Impact of Globalisation on HRM Policies and Practices in the UK

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In any organization, Human resource management plays a significant role in helping business
and gaining a competitive edge in the dynamic and varying corporate environment (Chen and
Huang, 2009). With this globalised business world, an industry or business enterprise needs
to incorporate effective HRM practices both in internal and external environment for the
benefit of shareholders, company, employee and customers. These effective HRM practices
and plans also aid in improving the performance level to its maximum.
The human resource policies also contribute to linking the human resource functions with
strategic objective of the organization (Lengnick-Hall, Beck and Lengnick-Hall, 2011).
Therefore, it can be said that this holds the central live blood role in any company. In
addition, every organization intends to have edge over its rivalries for the long-term
sustainability (D'Aveni, Dagnino and Smith, 2010). Existing research suggests that
organizations find it extremely challenging to recruit, motivate, develop and retain competent
workforce in this fiercely competitive environment. There are various reasons behind these
challenging issues such as different employee culture and beliefs, global practices in an
organization, lucrative offer from the competitor company, performance assessment, and
many more.
Development of effective human resource policy also requires association on strategy
between HR and the enterprise leadership as the human capital are the main factor of any
business success (Guest, 2011). Thus, HR management programmes play a vital role in
sustaining a viable business. One of the fundamental aspects in creation of HR management
policies is strategic development. HRM policies and programmes make up a large portion of
the back end of an organization. HR policies help in communicating, developing, and
implementing a set of practices and policies that imitate a standard of satisfactory
performance (Aycan, Al-Hamadi, Davis and Budhwar, 2007). Moreover, a successful HRM
policy with effective strategy does more than drawing the restrictions; it identifies and
addresses individual requirements. This will help the organization to coordinate both specific
and organization goals. The main core principle that helps the organization in gaining
competitive advantage here is the performance improvement. It is related to setting up
various prospects and meeting them effectively. The main objective and focus of a business is
not only to achieve their specific goals but also considering the way to achieve them.

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HRM policies make sure that personnel have clear expectations and this can be addressed by
the four key elements i.e. – roles, rules, consequences and tools (Van den Brink, Fruytier and
Thunnissen, 2013). All employees working in an organization must know their respective
roles in addition with the reporting structure within the business enterprise. This approach
also signifies company-wide interdepartmental structures. In terms of rules, employees and
managers need to share mutual understanding in relation to acceptable behaviour within the
organization. Having a clear set of behavioural expectations is very important for the
organization in order to deliver strategic effect. Next thing is the consequences that is related
with violations of individual behavioural standards. Gaining of competitive edge in the
industry is also connected with the working of individuals together on the organisation floor
(Dave and Koskela, 2009). Practices and policies help in the interactions of employee while
reducing the personnel obstacles arise in the organizations. The last aspect is the tools, which
address the question how organization help the people and managed employee behaviour.
These tools plays a crucial role not just to help but also avoid litigation. It also minimizes the
time of the organization dealing with the productivity-draining employees’ concerns instead
of primary business matters.
Whatsoever the approaches adopted by the company, the fundamental aspect to success is to
integrate the resources and time it takes to build a plans and practices for the company before
any necessity. It is an essential component of HRM policies and comprehensive people
strategy (Christensen Hughes and Rog, 2008). The other significant part is that HRM
procedures will not only help the organization by supporting various aspects but also help in
creating the required organization culture. For instances, the management can add hiring and
retention strategies for delivering the value where employees are allowed for flexible
workforce, compensation policies and many pay options and many more. These are only
some of the benefits that an organization can use to maintain a positive culture in the internal
environment.
It can be easily understood by taking example of a company known as FedEx, an American
multinational courier practising a business of overnight shipping services. The company have
a pioneering system that helps them in tracking of packages and delivering of real-time
updates in relation with the location of packaging. The company deals with strategic HRM
principles rather than HRM and thus recognise the core strength of the organization in align
with the external aspects. This represents a competitive advantage for the company.

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The main aim of FedEx overall HR approach is towards developing skilled, devoted and
consumer-oriented personnel. The HRM practices in FedEx are based on “People-Services-
Profits” approach (Morris, Heames and McMillan, 2011). The enterprise aims to encourage a
operational environment where both contractors and workers feel satisfied, appreciated and
valued. The company believes that people are the key aspect link in the value chain and thus
value is built by concentrating on employees first. This also brings employee satisfactions as
per their company annual survey. This philosophy of the company has gained a rising base of
empirical support. FedEx applies common known managerial approaches and effectively
concert them into action with the help of a philosophy they state as “People, service and
profits”. According to FedEx, people are placed first as they make good business logic.
Taking care of the individuals will help them in delivering unsullied service demand by the
customers. Moreover, they will also reward the organization with the profitability necessary
to protect the company competitive advantage.
The company considers that inspired and assiduous individuals deliver key specialised
service to ensure profits and enduring development (Slater, Weigand and Zwirlein, 2008).
Moreover, due to their competitive and open HRM policies, the HR department also hires
people regardless of race, religion, nationality, origin, gender, disability or age. This shows
their positive and integrated culture that has no biasness or negative judgments.
FedEx HRM policies also provide various opportunities to the people with a formalised
career development programme that focuses on building and enriching the enterprise human
resources in align with both employees and organization’s needs (Humanresourcesmba,
2015). Career development helps the employees in formulating career goals including an on-
going plan for reaching to these goals. The worksite and offices of FedEx also have an open
and supportive environment where each and every employee can extent their full capability
and so be a part of the organization success. In addition, the company philosophy of People-
Service-Profit also supports the fair treatment of its employees. Moreover, it also considered
them as the most valued asset and competitive stone of the success. This shows that there are
many opportunities for the people in FedEx to advance their knowledge and skills within the
company. The company also have a distinct career development tool named as tuition refund
programme, where the organization reimburses employees for their tuition costs.
FedEx is also aware of the employees’ unique and diversified needs and this helps them to
give various reward to the employees addressing their benefit needs (fedex.com, 2017). This