Role of Human Resource Management in Organizational Development

This report discusses the role of human resource management in organizational development, focusing on recruitment, selection, development, and retention policies. It also examines the impact of discrimination and diversity management on a global workforce, using Starbucks Corporation as a case study. The report highlights the importance of culture within an organization operating globally.

Human Resource Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Section A.....................................................................................................................................3
Evaluate recruitment, selection, development and retention policies work in the organisation. 3
Section B.....................................................................................................................................5
Role that discrimination and diversity management plays in organisational development with
respect to the recruitment and retention of a global workforce..................................................6
Critically examine the role culture plays within an organisation which operates globally. You
are expected to use examples to help illustrate the main assertions made..................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
Human resource management play significant role in every business organisation as it is
the effective practice which helps in managing employees with the motive to achieve better
performance. It is define as the process of recruiting, selecting, providing orientation, etc within
the business organisation in order maintain and regulate the operations and task of business in
effective and efficient manner (Armstrong and Taylor, 2020). Human resource management is
the continuous process which helps the business organisation by employing skilled and efficient
employees. The report is based on Starbucks Corporation. It is an American multinational
company dealing in coffee business since 1971. The headquarters of company is in Washington
US, and has able to established its brand name in marketplace. The topics covered in the report
are recruitment, selection, development and retention policies work in global company, role of
management in organisational development and culture role within which an organisation is
operating.
MAIN BODY
Section A
Evaluate recruitment, selection, development and retention policies work in the organisation
There is a rapid growth in the international marketplace as many business unities able to
expand their business beyond national boundaries (Brunstein, 2016). The critical determination
of the success of organisation in global market is because of effective management of its human
resource.
 Ethnocentic staffing policy- It is referred as the strategy adopted by the management of
company operating at global level where they hire efficient and skilled candidates. The
recruitment and selection process in ethnocentric staffing policy is quite easy as skilled
and efficient managers are appointed for different key positions from the parent
headquarters with the motive to increase its productivity. The employees hired are skilled
where human resource department simply need to mould its skills by providing proper
training session with the motive to help the employees in its growth and development.
The companies adopting this strategy would able to retain its employees that is
employees would able to function according to the headquarters culture and able to adjust
in the working environment. Furthermore employees would be able to communicate in
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effective manner and able to carry work in proper manner. For example- Hitachi is using
Ethnocentic staffing policy in managing and controlling its business operations and
functions in effective manner. The company is using this policy with the motive to focus
on personnel development of employees and able to established effective communication
between the subsidiary and the headquarters.
 Polycentric staffing policy- This is one of the most effective policy adopted by the
management of companies operating at global level. In polycentric staffing policy the
human resource department recruit and select employees from host country with the
primary motive to manage subsidiaries in their own country. The main reason behind
adoption of this policy is to remove the language barriers and also companies get support
from government of host country (Chelladurai and Kerwin, 2018). The main motive
behind adoption of this policy is that it helps in enhancing the moral of employees
working in the organisation. As employees would able to improve their performance and
help the company in increasing its productivity and profit level. The business
organisations adopting this policy focus on the growth and development of its local staff
members that is provide more career opportunities to them so that they would be able to
enhance their living standards. The companies adopting this strategy would able to retain
its employees as they provide better growth option to its employees which they can
achieve by improving their skills and abilities. Moreover on the based of performance of
employees the management provide them bonuses and appraisals which contributes in
retaining skilled employees. For example Coca Cola uses polycentric staffing policy in
some aspects according to the situation. The main reason behind using this strategy is to
take the support of the government of the hosting country so that they do not face any
issue due to political factors (Rees and Smith, 2017).
 Geocentric staffing policy- This approach is used by the business organisation operating
at global level. As there are many business organisations which are serving worldwide
and have large staff. Its operations are quite complex in nature as they have to manage
the working according to the needs of customers belonging to different countries. With
the help of geocentric staffing policy the human resource department of the companies
recruit and select employees from across the globe on the bases of their skills and
capabilities. As the companies are operating on large platform so they have trained and
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experienced employees who will help the other employees to learn various things and
also provide them guidance regarding correct way of doing activities or tasks. This will
help in the growth and development of the employees and on the other hand beneficial
for the business as they would able to increase their profit and revenue margins. The
companies adopting this strategy would able to retain its employees as they get the
chance to work with the reputed business organisation and also get many facilities. The
main focus of the organisations is to provide safe and healthy working environment to its
employees and with the help of effective training sessions they able to help employees to
work effectively (Warner, 2020). For example Coca Cola is adopting Geocentric staffing
policy in carrying its operations and activities in effective manner. The company is
operating at global level so it is in need of skilled employees who would be able to
provide new innovative and creative ideas to increase the sales of company. As the
company is belonging to food and beverage industry so is facing high competition in the
marketplace. With the help of skilled employees it will be able to meet the expectations
of customers and able to maintain its brand reputation in the market.
In context of Starbucks they are using polycentric staffing policy as they are having flat
and flexible structure where employees are free to take decisions according to the situation and
are consider as the part of the business organisation. The culture and safe working environment
help in motivating the employees to perform better. This staffing approach is used by the
company in transnational orientation and when they need best personnel to work at subsidiary.
