CW1 M016 Global Human Resources Strategie by Management of Target Corporation Assessment Answer
Global Human Resource Management
This assignment is focused on identifying global human resources strategies adopted by management of Target Corporation throughout its different businesses across the world. In addition to that this report has also provided suggestions in relation to human resource strategies for proposed business in Ireland. This report suggested that universalistic theory will be more appropriate in global human resource management for Target Corporation. Manner in which new HRM strategies will be helpful in improving employee's commitment, flexibility and quality are also suggested in this report. In simple words that can be said that this report will be helpful in attractive inefficient acquisition and management of human resources if businesses is expanded to Ireland.
Importance of human resources is very high in the success of the business organization. The efficiency of different resources employed by the organization in business operations is totally dependent on the efficiency of human resources. This is due to the fact that the use of particular resources dependent on efficiency with human resources is operating in the business organization. For example, if the management of the organization has installed ERP system for accounting and reporting purposes, therefore it is important that human resource that is appointed for using such ERP system is skilled and experienced in using such system. If set human resource does not have any experience or knowledge about ERP system than expected efficiency will not be achieved irrespective of using advanced technology (Noe et.al, 2017). The main objective of this report would be to identify human resource management strategies adopted in one of the most popular multinational organizations in the world i.e. Target Corporation. Any organization that is operating in more than one country can be defined as a multinational organization. Target Corporation is a retail sector multinational organization that is operating in the United States of America, India Australia, New Zealand, Canada, etc. For the purpose of better evaluation of HRM practices from a global perspective, it is assumed in this report that target corporation is thinking about openings their stores and corporate office in Ireland. This report will identify different external factors that can affect HRM practices in a particular country.
LO1- Economic drivers in an international business environment that influences HRM strategies.
There are various external factors that can affect different aspects of business operations including HRM strategies and practices. One of the best methods to identify these external factors is conducting the external analysis of the country under consideration. In the given scenario management of Target Corporation is thinking about starting their retail sector business in Ireland. Therefore in this scenario Pestle analysis will be conducted for Ireland identify the effect that different factors has on HRM practices.
Political environment- Political environment will definitely have a significant impact on HRM practices. This is due to the fact that management is thinking about transferring some of these employees from their headquarters to Ireland to show the training and development program can be initiated effectively. Immigration policies on temporary employment are dependent on the political environment of Ireland. According to the current policies of Ireland Target Corporation will be able to import human resources from their headquarters in the United States of America to Ireland horror Limited period of time after satisfying rules and regulations of immigration department of Ireland.
Economic environment- Economic environment is one of the most influential factors out of all the factors under consideration that will affect operations as well as HRM practices. Ireland is one of the developed countries which means that the contribution made by service sector organizations is higher as compared to other sectors such as agriculture (Khan and Quaddus, 2015). Therefore it can be said that the availability of skilful and experienced employees that will be willing to work in the service sector will be higher in Ireland which will be beneficial for Target Corporation.
Social environment- Over a period of time, the social environment of Ireland has developed significantly. Majority of gross domestic product was contributed by agriculture sector whereas in the current business environment the majority of the sector is contributed by service sector organization. In addition to that income per capita is also increasing which will increase the overall purchasing power of the population. Therefore establishing a business in this type of social environment will be very beneficial for Target Corporation.
Technological environment- Technological environment of a particular country will also have a significant impact on HRM practices and strategies. For example, if there is a developed technological environment in a particular country than human resources available in such countries will also have sufficient knowledge about such technology. In such scenario management of the organization would not be required to spend a huge amount of financial resources on providing training on development to the new workforce for using the new technology (Schaltegger, Lüdeke-Freund and Hansen, 2016). Technological environment of Ireland is behind the majority of the other countries in which Target Corporation is operating which will create difficulties in HRM practices.
