Impact of HRM Strategy on Organization
This report is presented to gear up the role of human resource management with aligned objective to control and manage the diverse workforce through strategic policies and attain the predetermined objective. For this report Unilever MNC has been selected to examine the impact of HR management and perspective culture that can influence the employees. At the same time, organization follows the impressive HR approach to hire retain and the talent with the organization. Unilever follows the strategic HR strategy to maintain the relationship with the employees. Moreover, recruitment and selection methods are also elaborated that should be adopted by the HR management to select the quality workforce for the organization to grow in concurrent competitive environment for leading management.
Every organization have subsequent human resource management which is entitled to frame the policies in order to attain the organizational aims and objective with better control of perspective workforce. Human resource management play crucial role in the organization to effectively manage the human resource in satisfactory manner because a satisfied employee leads to the higher performance and have significant loyalty with the organization (Cania, 2014). These days, role of HR has changed with dynamic and competitive era to defend the market players. Along with this, the trend of strategic HR management has changed where only management decides the policies for organization but in concurrent environment employee engagement is linked with that to choose the effective policy for employee that can motivate them to lay down the higher performance (Kavanagh, and Johnson, 2017). Strategic human resource management is important concept that play imperious role in the current environment which articulates the modern edge approaches to manage the HR of organization in order to gain the higher productivity.
Approaches to recruit and maintain the relationship with employees are also essential that may influence the market players and can attract the talent towards the organization (Rees and Smith, 2014). Effective approaches are dominant factor for organization to get succeed in this complex and dynamic competitive global environment. These approaches are direct focused to recruit the talented and skilful employee for the multinational organization to compete the International Level Organization though strategic policies in order to selecting and retaining the best employees at the workplace to gain the competitive advantages (Brewster and Mayrhofer, 2012). Basically there are four major corporate approaches that contribute to the organization through strategically set the targets and deliver the performance to attain the predetermined goals implemented by the team. Major approaches of HRM are as
Corporate Approaches by the Organizations
Ethnocentric approach refers to the selection process in which the expatriates are selected from the home office and transferred to the international branches because of the approach of management that they control and manage the organization effectively. This approach is beneficial for the local business environment, foreign environment may also be influenced by the same.
Another approach may also be adopted by the organization to hire the talent and send them to the host country because of their market knowledge viability (businessjargons, 2017).
Region centric approach is directly attached to the region base norms and culture to hire the workforce. The culture of the region is differing from each offices and it can also affect the corporate policy to examine the suitable strategy to make the employee fit for the organization.
Geocentric approach is totally diverse nature approach which reveals that the global level employees are hired at international level management and the foreign offices are authorized them to relinquish the top strategy to maintain the productive system to motivate and retain the employee for longer time to ultimately have impact on the financial performance of organization.
There are many Factors that influence the strategy of organization which compels the HR management to mitigate the issues arisen while recruiting and selecting people at global level business (Bryson, 2012). In concerned to the internal factors that are also liable to affect the recruitment process of management, these factors are size of business organization, and where it influence the organization procedure to hire the more number of employees as organization is big and planning for the expansion of business at different territorial. At the same time, strategy for requirement also influences the recruitment for instance it requires preparing the strategy to recruit the workforce from internal or external sources (Brown, 2011). Along with this, brand image is also a crucial that also affect the employee to choose the organization for their career development. With this, the quality of job also carries the value for the talented and skilful employees to possess reputation in the organization a well.
On the other hand, external environment factors also have impediments that also affect the organization at great extent. Competition is one of the most challenging factors that affect the organization to attract the experienced and skilful employee and recruit them for competitive advantages. Further, the demographic characteristics of perspective also a factor that creates puzzle for organization to recruit the young talented or retain the experienced employee with the organization. Labour market is also an external factor that refers the higher number of people in the market and requirement of people is less than it needs to higher experience for HR management to grab the most potential employees in the organization (Alam, and Mukharjee, 2014). Moreover, political and legal environment of the perspective organization also create problem for the organization to follow the policies of government to give higher preference to the needy people for their personal development. On other hand, cost for the requirement and selection process may also have impact on the management to follows the cost effective process to gain the feasible employees for organization.
Key Factors that Affect the Organization’s Recruitment and Selection
Culture is a dominant factor that plays an important role in selection of right candidates as per the job. It is also evident that recruitment policy is also impacted by the perspective culture of the particular country. Each organization and business possesses variant culture around the environment so its values and norms deliver the existence of effectiveness in the cross cultural environment (McKENNA, 2016). An employee of India is recruited for the USA corporate so it would be difficult for the Indian employee to be grab and acquaint with the American business environment and on the other hand, every employee do not have the qualities to be fit with the perspective environment. Further, it depends on the HR management to hire the candidate for organization culture or modern edge collaboration employees to bring the fit environmental issue.
