This function mainly focuses on employee recruitment and management. According to Monkshoods, Richardson and Stetson (201 1), the HER function also deals with the issues within the organization which are related to the workers including hiring, training and development, performance management and reward system (p. 35-36). Similarly, Pieta (2012) suggest that HER function is a path that an organization follows to polish and shape the working attitude of its employees (p. 1 17). The role of HER in the success of any company is increasing day by day.
Human Resource is considered as the main asset for any organization. The HER function has been changing over the years. Today, every organization focuses on re-aligning the role of HER in order to est. manage and grow their company cost effectively. However, there are so many challenges and issues associated with managing HER. Therefore, in order to understand the role of HER function in improving business performance, this research will discuss and critically analyses and evaluate the key issues in contemporary HARM. 2.
Discussion According to Barrel (2004), HARM function of an organization is responsible for many of its key organizational processes. The main function of HER is to design a formal organizational structure where the different activities of forecourt retailing can be performed by identifying specific employees for those unction’s and delegating and indicating their responsibility and authority (p. 182-183). A good and able workforce is the reason behind a successful organization. A well structure HER department is one of the key significant requirements of a company to perform well.
Therefore, the importance of HER cannot be ignored. It is formal structure and has various tasks as well as reporting relationships that tend to co-ordinate, control as well as motivate employees so that employees can work accordingly to achieve the goals of organization. It is the HER managers who are responsible to encourage employees working in forecourt shops so that they can work hard. They are also responsible to develop such work attitudes that are supportive. Len order to manage the workforce, there are so many challenges that are faced by the HER department.
According to Sacristans and Augural (2012), challenges are like the uncertain factors, or events which can positively Or negatively affect any organization (p. 46). Therefore, it is essential to analyses those factors in order to avoid any uncertainty. According to my analyses, there is a major impact of globalization on modern organizations. Globalization is known as he integration of business’s activities, processes and strategies into diverse cultures, ideas, products and services. Globalization has a significant impact on organizations and their business activities.
According to Kayoed (2012), the increasing prevalence of globalization has many factors which include outsourcing, environmental changes, social changes, global cost forces, global market forces and shortage of talent in developing countries (p. 1). The function of HER can never be emphasized. The process of globalization has become a necessity to consider various ways to manage human resource effectively (Friedman, 2007, p. 158). Similarly, Goldsmith (2008) said id that that there are various aspects of HER that are affected by globalization.
According to Kapok (2012), despite the current economic downturn and unemployment, most developed countries will face strategic talented employee shortage, mainly due to globalization (p. 1-2). Therefore, organizations need to focus on developing and strengthening their internal human resource issues. It is the globalization which has created a pressure on modern HER functions and due to globalization, it has become hard to hold on to employees. Work-force diversity is also an emerging challenge in modern HER.
Due to globalization, organization, promotes work-force diversity which creates so many problem. Similarly, technological advancement is also a major contemporary issue faced by modern HER, because it has become a requirement for every organization to adopt the latest the technology in order to compete in the modern world. Moreover, employee recruitment and selection is a traditional, yet still a contemporary issue in the field of HER. Besides that, another major HER challenge, that organizations have been facing includes: employee retention.
Since, the world is changing rapidly, it has become really hard for organization to retain employees, and there are so many sub-challenges associated with employee retention process. Further, these contemporary issues of HER will be critically analyses by using and evaluating extensive literature framework. 3. Literature Review According to Armstrong (2006), HER is a function in which managers create performance objectives, develop strategies to achieve those objectives.
It is a process of establishing strategic goals for the organization keeping in focus all the relevant internal and external issues (p. 29). Sacristans and Augural 201 2), has identified many emerging challenges in the field of HER. According to them, HER managers face many issues in present business scenarios which create a pressures on them to attract, retain, and nurture talented employees (p. 46). According to Facto (2009), the globalization process has become necessary to consider Ways to manage the human resource effectively (p. 128).
It is the globalization factor which has made the business environment so dynamic and competitive. Therefore, in order to survive in this new era, organizations need to focus hard on their strengths and powers to develop appropriate long-term strategies. . 1 . Technological Advancement Not only due to globalization, but due to the changing dynamics of the world, there is a high rise in technological advancements, and it is necessary for organization to adopt the latest trends and advancement in technology in order to remain a part of the modern world (De Allis, 201 0, p. 48).
The change in technology affects the operation of business and in order to adopt the latest technology, training and development is required. According to Arthur (2001 ), appropriate training and development sessions are required for employees to learn the exact use of new technology (p. 2). Similarly, Salsas, Attainable, Krieger and Smith-Jennets (2012) believe that training and development is considered as the essence of an organization (p. 86). However, a huge amount of cost will be incurred in adopting and learning new technology. Moreover, there will also be a need for effective management to adopt the change.
This will effect badly on the dynamics of work groups. According to Brier and Canker (201 0), the role of HER manager is of significant important in an organization because they are responsible to train their employee according to the changing needs of the environment (p. 71). Similarly, when there is a change in technology; there will be a need of enhanced skilled workers in the organization. Technological challenges also involve the challenge of telecommuting, employee surveillance, monitoring, ethical behavior in the organization and Electronic Human Resource.
According to Arthur (2001), with the help of training, employees are able to learn and acquire new skills and are able to upgrade their abilities which further increase the chances of promotion (p. 42). Similarly, Bandied and Kay (2008), claim that training constantly plays a key role to increase the learning and development process. With the help of training, employees are able to further increase the chances of promotion (p. 14). Therefore, with adequate training employees helps the employees to become a strong asset for the organization.
