Heading: HRM


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Part 1

Answer to Question 1

Globalization has influenced international relations and transformed the way various economies operate and perform in the present day’s multilateral trade. It has made the world into the so called a global village with the integration of modern information technology and communication. The other aspect of globalization apart from information technology is the formation of international trade organizations such as UNTAD and COMESA. As globalization influences the state of international relations, it causes movement of world population from one country to another, thus causes unique pattern of human resource composition in different countries.

This study specifically discusses the impacts of globalization in relation to China and the resultant effect on human resource and employment relations. China has been classified among the world economic drivers as the most populated country in the world, followed by India (Taylor et al 2003). China has at the same time had a large number of their citizens traversing the other parts of the world as expatriates in medical institutions, engineering plants and agriculture. China for example sends an annual average of between 600 and 1500 of its citizen to work in other countries. India on the other hand does not send expatriates to other countries, but the country suffers from serious joblessness among its citizens. According to recent studies, approximately 30 % of India citizens do odd jobs and about 10% are completely jobless. Globalization is therefore very important in that it enables countries to find mutual benefits and solutions to economic challenges related to human resource management and employment.

Social Trend

When the supply of human resources is higher than the available job opportunities, the demand goes down, and thus a country cannot provide adequate spaces for all citizens. The solution to the human surpluses in China lies in globalization. The freedom to seek employment opportunity is a great contribution of globalization. Another benefit of globalization is the freedom to acquire quality education from other countries. China has been one of the preferred countries for quality of higher education. It has developed qualified human resources for other countries, and boosted the quality of works in the beneficiary organizations (Zhang & Li 2009). Apart from offering distance learning opportunities, Chinese government partners with other universities worldwide for the purpose of developing education curriculum and for developing special career capabilities in students worldwide. This has promoted the quality of Human resources that work in China and also enabled China as a country to benefit by acquiring employment opportunities for its citizens.

Political Trend

China has had a bad relationship with the leading economies especially the United States of America due to the struggle for common markets for their products and also for diplomatic ties with the rest of the world. United States of America and the United Kingdom have repeatedly accused China for being involved in the preparation of Nuclear weapons. This notwithstanding, the reputation of China in the East has never been corrupted. In fact, China has managed to develop diplomatic ties with more countries. Theoretically, United States of America has been considering China as a threat and probably the most economically stable country in the world. In the past, a great percentage of the world human resources moved to the USA in search for employment and education opportunities. The recent trends have shown that the movement is gradually shifting to China, a fact that has caused a lot of struggles between United States of America and China. Indeed, the supply of Human resources in China, together with the Chinese Work Ethics policy has catapulted the economic growth of China to the present state that is the envy of many countries (Gamble 2006). China remains to be one of the most influential economies in the world in terms in terms of Human recourses acquisition and career development. The country does not have any need to acquire expatriates from other nations. It uses the local supply of Human resources, which is cheaper than non citizens.

Economic Trend

The growing financial stability in China has been a boosting factor in placing China in a recognizable position in the world. The supply of raw materials and affordable Human resources are the contributing factors (Xue 2008). It is an advantage for China to have the largest population, which forms local supply for the dire need of industrial work force. This translates to a huge amount of revenue that the country is able to generate annually. China has applied the policy of diversification of the economy such that it does not depend on just a single product (Gamble 2003). Chinese industries offer various production lines such as chemical factories, electronic industry, foods production, Agriculture, textile, Engineering and construction including automobile industries. By acquiring opportunities for its citizens in other countries, China benefits from the foreign taxes generated from the Diaspora, which further elevates its already strong economy.

Answer to Question 5

The future human resource management and employment relation lies in the power of globalization. The emerging trend of international toes between various countries for mutual benefit has become the habit that will most likely continue. The nature of economic depression that countries have faced is lessons to them that a country cannot entirely rely on its human resources. It has become clear that there is an element of specialization and labour orientation that is unique between different countries. Cooke (2004) gives the challenge that the countries have to deal with is in the synchronization of international relations policies. He says they do so to develop a policy that is conducive to all countries having any form of diplomatic attachment. The nature of treatment that a country offers to its citizen differs from the treatment to expatriates and causes animosity between citizens of a country and the non nationals. A recent case in the year 2010 has South African expel football fans at the end of the world cup final match; for fear that they could acquire job opportunities in South Africa at the expense of the jobless citizens of South Africa. Secondly, there has to be common industrial agreements between different countries.

