Globalization and Challenges to HR

Countries of the world have clear cultural differences. Multi-national companies as well as others need to respect and recognize these cultural differences to smoothly manage their business process and employees.  Business functions including HR practices needs to be designed in such a way that they will be successful in their host countries and also across the globe.

“As a company extends its base to a foreign shore, the impact of that globalization on HR procedures will extend to current workers and also to new employees” (Natter, 2018). When catering to a wider range of audiences across the world, companies need to adapt their thinking and practices based on cultural differences, foreign regulations, rules and technological developments.

Challenges to HR

“When companies expand into new markets especially into developing regions business practices that are acceptable locally may be at odds with the values of the company and the laws of its regulatory agencies” (Wilkie, 2015). The challenge for HR is to gain complete understanding of the new environment and its accepted business practices. Protocols need to be customized for each region and be communicated appropriately right throughout the organization and other divisions.

When conflicts arise between practices “HR needs to be the voice of the individual and ensure that the company maintains its integrity, even when this goes against the potential economic value” (Wilkie, 2015). The organization is capable of succeeding, if only it adjusts itself in this way in order to capture its new market.

Another challenge for HR is to make sure employees that have been transferred from the headquarters are adjusting well to the current environment. HR should ensure that they are targeting and attracting talent from the new geography. Rules and regulations surrounding different types of employment also vary from one country to another. Hence special care needs to be given so as to meet those expectations.

Even though the internet assures that barriers to globalization is minimized, time zones act as major constraint to timely delivery of information across countries. HR must device some mechanism so that seamless flow of communication is guaranteed without expecting expatriates to be available at odd times. “HR departments can meet this challenge by limiting same-time communication to emergencies only, and setting up email alerts that arrive at the beginning of the remote employee’s work day” (Johnston, 2019).

References

Johnston, K. (2019). The Effect of Globalization on HRM. [online] at https://yourbusiness.azcentral.com/effect-globalization-hr-5430.html [Accessed 8 Jun 2019]

Natter, E. (2018). Effects of Globalization on Human Resource Management. [online] Available athttps://smallbusiness.chron.com/effects-globalization-human-resources-management-61611.html [Accessed 8 Jun. 2019].

Wilkie, D. (2015). Globalization Presents Complex Challenges for HR Managers. [online] at https://www.shrm.org/hr-today/news/hr-news/Pages/Globalization-Presents-Complex-Challenges-for-HR-Managers.aspx [Accessed 8 Jun 2019].

Employee Empowerment in Action

A successful manager is someone who creates successful careers for his people. They are able to make them contribute, direct, and make themselves absolutely happy working for a winning team. This is why Employee Empowerment needs to come in to action as a means of achieving these targets. Employee empowerment means “unleashing the power and creativity of employees by giving them the freedom, resources, information and skills to make decisions and perform effectively” (Daft, 2003).

In light of empowerment, managers need to demonstrate that they value their people. From rewards to recognitions and also to small genuine gestures made in favor of them goes a long way. “Trust the intentions of people to do the right thing, make the right decisions and make choices that still work” (Heathfield, 2019). Providing frequent feedback is crucial so that people know how they doing and what needs improvement. Always room should be given to listen and also freely to communicate with them so that they are comfortable in their job role.

Benefits of Employee Empowerment

Improved work outcomes - Employee empowerment allows employees to do their work with a sense of ownership. They are accountable for their own decisions leading to better outcome.

Increased Employee Satisfaction – Empowered employees consider their jobs to be satisfying and engaged to accomplish goals.

Cost Benefits – Sharing accountability of decision making is beneficial for both the employer and employee. For an example, “at Toyota, the company experiences cost savings every time a worker prevents a defective car from leaving the plant” (Adkins, 2017).

Career Development - “The more you empower your employees, the more they will grow and thrive” (Kasanoff, 2016). Empowerment allows great opportunities to widen skills and demonstrate capabilities. Therefore more chances are given for excelling in the career.

Employee Retention – “Organizations that acknowledge employee’s opinion create stable working environment of honor, contentment and respect” (Daniel, 2010). Such workplaces have a greater likelihood of retaining employees than those who do not practice empowerment.

