netrashetty
Netra Shetty
The Kohler Company is a manufacturing company in Kohler, Wisconsin best known for its plumbing products. Kohler also manufactures furniture, cabinetry, tile, engines, and generators.
The involvement of Human Resource department in the earlier phases of the International market expansion increases the possibility of success. According to a study by Schmidt (2001) the top five capabilities provided by an ideal HR includes the capability to analyse other company quickly, possessing basic knowledge of international expansion (and general business) and integration, provision of valuable advices linked with employee sensitivities and attitudes, ability to motivate and retain critically required talent and skills of planning and leading difficult integration projects. International market expansion provides HR with the opportunity to show its strategic importance where the skills of HR professionals can be utilised to demonstrate the difference they can make in success and failure of International market. If HR proves to be of value in International market expansion, not only the entire profession is strengthened but HR professionals have chances of occupying key advisers positions to the people responsible for making the vital decisions. (Schmidt, 2001)
The challenges involved in the implementation differ according to the strategic reasons that underlie the globalisation. With respect to HR issues, an important intervention is stabilising the workforce. The impotent factors for the success of globalisation include a transaction that has been undertaken for strategic reasons, a purchase price of a merger or an acquisition reflecting not only the inherent value of a target business but also its value to the buying or merging firm, and effect implementation. Even if a "reasonable" purchase price and sound strategic reasons are present, International market expansion may not succeed if the merging organisations are not effectively combined in the post-deal phase due to the challenges and difficulties of implementation (Schweiger et al., 1993).
Poor mergers are often a result of HRM and organisational problems. The most common problems are linked with the difficulty in integrating cultures and systems, fall-off in quality, poor motivation, loss of key personnel and customers, and reduced focus on long term objectives. In absence of positive input from employees, mergers cannot realise their full potential; therefore, maintaining the workforce stability throughout a merger is important. Other factors include job security, pay and benefits, work autonomy, and performance feedback. Communicating with the staff frequently and honestly has a stabilising effect on the workforce.
Overall, the theory of HRM argues that the goal of human resource management is to help an organization to meet strategic goals by attracting, and maintaining employees and also to manage them effectively. The key word here perhaps is "fit", i.e. a HRM approach seeks to ensure a fit between the management of an organisation's employees, and the overall strategic direction of the company (Miller, 1989).
The basic premise of the academic theory of HRM is that humans are not machines, therefore we need to have an interdisciplinary examination of people in the workplace. Fields such as psychology,industrial relations, industrial engineering, sociology, economics, and critical theories: postmodernism, post-structuralism play a major role. Many colleges and universities offer bachelor and master degrees in Human Resources Management or in Human Resources and Industrial Relations.
One widely used scheme to describe the role of HRM, developed by Dave Ulrich, defines 4 fields for the HRM function:[14]
Strategic business partner
Employee champion
Administration
Business Practice
Human resources management involves several processes. Together they are supposed to achieve the above mentioned goal. These processes can be performed in an HR department, but some tasks can also be outsourced or performed by line-managers or other departments. When effectively integrated they provide significant economic benefit to the company.[15]
Workforce planning
Recruitment (sometimes separated into attraction and selection)
Induction, Orientation and Onboarding
Skills management
Training and development
Personnel administration
Compensation in wage or salary
Time management
Travel management (sometimes assigned to accounting rather than HRM)
Payroll (sometimes assigned to accounting rather than HRM)
Employee benefits administration
Personnel cost planning
Performance appraisal
Labor relations
HRM strategy
An HRM strategy pertains to the means as to how to implement the specific functions of HRM. An organization's HR function may possess recruitment and selection policies, disciplinary procedures, reward/recognition policies, an HR plan, or learning and development policies, however all of these functional areas of HRM need to be aligned and correlated, in order to correspond with the overall business strategy. An HRM strategy thus is an overall plan, concerning the implementation of specific HRM functional areas.
An HRM strategy typically consists of the following factors:-
"Best fit" and "best practice" - meaning that there is correlation between the HRM strategy and the overall corporate strategy. As HRM as a field seeks to manage human resources in order to achieve properly organizational goals, an organization's HRM strategy seeks to accomplish such management by applying a firm's personnel needs with the goals/objectives of the organisation. As an example, a firm selling cars could have a corporate strategy of increasing car sales by 10% over a five year period. Accordingly, the HRM strategy would seek to facilitate how exactly to manage personnel in order to achieve the 10% figure. Specific HRM functions, such as recruitment and selection, reward/recognition, an HR plan, or learning and development policies, would be tailored to achieve the corporate objectives.
Close co-operation (at least in theory) between HR and the top/senior management, in the development of the corporate strategy. Theoretically, a senior HR representative should be present when an organization's corporate objectives are devised. This is so, since it is a firm's personnel who actually construct a good, or provide a service. The personnel's proper management is vital in the firm being successful, or even existing as a going concern. Thus, HR can be seen as one of the critical departments within the functional area of an organization.
Continual monitoring of the strategy, via employee feedback, surveys, etc.
The implementation of an HR strategy is not always required, and may depend on a number of factors, namely the size of the firm, the organizational culture within the firm or the industry that the firm operates in and also the people in the firm.
An HRM strategy can be divided, in general, into two facets - the people strategy and the HR functional strategy. The people strategy pertains to the point listed in the first paragraph, namely the careful correlation of HRM policies/actions to attain the goals laid down in the corporate strategy. The HR functional strategy relates to the policies employed within the HR functional area itself, regarding the management of persons internal to it, to ensure its own departmental goals are met.
