HRM (Human Resource Management) is an approach known to be coherent and strategic in the management of an organization's most important, so as to say, assets- the people working there who individually or collectively ensure that the aims of the business are met (Reynolds 1997).. Human resource is known to have replaced Personnel management as a description of the process involved in the management of people working in an organization, it therefore means that HRM is involved with employment of people, developing of their capacities, utilizing, maintain and compensating their services in tune with the job and the organization requirement.The HRM is significant in an organization, where it is seen that the Human Resource provides significant support and advice to the line management. The importance of the HRM goes into the functions related to this title. The functions include a variety of activities, the key one being decision on what kind of staffing is needed you have and whether to use independent contractors or hire employees to ensure these needs are filled, recruiting and training the most highly qualified employees and ensuring personnel and management practices conform to regulations (Turnbull 1992). In short HRM ensures the performance of the organization is at its best, and also a key in risk reduction in an organization. HRM approach seeks to ensure a fit between the organizations employees and the overall strategic direction of the company (Miller, 1989)In this context as we look at and also agree that the idea of the human resource as a strategic partner is true. Corporations in this era are undergoing dramatic changes which include rapid deployment of data technology; there is also the important idea of changing business environment which is on the increase and the increasing complexity of modern organizations. This has consequently made the role of human capital management critical and how the HR functions are organized to add value in the changing environment of business (Ulrich 2008). However the role of HR (hold of the corporate staff) is weakening significant because of the growth of the information technology since HR's role is mainly focused on administrative aspects of human resource management, although this information technology is an important tool in the administrative aspects of staffing and competency development, all this functions and their supporting systems are role in this area of recruiting this professionals. When professionals are recruited to manage the tools involved in technology this implies that goals will be met on time since technology does come with speed and efficiency, which ensures continuous improvement. Therefore embracing technology does not imply loss of man power but on the contrary the improvement of it.Development and implementation of corporate strategy is one of the major roles the HR has to play to add value to an organization, since there is an importance of the human capital in the firm's ability to carry out its strategy. The HR plays a leadership role in helping the organization to enact the strategy by developing the necessary capabilities, and also by playing a big role in implementation and change management. Poor implementation is one of the reasons strategies fail, in short poor execution is seen to reflect back to the Human Capital Management which is a gateway to the HR adding value if it can deliver change strategies, plans and thinking that aids in developing and execution of business strategies. The human Resource Management should be able to revise human resource policy, practices and procedures and also establish a competitive personnel package which will enhance retention and motivation of staff. Performance is seen to be in form of setting goals, monitoring goal's progress, sharing feedback, reinforcing activities to achieve goals and dissuading those that don't. Performance is also seen as developing employees by enhancing their sense of well being, this ensures productivity is high and plans are seen to get implemented (Claydon 2007). The HR is required to have knowledge of the organization and the strategies important in contributing to strategies. As a HR there must be room for the employee to voice their problems, and that is before the HR, who is also expected to deal with a recruiting strategy and also a benefit claim all at the same time, there is need for the HR to prioritize but still ensure all stakeholders are satisfied, this means that HR are required to work efficiently under pressure since the current situation of economic recession did impact negatively on most organizations unless the HRM team was well prepared for such unexpected losses.The HR must always have a back up plan to ensure that the organization keeps on running, for example, if the organization has to lend, it must ensure that it leaves some assets in place incase something happens and the creditors don't pay. This also implies the organization is insured incase something unexpected happens, this does not mean no risks are taken since in business risks are to be taken at all times but still caution is also an incentive. For an organization they must understand that the HR is the conscience of the company, as well as the keepers of confidential information, with this in mind the HR is required to be someone with high moral standards since they also ensure that proper ethics are observed by both management and employees (Ulrich 2008).. This helps the employees since they fill an appreciated and this works for the good of the organization since they are motivated to work for the company's successes. Human Resource professionals are expected by employees to advocate for their concerns and still enforce top management's policies; therefore the HR who can pull off this delicate balancing act wins trust from all concerned. This implies that for an organization to achieve its objectives it must have a HR who is in good terms with all parties involved in the running of the organization. HR professionals demonstrate fairness to mean that communication is clear, people's voices re heard, that laws and policies are followed and that privacy and respect is maintained. They are needed to help managers coach and develop their employees which is aimed at innovation as well as remediation. This improves the co-existence of the management and an employee which in the long run reflects in the growth of the company, the HR plan which involves learning and development policies would and should be tailored to achieve the objectives of the corporate. This helps employees and the management staff be equipped to enable them work towards achieving aims and even working towards going beyond the targets put down so as to ensure the corporate is moving up on scale of meeting its aims (Claydon 2007). The senior HR is also supposed to be meetings involving the firm's issues that affect implementation of strategies. HR being like the backbone of a corporation is required to know when to change plans, for example, cutting short employees in the down of technology. HR must always put the needs of the firm first and whatever needs to be done, to ensure goals are met should be done. The HRM is in a position to see the corporation reach greater heights and ensure that all stakeholders are satisfied. For an organization to succeed there is need for the HRM to be a success.Strategies in Human resource management
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Strategy; this is the plan of action laid down in order to achieve certain goals. Strategy is concerned with how different activities are linked. There are different strategies in the market that are used to compete globally. They include;1. Multi-domestic strategy;
