CONTEMPORARY ISSUES IN HR PRACTICES

NAME: ANUSHA.M
REG NO: 2013323036004
SUBJECT NAME: HUMAN RESOURCE MANAGEMENT
TOTAL NO OF PAGES: 12

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TABLE OF CONTENTS

TITLE PAGE NO.

LEARNING OUTSOME 1

INTRODUCTION 1

MAJOR CONTEMPORARY ISSUES IN HRM 1

GREENHRM 2

ESSENTIAL GREEN HR ACTIVITIES 2

IMPACT OF GREEN HRM 2

COMPANIES WHO HAVE ADOPTED GREEN HRM 2

INTERNATIONAL HRM 2

REASONS FOR GROWING IMPORTANCE OF IHRM 5

STRATERGIC INTERNATIONAL HRM 6

APPROACHESTOIHRM 7

CHARACTERISTICS OF IHRM 8

BASIC STEPS IN IHRM 8

REASONS FOR GROWING INTEREST IN IHRM 8

STRATERGIC HRM
9
IMPORTANCEOFSHRM
9
FEATURES OF SHRM
10
APPROACHES TO SHRM
10
BENEFITS OF SHRM
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CONCLUSION

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LEARNING OUTCOME
To have an understanding on the basic concepts and contemporary issues in HR. Recognize the key
emerging issues associated with HR. To know about the issues that involves job stress, emotional
labour, discriminations, diversity, safety issues and employee burnout in a workplace.

INTRODUCTION
Human resource practices face a myriad challenges with today's workforce, legislation
affecting the technology matters that rises to the top of the list of challenges. Contemporary
management problems examines the approach of thinking that's required to deal with problems
as they emerge. Contemporary problems have arisen as a results of past, and current, thinking and
practices. Similarly, future problems can emerge as a results of current thinking and practices.

Contemporary human resource management issues invites reevaluation of traditional

management practices. A key focus is that the response to complexness in society and the way
problems with leadership, ethics and social responsibility are interconnected with all business
selections.

MAJOR CONTEMPORARY ISSUES IN HR

• GreenHRM

• IHRM

• SHRM

• Chronic Health Issues

• Organizational Development and Change

• Career Management and Development

• Employee Benefits and Compensation

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 GREENHRM
Green HRM is one that involves two essential elements: environmentally friendly HR
practices and therefore the preservation of information capital. Green HRM involves reducing your
carbon footprint via less printing of paper, video conferencing and interviews, etc.

The varieties of action taken at intervals inexperienced HRM initiatives embody

educating staff concerning global climate change and different environmental problems, coaching
in operating ways that cut back the utilization of energy and different resources, promoting and
incentivizing a lot of property means that of jaunt work (e.g. car sharing, cycling, public transport),
and auditing worker edges to eliminate those who square measure environmentally damaging (e.g.
unnecessary provision of a high powered company car)

ESSENTIAL GREEN HR ACTIVITIES

• Corporate office building

• Separate department

• Conduct a research

• Cleanliness drive

• Recycling

• Decreased printing

• Reusable articles

• Power savings

IMPACT OF GREEN HRM

• Gaining perception, reputation and good will .

• Economically useful, hence direct impact on profit and enhances the return on investments .

• Better power utility .

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• Better utilization of resources .

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 • Cost effective.

• Smarter performance translate into cheaper products.

During the past two decades, a worldwide consensus has begun to emerge around the need for pro•
active environmental management. In response, scholars from managements systems as diverse as
accounting, marketing and supply chain management have been analyzing how managerial
practices in these areas can contribute to environmental management Goals.

COMPANIES WHO HAVE ADOPTED GREEN HRM

• GENERAL ELECTRICS

Uses sigma technique for optimizing their operations to boost environmental and social outcomes
in a very manner that will increase overall performance.

• GOOGLE

Uses green recruiting technique, believes that the majority proficient individuals get attracted as a
result of it.

• INFOSYS

e- Recruiting staffing solutions

• HEWLETT PACKARD

Product take back programs, green packaging and integrating designs.