Empowerment provides the basis for embracing change. Empowered culture attracts potential employees that genuinely aspire to join the firm. Thus creating an empowered workplace is a necessity of todays’ highly competitive market in order to build competitive advantage over all its competitors.

References

Adkins, W. (2017). The Advantages of Employee Empwerment. [online] Available at https://careertrend.com/advantages-employee-empowerment-4894.html [Accessed 8 Jun. 2019].

Daniel, H. (2010). Benefits of Employee Empowerment. [online] Available at http://benefitof.net/benefits-of-employee-empowerment/ [Accessed 8 Jun. 2019].

Daft, R. (2003). Management. 6th ed. Thomposon, pp.55-56.

Heathfield, S. (2019). Top 10 principle to employee empowerment. [online] Available at https://www.thebalancecareers.com/top-principles-of-employee-empowerment-1918658 [Access 8 Jun. 2019].  

Kasanoff, B. (2016). 10 powerful ways to Empower your people. [online] Available at https://www.forbes.com/sites/brucekasanoff/2016/03/24/10-powerful-ways-to-empower-your-employees/#1612617b7427 [Accessed 8 Jun. 2019].

Organizational Culture and its Competitive Advantage

Every organization has its own culture. It surrounds the organizational vision, mission, values, policies as well as ethics. Therefore it can be defined as “a jointly shared description of an organization from within” (Rick 2015). Business leaders are crucial in the creation of communication of culture. Leaders can also be influenced by many different workplace cultures based on the level of experience.

Organizational culture is not stagnant; it evolves throughout the history of the organization. According to Cummings & Worley (2004) there are six guidelines for culture change. First is to formulate a clear strategic vision to provide direction for culture change. Second is to display top management commitment so that everyone else are interested in accompanying change. Next is to model culture change at the highest level as the top managers need to symbolize the kind of culture that should be followed by rest of the organization. Modifying the organization to support organizational change is essential so that existing principles are changed to match the new ones. Selecting and socializing newcomers can be done to encourage employees and build loyalty. Finally developing ethical and legal sensitivity can be done to identify obstacles, recognize, and reward employee improvements and to encourage them.

Corporate Culture as a Competitive Advantage

A strong positive corporate culture builds a sustainable organization with continuous learning. Such cultures attract employees who are competent and believe in the same values as the organization. “A dynamic, rich and accepting corporate culture celebrates the opportunity to bring together people from various walks of life” (Craig, 2017). Organizational culture that welcomes diversity is equipped with unity and kindness. They are better equipped for collaboration and more likely to take disagreements without conflict.

“A strong corporate culture can help a corporation to build its brand, for example Starbucks has built a culture and brand that includes very public dedication to international fair trade. Customers who care about fair trade are more likely to buy from and stay loyal to Starbucks” (Lumenlearning, 2019). Thus a strong cohesion between the company culture, employees as well general public will ideally result in sustainable businesses.

References

Craig, W. (2017). 8 ways company cultures drives performance [online] Available at: https://www.forbes.com/sites/williamcraig/2017/08/03/8-ways-company-culture-drives-performance/#38baa9d36ce0 [Accessed 8 Jun. 2019]

Cummings, Thomas G. & Worley, Christopher G. (2004), Organization Development and Change, 8th Ed., South-Western College Pub.

Lumenlearning, (2019). What is organizational culture. [online] Available at https://courses.lumenlearning.com/suny-principlesmanagement/chapter/reading-organizational-culture-as-a-competitive-advantage/ [Accessed 8 Jun. 2019]

Rick, T. (2015). What is Organizational Culture [online] Available at : https://www.torbenrick.eu/blog/culture/organizational-culture/ [Accessed 8 Jun. 2019]

Embracing Employee Engagement

Employee engagement is a state where employees feel a vested interest in the organization’s success and perform high standard that may exceed the stated requirements of the job” (Bakkar and Scheufeli, 2008). Engaged employees are good decision makers as they understand the purpose of the organization. It is a driver of performance as engaged employees are passionate and inspired for the job they do.

For employees to be engaged, they need to be happy in their role. “Happy employees work harder, improving personal productivity by 12%, while unhappy employees can be up to 10% less productive” (Chignell, 2016). Happiness at work alone cannot retain employees for long. There has to be some mechanism that they will be genuinely committed and care for both the job role and the organization. To do this there are 3C’s that play an important role in enhancing employee engagement.