In this strategy products for each market are customized, there is local decision making that is, there is decentralized control and it is very effective when a large difference exists between countries. It is advantageous in that there is product differentiation, minimized political risk, minimal exchange risk and local responsiveness.2. Global strategy;
Products are similar in all the countries, there is centralized that is, there is little decision making on the local level, it is more effective when differences between countries are small. Its advantage is that it has coordinated activities, faster product development.3. Global cost structure analysis;
In 1986, Whirlpool Corporation was taking into consideration expanding into Europe by acquiring Philips' Major Domestic Appliance Division. From the framework of customers, costs, competitors, and government, there were several pros and cons to this proposed strategy. Philips is an example of a company that followed the multi domestic strategy. This resulted to innovation of local R&D, spirit of entrepreneurship, products that were tailored to individual countries and of quality because of backward integration.Philips was also faced with a number of challenges in that there was duplication across countries due to tailored products, the innovation of R&D resulted to products that ere R&D driven instead of being market driven and the decentralized control meant that national buy in was required before introducing a product hence time to market was slow.Matsushita followed the global strategy (Reynolds 1997). It resulted in financial control, more applied R&D, company wide mission statement that was followed closely, strong global distribution network and ability to get market quickly and force standards since individual country buy in was not necessary.The company faced a number of challenges which were loss of non Asian employees because of glass ceilings, too much dependency on one product and the problem of strong yen.Business ethics are also corporate ethics is a form of professional ethics that examines ethical principle that examine principles that arise in a business environment. It applies all aspects of conduct in a business. The conduct of the workers and that of the whole organization is also included in the ethics. There are several ethical issues in business which include;Philosophy of business; It aims at determining the fundamental purposes of a company.CSR or corporate social responsibility (Cheri 2007). In this the ethical rights and duties between the company and society are debated.Fiduciary responsibility; Looks at the issues between a shareholders and the business.Ethics also look at the leadership of a company.Another ethical issue is the political contribution of the corporation.Another ethical issue is corporate manslaughter and misuse of corporate ethics policies as marketing policies.Other issues include;The hunt for common values as a basis for international commercial behaviorComparison of business ethical traditions in different countriesAlso on the basis of their respective GDPComparison of business ethical traditions from diverse religious perspectivesEthical issues arising out of international business transactionsIssues such as globalization and cultural imperialismVarying global standards - e.g. the use of child laborThe way in which multinationals take advantage of international differences, such as outsourcing production (e.g. clothes) and services (e.g. call centers) to low-wage countries.The acceptability of international commerce with recluse statesThere has been noted that some corporations experience unethical behavior due to a number of reasons which include;Racism; some corporation management may opt to employ a person who is not well qualified because he/she maybe of their race and leave out a more qualified who is not of their race.Gender; mostly women do not ascend to the top positions in most organizations since they are considered inferior and they are also mistreated and harassed by their male colleagues.Corruption; it is a major cause of unethical behavior in corporations. Once an employee becomes corrupt he/she ceases to be ethical.Employee raiding; this is taking away employees from a competitor company to take advantage of their knowledge.Employing very skilled people in a certain field even when they are not needed to avoid other corporations from employing them is unethical.The porter's diamond of national advantage is a framework that illustrates the determinants of national advantage. The framework is diamond shaped and represents the national playing field that countries establish for their industries. The points of the diamond are as follows:Factor ConditionsDemand Conditions Related and Supporting IndustriesFirm Strategy, Structure, and RivalryInstruments of trade policyThis is custom duty levied on imports and exports. That which is levied on imports serves as revenue and protection. Tax on exports provides revenue, conserves domestic resources and stimulates the growth of domestic industries. If violation of custom rules of the importing country occurs then penalty duties are levied.These are government payments to a domestic producer. They help the manufacturers set prices that are not completely dependent on the cost of production.Quantitative controlsThese take the form of import quotas, export quotas and voluntary quotas. Import quotas are used to protect domestic markets from foreign competition. Export quotas limit the raw materials and manufactured goods leaving a country (Mustachio 2004). Voluntary quotas respond to pressure exerted by domestic producers or organized labor.Boycotts and embargoesA boycott is an official act to discourage relations with a firm, country or a person. An embargo is an official act to prohibit the import of a product.Exchange controlsThey are commonly used during war. They limit the import of those commodities which do not fit government plans.Foreign direct investmentFDI is the long term participation in management, joint-venture, transfer of technology and expertise by a country. FDI benefits the host country in the following ways:FDI benefits the home country in the following ways:Fixed and Floating Exchange RatesAn exchange rate is the price which one country's currency trades for on another on the foreign exchange market.Floating exchange rate is a market driven price for currency and it is entirely determined by the free market forces of demand and supply of currencies with no government intervention.Fixed exchange rate; here the government is not willing to let the currency float freely and a level at which the exchange rate will stay is stated.Some countries ought for the floating rates since there is automatic correction of the exchange rate as the country let it float freely (Engle 2008). There is also insulation from external economic events as the country currency is not tied to a possibly high world inflation a rate is under fixed rate. Governments are also free to choose their domestic policy as it allows for automatic correction of any balance of payment disequilibrium that might arise from the implementation of domestic policy (Ulrich 2008).Other countries opt for the fixed rates because despite its rigidity there is certainty of the exchange ratec as it is fixed. International trade and investment is less risky. It is also advantageous in that there is little speculation on a fixed exchange rate.Liberalizing the EU energy marketThis market covers coal, oil, nuclear energy, electricity and gas. The benefits of this liberalization include;Creation of a single market, providing the most effective and safest most competitive energy market, all companies will enjoy equal access of the market as all restrictions will be removed, there will be transparency of prices, and there will also be a security of supply.