Overall, it can be said that technological advancement is a major contemporary issue in HARM that generates the need of training and development in the organizations. 3. 2. Work-force Diversity According to Green, Lopez, Haycocks and Keeper, (2008), the term diversified work-force is defined as the similarities and differences among the members of the organizations in terms of their background, gender, age, skills, etc N. D. ). Work-force diversity is another major issue in HER function. The concept of diversified work-force occurs with the emergence of globalization. Today, it is considered as one of the main challenge in HARM..
Researchers have examined several aspects of diversity but there is no recommended theoretical framework or model that exists and needed to be followed (Desalt, Chuddar, 201 2, up. 75-76). According to De Icier, Buttering Petit and Costa (2008), by managing differences and similarities between the individuals; HER focuses on creating a diversified workforce because they want heir organization to improve and achieve the competitive advantage in the (p. 5-6). Similarly, working with individuals with different background can be sometimes very stimulating and learning (Caligula & Torque, 2012, p. 14). Workforce diversity includes age, ethnicity, gender, race, educational background, income level, martial status, work experience, etc. organizational success reply on the ability to manage a diverse body of talent in order to bring new ideas, innovations into the business. Similarly, Okinawa and Thomas (2006), suggests that for a dynamic business world, new diversity paradigms re defined as a process which creates and maintains the environment and enables all the members of the workforce to contribute significantly in the pursuit of the organization goals and objectives (p. 3-4).
According to the resource-based-theory, an organization can achieve competitive advantage if it is able to obtain and develop such efficient work force members who will learn fast and are able to apply their learning and knowledge more effectively than the competitors (Barney, Kitchen & Wright, 2011, p. 1299). Similarly, Lapin-Bogged (2004), believes that workforce diversity brings organizational hanged which includes change in culture. This change makes the organization to focus on the essential aspects of its culture, values and norms (p. 189). It means that a diverse workforce will help in creating a synergistic business environment.
Overall, it means that a combination of mixed culture, experiences, skills and ideas will enhance the productivity of any organization and help them to drive creativity. 3. 3. Sustainability and Human Resource Management Due to globalization, there is a growing concept of sustainability in every business operation including HARM. There is an increment for the integration f environmental management into HARM. For example, it is the responsibility of HER to propose and implement HER policies which can improve the environmental performance of an organization.
These policies should include a specific HER philosophy that supports the environmental issues and promote sustainability (Charier & Jacob, 2012, p. 22). In order to maintain green HER. The HER managers should make sure that the organization provides all the safety and security measures to their workforce members (Amah, Wail & Islam, 2013, p. 52). Since there is a growing concern for environment these says; therefore, organizations requires a high-level of technical and management skills among employees.
According to Sudan (2011), in order to carry out green management, an employee must be inspired, empowered and environmentally aware of the initiatives (p. 81). Overall, it can be said that in order to implement the sustainable initiatives, HER should make sure that all the workforce members are aware of the plans and policies and their actions fit with the organization’s culture and long-term goals. 3. 4. Recruitment and Selection Recruitment and selection is a traditional as well as a contemporary issue of HER and globalization has a major impact on this process.
According to Boon, Den Warthog, Baseline and Pawpaw (201 1), it is the process in which the HER manager identifies the need to hire new an employee(s) for a specific position. This process also involves finding a person appropriate for the particular position, attracting a pool of candidates and selecting the best out of them for the job (p. 139). HER department needs to make sure that the selection is not based on candidate’s religion, ethnicity, or tribal background, but it is truly based of their level of skills, level of expertise, experience, and academic credentials.
When organizations are searching for new employees, they have to look at several channels to find the most suitable personnel (job portals, job boards, news ads, educational institutions, employee recommendations, and etc (McGraw, 2010, p. 205). Besides that, the main challenge for HER is to identify that the recruited employee has the potential to stay for long in the organization or the recruited employee will be able to complete the project.
According to Compton, Morrissey, Inkers and Morrissey (2009), the process Of recruitment can be very costly for organizations as it requires more time to set up an effective process of acquirement in place. Therefore, the organizations require carrying out this essential job in a systematic manner (up. 14-16). Similarly, Boon, Den Warthog, Baseline and Pawpaw (201 1), believes that this process identifies the requirement for a job, defines the responsibilities of job, making job advertisements and then selects the most eligible candidate (p. 140).
The major objective of organization in the process of selection is to match the character of prospective employees with the job requirements that needs to be filled. The process of selection is an integrated process that includes job ascription and selection, the application, interviewing the candidates, testing, physical examination and references. Overall, it can be said that recruitment and selection is a highly challenging factor for organizations and in order to improve the performance of the business, organizations need to focus hard on this process. . 5. Employee Retention Employee retention is another emerging challenge in today’s world. Due to globalization, the rate of employee has become very high. With increasing globalization, there has been a tremendous change in today’s organizations. People are free to switch their jobs any moment. Besides that, employee turnover rate is also due to lack of trainings, ineffective recruitment process, low level of motivation at organization, and no job security (Nacho, Riemannian, 201 2, p. 200). Motivation plays an important part in retaining employees.
Managers in organizations can use various tools to motivate its workforce. Remuneration is one of the best tools among all of them. It is the role of HER to come with up market compatible remuneration packages to attract employees and make them stay in the organization. Motivation is a key to effective performance of employee. If employees feel motivated, then they will give their full efforts to achieve organizations goals and objectives (Grumman & Ask, 2011, p. 130). 4. Conclusion Human resource management is an employee-oriented function which acts as a major driver in growing and developing organizations.
There are various internal as well external factors which affect organizations performance and globalization is one of them. Globalization has a significant impact on all the modern organizations including their HER practices. This research has identified the key contemporary issues in HER including: technological change, ark-force diversity, sustainability, recruitment and selection and employee retention; and how they can affect the organizations. The study has analyses and evaluated all the Identified issues by using extensive literature and theoretical framework.