Legal environment- Legal environment will also have a significant impact on HRM practices as the legislature is applicable to the workforce in different countries is different from each other. Management of multinational organizations is required to analyse and alter HRM practices in accordance with legislatures applicable to human resources in different countries. It can be said that workforce legislatures applicable in Ireland similar to other countries such as Australia and New Zealand. In this scenario management of the organization will not have any difficulty in the development of HRM Strategies and practices.
Environmental factors- out of all the factors under consideration environmental factors will have minimum impact on HRM practices adopted by a particular organization operating in different countries. On the other hand, there are some general HRM practices that will be changed in accordance with environmental rules and regulations applicable to business organization (Grant, 2016). For example, for the conservation of energy and natural resources management of target Corporation will be required to develop HRM practices on the use of computers and other power consuming machine by human resources in the organization.
On an overall analysis, it can be said that all the above mentioned external environment has a significant impact on the operations of Target Corporation and starting a new business on a global level. It is important for every multinational organization to identify these factors in order to ensure that negative impact of these factors is minimum. This analysis will also help in ensuring that all the human resources practices are directed towards achieving a hundred percent potential of human resources employed in the business.
In addition to Pestle factors, some of the other factors that might affect HRM practices on a global level are as follows-
Consumer behaviour- a particular organization is operating in an environment in which consumer behaviour changes on a regular basis than in such environment management will be required to hire skilled and experienced employees that will be here able to predict the demand of customers (Roig-Tierno, Huarng and Ribeiro-Soriano, 2016).
Globalization- Level of globalization adopted by a particular country will also affect HRM practices as rules and regulations in relation to foreign investment is different in different countries.
Corporate culture- General corporate culture in a particular country will also affect HRM practices.
LO2- HRM theories and model in relation to economic drivers
It is important for any global business organization to adopt a particular HRM theory in accordance with the different economic and other external factors affecting HRM practices. There are various HRM models and theories that can be adopted by Target Corporation in order to start a new business in Ireland. The main objective of this report would be to identify different theories and suggest appropriate HRM theory in accordance with the general vision and Mission of Target Corporation.
According to this theory, there are certain management practices that have a direct impact on the overall performance of the human resources employed by the business organization. According to this theory, there is a possibility that different human resources are motivated and motivated by a different type of factors. Therefore it is very essential for a business organization to identify different factors that can affect human behaviour and level of job satisfaction. Management of the organization is suggested to implement observation and trial and error method in order to identify these factors and prepared HRM practices accordingly (Reiche et.al, 2016). Over the period of time management of the organization will definitely be able to increase the overall performance and efficiency of human resources.
This story is concerned with the leadership and management of human resources to ensure that the full potential of resources is implemented. Therefore it can be said that HRM practices in this theory are dependent on the leadership qualities of top management. According to this theory, there is no specific manner in which leadership style will help in achieving the full potential of human resources in all the business conditions. Therefore it is important for top management to change their management and leadership style in accordance with the business environment. For example, if the management of the organization is required to complete the particular project in less amount of time then autocratic leadership will be more as compare to democratic leadership. This is due to the fact that management is required to be focused on a time factor in this scenario rather than Innovation and skills (Otley, 2016).
Both of these theories have their own advantages and disadvantages and can be very effective in different business scenarios. In the given scenario of entering a new market in Ireland by Target Corporation, the universalistic theory will be more appropriate as compared to contingency theory. This is due to the fact that management of the organization had already developed HRM practices for their current businesses but there is a possibility that attitude and nature of human resources employed by the organization in Ireland are different as compared to the current workforce (Cascio, 2015). In this scenario, management will be required to change their HRM practices by identifying the qualities and characteristics of the workforce employed in Ireland.
LO3- Evaluate the effectiveness of HRM strategies
The primary focus of this report would be on HRM practices of recruitment and selection and training and development. These are two of the most important HRM strategies that affect overall efficiency and effectiveness of human resources.
