Human Resource Management in Global Economy

Running head: HUMAN RESOURCE MANAGEMENT IN GLOBAL ECONOMY 1
Human Resource Management in Global Economy.
Name:
Institution

Human Resource Management in Global Economy 2
HUMAN RESOURCE MANAGEMENT IN GLOBAL ECONOMY.
Introduction
Organizational human resource is among the fundamental aspect of management of the
workforce in the organization. It involves operations that are developed to maximize the
performance of the workforce in order to arrive at the strategic objectives of the organization. It
entails the management of people within the organization in relation to the set rules and policies
that govern the operations of the organization.
Some of the aspects and processes involved in the human resource organization practice
include recruiting, selecting relevant workforce, provision of orientation services and inductions
and engaging in training and development of skills. Additionally, human resource practices
include the assessment of the workforce through operations such as performance appraisal,
provision of compensation services, motivation and encouragement of the workforce,
maintenance of good relations with trade and labor unions and taking care of the welfare of the
employees in terms of their safety and health.
At the different levels of the organization, human resource managers are actively
involved in the development of employee skills. For example, they advise the management on
how to assign roles in the organization. This is most evident in a flexible working environment
where the employees are in constant rotation to different functions and departments within the
organization as per the organization priorities and employee preferences.
Another fundamental aspect of organizational human resource is facilitating loyalty and
commitment within the organization. This starts by matching the employee skills and
qualifications with the right position. The team also develop a competitive advantage for the

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business through capacity building, so that the business can offer unique goods and services to its
customers. The human resource team can achieve this through hiring and management of talent
and facilitating employee commitment to their given task. Commitment may be achieved by
motivating the workforce through incentives like cash bonuses.
This essay will focus on culture, workplace diversity, international performance
management, and training and developments. It seeks to explain how these functions of human
resource management can be applied for effective workforce productivity. Also, theories that
seeks to address these functions will be discussed.
Diversity management and culture
Diversity is a common phenomenon in recent times in organizational operations and
practices. It is characterized by factors such as age, nationality, gender, religion, political
affiliation, ethnicity, social background, and race. Diversity is categorized as “workforce
diversity” in business management and has been studied in numerous scholarly articles. This has
resulted in intensive seminars on the subject and many consultancy firms provide advice on how
to deal with workplace diversity (Jiang, Lepak & Baer, 2012). Many advanced states such as
America, Australia, and Canada recruit a large number of employees who have migrated into
their countries. Additionally, they also recruit people of different gender, race, religion, and
people with diverse ideologies or beliefs (Horwitz & Horwitz, 2007). All this inclusion requires
conscious management to address each special group needs and develop them into an integrated
workforce with the purpose of improving productivity and gaining competitive advantage.
The concept of diversity has not been widely applied until the onset of the 20th century.
Managing diversity requires the facilitation of an appropriate environment for diversity to thrive

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and the development of program and policies that facilitate non-discrimination between
employees (Shen, et al., 2009). There is a need to ensure that each employee feels worth and
appreciated in order to increase work productivity.
Among the core issues in diversity management is dealing with the majority and minority
perspectives. There always exists a predominant group in any given organization. Some
researchers indicate that diversity management has its fair share of drawbacks. This includes low
employee satisfaction and the level of cohesion between teams. This results in difficulty in
communications and results in tension and conflict within the work environment. There is also a
lack of harmony between the employees and this impact negatively on the performance. These
issues have been seen in ‘No name’ organization whereby the employment decisions are highly
influenced by perceptions resulting in a strenuous working relationship. Managing diversity can
result in complications such as ambiguity in work, the inability of the organization to address
individual needs of the employees and difficulties in the formulation of procedures and policies
strategies that bring the workers together. However, the benefits supersede these disadvantages.
Diversity in the workplace is important because it results to lower labor and turnover rate,
increase creativity among employees, improve the image of the organization in the community
and increase the effectiveness of solving arising issues (Chen & Huang, 2009). Additionally,
diversity increases the potential of the organization to adapt to the environment and leads to the
acquisition of human resources from multiple cultural backgrounds.
There are four important theories that try to explain the fundamentals of diversity in the
workplace. They are psychology organizational theory, contingency theory, goals theory, and
learning theory. Psychology organizational theory provides a set of practices that are best suited
for the employees in order to develop simplified regulations (Youssef & Luthans, 2007).