HUMAN RESOURCE MANAGEMENT

Strategic Human Resource Management

Introduction2

Background Information on Cultural Diversity2

Explanation for Improvement4

HRM's Role in Cultural Diversity and Change Management6

Competitive Environment & Strategies of Human Resource Management6

Changing an Organization's Culture7

Hurdles in Bringing the Change and How to overcome it7

Benefits of Cultural Diversity8

Promotes Humanistic Values9

Improves Productivity and Profitability9

Cultural Diversity Enhances Problem Solving Abilities and Creativity within the Organization10

Attraction and Retention for Talent10

Satisfied Customer Base with Increased and Diverse Market Share10

Conclusion10

References12

Strategic Human Resource Management

Introduction

Strategic Human Resource Management - SHRM involves the study and practices of more practical management system that helps the organizations to think beyond and plan more effective management systems. SHRM is a process that involves developing linkages between the human resource function and the strategic objectives of the organization in order to improve the performance and productivity (Chambers, 2013, 21-27). In this era, organizations are facing challenges due to globalization and bringing changes in their organization according to the latest studies and developments. The concept of Strategic Human Resource Management helps organizations to inter-relate strategies across different levels. The policies and practices of an organization's human resource management must match with its strategy in the competitive environment to bring the best result.

The success of national and international businesses and organization relies strongly on the core area of Human Resource Management. The issue of Human Resource Management that we are going to discuss in this assignment is cultural diversity. In this research proposal we will be discussing the role of HRM and the challenges faced by this department to overcome this issue.



Background Information on Cultural Diversity

The world we are living in is constantly converging, and globalization opens the doorway for many organizations to enter new markets across the world, however it becomes increasingly tedious for human resource management department to deal with diversity these opportunities bring with them. We are witnessing various companies from different countries merging with each other and resulting in the creation of global workforce. Moreover as a result of such mergers and recruitments of international applicant in an international organization, managing a human resource with cultural diversity becomes a vital though complex issue to HR personnel. For e.g. most of international companies are showing their interest to invest in India and China, this is because high skilled work force in China and India are available in much economic rates as compared to the international wages for such jobs. However as these companies penetrate in India, they realize the Cross-cultural issues faced by management in India, as the current economic policies of liberalization in India create cultural differences.

Another example from history, relating to issues of cultural diversity in Human Resource Management can be taken as a change of perceptions and opinions of personnel from various countries. A study conducted on systems of personal values in England which involved almost 2500 managers from five different nations which included India too, summarized that managers coming from India tends to be more receptive towards bureaucratic and humanistic outcomes of their ...