ASSIGNMENT

Modernising the Directorate of International Relations of the

Ministry of Finance

Modernising the Directorate of International Relations of the

Ministry of Finance

IN WHAT WAYS COULD THE ESTABLISHMENT OF AN INTEGRATED HR TEAM PROVIDE IMPROVED SERVICES FOR THE DIRECTORATE OF INTERNATIONAL RELATIONS?

Many companies are hindered by outdated legacy systems burdened with old technology and lack of flexibility. These systems do not allow HR the global leverage required to meet the needs of global businesses and locations. One approach to information technology used by the Hewlett-Packard Co. has been well accepted. HP's solution was to develop a common information technology infrastructure with networks and communication, centrally managed data centers with common server operating environments, and e-mail-based work-flow services for clients. The pressures on traditional IR models are not all due to globalization, as we shall see, but many of the changes taking place can be traced to globalization. it is not always easy to disentangle the causes and effects of globalization. However, it would probably be true to say that globalization is represented by the opening up of markets due, in large measure, to foreign direct investment consequent upon the lowering of investment barriers in practically all countries; by the liberalization of trade, and by the deregulation of financial markets in consequence of which governments increasingly have little control over the flow of capital across borders. All this implies the dominance of the market system, facilitated by the collapse of alternative economic (and in many cases political) systems. There is also a direct link between globalization and information technology (IT). Rapid technological change and reduction in communication costs have facilitated the globalization of production and financial markets. At the same time globalization stimulates technology through increased competition; it diffuses technology through foreign direct investment. The success of global companies is to a large extent dependent on their ability to organize (within and between organizations) across national boundaries information, money, people and other resources.

Contracting out and out-sourcing. It is an important rationale of out-sourcing that it, on the one hand, enables an enterprise to concentrate on its core competencies, and on the other hand, it makes service work more productive. For example, in the USA, outsourcing of functions in hospitals not directly related to the work of doctors and nurses (care of patients) has substantially increased the productivity of the hospitals, and provided new opportunities for service employees. "Outsourcing is needed not just because of the economics involved. It is required equally because it gives opportunities, income and dignity to service work and service workers."

Employers are of the view that issues relevant to the employment relationship such as work re-organization, flexible working hours and contractual arrangements, and pay for performance and skills, are increasingly workplace-related, and should therefore be addressed at the enterprise level. In the USA collective bargaining has, with some exceptions, been very much at the enterprise level; in the UK there is a marked shift towards enterprise bargaining; and the trends in Continental Europe are also in that ...