Table of Contents
TOC o “1-3” h z u Introduction PAGEREF _Toc533604792 h 3Body of Content PAGEREF _Toc533604793 h 3Reward and performance management impact on employee motivation PAGEREF _Toc533604794 h 3Key internal and external factors that have influenced International Human Resource Management PAGEREF _Toc533604795 h 4Conclusion PAGEREF _Toc533604796 h 5List of References PAGEREF _Toc533604797 h 6
IntroductionIn the current scene when globalization become the common term that most businesses want to aim to internationally expand the brand, managing human resources in these multinational companies (MNCs) as well as small and medium enterprises (SMEs) still exists lots of drawbacks. People factor, as Armstrong and Taylor (2014) asserted, is one of the main driving elements that directly contribute to the success or failure of an organization along with Planning & Strategies and other operational activities. This report will mainly illustrate the importance of human resource management (HRM) within a business by discussing the role of HRM as well as the impacts that strategic human resource on companys productivity. Besides, practice is what the author aims to so that several examples and case studies of managing people asset and those factors that have influenced HRM will also are mentioned.
Body of ContentReward and performance management impact on employee motivationAccording to Armstrong (2011), one of the cleverest ways to increase employees productivity is providing rewards. It its undeniable that people will work for specific purposes and goals: some people give their best to generate highest income, some work for passion, many employees seeking for promotion and based on different backgrounds and demand of the employees, managers should provide distinctive types of motivation. There are plenty types of rewards, tangible rewards consist of cash, additional bonuses in income, commissions and other products (such as cars, motorcycle, white goods, household consumptions, etc.) that match to the employees expectation; intangible rewards include Promotion opportunities, Awards (Employee of the Month, etc.), Healthcare and Childcare, Vacation (or Holidays and trips), Day-off and further benefits such as companys shares or training courses (Flynn et al. 2015).
Different employees will be satisfied by different rewards: Parents will mostly delight when company reward them childcare, babysitting service, kid activities vouchers, family holidays while individuals prefer cash, bonuses or even intangible award like Employee of the Month to increase his or her brand and reputation, expats always desire holidays and vacations that they would have chances to comeback and visit their families (Molm, 1988; McLeod, 2007). Reward is compulsory in human resource management in order to not only motivate workforce to increase performances but also to form a working culture where people will achieve benefits if they spend more than 100% effort to contribute to the companys success. Nike, one of the largest footwear brand in the world, turned from villain to hero with their policies on sustainability and business ethics especially the benefits and commitment they have made to their employees: Average payment with rewards, long-term contracts, premium training sessions with experts, etc. that had driven this brand in consumers perception from extremely negative in 1990s to one of the most successful and ethical brand in the world till present (Newell, 2015).
Besides rewards, performance management tools and methods will somehow shape those employees into a form to ensure the efforts and effectiveness that these people put to the organization. Key Performance Indicator (KPI) is the most common tool to keep those workers not being derailment and also help them visualize what they need to achieve. Furthermore, a good manager will provide S.M.A.R.T and concise objectives that the employee can acknowledge and making sure the progress. According to Bratton and Gold (2017), appropriate rewards such as additional salary, bonuses, vacations, childcare and others will strongly influence the way employee approach daily work depends on the desire that employee is seeking for.
Key internal and external factors that have influenced International Human Resource ManagementAccording to Gibb (2011), Human Resource Management will always change depends on both internal and external factors that influence the organization. The internal factors can come from the companys financial problem when enterprises could not match the expectation in payment and rewards with their workforce. Poor management level is also a common reason explain why the employees leave the company when followers and leaders could not find a common voice and could not continue contribute for the firm. Globalization provides businesses wider looks at international cultures when more and more expats in these multinational companies and managing the international workforce is complex that managers should acknowledge (Hofstede, 2011). As McLeod (2007) demonstrated the Maslow Hierarchy of Needs, once people satisfy the basic demand, they will tend to look forward to better benefits so that once employee please about their salary, they would seek for higher benefits (self-esteem, recognition, reputation, etc.) which companies should acknowledge to fully manage and deliver to the employees through rewards if possible.
Figure 1: Maslows Hierarchy of Needs (McLeod, 2007)
Ethical issues consist of corporate social responsibility (CSR) and sustainability are other driving factors of IHRM when people more and more concern on those ethical actions of firms (both to internal and external stakeholders): Nike and Starbucks seem to be the leading in this field when theyre both providing outstanding income opportunities for the staff and even further benefits like training, healthcare, long-term contracts, etc (Newell, 2015; Starbucks Responsibility, 2018).
Furthermore, in Tourism and Hospitality industry, seasonal issues become the main reason of employee turnover when those hotels and resorts come to low season and the amount of guests stay is low lead to the decrease in income and tips; many accommodation units handle this situation by sending their employees to other seasonal destination to secure the workforce and further increase employees experience. In the field require such experience employees, Tourism and Hospitality units should provide more long-term commitment and benefits in order to retain their labor as an important stage of human resources management.
With the development of the Internet especially social media, more than more users approach to different types of information and it is possible for employees seek for another better job through this channel. Companies with financial strength in salary payment and well organizational culture will have further opportunities to attract potential candidates to apply into the job and even further convert competitors staff into their employees. Similar case occurred in Vietnam when Grab Bike (motorcycle taxi brands in this country) drivers stroke the company due to the increment in revenue share, then with the appropriate propaganda through various channels, lots of Grabs drivers moved to GoViet (biggest competitors) to secure their income and other benefits (Vietnamnet.vn, 2018).
ConclusionHuman Resource Management is directly contributes to the success of every company when people asset become crucial in companys operation. Thus, strategic planning for human resources activities such as recruitment, training and employee retention should be noticed and appropriately implement from those organization in order to generate best select best person to the right position. Just like Nike and Starbucks with their concern on improving workplace and workforce quality, small and medium enterprises also need to pay attention in increasing employees motivation through rewards and adapt their commitment to the workers which is crucial to avoid those unexpected situation might occur like employees strikes and boycott circumstances.
List of References Armstrong, M., 2011. Armstrong’s handbook of strategic human resource management. Kogan Page Publishers.Armstrong, M. and Taylor, S., 2014. Armstrong’s handbook of human resource management practice. Kogan Page Publishers.Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Flynn, W.J., Mathis, R.L., Jackson, J.H. and Valentine, S.R., 2015. Healthcare human resource management. Nelson Education.Gibb, S., 2011. Human resource development. Basingstoke, UK: Palgrave Macmillan.
Hofstede, G., 2011. Dimensionalizing cultures: The Hofstede model in context. Online readings in psychology and culture, 2(1), p.8.McLeod, S., 2007. Maslow’s hierarchy of needs. Simply Psychology, 1.Molm, L.D., 1988. The structure and use of power: A comparison of reward and punishment power. Social Psychology Quarterly, pp.108-122.Newell, A., 2015. How nike embraced csr and went from villain to hero. Triple Pundit, pp.1-2.Nickson, D., 2013. Human resource management for hospitality, tourism and events. Routledge.Negative impacts
Starbucks Responsibility (2018). Community. [online] Starbucks Coffee Company. Available at: [Accessed 20 Dec. 2018].
Vietnamnet.vn (2018). GrabBike drivers go on strike for second time – News VietNamNet. [online] English.vietnamnet.vn. Available at: [Accessed 26 Dec. 2018].