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Human Resources management- Meaning & Challenges
According to Burma (2014), human Resource Management is a mechanism formed to operate or managed the employees or individuals in an organization. Today, whether large or small sized organization, it is essential to devise a formal management system to look at the various human resources issues. Any organization can achieve its goals and sustain in the competitive world, only with the immense support of its Human Resource or workforce (Burma, 2014).Therefore it is utmost important to Manage this precious resource. According to Chambers (2013), corporation’s growth is highly affected by the HRM challenges that are faced by the organizations, with corporations going global, various international challenges such as cultural diversity, global compensation etc are to be resolved (Chambers, 2013). Through this report, a deep critical evaluation of the various issues and human management strategies regarding resolving issues in the human resources management sector, specifically in Australian’s Organizations will take place.
Major Challenges in Human Resource Management of Australia
Australia is one of among the countries which have highly focused on improving the human resource skills for the betterment and development of the Nation. According to Kate et.al (2011), there has been a high shortage in the skilled manpower in the nation’s corporations, the reason behind being the tradition of long working hours, remote locations, and confusions in the labour legislations of the nation.
According to Kate et.al (2011) opinions, there is immense need to retain the employees for the overall development of the nation. Further study revealed that the nation in its early 2000’s majorly depended upon the resource sector for its overall development; there has been a sharp increase in the manufacturing sector, such as mining etc. He further added that the development of a nation is highly depended on the strength of its Human resource management. Other beneficial changes include that there have been various changes in the Human Resource legislations in Australian, mainly changes brought were the rights for the Union representative, removal of unfair dismissal. His opinions further said about the major challenges in the manufacturing organizations regarding human resources were the lack of proper union representatives and unfair firing of the labours from the small organizations which have limited human resources such as 100 or lower than 100. But with the enactment of the commonwealth Fair work Act 2009 (FW Act) is the major governing act which facilitates certain provisions for the welfare of the employees. This act governed the changes regarding the above mentioned human resources issues and was warmly welcomed by all the employees of the organizations (Kate et.al, 2011).
According to Bean (2010), Australian Organization recognizes the cultural difference as the biggest issues in various small and large enterprises. Due to increased globalisation, Corporations incorporates personnel of diverse culture, but various issues arise such as the working and the productivity of the organizations has been quite weak and low, the reason being a lack of strong relationships among employees, lack of enthusiastic team & leadership, lack of mutual understanding due to linguistic and cultural differences. This report further incorporates that the major challenge in front of the HRM of small and large enterprises is that there is lack of proper training workshops, lack of compliance with the anti- discrimination laws and regulations for safeguarding the cultural issues in HRM department. Cultural differences in HRM, undoubtedly, brings a wide range of talent and skills at a single platform and helps the corporation in increasing productivity globally but major issues lies in the non-compliances of providing the equal opportunities, anti-discrimination laws, increase in the community relationships, poor communication etc (Bean, 2010).
According to Chambers (2013), there are numerous International HRM issues which influence nearly all the International global Organizations. MNC’s basically lacks in proper planning and handling the precious valuable human resource. The major lacking was in the Global Talent Management (GTM), MNC’s were not able to plan proper GTM policies which will help in attracting and retaining highly skilled employees in their Organizations. There is an extreme need to improvise in the talent management initiatives to improve the cross-border transactional business (Chambers, 2013).
According to Nijveld J. (2014), Global Talent Management is the criteria where the great talent throughout the world is comply together to gain the competitive advantage over others. With the increasing globalization, TM strategies have become a major issue in the MNC’s in order to improve the Company’s sustainability and growth at the international level. TM includes Planning and organization towards the pooling of highly skilled human resource from all over the globe and measurement of policies for retaining them (Nijveld, 2014).
According to Hameed & Waheed (2011) “employee is the main key for the organization so regular development is required otherwise, it affects their efficiency and effectiveness of working”. It may be possible that employees of the company require training and development for improving their skills and company fail to assess their need and due to this company received complaints from its customers. Weak efficiency incurred problems for customers of the company and they make a complaint regarding slow services, long call centre waiting, late delivery of parcels etc. these issues related with service delivery adversely affect brand image and customer beliefs for the company. The company cannot be able to enjoy average revenue(Hameed& Waheed, 2011).