The employees selected would able to understand and handle the worldwide network of the
company in most effective and efficient manner.
Section B
Role that discrimination and diversity management plays in organisational development with
respect to the recruitment and retention of a global workforce.
Every organisation efficiency depends on its employees performance and effective
performance of employees helps in achieving goals and objectives (Wehrmeyer, 2017). In terms
of organisation development high performance of employees creates culture of high performance
in the organisation which is healthy and it helps in enhancing the productivity and profitability of
the organisation. Recruitment and selection plays vital role in developing the organisation culture
as HR managers hires individuals who are trained and skilful because it helps organisation in
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delivering the quality performance and it also reduces the cost of training and development for
the employees. Organisation development depends on the strategies and culture in the
organisation as it helps in motivating the employees to achieve their goals and objectives for
their own development and organisation development. Organisation development also depends
on the diversity of employees as organisation focuses on hiring the employees which belongs to
different culture and have different values and ethics because it helps organisation in adapting to
the new culture and values in order to enhance the performance of the organisation. Recruitment
and selection plays vital role in hiring the individual who belongs to different culture as HR
managers already knows what type of candidate is required for the organisation. Diverse
workforce helps in bringing the innovation in the organisation as the individual which have
different ideas, thoughts and knowledge helps in improving the level of innovation in the
workplace (White, 2016). This part of the report focuses on the organisation Starbucks and how
diversity management is playing vital role in the development of organisation. Starbucks is one
of the top organisation and it is multinational chain of coffee houses and roastery reserves.
Starbucks have its own brand image and it is very famous among its consumers and in order to
maintain that image in the market managers of Starbucks focuses on hiring the employees who
are skilful and have goof knowledge. Managers of Starbucks makes sure that employees who
belongs to different culture and values interacts with other employees as it helps in generating
the new ideas and thoughts for the innovation in their product line. Diversity management plays
vital role in the Starbucks as its business is spread all over the world and every place have
different culture and values and in order to understand that HR managers of Starbucks focuses on
hiring the candidates which can help Starbucks in innovating their products according the needs
and wants of the consumer. Starbucks focuses on managing its diverse workforce effectively as it
helps in understanding the needs and wants of the consumer and also helps in adapting to the
new environment for the business. Highly skilled employees are considered as asset for the
organisation and managers of Starbucks makes sure that they retain these employees. Starbucks
competes with different players in the market and diverse workforce helps organisation in
gaining the competitor advantage over their competitors by using their skills and experience in
the organisation.
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Critically examine the role culture plays within an organisation which operates globally. You are
expected to use examples to help illustrate the main assertions made.
Culture plays vital role for organisation as every culture have different needs of product
and organisation which are expanding their business in the new market have to understand the
culture and launch new products according to the need and preferences of the consumer. Culture
helps organisation in understanding the needs of the consumer and it also helps in deciding the
quality and pricing of the product. Culture within the organisation plays crucial role in setting the
work culture and performance level of employees. Starbucks focuses on the high performance
culture within the organisation as it helps in enhancing the productivity and profitability of the
organisation. Managers of Starbucks makes sure that the culture within the organisation should
be effective as it helps in managing the workflow in the organisation and also helps in managing
the team as high performance culture in organisation helps in setting the standards of the
performance in the organisation (Wilton, 016). Culture in the organisation motivates employees
to develop their skills and knowledge as it leads to their own development and also helps in
organisation development. There are some examples of Starbucks and how their culture is
helping them in implementing their strategies in the market such as the cafe chain of Starbucks
focuses on providing the comfortable and attractive ambience which helps consumers to settle in
the environment of cafe and it also shows the effects of its culture as it directly linked to their
values for their consumers and their focus is not upon the décor and ambience of the cafe they
make sure that the staff in the cafe should understand their roles and responsibilities and deliver
quality performance. Starbucks focuses on the cooperation and cooperation among the
employees as it helps in enhancing the business performance of the organisation. Starbucks
focuses on building the relationship among the employees which helps in forming the bond
among them. Culture within the organisation effects the performance of the organisation and in
order to enhance the performance of the organisation Starbucks focuses on developing their
skills and knowledge.
CONCLUSION
From the above study it has been concluded that human resource management play
important role in the business as with its help the operations and activities are performed in
proper manner. It help the business in proper strategic planning with the motive to help them in
achieving its desire goals and objectives. Its main role is to help the employees in doing their
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work or activities properly and also help in solving the issues or problems of employees in order
to provide them safe and healthy working environment.
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REFERENCES
Books & Journals
Armstrong, M. and Taylor, S., 2020. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Brunstein, I. ed., 2016. Human resource management in Western Europe (Vol. 68). Walter de
Gruyter GmbH & Co KG.
Chelladurai, P. and Kerwin, S., 2018. Human resource management in sport and recreation.
Human Kinetics.
Rees, G. and Smith, P. eds., 2017. Strategic human resource management: An international
perspective. Sage.
Warner, M. ed., 2020. Human resource management in China revisited. Routledge.
Wehrmeyer, W. ed., 2017. Greening people: Human resources and environmental management.
Routledge.
White, G., 2016. Reward management. Edward Elgar Publishing Limited.
Wilton, N., 2016. An introduction to human resource management. Sage.
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