There is currently a wide difference between policies of employment in different countries. The processes of human resources recruitment varies from one country to another. The same applies to the regards for workers union, despite the existence of Centre Organization of Trade unions as an international workers union body. The Third very critical issue affecting the future of human resources management is the variations in the quality of education offered across the globe (Ding & Warner 2001). Certain countries such as the United Kingdom and Australia insist on minimum prerequisite standards of education that a person has to attain before qualifying for a visa (Zhu & Warner 2004). This then becomes a constraining factor to a certain classes of people in that they do not have any chance to seek employment opportunities except perhaps in their own countries.

The future of Human resources has a lot of issues to deal with in order to strike a form of homogeneity between human resources in different countries. In fact, there are countries that offer high quality job opportunities specifically for the most qualified specialists. This has made many countries especially in the developing countries; lose their best trained professionals to other countries. Along with the education qualities, Walsh and Zhu (2007) reveals that there is an emerging trend of formation of international higher educational institutions, whose degrees and certificates are not internationally recognized. It therefore means that the student or the graduate with such qualifications cannot obtain employments. The government of each country has a duty to protect its citizens from such practices by providing a list of internationally recognized institutions with ISO certification, and which have been approved as valid by the standards of the commissions for higher education. This is a disappointing issue to which many people have fallen victims. The last factor which threatens the future of human resource management and employment relations is the human right issues. There are countries especially in the Middle East, which have the habit of acquiring cheap labour from the developing countries and do a lot of mistreatments to the employees. Saudi Arabia has featured frequently as a country where foreign employees perseveres harsh inhuman treatments from their employers (Cooke 2005). This is a breach of contacts between employment agents and the employees and requires the intervention of United Nations Human Right Commissions.

In spite of the challenges to the human resources challenges, globalization promises a brighter future. Technology has linked several countries into a virtual village, and lifted international barriers. In the future, human resource management is bound to improve and the demand for human recourses increases because of online employments. Already there are online employments across the world, such as data entry jobs which are very effective especially in the developed countries like the United States of America and the UK. Secondly, the continuous improvements of diplomatic links between countries have a lot of promises of a better future for human resource management and employment relations.

When countries begin to partner in vital projects such as education programs sponsorship, they develop the future of human resource and secure availability of professionals. The availability of distance learning opportunities in the universities presents quality education to students at considerably affordable rates. The future of human resource management continues to improve with the automation of vital processes. Many organizations currently allow professionals to access their human resource management portals through which they conduct recruitment and job evaluations.


Part 2

Strategic human resources management is possible within international organizations so long as there is a special guideline and procedures that the organization communicates to the employees. For example in Toyco Company in this case study, the management insists on employee productivity as the driving force for the organization existence. It means that all other policies are important but the key objective of the organization is to develop employee productivity. The organization has to first formulate the vision, mission and values which it relays to all employees and the oversight committees. Even so, the formulation of the policies has to consider the welfare of the employees. It has to take into consideration issues such as leave, promotions, trainings and social lives of the workers. The international organization has to grant the employees freedom of expression, and recognise bodies such as workers unions.

Challenges

In the process of implementing the human resource management strategies, there are challenges that international organizations face. First is the recognition of international rates of remunerations. International firms usually have to do their remunerations in international rates, which is higher than the local payment rates in individual countries. Compliance with this policy is cumbersome but international firms are obliged to follow it.

Co-ordination and control in international firms usually face s another challenge with regards to the appointment of management. Usually it is difficult to identify a qualified leader for critical positions without the risk of accusation of being biased (Warner 2001). Because international organizations employ multinationals and at times multiracial combination of employees, it is a challenge to balance the combination of employees based on their nationalities.

The third challenge with multinational companies is to the issue of job security. Most of the organizations prefer to work with employees on renewable contract terms of approximately five years on average. It affects the organizations in that they train professionals and release them at the end of the term, regardless of their level of expertise. This is usually a loss to the organization especially where the policies bar the human resource department from renewing the contracts.