Following is the description for the manner in which these HRM strategies will help in the achievement of employee’s goal-
Employee’s commitment- Commitment of employees towards the overall objective of the organization is very important. Selection and recruitment will help in identifying skilful employees that will be contributed towards the value addition of the business operations. In addition to that, the selection process will also help in identifying the qualities of commitment in employees. In addition to that training and development practices will help in ensuring to employees that their individual goals will be achieved if they focused towards the organization goals.
Employee's flexibility- With the help of training and development programs of flexibility can be brought in characteristics of the employees hired the organization through the selection and recruitment process (Brewster, Chung and Sparrow, 2016). It is important for an organization to adopt the principle of soft HRM model as human resources are the most important resources in any business organization. Training and development programs will help in altering the characteristics of employees in order to ensure that they show flexibility towards their work in the organization.
Employee's quality- Both of the HRM set is under consideration will help in achieving the effective and efficient quality of human resources in Ireland segment of Target Corporation. Recruitment and selection process will be adopted by using the concept of Hard HRM model as management is required to follow strict rules and regulations in the selection process (Chelladurai and Kerwin, 2018). On the other hand, training and development programs will be developed with the help of soft HRM model as it will help in imparting skill, knowledge, and flexibility in employees. Therefore it can be said that with the combination of hard HRM and soft HRM model, management will be able to achieve the effective and efficient quality of human resources which will help in increasing efficiency of all the resources.
Strategic integration- Strategic integration is also an important part of achieving overall efficiency in business operations. Integration of different resources in order to director business operations throughout the particular goal and objective is very essential from the perspective of business managers. With the help of training and development programs management of the organization will be able to identify the optimum solution for the integration of resources (Mello, 2014). This can be done by business managers by providing training to employees in different fields so that every employee can perform exceptionally in a particular field of expertise.
L04: Critically analyse the differences in approach to HRM Globally and outline possible reasons for such differences
HRM practices on a global level can be different as there are different factors internal and external that can affect the manner in which HRM practices are undertaken by a global organization. The main focus of this section will be to identify primary differences regarding the following factors in relation to global businesses and proposed Ireland business of Target Corporation.
Organizational performance- As it is already discussed that efficiency in human resources has an impact on the overall financial performance of a business organization. HRM practices adopted in the proposed business of Ireland will be totally different as compared to global business for achieving effective and efficient organizational performance. This is due to the fact that the period for which business organization is operating in a particular environment has a significant impact on its financial performance (Cania, 2014). It can be said that during the initial phases management of the organization will be primarily focused on developing training and development programs in order to achieve the full potential of human resources in case of Ireland business. On the other hand, Target Corporation has been operating for a long time in other countries like Australia and the United States of America. In this segment, management will be more focused on the motivation of employees and developing reward strategies.
Employee’s commitment- There are various approaches that can be used by a business organization to achieve commitment from employees towards the organization. Approaches to commitment are also dependent on the time for which a particular employee is working for a particular organization. During the initial stages management of the organization can attain employee commitment through financial incentives. Therefore it can be said that in the case of proposed expansion in Ireland, Target Corporation will be focused on providing an effective financial incentive to develop commitment from employees towards organizational goals (Paillé et.al, 2014). On the other hand, internal job satisfaction factors such as rewards and promotions will be used in case of global businesses of Target Corporation as they are considered more effective in the long run.
Workforce flexibility- Approach of management towards achieving workforce flexibility will also be different in global Business and proposed business of Ireland during the initial stages. The primary reason for the difference in approaches towards workforce flexibility is it due to lack of experience of human resources employed in business by this category of businesses established by Target Corporation. The flexibility provided to the human resources employed in global business will be significantly higher as compared to proposed business expansion in Ireland during the initial stages. This is due to the fact that management has to adopt hard HRM model during the initial phases of HRM management in Ireland. Providing flexibility to inexperienced increased will result in error and mistakes in day-to-day operations which will have a negative impact on the profitability of the company (Ekwoaba, Ikeije and Ufoma, 2015).
