Diversity Management

The world’s increasing globalization trend demands more interaction between people from a vast diverse of cultures, beliefs, and backgrounds than the past. Today, people no longer live and work in an insulated marketplace. The reality is they are now part of a worldwide (or commonly mentioned as flatten) economy with competition coming from nearly every angle of the globe. For this reason, businesses need to be open to change and accept the concept of diversity to become more creative.

In daily conversation, the word of “diversity” has the meaning of differences or variety. However, in the business world and in the business textbook, diversity often refers to the many differences present among people today in workplace as well as marketplace that were not aware of by most people in the past. Diversity management is often referred as acknowledging, understanding, accepting, valuing, and celebrating differences among people with respect to age, class, ethnicity, gender, physical and mental ability, race, sexual orientation, spiritual practice, and public assistance status for better workplace performance. The term diversity management indicates the implementation of strategies or policies to knit a network of varied individuals together into a dynamic work force.

Advantages and Disadvantages of Diversity Management

In recent years, diversity is increasingly perceived as an important issue in the context of business management. This is due to the increasing differences in the population, globalization process, increasing of international business and cross borders business dealing activities. In the business community, companies have also tend to pay more focus on diversity and look for ways to reap the opportunities offered by diversity as they acknowledge that diversity has the potential of yielding greater productivity and competitive advantages.… Read the rest

Electronic Human Resource (e-HR)

e-HR stands for Electronic Human Resource. The term e-HR refers to deal Human Resource Management transactions using an internet. E-HR aims to keep information available to employees and managers at anywhere at any time. E-HR may include organizations HR portals and web applications, Enterprise Resource Planning, HR service centers and interactive voice response. There are three identified levels of e-HR such as publishing of information (delivered by intranet medium), automation of transactions with integration of workflow (intranet or extranet used) and transformation of the HR function (redirect HR function towards a strategic one). E-HR is characterized in field of HRM as having numerous innovations in Technology and it provides wider potential in term of usages including employee self service, information sharing, functions administration and production of reports.

e-HR make use of technology to create a real-time, information-based Self-service, interactive work environment. With e-HR, managers can access relevant information and data, conduct analyses, decision making and communicate with others and employees are able to control their own personal information like update their records when it changes and make any decision on their own without consulting with any professionals help.

e-HR will effect both efficiency and effectiveness of Human resources function in such a way that the efficiency of the human resource process can be effected by reducing cycle time for paperwork, improvements is data accuracy and reducing manpower requirement. In similar way the effectiveness of human resource process will be effected by improving the capabilities of both employees and managers to make a better and accurate decisions.… Read the rest

Role of Human Resource Management in Organizations Difficult Times

Today, Human Resource Management (HRM) is emphasizing on adding value in the organization as a key player. The most significant challenge for organization in difficult time (recession) is transforming of the human resource to recognize, sustain, enlarge and exploit talents in the whole organization to their fullest capacities than organization can claim that it has the best of the systems to identify talents across the organization. The management professionals and employees might undergo through the anxiety and other issues during recession and economic downturn, so organization must make plan for economic crisis.

Roles and functions of HR in the Organizational change

HR can and ought to play a key role in creating and executing organizational change and transition. HR can give help and direction in investigation and determination, highlighting the employee’s problems that will essentially influence the success of the organization. HR might recommend on resourcing programs and planning and executing the key learning, reward, aspects of involvement and communications process. HR can foresee individual’s issues and manage them before they get serious. If the program does include rebuilding and downsizing, HR can recommend on how this ought to be carried out empathetically and with the base interruption to individuals’ live.

When the business is in turbulence zone, HR can put its straight out best in guaranteeing that he directs the corporate effectively. HR needs to be capable in such circumstances in light of the fact that they not just need to keep up the individuals inspiration level however needs to expand it utilizing non-money related apparatuses.… Read the rest

Global Compensation Practices

For many companies, maintaining a domestic compensation program that supports the strategic goals of the organization and meets the needs of employees is a difficult challenge. This challenge is intensified when a similar program must be designed to operate in multiple countries with different cultures. For organizations competing in a global marketplace, managing compensation requires a through understanding of the taxation of compensation and benefits, differing state social systems, differences in living standards and employee values and expectations.