Solutions

The strategic HR management is possible if the solutions to the challenges are practiced. The first solution relates to the challenge of international payment rates. The possible mitigation to this challenge is to minimize the number of employees, thus, cut the cost of employees. At the same time, the organization has to emphasize on ways of maximizing the level of productivity of each employee so that the organization can receive value for the expenses incurred as the cost of labour (Braun & Warner 2002). The second challenge being the co-ordination and governance in relation to the combination of multinational workers. The remuneration team has to create an impression of fairness by allocating critical positions to specific categories in an alternating manner. For example, if the secretary general of organization X is from country Z, then in the next regime, the same position will be occupied by a person from a different country Y. At the same time, the officials at any one time have to be from all the different member states represented. The third challenge to the strategic human resource management and co-ordination is the issue of job security. According to Warner (2009), the organization can consider the performance ratings of each employee and renew the contracts if the employee achieves exceptional performance.

Indicators

The measure of preparedness of international organizations to overcome the possible problems can be seen in the human resources management strategies in China and India. As Cooke (2004) explains in the case study presented, the human resource management in China began the practice of retaining their most qualified employees, as they try to emulate the western strategy of best practice and high performance. This shows that the future job security for international organization is guaranteed. The organizations are prepared to overcome the high cost of labour, by appreciating the efforts of employees and recognizing the welfare needs of the employees, rather than count labour cost among ordinary operational expenses. For the third challenge, Warner (2001) discussing the preparedness of international organizations to overcome challenges with leadership appointment and promotions, says the appointment of top leadership was done flexibly and based on productivity. As a typical international organization, Toyco does not only employ Americans, even though it is a US owned company. It also employs Japanese and Chinese citizens. The threatened job security in Toyco motivates employees to perform well in their works in attempt to win contract renewal.


References

Braun, W & Warner,M 2002 ,‘Strategic human resource management in western multinationals in China’, Personnel Review, vol. 1, no.3, pp31, 32.

Cooke, FL 2004, ‘Foreign firms in China: modelling HRM in a toy manufacturing corporation’, Human Resource Management Journal, vol. 3, no.5, pp21.

Cooke, FL 2004, ‘HRM in China’, in P. Budhwar (ed), Managing Human Resources in Asia Pacific, Routledge, London. pp14-15.

Cooke, FL 2005, HRM, Work and Employment in China, Routledge, London,.pp43.

Ding, DZ & Warner, M 2001, ‘China’s labour-management system reforms: breaking the “three Old Irons”’, Asia Pacific Journal of Management, vol. 8, no.5, pp19.

Gamble, J 2003, ‘Transferring human resource practices from the United Kingdom to China: the limits and potential for convergence’, International Journal of Human Resource Management, vol. 4, no.3, pp17-18.

Gamble, J 2006, ‘Introducing western-style HRM practices to China: shopfloor perceptions in a British multinational’, Journal of World Business, vol. 4, no.6, pp25.

Taylor, B. et al 2003, Industrial Relations in China, Edward Elgar, Cheltenham, pp27.

Walsh, J & Zhu, Y 2007, ‘Local complexities and global uncertainties: a study of foreign ownership and human resource management in China’, International Journal of Human Resource Management, vol. 1, no.3, pp.18.

Warner, M 2001, ‘Human resource management in the People’s Republic of China’, in P. Budhwar and Y. Debrah (eds), Human Resource Management in Developing Countries, Routledge, London. pp33.

Warner, M. ed 2000, Changing Workplace Relations in the Chinese Economy, Macmillan, Basingstoke pp29.

Warner, M. ed 2009, Human Resource Management ‘with Chinese Characteristics’, Routledge, London. pp32.

Xue, H. 2008, ‘Local strategies of labor control: a case study of three electronics factories in China’, International Labor and Working-Class History, vol. 1, no.3, pp26.

Zhang, YC & Li, SL 2009, ‘High performance work practices and firm performance: evidence from the pharmaceutical industry in China’, The International Journal of Human Resource Management, vol. 2, no.1, pp20.

Zhu, Y & Warner, M 2004, ‘Changing patterns of human resource management in contemporary China: WTO accession and enterprise responses’, Industrial Relations Journal, vol. 6, no.4, pp35.