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Sample Report Paper on Global Hrm Issues; Financial, Policy, Internationalization, Cultural and Ethical

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Sample Report Paper on Global Hrm Issues; Financial, Policy, Internationalization, Cultural and Ethical
  • Introduction

Human Resource Management is a function of an organization that ensures that the performance of people in the organization is at its best. This involves the application of various policies and rules that govern the working in that organization. The branches and units in the organization that are based on Human Resource have various responsibilities like; recruitment of employees, dismissal of employees, performance appraisal, training, rewarding of employees and managing their pay (Price 2011, p. 6). This branch of the organization emerged from some movement that existed in the twentieth century. This movement came up with how the organizations would improve their performance by governing their workforce. The Human Resource however, has been improved as compared to that movement due to globalization and it gives focus to initiatives like talent management, labor relations and succession planning (Anca-loana 2013, p. 1523). In the current global companies, the managers are trying hard to avoid new employees but retain knowledge. The Human Resource Management department faces various issues globally. The Human Resource Management departments globally have had several issues as discussed below. The HR department must deal with the issue of ageing workers who are experienced to handle tricky tasks. The issue looms into the future operations of the department because it affects the remuneration programs and working schedules. Ageing population is always slow to execute assignments and this leads to the wastage of resources. The HR department should strategize its operations to minimize the wastages through the adoption of flexi-time mechanism. This approach is suitable because it means staffs have more flexibility over their hours. This helps the older workers to enjoy working since there is reduced pressure on them. The ageing workforce is an issue that requires urgent attention and consideration that revolve through ethical matters, cultural, misinformation and internationalization.

  • Ethical issues

Globalization has been a result of trending ethical issues in the Human Resource departments. The interaction of people, blending of languages and many other aspects brought about by globalization have created many challenges in his sector. The increase in the sizes of the organizations has made the task of eliminating these challenges more difficult. The managers in this field find it difficult in dealing with the ageing workforce. However, they try as much as they can to make sure that the organizations are running according to the prescribed code of conduct.

  1. Shortage of cultural awareness

With expansion in organizations due to globalization, companies are forced to send older employees to other countries to conduct their work. Cultural knowledge is an important aspect during this time. It is necessary for the employees to be provided with cultural awareness concerning the other nations that they should visit. Managers’ main task during this period is to ensure that the employees are equipped with this knowledge (Sims 2007, p. 270). Lack of this knowledge may lead to miscommunication or disrespect during conversations with people of different nations. It is a right of an employee to have this knowledge in order to explore the other nations.

  1. Bribery

The HR department should ensure that the ageing workforce do not engage in matters that lead to bribery. These might entail being favored to work without supervision or going for leaves at the expense of others. The Foreign Corruption Act forbids bribery. However, not all transactions performed by a person who has travelled for work are included in the rules of this Act, for example, facilitation. Some countries in the world have very high rates of corruption incidences. It is the task of HR managers to prepare their employees on how to relate well with the authorities (Dowling, Festing and Engel 2008, p. 137). In addition, they should equip them with knowledge of how to be secure.

  1. Privacy

It is a HR principle that workers’ details should not be shared with third parties. As a result, a worker’s age should not be exposed to other colleagues. This is because it infringes into their privacy and may jeopardize their output. Privacy is an important aspect in every organization. However, the rules that govern privacy vary in different countries. Others have strict rules while others are loose. It is the responsibility of an organization to choose which rules to choose especially if it is operating in many nations (Dowling, Festing and Engel 2008, p.137). The company should choose the one that protects their employees and the one they are comfortable with working.

  1. Compensation

Different countries have their own levels of compensation. Upon dismissal or retirement, the aged workforce should receive compensation for their services at the company. It is the role of the Human Resource managers to ensure that once an employee is sent to work in another country, the change in the compensation weight should not have a great effect. This is to ensure that the employee is still motivated.

