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Introduction
Changes in the environment of human resource management are
very wide and it plays a crucial role in organizations. These changes
include work force diversity, technological changes, globalization, and
changes in the nature of jobs and work (External Factors). The internal
factors are unions, Organizational culture, conflicts and professional
bodies. An organization seeks to create its own environment out of the
external environment. The environment, which the organization
creates, is called enactment.
CHANGING ROLE OF HRM
Changes are inevitable everywhere i.e. in our personal life, social life,
work life, in nature, in society, in universe etc. We cannot avoid
changes but we can adjust and adapt to such changes for
betterment.
In earlier days, the role of HRM was restricted only to limited activities as
this department used to hire and fire the employees. The role was more
of record keeping type. In fact HR department was called as “Health
and Happiness Department” in earlier days since it used to arrange for
employee picnics and farewell parties after their retirement.
CHANGING ROLE OF HRM
Today’s HR manager is at the centre of the organisation’s web of employees and
departments.
1. Supporting the business : The HR function must adapt to what the modern
business needs - a highly dynamic employee management and planning team
that can react and adapt to the rapidly changing requirements of the
organisation.
2. Employee engagement : HR should no longer be seen as an employees’ last
resort in the case of negative encounters - in fact, modern HR should be
defined by active engagement with employee issues,, listening to concerns,
and building a partnership between HR, employees and managers.
CHANGING ROLE OF HRM
.
3 Change management: It is the process in which HR managers ensure
that employees have the necessary skills and information when an
aspect of their work environment changes
4. Employee Empowerment : As the employees have become
knowledge workers they need to be provided with greater autonomy
and provision of control on the factors that affect the performance.
Granting sanction to the employees to make decision in their work
matters is called employee empowerment.
CHANGING ROLE OF HRM
5.Team Work : The concept of division of labour and specialisation
introduced by Adam Smith which remained for a long time has
changed from single-function to multi-function of workers so that
workers do not remain confined to a single function but can do more
than one function
6.Ethical Management :Ethical issues pose fundamental questions
about fairness, justice, truthfulness, and social responsibility.
IHRM
Types of International Business
International Business usually start with either-
Exporting
Licensing or
Franchising
FDI
IHRM
1. Exporting: Exporting means selling abroad either directly to target customer or
indirectly through foreign sales agent/ distributor .
2. Licensing : There is an agreement where a firm called licensor grant authority to
a foreign firm the right to use its intangible property.
3. Franchising : It is an option in which a parent company grant the right to do
business to another company in a prescribed manner. It follows more strict
guidelines. Licensing is restricted to manufacturing but franchising is more
popular with service firms like restaurant, hotels, etc.
4. FDI : It refers to operations in one country that are controlled by the
entities in a foreign country.
Objectives of IHRM
All key management positions are filled by parent company nations and foreign
subsidiaries are being locally staffed or what is termed as HCN‟s
Reasons-
Lack of managerial talent in the host country
Desire to maintain a unified corporate culture and tighter control
Desire to disseminate the core competencies of parent company across foreign
subsidiaries.
Polycentric
Ensures right man on the right job at the right time and right place.
Selecting employee for foreign assignments means screening them
for those traits that predict success in adapting to what may be
dramatically new environment
A recent research study has identified five factors perceived by
international employees to contribute to success in a foreign
assignment.
There were: job knowledge and motivation, relational skills, flexibility/
adaptability, extra cultural openness and family situation.
3.Training