Some of the most challenging questions in compensation practices are following:

  1. How does a company pay expatriates from difference home countries brought together to work on a project?
  2. What about compensation packages for same country nationals sent to different regions of the world?

Traditional compensation systems for expatriates, such as the balance sheet approach and going  rate approach, may not be adequate for the company or expatriate in facilitating an case of transfer. Global enterprises require global compensation systems that allow the organization to maintain the flexibility and ease of transfer between countries and regions while providing employees a just wage. A compensation system must be designed to work regardless of where the expatriate is sent on assignment. To some degree, this requires rethinking the traditional focus on location and national culture in determining expatriate compensation.

Traditional Systems of Global Compensation

Of the traditional global compensation schemes, the balance sheet method is most commonly used. More than 85% of US companies use some variation of this method to compensate their expatriates. The objective of the balance sheet method is to keep the expatriate economically whole or to ensure that the expatriate doesn’t financially suffer or come out ahead as a result of the international assignment.… Read the rest

Managing an International Workforce

Whenever an organization expands its operations to other countries, it tends to become multicultural and will then face the challenge of blending various cultures together. The managerial personnel entering another nation need to adjust their leadership styles, communication patterns and other practices to fit their host country. Their role is to provide fusion of cultures in which employees from both countries adjust to the new situation seeking a greater productivity for the benefit of both the organization and the people of the country in which it operates.

Read More:

  1. Human Resource Management from an International Perspective
  2. Managing Workforce Diversity
  3. Managing International HR Activities
  4. Selection Criteria for International Assignments
Barriers to Cultural Adaptation
  • Managers and other employees who come into a host country tend to   exhibit   different   behaviors   and   somewhat, see   situation   around them from their own perspectives. They may fail to recognize the key differences between their own and other cultures. These people are called, ‘parochial’.
  • Another category of managers called ‘individualistic’ place greatest emphasis on their personal needs and welfare. They are more concerned about themselves than the host country.
  • Another potential barrier to easy adaptation of another culture occurs, when-people are predisposed to believe that their homeland conditions are the-best. This predisposition is known as the ‘self-reference criterion’ or ‘ethnocentrism’. This feeling interferes with understanding human behavior in other cultures and obtaining productivity from local employees.
Cultural Distance

To decide the amount of adaptation that may be required when personnel moves to another country, it is helpful to understand the cultural distance between the two countries.… Read the rest

Evolution of Performance Management

Traditionally, performance appraisal has been used as the guide for employee performance. Performance appraisal also known as ‘performance evaluation’, ‘merit rating’, and ‘performance assessment’ is a process of recording assessment of employees’ performance, potential and development needs. According to Wayne F Cascio (1995) performance appraisal is defined as “the systematic description of job related strengths and weaknesses of an individual or a group”. Performance appraisal is a system of review and evaluation of an individual’s (or team’s) performance. Lately it has been supplanted in more and more companies with performance management (PM), a more comprehensive human resource management process.

Within the recent past there has been a shift from traditional annual performance appraisal to continuous performance management. The obvious reasons behind this have been the inadequacy of Performance appraisal in serving as a performance enhancement tool. Performance appraisal is known to be a contentious and unpopular activity of Human Resource Management. It is contentious because employees do not readily accept their manager’s assessment about their performance, and managers feel uncomfortable when they have to defend their judgment. It is unpopular because managers do not want to play the role of a judge; besides they have feelings of guilt if their evaluation is critical of their employees’ performance.

There could be other reasons for performance appraisal being unpopular:

  • Many a times appraisal is based on hunches, opinions and reflects what appraiser can readily recall since real performance measurement takes time and follow up.
  • Employees are often less certain about where they stand after the appraisal than before it.
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