Figure 1: 3C’s of Employee Engagement (Juneja, 2019).

Career - When employees join a firm, they aspire to build career with it. They are willing to gain and shape their knowledge while excelling in the career ladder. Therefore it is the responsibility of the top management to shape the lives of employees through necessary care and make them feel they are a part of a winning team. This can be done through investing in training, assigning challenging projects, and sponsorships for higher studies.

Competence – Employees need to grow both professionally and personally. Trainings or workshops can be used to improve skills and competencies so that they are able to improve marketable skills and excel in their careers.

Care – “Sitting at the topmost, care is regarded the finest art of the managers by which they can make employees feel an indispensable part of their organization” (Juneja, 2019).  Managers need to be empathetic and be able to understand employee problems. As small daily gestures could go a long way, managers need to be extra careful to make them feel they are a part of a great team.

“Engaged employees perform with passion, drive innovation and move their organization forward through their performance” (Vazirani, 2007). Therefore it is crucial for any organization to invest in creating engaged employees as their emotional attachment towards the firm is a great asset that pave a firm footing for success.

References

Bakkar, A. B., & Scheufeli, W. B. (2008). Positive organizational behaviour: Engaged employee in flourishing organizations. Journal of Organizational Behaviour, 29, 147-154. doi: 10.1002/job.515

Chignell, B. (2016). How to nurture 7 key elements of employee engagement - CIPHR. [online] CIPHR. Available at: https://www.ciphr.com/advice/employee-engagement/ [Accessed 6 Jun. 2019].

Juneja, P. (2019). 3 Phases of Employee Engagement. [online] Managementstudyguide.com. Available at: https://www.managementstudyguide.com/employee-engagement-phases.htm [Accessed 6 Jun. 2019].

Vazirani, N. (2007). Employee engagement. Working paper series (WPS05), SIES College of Management Studies. Retrieved from http://www.siescoms.edu/ images/pdf/reserch/working_papers/employee_engagement.pdf

Job Sharing: A New Trend in Employment

In this fast paced world permanent job placements have been replaced by several other alternatives. The popularity of these alternatives have been further backed by flexibility of working environment and time factors.  Job sharing is “when two employees literally divide a job between them, and only work a few days a week to cover one full time role” (Totaljobs, 2019).

An example of job sharing is when an employee who is experienced in the care giving industry considers job sharing due to her family commitments. She is no longer able to dedicate her all to the job but she still wants to preserve her career skills and status in her profession. As a job sharer she is now allowed to work from Monday to Wednesday and her partner takes up the job from Thursday onwards.

Benefits of Job Sharing

In instances where talented employees consider early retirement due to work load, employers can offer job sharing to retain them. “Job sharers tend to be more productive and more engaged with their everyday work” (Valchanova, 2017). In instances where one partner leaves the company there is always another who is fully equipped with the required knowledge.

Disadvantages of Job Sharing

“If someone feels as though they are doing all the work and job share partner is not picking up the slack, it can be draining and frustrating for both the employees and employer” (Driver, 2017). Sharing jobs will make it difficult to get promoted leading to dissatisfaction.  Lack of overtime and other benefits for the employee can be a demotivating issue for the employee.

Tips for Effective Job Sharing

Communication is the key to effective job sharing. The two employees need to communicate with one another through emails or phone. Commitment by both the employees is also crucial and the work needs to be fairly divided with clear lines of responsibility. The supervisors on the other hand need to be vigilant and be able to give regular feedback to both employees. He should always be a contact point and be informed about all process at all times. These points ensure that the work done is efficient and seamless.

References

Driver, S. (2017). What Is Job Sharing?. [online] Business News Daily. Available at: https://www.businessnewsdaily.com/10439-job-sharing-pros-cons.html [Accessed 5 Jun. 2019].

Totaljobs. (2019). Job sharing: a guide | Totaljobs. [online] Available at: https://www.totaljobs.com/advice/job-sharing [Accessed 4 Jun. 2019].