INTERNATIONAL HUMAN RESOURCE MANAGEMENT

Due to economic process, the economy round the world has been mostly integrated. Many
firms are unit increasing their markets into regions or alternative countries they have never touched
before. These corporations are experiencing an evolutionary stage: internationalization. It is clear
that effective human resource management of a corporation is that the major competitive
advantage and will even be the foremost necessary determinant of structure performance.

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 Thus, in order to survive in the crucial global economic market, a multinational corporation
(MNC) mainly relies on the capability of its international human resource management (IHRM)
during the internationalization process. In alternative words, it is the IHRM's responsibility to
enable the MNCs to be successful globally.

IHRM is that the effective utilization of human resources during a corporation in a global
surroundings. IHRM is outlined as "the HRM problems and issues arising from the
internationalization of business, and the HRM strategies, policies and practices which firms pursue
in response to the internationalization of business".

The term IHRM has traditionally focused on expatriation. However, IHRM covers a so much
wider spectrum than expatriation management. Four major activities basically involved with
IHRM were achievement and choice, training and development, compensation and repatriation of
expatriates.

Recent definitions concern IHRM with activities of however MNCs manage. their
geographically decentralized staff so as to develop their hour resources for competitive advantage,
both locally and globally. The role and functions of IHRM, the relationship between subsidiaries
and headquarters, and the policies and practices are considered in this more strategic approach.
IHRM is additionally outlined as a set of policies and practices that a transnational enterprise uses
to manage native and non-local staff it's in countries aside from their home countries.

Due to the event of economic process, new challenges occur and increase the quality of
managing MNCs. IHRM is seen as a key role to balance the necessity for coordinative and
dominant oversea subsidiaries, and also the have to be compelled to adapt to native environments.
Therefore, the definition of IHRM has extended to management localization, international
coordination, and also the development of world leadership, etc.

To sum up, IHRM mustn't become an outline of fragmented responses to distinctive national
issues nor regarding the 'copying' of HRM practices, as several of those practices suit national
cultures and institutions. Indeed, problems with concern in IHRM area unit those of consistency
or standardization inside numerous social and cultural environments.

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REASONS FOR GROWING IMPORTANCE OF IHRM

In order to explore the sector of IHRM, it's necessary to know why there's gradual increase of
interest in International Human Resource Management. IHRM is of nice importance nowadays for
variety of reasons:

• Recent years have witnessed the rapid growth of globalization and international
competition. The transnational firms (MNCs) have inflated in range and significance, which
contributing to the growing importance of the international role of human resource management.

• It has been increasingly recognized that the effectiveness of human resource management
is one of the major factors to determine the success or failure of international business. There is
conjointly recognition that the standard of management in international operations appears to be a
lot of important than in domestic operations.

• A growing shortage of managers with international exposure and experience is becoming

an increasing deficiency which affects a company's corporate efforts to expand abroad.
Meanwhile, the rising markets need managers with distinctive competency and context-specific
data of the way to do business with success in countries that area unit each culturally and
economically distantly. Thus, a bigger role for IHRM activities in transnational firms is assigned.

• The failure in international business arena is often costly both in human and financial terms,
and is proved to be more severe than that in domestic business. Companies have to be compelled
to take preventative measures to coach and compensate human resources. This makes a full•
fledged IHRM necessary.

• HR strategy plays a significant role in the control and implementation in MNCs. It is not
tough to work out that strategy to pursue for a MNC in AN internationalizing surroundings. What
challenges is the way to implement these methods to achieve success. Developing distinctive
structure cultures is of way more importance than structural innovations in any world or
international strategy. To this extent, IHRM strategy becomes the crucial determinant of the
implementation and success of the MNC strategy.

• The complex nature of HRM problems involving in global environment is underestimated

by some companies. Poor management of human resource usually ends up in business failures in
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 international business. Expatriate performance failure or underperformance continues to be
problematic for IHRM in several international firms.

STRATEGIC INTERNATIONAL HUMAN RESOURCE MANAGEMENT

Under the world context, understanding how multinational Corporations (MNCs) can operate more
effectively becomes more important than ever. This links a MNC with the need of an
internationalized strategy which can direct its subsidiaries' operation not only in the home country,
but also in different parts of the world. There are unit many reasons to develop IHRM strategy:

• At any level, HRM is important to strategy implementation;

• Major strategic components of multinational enterprises have a major influence on
international management problems, functions, and policies and practices;
• The attainment of the concerns and goals of MNCs can be influenced by many of these
characteristics of IHRM;
• The study of IHRM is difficult and necessary as a result of this there are unit of a large
kind of factors creating the connection between MNCs and IHRM advanced.

