SHRM And Globalization

SHRM and Globalization

1-INTRODUCTION

Today's organizations need to be able to adjust quickly to an ever-changing world. As a result of shrinking market and increased international competition, human resource management changed a lot. Increasing competitive pressures force firms to look within for improving internal efficiency. A resource-based perspective of organizations holds that rare and non-imitated resources create sustainable competitive advantage (Barney 1991). Therefore human resources are becoming ever more important, and also the management of these resources.

The current focus usually labeled strategic human resource management (SHRM) attempts to make human resource management explicitly part of the strategic management of the firm (Baird and Meshoulan 1988). HR functions are changing from practical to strategic, and the role of HR is also changing from doer to consultant (Hall and Torrington 1998, p52). Accompanying by these changes, some new HR area emerged, such like the effect of SHRM, implementation of SHRM and the future along with the SHRM and globalization.

This paper tries to analyze to gain the most organizational outcomes what should SHRM do? The first chapter will identify the SHRM practices and the link between it and organizational outcomes. The second chapter will discuss the benefits and shortage of line manager involvement in HRM. In the third chapter well-being bringing a long-term advantage will be analyzed and the affect of globalization on HRM and SHRM.

2-STRATEGIC HUMAN RESOURCE MANAGEMENT PRACTICES AND THEIR LINKS TO PRODUCING PODUCING POSITIVE ORGANISATIONAL OUTCOMES

The recognition that the management of human resources plays a critical role in firm performance is a relatively recent development. However, it developed very fast over the last several decades. Human resource management (HRM) is now slowly being changed to strategic human resource management (SHRM).

Strategic human resource management has been defined as the pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals (Wright & McMahan 1992, p. 298); a long-term focus, having a linkage between HRM and strategy processes (Martell and Carroll 1995, p. 254), etc. To sum up, there are some frequently cited fundamental elements of SHRM in the literature: macro-oriented, proactive and long term focused in nature; views human resources as assets or investments not expenses; implementation of SHRM practices bears linkage to organizational performance; and focusing on the alignment of human resources with firm strategy as a means of gaining competitive advantage (Nee & Khatri, 1999:311).

These notions and a number of recent studies argued that there are positive relationships between SHRM practices and organizational outcomes. Organizational outcomes focus on more operational measures of performance such as productivity, quality, and shrinkage. Some questions are emerged. What sorts of SHRM practices ought to work best and how to judge the best? How SHRM practices link to organizational outcomes?

Which SHRM practices are most suited to organization? At this point, we do not know the absolutely answer. Some people consider that some best practices can be implemented in virtually any work. Schuler (1992) encompassed the practices within the 5-P model. Delery & Doty (1996) identified seven practices that are consistently considered strategic HR practices. High Performance Work Practices is very popular in recent years (Huselid, 1995). In contrast, the fit view (contingency) argues that best practices vary from firm to firm. Practices vary across firms because different strategies require different employee characteristics (Schuler, 1988) related to these behaviors and competencies in order to be successful. In my opinion, fit and best practices approaches should not be viewed as competing. They both have a role to play in HR strategy (Peter Boxall and John Purcell,2003).

Over the past 10 years, there has some researches attempting to demonstrate that progressive HR practices result in higher organizational performance. A set of HR practices are proved useful. To acquire the best methods, organization can integrate them into the organizational context and strategy. There are some factors which might positive affect performance: communications, continuous improvement, culture consciousness, customer focus & partnering interdependence, risk taking, etc. According the different size, type and strategy of organization, these factors can be used flexible to constitute the most suitable SHRM practices. Generally speaking, the most suited SHRM practices is a cohesive and holistic approach to organizational management

How SHRM practices link to or impact organizational outcomes? Dyer and Reeves (1995) reviewed much of the existing research on the relationship between HR practices and performance, and proposed that measures of performance could be broken down into four categories: employee outcomes, organizational outcomes, financial/accounting outcomes and market-based outcomes. Becker and Huselid (1998) provided the most detailed model offered to date. In essence, this model suggests that the HR practices directly impacts employee skills and motivation and the structure and design of work. These factors influence employee behavior, which translates into improved organization outcomes. We can see this process like a chain. SHRM practices first impact proximal outcomes (HR outcomes), then impact distant outcomes (organization outcomes).

While the strategic practices have contributed to the organizations growth and outcomes, the implementation of such HR strategies has not been without difficulty. We can see, during the process of implementing SHRM, people is one of the most important element. There are two sides: HRM personnel and employee. First, insuring that members of the HRM personnel have the appropriate human capital or competencies has been suggested as one way to increase the likelihood of effective implementation of HRM practice (Huselid, et al., 1997). Competent HR staff knows the company's business and understand its economic and financial capabilities necessary for making logical decisions that can support the company's strategic plan based on the most accurate information possible. On the other hand, guarantee that employees accurately understand the organizational strategy and how they should contribute. Because the success of the HRM system may depend on the degree to which employees know and understand how to behave in a way contributing to the larger goals of the organization.

Successful adoption, diffusion and implementation of SHRM