Valchanova, V. (2017). How job sharing can change the future of work. [online] Enhancv. Available at: https://enhancv.com/blog/job-sharing-trends/ [Accessed 5 Jun. 2019].

Negotiation in a Cross Cultural Context

Negotiation

“Negotiation is a process by which two or more individuals or groups having both common and conflicting goals state and discuss proposals for the specific terms of a possible agreement” (Kukreja, 2019). Negotiations can happen both in and out of workplace and is an essential part of maintaining relationships.

Factors Deciding Negotiation       

Negotiation is an interactive communication process depends on several important factors. It is dependent on the objective and interest of the parties and the extent to which they are interdependent. This is also an indicator of the flow and outcome of the negotiation. The history of the relationships of the parties and the nature of the party too provides implications to negotiations. Another important factor is the strategy or the persuasive ability of each party engaged in the negotiation

How individuals perceive a certain scenario is different to one another. Therefore how an individual perceives facts during negotiation decides outcome and communication. A negotiator needs to be creative enough to use language in such a way that he grabs attention of the other party and convey messages with utmost clarity. Trust is usually essential in building sustainable relationships between parties. “Ethics influence an individual’s values, perceptions of situations and the communication and strategic tactics employed in negotiation” (The Business Professor, n.d.)

 Negotiations and Culture

People are essentially bound by culture. Therefore they are bound by special values, beliefs, manners and perceptions that are indigenous to them. Diversity in cultures lead to diversity in business negotiations. “Negotiators from different cultures may tend to view the purpose of a negotiation differently” (Salacuse, 2004).

Personal style is how a negotiator talks to others, dress and interact with other party in a negotiation. Culture is a strong indicator of personal style and influences heavily on decision making in negotiations. Each habit has its own meaning and specialty, therefore negotiators need to respect each others’ personal style.

Some cultures rely on direct and simple speech whereas others use indirect and complex methods. “In a culture that values directness, such as the American or the Israeli, you can expect to receive a clear and definite response to your proposals and questions, in cultures that rely on indirect communication, such as the Japanese, reaction to your proposals may be gained by interpreting seemingly vague comments, gestures, and other signs” (Salacuse, 2004).

In this globalized world understanding cultures is vital as organizations need to work beyond cross culture barriers. Hence understanding and respecting different cultures is as equally important as general factors for successful negotiations in order to bring out the best possible outcome for the negotiation.

References

Kukreja, S. (2019). What is Negotiation and Factors Influencing Negotiations | Management Study HQ. [online] Management Study HQ. Available at: https://www.managementstudyhq.com/factors-influencing-negotiations.html [Accessed 2 Jun. 2019].

Salacuse, J. (2004). Negotiating: The Top Ten Ways that Culture Can Affect Your Negotiation •. [online] Iveybusinessjournal.com. Available at: https://iveybusinessjournal.com/publication/negotiating-the-top-ten-ways-that-culture-can-affect-your-negotiation/ [Accessed 2 Jun. 2019].

The Business Professor. (n.d.). Negotiation - The Effect of Personal and Situational Factors. [online] Available at: https://thebusinessprofessor.com/knowledge-base/personal-and-situational-factors-affecting-a-negotiation/ [Accessed 2 Jun. 2019].

Training and Development in Sampath Bank PLC

Training and Development in Sampath Bank PLC

Training and development is one of the major branches of HRM that targets at improving existing skills and acquire new skills through a variety of techniques. Training and development enables employers to maximize talent that exists within employees, thereby increasing productivity and efficiency. It can be defined as “function of human resource management concerned with organizational activity aimed at bettering the performance of individuals and groups in organizational settings” (Raheja, 2015).

Sampath Bank PLC uses a variety of techniques for training & development purposes. “Over 90% of the talent requirement is developed within the bank through systematic people development and talent management strategies” (Island.lk, 2013). The bank also believes in developing leaders at all levels and the techniques are targeted every level in the hierarchy. “The bank greatly encourages professional and personal development as well as team work through a range of programs which include focused Training and Development, Executive Talent Development Programs and Mentoring and Counseling” (Island.lk, 2016).

 “The bank’s training and development consists of internal training, regional training and external training inclusive of overseas training” (Ft.lk, 2016). This ensures employee retention and business growth as the employees are given the right training to be skillful and provides opportunities for both personal and professional growth.