3.0 Cultural issues

The culture of an organization defines the members that are in the company. This includes how they work, their morals, beliefs and law in an organization. People may be from different culture in their families, but once they are working in the same organization, they follow the same culture. Organizations in different countries have varied cultures (Teo and Shadur 2005, p. 145). With globalization, it is important for employees to understand various cultures in different countries and this has come up with cross cultures. This culture, however, has various issues with them.

3.1 Miscommunication

Miscommunication is the leading problem that comes about from cross-cultures because; various cultures and nations have different ways of expressing themselves. For example, the same words might have different meanings to people, individuals may have different reactions to various situations and the gestures may have different meanings to people. This makes it difficult for people to be on the same page while communicating (Stone and Stone-Romero 2008, 252). This is a major challenge for employees who transact in foreign country, which has become a requirement with globalization. Communication with the aged workers should always be formal since they do not understand the modern slang language. This is an issue because the young workers like being identified with their peers through the language they use. Communicating in different language might confuse the aged workers due to poor interpretation or misunderstanding.

3.2 Laws

Organizations have different laws governing the workforce. This varies with organizations. There are laws that govern the dismissal or treatment of the aged workforce. They should be offered similar privileges that others enjoy to avoid cases of discrimination. Workers should be equipped with knowledge on how to handle the laws of other organizations. Some laws do not apply in any institutions (Grundey 2011, p. 48). This makes it hard for employees once they are sent to perform their work somewhere else except their original place of work, if they do not understand the laws of the other place.

4.0 Internationalization issues

The international HRM is where the human resource is managed at multinational levels. According to various researches, is has brought about booming business in the world. The term is defined as the issues and challenges that result in this field from being international. There are various issues concerning internationalization of HRM (Khavul, Benson and Datta 2010, p. 693). This includes management of expatriates, internationalization of the whole organization and creation of new cultures, which would apply internationally.

4.1 Managing of expatriates

The HRM needs to develop the employees that work for them, but do not originate from that country. As a greater advantage, this would be developing people in general. This helps the employees cope with the laws and cultures concerning the organization in the country so that they can give their maximum performance (Armstrong 2010, p. 109). The success of the organization depends on the success of the expatriates, which would be determined by the HRM. This means leading them in the right direction to understand the culture of the organization.

4.2 Internationalization of the whole organization

Internalization of the Human Resource Department in an organization may require the same for all the departments in the organization. This may be a tricky thing to achieve. The other branches of the organization may be resistant to change involving themselves in local business only. In other instances, the departments may be disadvantaged to be nationalized (Galanaki and Papalexandris 2007, p. 1560). This is a great challenge that faces the Human Resource department in the process of internalization.

4.3 Application of new cultures

With internalization in HR, new cultures may have to be put in place for them to apply globally. This would improve the relationship of workers, even when performing their work in other organizations or nations. This is a major challenge for many organizations would not be willing to let go of their original cultures to adopt new ones (Budd 2005, p. 20). It would be difficult to determine which cultures to follow and which ones not to follow.

5.0 Policy issues

As a department, the Human Resource Management has the responsibilities coming up with policies that govern the running of its members including the employees. This involves coming up with strategies that will develop the employees and the department in general, leading to better performance (Calvasina 2012, p. 37). However, the implementation of these policies has certain issues, including misunderstanding of the business needs and not dealing with initial problems.

5.1 Misunderstanding of the business needs

The business needs in place should be understood clearly. This is done by a clear assessment of the culture and environment that surrounds the policy. The management should not employ a policy just because it is working with another organization. In addition, they should not let go a policy that is working well because it does not give the title of the best practice (Paauwe, Guest and Wright 2013, p. 330). Due to globalization, many policies have come up. It may be a challenge to many organizations on what policies to implement and on what grounds. Understanding the needs of the business would be the key solution to understanding what policy to use.

5.2 Ignoring the initial problem

In the implementation of a new policy, there must be procedures that should be considered. It is crucial for the HR to understand the problem that brought down the initial policy. This would help to make sure that the new policy works effectively (Calvasina 2012, p. 39). This is a major challenge because of globalization. Organizations HRM tends to implement new policies without careful evaluation of the initial problem. This requires the involvement of managers and people in order to achieve this. It is important to conduct a rigorous analysis of the initial problem before implementing the new policy.

