Strategic HRM: Cultural Adaptation and Ethics in Global Business

This essay examines the evolving role of Human Resource Management (HRM), emphasizing its shift from traditional administrative functions to strategic importance. It highlights how economic, technological, and cultural environments influence organizational behavior, particularly in the context of globalization. The essay explores the challenges and necessary compromises for countries like Saudi Arabia in adapting to modern HRM practices, focusing on embracing multiculturalism and cultural diversity. It further discusses the significance of ethics in organizations, linking ethical behavior with social responsibility and providing examples of both ethical and unethical conduct. The differences between HRM in small businesses and at the international level are also addressed, noting the importance of cross-cultural training for employees working abroad. Desklib offers students access to this essay along with a wealth of other resources, including past papers and solved assignments, to aid in their studies.

Running Head: HUMAN RESOURCE MANAGEMENT
Human Resources Management
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HUMAN RESOURCE MANAGEMENT 2
Human Resource Management
Unlike in the past, human resource currently plays strategic role. In fact, the most
important role of HR is strategic functions. According to Bratton & Gold (2012), HR directors
are often encouraged to play a more "strategic" role within their organization. This aspect is
considered more important than what is perceived as the "traditional administrative" role of staff.
However, according to the authors, there is a certain ambivalence about the exact meaning of the
term "strategic" and they question the extent to which the different services can review their role
on a whim.
Economic, technological and cultural environment influence how organizations organize
and act. Technology for example, has encourage outsourcing. Economic environment has also
changed. Competition, for example, has compelled human resource management to focus not
only in training and recruitment but also in strategic role (Kramar & Holland, 2015). As far as
cultural environment is concerned, companies are expected to accommodate employees from
different settings and cultures and hence unlike in the past, the company needs to foster cultural
diversity. For a country like Saudi Arabia, keeping up with the current trend would require some
compromise. Firstly, it should be noted that Saudi strictly follows the Islamic culture. The
language spoken is Arabic and society is extraordinarily conservative: alcohol is totally banned
and socializing with women remains a taboo subject. This means that human resource manager,
who intends to introduce modern western leadership approaches may not succeed easily. For
Saudi to comply with the changing human resource requirements, it will have to embrace the
concept of multiculturalism and encourage cultural diversity. It will also have to accept some of
the western cultures such as free conversation with all people irrespective of gender.

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Ethics entails ability point out what is right, what is just, in short, what is moral (Schear,
2010). In organizations, ethics refers to the processes through which they are evaluated and
decisions are made based on good and bad. Because people have personal and different codes of
ethics, organizations have to be very careful with corporate ethical standards, mission, vision and
expectations (Schear, 2010). Ethical behavior entails doing things that will protect the public,
environment, and all stakeholder. Ethics and social responsibility are closely linked in the
performance of so-called responsible organizations. Unethical and immoral behavior entails
doing things such as working with drug networks, exploiting children, paying bribes and
accepting them. It is advisable for organizations and companies to always do what is ethical.
Example of ethical behavior is where an organization decided to stop producing a given product
simply because it is not safe for the public. An example of unethical behavior is where a
company decide to release pollutants to the environment which is bound to affect community
living around the plant.
HRM for small business is relatively less complex and may entail few considerations.
However, at international level, HRM will require a lot of considerations. For example, in terms
of training employees, it is important to bear in mind that, in addition to the technical training
that can be provided to a new worker who will perform his duties in another country, he will
have to provide cross-cultural training, that is, on culture, habits, behaviors of the country -
destination, with the aim of empathizing with it and being able to assimilate it as soon as possible
so that it does not suppose an obstacle in its performance (In George & In Schillebeeckx, 2018).

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References
Bratton, J., & Gold, J. (2012). Human Resource Management: Theory and Practice.
Basingstoke: Palgrave Macmillan.
In George, G., & In Schillebeeckx, S. J. D. (2018). Managing natural resources: Organizational
strategy, behaviour and dynamics. Cheltenham, UK ; Northampton, Massachusetts :
Edward Elgar Publishing
Kramar, R., & Holland, P. (2015). Capstone HRM: Dynamics and ambiguity in the workplace.
Prahran, VIC, Australia : Tilde University Press
Schear, T. H. (2010). Interactive ethics: How ethical & unethical decisions are really made in
organizations. Boca Raton: Universal-Publishers.