“The e-learning platform created for employees with latest technology enables employees to access e-learning via their mobile phones” (Island.lk, 2016). This initiative especially appeals to the Generation ‘Y’ and is cost effective, fast and easily accessible.

“The Bank has set up a Leadership Academy a unique initiative with a view to develop leaders at all levels” (Island.lk, 2016). This enables leadership and professional skills development of employees thereby contributing to the bottom line of the bank.

Another initiative by Sampath Bank PLC is the introduction of ‘The Branch Bench Strength’ that measures job rotations of employees. “With this initiative, team members are exposed to different areas of operations within the branch, thus mastering the art and skills of a wide range of areas” (Island.lk, 2016). This further strengthens customer service and provides opportunities to employees to acquire more knowledge and skills to improve themselves.

References

Ft.lk. Sampath Bank wins two national HR Excellence Awards for 2013. [online] Available at: http://www.ft.lk/hr/sampath-bank-wins-two-national-hr-excellence-awards-for-2013/47-166107 [Accessed 2 Jun. 2019].

Island.lk. (2013). The Island. [online] Available at: http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=85030 [Accessed 19 May 2019].

Island.lk. (2016). The Island. [online] Available at: http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=149491 [Accessed 2 Jun. 2019].

Raheja, K. (2015). Methods of training and development. Innovative Journal of Business and Management, 4(2), pp.35 – 41. 

Employee Selection

Selection

There is no more important topic in HRM than Selection. The success, growth or failure of an organization depends on the talent absorbed in to the organization.

“Selection is the process of picking individuals who have relevant qualifications to fill jobs in an organization. Selection is much more than just choosing the best candidate. It is an attempt to strike a happy balance between what the applicant can and wants to do and what the organization requires” (Kumari, 2012).

Selection is defined as the “process of choosing individuals who have relevant qualifications to fill existing or projected job openings” (Bohlander & Snell, 2004).

Employee Selection Methods

An effective selection process can be carried out by a variety of techniques and steps. However it depends on the type of organization and the level of the position being considered.  

Application Forms

Application form is a quick and systematic way of getting information on minimum requirements. It provides guidance for a potential interview and reference check.

Employment Tests

Employment tests are used by employers to gauge aptitude and achievement of candidates. The type of test usually depends on the type of position. Some of the tests include Cognitive ability tests, personality and interest inventories, physical ability tests, job knowledge tests, and work sample tests.

Interviews

Interviews play a central role in the selection process. “Despite decades of research questioning the validity of the interview and the reliability of interviewers, most organizations still include some type of interview in their selection process” (Judge, Cable and Higgins, 2000). In Nondirective interviews the applicant is given full freedom of speech by providing open ended questions and follow-up questions. A structured interview uses a predetermined set of questions. A situational interview comprises of questions arising from a hypothetical event given to the candidate whereas a panel interview generally involves a panel of interviewers that questions and observes a single candidate.

Group Case Study

Group case study assesses a candidates’ critical thinking, analytical skills and provides great insights in to candidates thought processes. “More importantly, group case interviews show us how each candidate responds to a task involving team work, leadership and communication skills” (Yang, 2015).

Medical Examinations

Medical Examination is being done to find out physical suitability of a candidate and also as a way to decrease absenteeism.

Reference Checks

This is a good indicator to how the candidate has performed his job at the previous workplace. Hence the employer is able to gain insights in to experience, qualifications, skills and abilities.

References

Bohlander, G. and Snell, S. (2004). Managing Human Resources. 13th ed. Thompson, pp.180-186.

Judge, T., Cable, D. and Higgins, C. (2000). The Employment Interview: A Review of Recent Research and Recommendations for Future Research. Human Resource Management Review, 10(4), pp.383-406.

Kumari, N. (2012). A Study of the Recruitment and Selection process: SMC Global. Industrial Engineering Letters, 2(1), pp.1-2.

Yang, N. (2015). Acing the Case: How to Succeed during a Group case Interview. [online] at https://www.linkedin.com/pulse/acing-case-how-succeed-during-group-interview-neil-yang [Accessed 10 Jun. 2019].