6.0 Financial issues

HRM is a department that deals with the management of employees. They do not concern themselves much with financial dealings. They are only concerned with the pay and rewarding of employees. However, they need money in their activities like planning (MillMore 2007, 378). This process budget, however, faces some challenges. They include resistance, uncertainties and inadequate information.

6.1 Resistance

Globalization has led to the development of various trade unions. When planning, the HRM is usually required to provide their plans based on the employees. Most of the employers do not support this planning because they believe that it increases the price of employees. They believe that the increased price results from the creation of more facilities and the advantages that they get included training and their development (Bhattacharyya 2006, p. 53). They also say that the candidates will always be available. Employees also resist this planning. This is because they believe that it increases the amount of work they do. In addition, they believe that it is a means of controlling their productivity.

6.2 Uncertainties

HRM is an unreliable department since it contains much uncertainty. The uncertainties are found due to regular practices of employees’ turnover, market changes, changing in technology, absenteeism and seasonal employment. The events that happen in the HRM department are barriers to planning in the HRM department. They also have a major impact on the hindrance of effective planning and this involves the allocation of funds to various activities.

6.3 Inadequate information

Limitation of information is a major financial issue. Information is an important part in financial management. This is to equip the management with ways of how to use enough finances avoiding to misuse them. The understanding of the people’s need, the employees rewarding information with other organizations and previous financial planning information is crucial. Lack of this king of information is a major hindrance to the management of finance.

7.0 The future of HRM
Human Resource Management has been developing with the years. Various aspects of the HRM have been changing, mostly because of globalization. There exists great potential of this department in the future. As time goes by, more and more changes are bound to take place with the technological advancements. The various changes that are bound to take place are discussed below.
            7.1 Big data

In the past organizations used to top graduates to occupy the top-level opportunities in their firm. The use of big data helped to study the relationship between the revenue generated and the employees’ nature. I found out that the school performance was the least factor that determined the revenue that was generated with other factors being rated as first in determining that. Big data are based on asking questions rather than finding answers (Mayer-Schonberger and Cukier 2013, p. 10). The application of big data was found to increase the profit of the organization that employed people based on the other factors except grades.

7.2 Generational diversity

The Human Resource has already started the journal to generational diversity. However, it is nowhere according to the place it would reach. Organizations are coming up with programs where the younger generations brings forth the technological knowledge to the older generation (Deal 2007, p. 55). This is to ensure that the older generation is equipped with the trending knowledge about HRM. The process of diversity is hard to come through. The exchange of the information between the old and the young generation is important for the diversity to be successful (Ulrich, Losey and Miesinger 2005, p.55). HR should take the initiative to educate about the benefits of diversity.

7.3 Mass Customization

Mass customization is the combination of customization and at the same time mass production (Moser 2007, p. 5). Many organizations base their employment on personalities and the styles of learning.  The employees are allowed to choose between high pays, low rewards, low charges, and high rewards. Optimization is most vital thing in this aspect. Customization will mean that employees will receive different arrangements in their work based on their needs and contribution. The human resource managers should come up with ways to educate the employees to the understanding of these differences. Many managers believe in this aspect, but are hesitant to apply it because they do not know how to explain.

7.4 Sustainability

Sustainability has already arrived in HR but there are chances that HR will be more involved. One of the issues that are found in the HR department is fatigue. Sustainability will bring the balance of work and rest therefore making the system flexible. The optimal amount of time that is used to work and rest is determined. The amount of work that the employees engage in everyday affects their productivity and their decision making process. The Human Resource Management should help to improve the performance of employees in ways that do not bring negative effect on the employees or the organization. The best way to maximize performance in the organization is being mindful to the employees. Some rest is essential when doing work. The HR should lead the others in understanding the benefits of change in the organization and the balance of work and rest.