Unilever plc is one of the leading FMCG organizations which are operated at more than 100 countries at global level with wide range of goods and product (Bazil, 2014). Unilever business has the most efficient strategy to recruit and retain the talented employee with the organization at global level corporate. Along with this, self assessment of employee is regarded as the effective strategy to measure the performance capability of workforce and planned for the better development through compliances and significant motivation factor (Unilever, 2017). In order to influence the employee, it launched a Social Impact Hub to deliver the social welfare activities of the organizational workforce.
SHRM refers to the combination of the preplanning of policies to effectively control and manage the employees at global level corporate. From the strategic point, HR management is focused on the issues and challenges that are being faced by the management and implement a tactical policy to resolve in affective manner to motivate the employee and confer them as per their performance efficiency and carry out the control and performance measure to embed with the complex environment (Humanresourceexcellence, 2017).
On the other hand, international human resource plays dominant role in controlling and monitoring the organization at global level. It also plays the same role as HRM play but the diversity has influenced it significantly. Through it manage the organization effectively in this dynamic, globalized and liberalized. As per the global outlook, most of companies are emerging on global platform so the organization requires luminous IHRM that can have strategic strategy to immense impact on the leading perspective market players and affect them by advancement in competitive management. Due to internationalization MNCs are facing issues like policy consideration and successful implementation of strategy to recruit and select the right candidate for organization so that it can get the benefit of internationalization. Furthermore, the culture diversity also influences the strategy to adopt for the betterment of business and for the employee benefits (Briscoe, et. Al, 2012). Thus relevant expertise is essential to develop the organization through productive policies.
Role of Culture in Selection Process Aligning with the Strategic HRM
Selection is an important function of the human resource management which refers to hire the people who can easily fit with the requirement of job and play the role as can lead the team by strategic policies with articulating the concurrent evidence from the perspective industry methods. With this, methods of selection also important factor that laid down to attract the skilled and experienced people so that it can build a strong team of talent with the organization. Selection methods are as interview method, assessment based test and competency based methods (cornerstoneondemand, 2015). Unilever recruits the candidate through in-depth assessment of candidate so that it can hire the needy people appropriate with the job. On the other hand, small organizations hire the candidate only by indirect interview so it might be lower optative to gain skilled people that suitable for job. So methods of selection can also affect the strategic operation of organization.
The given case study states that the selection method adopted by the Singapore is about to hire the people as of the interest of HR manager in which it also navigate the partiality to gaining the candidate for organization. Through analysis, it can be said that the following practice do not suit the business to hire the employee by choice not by appropriate evaluation process in which psychology and practical knowledge can also be assessed. At the same time, it follows the process in which the reliability, validity and content validity is measured through which the skills and experience can easily test.
Global organizations are facing challenging issue as to hire the best candidate and retain it for the long time with organization but due to consisting and lucrative policies influence the employee to leave the job and go for another organization. Over the analysis of concurrent scenario of globalization, human resource management should ignore the single strategy to select the candidate for the entire requirement, it should frame a particular policy regarding the requirement and selection process (Machado, 2015). At the same time, practical assessment approach should be adopted by the organization to measure the potential performance of the candidate through which it can become proficient in perspective industry. Along with this, company should avoid the partiality in hiring the talent because of personal benefits of HR manager it may negatively impact the performance of organization globally. Furthermore, the company should mitigate the cultural boundaries to have the local cultural people for effective management which also are successful in cross culture management, country like China and India. Moreover, the value preposition selection method that can involve the benefit of employee as well with business should also be measured to have talent with retaining them. On the other hand, efficient compensation policy for the employee should also be determined and prepare motivating remuneration strategy to attract the global talent and retain it for the long time duration to escape by the cost of hiring and training (Machado and Carolina, 2013). Over the time, organization should be competitive technology so that the employee can easily connect with the globe and what happening around the world can be simulated for the successful talent management. Further, the organization should determine the job requirement and specification should also be determined and required the workforce accordingly to gain the competitive advantages over the global talent management.
On the basis of above given case related to the international human resource management, it can be stated that effective strategy adopted by the organization while requirement and selection leads to the successful operation of business globally. It is also concluded that organization should adopt the fair system to hire the global talent and compensate fit to the job requirement and specification which would also be successful in emerging economies like India China.
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