Strategic IHRM is outlined as human resource management problems, functions and

policies and practices that result from the strategic activities of transnational enterprises which
impact the international considerations and goals of those enterprises.

Two major strategic parts of MNCs that influence Strategic IHRM square measure
pointed out: inter-unit linkages and internal operations. Regarding inter-unit linkages,
transnational enterprises square measure involved with the way to effective operate their varied
world-wide in operation units. In explicit, the key objectives appear to be how these operating
units are to be differentiated and integrated, controlled and coordinated. For strategic IHRM, the
issues associated with integrating and coordinating an MNC's units represent a major influence on
strategic IHRM issues, policies and practices. With regard to internal operations, they require the
same attention as the linkage of the units, since they all influence MNC effectiveness. Each unit
must be operated as effectively as doable relative to the competitive strategy of the MNC .

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 APPROACHES OF IHRM

It has been argued that the success of strategic IHRM in a MNC is largely influenced by the
quality of its human resources and how effectively the corporation's employees are managed.
There square measure 3 approaches that describe however transnational firms manage the human
resources and their overseas subsidiaries: partisanship, polycentric and geocentric.

• Ethnocentric Approach:
This practice usually happens in the early stage of a firm's internationalization
involvement. With this approach, strategic decisions are all made by the headquarters and
the management practices are transferred to the subsidiaries. Most important positions
square measure crammed by parent-country nationals (PCNs).As a result, little autonomy
is given to overseas operating units. During this stage, home country expatriates exercise
tight control.
• Polycentric Approach:
When the strategy becomes polycentric, there is a marked decline in the number
of PCNs sending abroad and their role changes into communication and coordination of
strategic objectives. Host-country nationals (HCNs) are recruited to manage the operating
units in their own country because local managers know more about the local
circumstances and are more familiar with local business ethics. More autonomy is given to
native managers to develop their own management practices acceptable for the subsidiary.
• Geocentric Approach:
This approach relates most closely to the global or transnational strategy. Selection
of staff is predicated on competence instead of status. The best of headquarter and native
practices measure combined by MNCs so as to come back up with a global-implemented
HR strategy.

Most MNCs take the IHRM strategy as a tenet and implement it regionally. It is so the HR
managers' responsibilities to produce the correct international HR strategy to organize and manage
the staff in their home country or a global assignment.

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CHARACTERISTICS OF IHRM

• More HR activities

• Need for a broader perspective

• More involvement in employee personal lives

• Equal treatment to different nationalities

BASIC STEPS IN IHRM

• Human Resource Planning

• Recruitment and selection

• Training and development

• Performance management

• Expatriation

• Remuneration

• Repatriation

• Employee relations

• Multicultural Management

REASONS FOR GROWING INTEREST IN IHRM

• Globalization of business

• Effective HRM

• Indirect cost of poor performance

• Movement to network organization

• Significance in implementing and control of stratergies

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 STRATEGIC HUMAN RESOURCE MANAGEMENT
The best thanks to perceive strategic human resources management is by comparison it to
human resource management. Human resource management (HRM) focuses on recruiting and
hiring the most effective workers and providing them with the compensation, benefits, training,
and development they have to achieve success inside a company. However, strategic human
resource management takes these responsibilities one step any by orientating them with the goals
of different departments and overall structure goals. HR departments that apply strategic
management conjointly make sure that all of their objectives are aligned with the mission, vision,
values, and goals of the organization of that they're a part.

Strategic human resource management is that the application of attracting, developing,

rewarding, and retentive workers for the advantage of each the workers as people and therefore
the organization as an entire. HR departments that apply strategic human resource management
don't work severally inside a silo; they move with different departments inside a company so as to
grasp their goals and then produce ways that align with those objectives, also as those of the
organization. As a result, the goals of an individual's resource department mirror and support the
goals of the remainder of the organization. Strategic HRM is seen as a partner in structure success,
as against a necessity for legal compliance or compensation. Strategic HRM utilizes the talent and
chance inside the human resources department to form different departments stronger and more
practical.