HR Challenges (Australia) -
The HRM challenges faced by the Australian Corporations are the Cultural Diversification and the lack of effectiveness of the workforce. According to Movius (2010), the Cultural difference majorly arises due to increasing globalization and is posing serious threats to the HRM department. The major challenge due to Cultural diversification lies in the communication gap, lack of mutual understanding, discrimination among employees, racism etc. (Movius, 2010). According to the Hameed & Waheed (2011), lack of effectiveness among employees highly affects the achievement of organizational goals and objectives. HRM is a sector which is responsible for the effectiveness and efficiencies of employees for increasing the productivity of an organization. Only a capable human resource management can lead to growth and sustainability of an Organization (Hameed & Waheed 2011). These challenges are two international human issues which need to be addressed and related strategies to resolve them are discussed further-
Strategies to be implemented for overcoming the Human Resource issues-
According to Manning (2010), Strategic Human resource management plays a critical role in the development of the organization and helps in gaining a competitive advantage over others through pooling of best human resource (Manning, 2010). In an organization strategic human resource management is required. If human resources of organizations are perfectly managed then organization linked HRM with organizational strategic planning and cultural changes easily. Presently human resource management practices adopted by companies are having core objective of retention of existing employees and reduce employee’s turnover. Generally manager of human resource department frame strategies for worker health and safety, wages and incentive pay etc. Roles and responsibilities of human resource management increase due to increase in globalization in a business organization. Globalization increases the ratio of supply and demand of human resources at the global level.
According to Tan & Nasurdin (2011), “rapid change in technology and communication urged organizations for making improvement in strategic human resource management” (Tan & Nasurdin 2011).
Following are the strategies for the overcoming the issues of lack of effectiveness and cultural differences in an organizational structure and framework-
Feedback system: Feedback system helps the company to know about the performance level of its workers and employees. “Australian Post Corporation” gets connected with its customers through social media where the customer can share their problems and complaints regarding services received from employees of the company. This feedback system helps the company in identifying the development needs of its employees and prepares plans for making improvement in efficiency and work quality of the employees.
Trained employees: Company can improve the efficiency of their employees by providing training to them. Training programs are organizing by a company with an aim of employee development so that they can make their long-term contribution to the operational activities of employees. According to Utrilla et.al (2015), “Training process is an important tool for organizations which improve the performance of employees. Adequate level of improvement brings benefits in the organization and these benefits include revenue benefit, productivity, increase in the sale of services or products and overall growth” (Utrilla et. al, 2015).
Supervisions of employees: Organisations may appoint a supervisor who supervises the operational activities of employees and guides them where needed this help in improving performance and efficiency of the employee. Generally, supervision includes are the view of the challenging and complex situation, stress full environment and level of work pressure. According to Waal et.al (2015), “says that supervision affects the performance of employees of organizations and supervision formally hold employees make them accountable for their work”. But Supervision on employees must be in a controlled manner. If excessive supervision on performance exercises by the organization then it will affect adversely and problem-related to employee turnover may arise. Supervision will be successful if a strong relationship will hold between supervisor and supervisee and supervisor provide opportunities to employees for making the initiation of taking corrective actions in the situation of problems. The supervisor should also discuss the strategies with employees and manage their work in a difficult situation so that they can perform each task efficiently (Waal et. al, 2015).
Good health conditions: Excessive workloads affect the mental health of the employees which ultimately impact their overall efficiency. It is the responsibility of the organization to provide good and stress-free work environment to their employees. Stress less environment remains individual healthy and they are mentally prepared to perform their tasks actively. Presently laws and regulations are formulated and applicable on companies regarding mental and physical health of the employees. According to Rutkow et .al, (2011), “Every organization maintains a good and healthy environment which make their employees active. Organisation must adopt provisions related to safety, human services mental health and reliefs to safeguard their employees”. Healthy environment improves individuals as well as organization’s productivity. For managing the mental health of the employee's organizations may identify and understanding of mental stress level in the workplace and manage it accordingly. Organizations may also take services from a psychologist to reduce stress and anxiety level of their employees (Rutkow et. al, 2011).
Implementation of knowledge Management- An organization can make proper utilization of the knowledge management to reduce the cultural difference. Through the sharing of knowledge, information’s etc. employees will tend to reduce the cultural difference among them.
Cultural issues described specific to -Australia Post Corporation
According to the Australian Post Corporation (2016), Australia Post is the major organization in Australia for providing the postal services in the Nation. The basic products of the organizations are the letters and parcels, agency services, financial services etc. This organization has marked the growth in the postal services and has also evident the shift from traditional practices towards the digital communications. The main focus of the organization is to satisfy their customers in the most sophisticated manner. To fulfill the same the best Human Resource mismanagement is required; therefore the Organization follows the best HRM strategies to develop its human resource (Australian Post Corporation, 2016).