8.0 Conclusion

The aged workforce imposes many challenges on the HR department. They have many demands that match their experience. This puts pressure on the department that needs to recruit young workers who can match this experience if the aged retire. The modern emerging trends dictate the olds version of working since it involves use of latest technology and resources. The transition from traditional management to modern requires time and resources, which slows down the responsibilities of other workers. This issue affects the adoption of other workers since it means that the organization’s budget must be adjusted to release the old and hire fresh workers. The Human Resource Management is a crucial department in the organization. It deals with the employees who are the greatest contribution to the productivity of the organization. This department has embraced globalization and this has resulted to various issues. Globalization has been of great success for most organizations, mostly because of widening markets (Marler 2012, p. 10). The HR managers should implement strategies that would help to curb these issues. With this done, the benefits of globalization will be more. To improve largely the operation of the HRM, some developments need to be put into place. Although the HRM has taken various strategies, the future seems to be greater.























Anca-Ioana, M. 2013, ‘New Approaches of the Concepts of Human Resources, Human Resource Management and Strategic Human Resource Management’, Annals of the University Of Oradea, Economic Science Series, 22, 1, pp. 1520-1525.

Armstrong, M. (2010). Armstrong’s essential human resource management practice: a guide to people management. London, Kogan Page.

Bhattacharyya, D. K. (2006). Human resource planning. New Delhi, Excel Books.

Budd, J. W. (2005). The ethics of human resources and industrial relations. Champaign, IL, Labor and Employment Relations Association, University of Illinois at Urbana-Champaign.

Calvasina, G, Calvasina, R, & Calvasina, E. 2012, ‘THE VIRTUAL OFFICE: HRM LEGAL, POLICY, AND PRACTICE ISSUES’, Business Studies Journal, 4, 2, pp. 37-46.

Deal, J. J. (2007). Retiring the generation gap how employees young and old can find common

ground. San Francisco, CA, Wiley.

Dowling, P., Festing, M., & Engle, A. D. (2008). International human resource management: managing people in a multinational context. South Melbourne, Vic, Thomson.

Galanaki, E, & Papalexandris, N. 2007, ‘Internationalization as a determining factor of HRM outsourcing’, International Journal Of Human Resource Management, 18, 8, pp. 1557-1567.

Grundey, D. 2011, ‘Human Resource Management In Cultural Projects: Criteria For Building Project Teams At Lithuanian Universities’, Human Resources: The Main Factor Of Regional Development, 4, pp. 48-58.

Khavul, S, Benson, G, & Datta, D. 2010, ‘Is internationalization associated with investments in HRM? A study of entrepreneurial firms in emerging markets’, Human Resource Management, 49, 4, pp. 693-713.

Marler, J.H. 2012, ‘Strategic Human Resource Management in Context: A Historical and Global Perspective’, Academy Of Management Perspectives, 26, 2, pp. 6-11.

Mayer-SchöNberger, V., & Cukier, K. (2013). Big data a revolution that will transform how we live, work, and think. Boston, Houghton Mifflin Harcourt.

Millmore, M. (2007). Strategic human resource management: contemporary issues. Harlow [u.a.], Financial Times Prentice Hall.

Moser, K. (2007). Mass customization strategies: development of a competence-based framework for identifying different mass customization strategies. [S.l.], Klaus Moser.

Paauwe, J., Guest, D., & Wright, P. M. (2013). HRM and performance: achievements and challenges. Chichester, West Sussex, Wiley.

Price, A., & Price, A. (2011). Human resource management. Andover, South-Western.

Sims, R. R. (2007). Human resource management: contemporary issues, challenges and opportunities. Greenwich, Conn, Information Age Publ.

Stone, D. L., & Stone-Romero, E. F. (2008). The influence of culture on human resource anagement processes and practices. New York, Psych Press/LEA.

Teo, S, & Shadur, M 2005, ‘Integration of Hrm with Strategic Management in the Foreign Banks’, International Journal of Employment Studies, 3, 2, pp. 145-154.

Ulrich, D., Losey, M. R., & Miesinger, S. (2005). The future of human resource management 64 thought leaders explore the critical HR issues of today and tomorrow. Hoboken, N.J., Wiley.


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