to Tom Redman and Adrian Wilkinson (2009), Best-fit, contingency theory “matching model,” stipulates how external forces affect internal practices. The tool is focused on “aligning human resource activities with situational factors.” The “resource-based view” optimizes resources improving a company’s competitive advantages.
Approaches to HRM Implementation
In the modern day work environment, organizations ought to focus on continuous development and training of their workforce. According to stipulated by Zheng, Hyland, and Soosay, employee development and training enhance company’s competitive advantages. It enhances the knowledge of the required knowledge, attitudes, and skills to achieve the objectives of an organization. Training brings about quality workforce and leads to increased labor productivity. Again, employees’ confidence increases where they start viewing themselves as having capabilities and professionals worth. That increases job satisfaction and flexibility during an organizational change. T&D enhances competitive advantage at times when economies are greatly demanded regarding the workforce skills.
Even though the previous paper analysis looked at T&D in the 1990s, the present paper looks at the current data from multinational corporations that are operating. T&D sustains companies’ decision of global diversification. HR professionals ought to use an approach in a position to respond to today’s global market needs. Rodrigues says it is needful for international business coherence as being able to account for people management globally (Henriques, 2015). MNCs have currently focused on “language training, international management teams’ development and T&D of expatriates.”
Good employment relations improve the productivity of labor as well as job satisfaction. Therefore, employers ought to consider the mechanisms and tools that result in good relations. A company with employees who are well catered for maneuvers up well.
Table 1. The table shows the so-called “Employee Involvement and Participation, regarding scope and depth.”
Workers should have a substantial power vested in them regarding the decision making of the company. The above indicates the method of indirect employee participation. The participation of employees does not necessarily imply that the management and the workforce are well related. However it puts away the channels of representation like workforce unions, it is considered to be a softer participation way.
In the year 2012, Zhao made a relative study of “the automobile and banking industries in China” whose results were that “China’s transition from a closed and planned economy to a socialist market economy brought several challenges to HRM.”
Conversely, Lu deduced that “trade unions engagement has a positive effect on labor productivity.” Unions lead to “better employee benefits, increased signing of formal employment contracts, and hence more harmonious employment relations in China’s private enterprises.” Again, large MNCs in China are more capable of receiving unions than in other world regions. For instance, according to Meyerson (2004), Wal-Mart formed unions in China after regarding worker’s decisions.
The Importance of Training and Development
According to Hunter and Katz (2012), the US has several ways to approach the rations of employment, because of “the absence of a counterweight to management decisions.” Contrary to the case of China, United States lacks labor association unions which are subordinate to the government. Therefore, in that case, manager can freely implement innovations and systems of payment. Human resource innovative practices which reflect “changes in management priorities, incentives or the identity of the managers themselves”
Conclusion
The knowledge of this study improves the existing knowledge on “how human resources management within multinational corporations supports their performance.” Currently, the main HR concerns are strategy and mechanisms which bring about the competitive advantage, as well as international inclination, aimed at responding to global technology changes as well as the growing competitiveness. Organisations usually give policy training and procedures concerning human rights, purposed at supporting corporate social responsibility. Again, they provide 26-hour training per employee concerning their responsibility level and expertise, in fostering long-term employment.
Employee relations (ER) is a critical function. Its importance is that “(a) good ER enhance workforce’s commitment to their job, thereby increased job satisfaction and productivity and (b) employees become more conflict resistant. The paper presented different employee involvement forms and participation in organizational decision-making.” In specific, the paper looked at “the role of trade unions.” Looking from an international HRM point of view, labor unions make the learning of matters concerning the institution and the relations if employee management is globally possible.
References
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