IMPORTANCE OF STRATEGIC HRM

When an individual's resource department strategically develops its plans for

accomplishment, training, and compensation supported the goals of the organization, it's making
certain a bigger probability of structure success. Let's think about this approach in relation to a
basketball team, where Player A is the strategic HR department, and Players B through E are the
other departments within the organization. The whole team desires to win the ball game, and that
they all could also be extraordinary players on their own, however one nice player does not
perpetually win the sport. If you have watched loads of sports, you perceive that 5 nice players
will not win the sport if each of these 5 nice players is concentrated on being the MVP.

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That's not however a team wins, and it isn't however a company wins either. A team wins once its
members support one another and work along for a standard goal. Player A, our strategic time unit
department, should work with players B, C, D and E, our totally different structure departments.
They must run plays that they need mapped out beforehand, assist once necessary to assist another
player get the basket, and complete the weaknesses of 1 so as to create a stronger team as a whole.
When a team works along to succeed in that common goal, solely then will they be really
productive.

FEATURES OF STRATEGIC HRM

The key features of SHRM are

• There is an explicit linkage between HR policy and practices and overall

organizational strategic aims and the organizational environment
• There is some organizing schema linking individual HR interventions so that they
are mutually supportive
• Much of the responsibility for the management of human resources is devolved
down the line

APPROACHES TO SHRM

• attempts to link Human Resource activities with competency based performance

measures
• attempts to link Human Resource activities with business surpluses or profit

These two approaches indicate two factors in associate degree organizational setting.
The first one is that the human issue, their performance and competency and the latter is the
business surplus. An approach of individuals concern relies on the assumption that human
resources are unambiguously vital in sustained business success. An organization gains
competitive advantage by victimization its individuals effectively, drawing on their experience and
ingenuity to satisfy clearly outlined objectives. Integration of the business surplus to the human
ability and performance needed adequate ways. Here the role of strategy comes into picture. The
approach during which individuals are managed, motivated and deployed, and the availability of

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skills and knowledge will all shape the business strategy. The strategic orientation of the business
then needs the effective orientation of human resource to ability and performance excellence.

The Center for Human Resources at the University of Pennsylvania was supported in 1921.
The Center's mission is to foster analysis on the strategic role of time unit management in such
areas as employment, labor relations, public policy, diversity, and training and education. The
Center supports its mission through analysis, regular conferences, data bulletins, and conferences
and public forums.

BENEFITS OF SHRM

• Identifying and analyzing external opportunities and threats that may be crucial to the
company's success.
• Provides a clear business strategy and vision for the future.
• To supply competitive intelligence that may be useful in the strategic planning process.
• To recruit, retain and motivate people.
• To develop and retain of highly competent people.
• To ensure that people development issues are addressed systematically.
• To supply information regarding the company's internal strengths and weaknesses.
• To meet the expectations of the customers effectively.
• To ensure high productivity.
• To ensure business surplus thorough competency

BARRIERS OF SHRM

Barriers to successful SHRM implementation are complex. The main reason could
be a lack of growth strategy or failure to implement one. Other major barriers are summarized as
follows:

• Inducing the vision and mission of the change effort.

• High resistance due to lack of cooperation from the bottom. line.
• Interdepartmental conflict.
• The commitment of the entire senior management team.
• Plans that integrate internal resource with external requirements.
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 • Limited time, money and the resources.
• The statusquo approach of employees.
• Fear of incompetency of senior level managers to take up strategic steps.
• Diverse work-force with competitive skill sets.
• Fear towards victimisation in the wake of failures.
• Improper strategic assignments and leadership conflict over authority.
• Ramifications for power relations.
• Vulnerability to legislative changes.
• Resistance that comes through the legitimate labour institutions.
• Presence of an active labour union.
• Rapid structural changes.
• Economic and market pressures influenced the adoption of strategic HRM.
• More diverse, outward looking approach.

CONCLUSION

It is shown that the contemporary issues are faced and challenged by HR's on daily
basis and they should be able to face them in a proper manner. New tools should be used for
facing contemporary issues by HR. Moreover, it shows that even though many efforts are made by
the organizations to implement effectual HRM practices, they are still faced with a myriad
of contextual challenges.

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