The involvement of Human Resource department in the earlier phases of the International market expansion increases the possibility of success. According to a study by Schmidt (2001) the top five capabilities provided by an ideal HR includes the capability to analyse other company quickly, possessing basic knowledge of international expansion (and general business) and integration, provision of valuable advices linked with employee sensitivities and attitudes, ability to motivate and retain critically required talent and skills of planning and leading difficult integration projects. International market expansion provides HR with the opportunity to show its strategic importance where the skills of HR professionals can be utilised to demonstrate the difference they can make in success and failure of International market. If HR proves to be of value in International market expansion, not only the entire profession is strengthened but HR professionals have chances of occupying key advisers positions to the people responsible for making the vital decisions. (Schmidt, 2001)
The challenges involved in the implementation differ according to the strategic reasons that underlie the globalisation. With respect to HR issues, an important intervention is stabilising the workforce. The impotent factors for the success of globalisation include a transaction that has been undertaken for strategic reasons, a purchase price of a merger or an acquisition reflecting not only the inherent value of a target business but also its value to the buying or merging firm, and effect implementation. Even if a "reasonable" purchase price and sound strategic reasons are present, International market expansion may not succeed if the merging organisations are not effectively combined in the post-deal phase due to the challenges and difficulties of implementation (Schweiger et al., 1993).
Poor mergers are often a result of HRM and organisational problems. The most common problems are linked with the difficulty in integrating cultures and systems, fall-off in quality, poor motivation, loss of key personnel and customers, and reduced focus on long term objectives. In absence of positive input from employees, mergers cannot realise their full potential; therefore, maintaining the workforce stability throughout a merger is important. Other factors include job security, pay and benefits, work autonomy, and performance feedback. Communicating with the staff frequently and honestly has a stabilising effect on the workforce.
Overall, the theory of HRM argues that the goal of human resource management is to help an organization to meet strategic goals by attracting, and maintaining employees and also to manage them effectively. The key word here perhaps is "fit", i.e. a HRM approach seeks to ensure a fit between the management of an organisation's employees, and the overall strategic direction of the company (Miller, 1989).
The basic premise of the academic theory of HRM is that humans are not machines, therefore we need to have an interdisciplinary examination of people in the workplace. Fields such as psychology,industrial relations, industrial engineering, sociology, economics, and critical theories: postmodernism, post-structuralism play a major role. Many colleges and universities offer bachelor and master degrees in Human Resources Management or in Human Resources and Industrial Relations.
One widely used scheme to describe the role of HRM, developed by Dave Ulrich, defines 4 fields for the HRM function:[14]
Strategic business partner
Employee champion
Administration
Business Practice
Human resources management involves several processes. Together they are supposed to achieve the above mentioned goal. These processes can be performed in an HR department, but some tasks can also be outsourced or performed by line-managers or other departments. When effectively integrated they provide significant economic benefit to the company.[15]
Workforce planning
Recruitment (sometimes separated into attraction and selection)
Induction, Orientation and Onboarding
Skills management
Training and development
Personnel administration
Compensation in wage or salary
Time management
Travel management (sometimes assigned to accounting rather than HRM)
Payroll (sometimes assigned to accounting rather than HRM)
Employee benefits administration
Personnel cost planning
Performance appraisal
Labor relations
HRM strategy
An HRM strategy pertains to the means as to how to implement the specific functions of HRM. An organization's HR function may possess recruitment and selection policies, disciplinary procedures, reward/recognition policies, an HR plan, or learning and development policies, however all of these functional areas of HRM need to be aligned and correlated, in order to correspond with the overall business strategy. An HRM strategy thus is an overall plan, concerning the implementation of specific HRM functional areas.
An HRM strategy typically consists of the following factors:-
"Best fit" and "best practice" - meaning that there is correlation between the HRM strategy and the overall corporate strategy. As HRM as a field seeks to manage human resources in order to achieve properly organizational goals, an organization's HRM strategy seeks to accomplish such management by applying a firm's personnel needs with the goals/objectives of the organisation. As an example, a firm selling cars could have a corporate strategy of increasing car sales by 10% over a five year period. Accordingly, the HRM strategy would seek to facilitate how exactly to manage personnel in order to achieve the 10% figure. Specific HRM functions, such as recruitment and selection, reward/recognition, an HR plan, or learning and development policies, would be tailored to achieve the corporate objectives.
Close co-operation (at least in theory) between HR and the top/senior management, in the development of the corporate strategy. Theoretically, a senior HR representative should be present when an organization's corporate objectives are devised. This is so, since it is a firm's personnel who actually construct a good, or provide a service. The personnel's proper management is vital in the firm being successful, or even existing as a going concern. Thus, HR can be seen as one of the critical departments within the functional area of an organization.
Continual monitoring of the strategy, via employee feedback, surveys, etc.
The implementation of an HR strategy is not always required, and may depend on a number of factors, namely the size of the firm, the organizational culture within the firm or the industry that the firm operates in and also the people in the firm.
An HRM strategy can be divided, in general, into two facets - the people strategy and the HR functional strategy. The people strategy pertains to the point listed in the first paragraph, namely the careful correlation of HRM policies/actions to attain the goals laid down in the corporate strategy. The HR functional strategy relates to the policies employed within the HR functional area itself, regarding the management of persons internal to it, to ensure its own departmental goals are met.