Major Cultural issue in the HRM policies of Australian Post Corporation-
According to the Australian Post Corporation (2013), one of the major issues in the Human resource management are the issue of diversity and cultural difference among the employees. The diverse employability leads to the difference in the linguistic, lack of mutual understanding among the employees. Culture diversity adversely affects the human Organizational traditions and way of behaving. Australian Post is one of the biggest corporations which have large diversified human resource management with immense cultural difference among them. And the organization has implemented various strategies to overcome the cultural issues. Various initiatives such as seminars, togetherness parties, a celebration of Harmony day etc. have been taken on the part of the Organization to improve the general cultural differences among the employees of the Organization and increase the mutual understanding among the employees. The Annual report provides the figure of 23.1% of the total workforce to be culturally and linguistically diversified. The main strategies followed by the Organization in resolving the human resource issues are as follows-
Enhancing the leadership quality- Leaders are prepared based on the various training sessions etc. to learn with the dealing of diverse culture and make a comfortable place for all human resource.
Talent Management- Global workforce incorporates immense range of talent which provides ultimate productivity for the entire organization, management personnel are trained in such a way their management require.
Hardwiring- The working systems incorporates such processes which connect entire personnel in the organization into one, and let the talent and requisite skills to perform.
Communications and Engagement- A large number of seminars, discussions, informal discussions are encouraged to increase the diversified employee engagement in the Corporation (Australian Post Corporation, 2015).
HR practices followed by the Organization-
According to the Australian Post Corporation (2013), the major focus of the organization is regarding the connecting the stakeholders, customers, and the Community together. And for achieving that, there is a high requirement for following the Human Resource management practices. These practices include training development, work-life balances, Compensation etc. This report stated that around 73.4 % is the employee engagement score which has increased substantially over the last years and marked growth in the involvement of Human Resource (Australian Post Corporation, 2013).
Through the complete analysis of the Human Resource managements issues specifically in the country Australia, this essays incorporates the meaning of the HRM and the major challenges of HRM, which are faced by the Australian Corporations. Australia is a developed country, that incorporates requisite laws and regulations required for the development and resolving problems related to the human resource in the organizations. This also includes the critical analysis of the major HRM issues and the various strategies followed by the specific corporations of Australia, for example, Australian Post. There is a critical analysis of two HR challenges namely, Cultural diversity and lack of effectiveness and efficiency among the workers. Cultural differences and lack of effectiveness among the personnel are the two major issues which are further resolved with the help of various strategies such as reduction of communication gap, global team management, adoption of diverse cultural practices and for increasing the effectiveness of the employees, proper feedback mechanism, training and development etc. can help in resolving the HRM issues globally.
- Australian Post Corporation, 2013, Annual Report 2012.
- Australian Post Corporation, 2015, Annual Report 2014.
- Australian Post Corporation, 2016, Annual Report 2015.
- Bean 2010, “Managing Cultural Diversity” Australian Multicultural Foundation.
- Burma Z., 2014, “Human Resource Management and Its Importance for Today’s Organizations” International Journal of Education and Social Science.
- Chambers M., 2013, “An Exploration into the Challenges Facing Practitioners of International Human Resource Management: A Literature Review” International Journal of Business and Social Science.Vol.4
- Hameed, A. & Waheed, A. 2011, “Employee Development and It’sAffect on Employee Performance a Conceptual Framework”,International Journal of Business and Social Science, Vol. 2 No. 13.
- Kate et. al, 2011, “Employee Attraction And Retention In The Australian Resources Sector”
- Manning K., 2010, “Strategic Human Resource Management And The Australian Public Sector” Transylvanian Review of Administrative Sciences, No. 30E, pp. 150-161
- Movius, L. 2010, “Cultural Globalisation and Challenges to Traditional Communication Theories”, Platform: Journal of Media and Communication 2(1) (January)
- Nijveld J., 2014, “Role of Global Talent Management in Organizational Performance”, 3rdIBA Bachelor Thesis Conference
- Rutkow,L., Gable, L. & Links. J. M. 2011, “Protecting the Mental Health of First Responders: Legal and Ethical Considerations”, ajournalof law, medicine & ethics, pp. 56-59.
- Tan, C. L. &Nasrudin, A. M. 2011, “Human Resource Management Practices and Organizational Innovation: Assessing the Mediating Role of Knowledge Management Effectiveness”,The Electronic Journal of Knowledge Management, Volume 9, pp155-167.
- Utrilla,P. N.C. , Grande, F. A. & Lorenzo, D. 2015, “The effects of coaching in employees and organizational performance”,Intangible Capital, pp. 166-182.
- Waal, M. d. ,Rink, F. & Stoker, J. 2015, “How internal and external supervisors influence employees' self-serving decisions”,De Nederlandsche Bank, the Netherlands,University of Groningen, the Netherlands, pp. 464.