Workforce quality- Approaches towards improvement in quality will also be different in two categories of business under consideration. The primary focus of Target Corporation will be on using the training and development programs in order to achieve improvement in the case of new businesses. On the other hand, the primary focus in case of Global Business would be to acquire skilful and experienced employees that can create innovation in products and services through recruitment and selection policies.
On an overall evaluation, it can be said that there is a vast difference between approaches towards the HR management in case of new business and established business (Hassan, 2016).
L05: Critically evaluate the theory and evidence about the relationship between HRM and organizational performance
Following are the factors that can provide evidence of the relationship between organizational performance and human resource management-
Efficiency and effectiveness of resources
Financial performance in any business organization is totally dependent on integration between different resources employed by a business organization. Effective efficient use of each and every resource is very important for achieving a desired financial performance in a particular accounting period. Effective and efficient use of the resource is totally dependent on the efficiency of Human Resource Management practices in a particular organization. For example, assume that a particular organization is using advanced technology for production of products and services. This technology cannot increase the overall performance of the company on their own as it is required to be operated by human resources who have skill and knowledge to operate such advanced technology (Vermeeren, Kuipers and Steijn, 2014). Therefore it can be said that HRM practices such as recruitment and selection will be critical towards achieving the financial goals of a company.
Employee’s motivation and job satisfaction
Majority of HR practices are focused on achieving the full potential of human resources as it is important to use the full potential of everyday source improved by a particular organization. With the help of motivation strategies management of the organization can achieve job satisfaction level among employees. The overall efficiency of a satisfied employee will be very higher compared to a dissatisfied employee. It can be said that the efficiency of resources is directly dependent on cost structure and profitability of the organization, therefore it can be said that this will establish an effective relationship between HRM and organizational performance.
Trust in management- Effective and efficient relationship between top management and employees of the organization is also a very essential factor to achieve overall financial goals and objectives. An effective relationship between management and employees helps in ensuring that employees of the organization are feeling valued and part of business management. This will have a direct impact on the job satisfaction level of employee and increasing overall efficiency of operation and participation in day-to-day operations. In addition to that, it will also help in identifying the perspective of every employee towards the long term vision and mission of business operations which will help in the growth and development of business (Ganta, 2014).
On the basis of these factors, it can be said that there is a direct relationship between the manner in which human resources are managed and financial performance of a particular organization. Management of Target Corporation is required to implement effective and efficient HRM practices in order to ensure that financial targets of the proposed business in Ireland are achieved effectively.
L06: Analyse the organizational, national and culturally specific issues that influence the development and implementation of HRM strategy
Cultural issues in a particular organization can be identified with the help of Hofstede's cultural dimensions theory. This theory helps in identifying the effect of the culture of a particular society on its members.
There are various factors that are provided by this theory that can help in the identification of cultural issues in a particular country. Some of these factors are as follows-
- Individualism vs. collectivism
- Masculinity vs. femininity
- Long-term orientation vs. short-term orientation
On overall analysis of the cultural environment of Ireland, it can be said that it is primarily focused on individual rather than focusing on collectivism. This can be a significant cultural issue that is required to be dealt with effective and efficient HRM strategies by the organization after the implementation of business in Ireland. Management of the organization will be focused on developing training and development programs to ensure employees that they can achieve their personal goals with the help of collectivism (Shenkar, Luo and Chi, 2014). Apart from this issue, it is expected that cultural factors will not affect the overall financial performance of the organization in Ireland.
Different national issues that can affect overall business operations of the company has already been identified in Pestle analysis of Ireland. The primary focus of the business managers in case of Target Corporation will be on the inflation rate and economic environment of the country. According to the recent statistics, the inflation rate has increased to 1.7% in April 2019 as compared to 1.1 in the month of March. The increasing inflation rate will create hindrance in the overall economic growth of the country. The increased inflation rate will also decrease the overall purchasing power of customers of which will have a negative impact on the financial performance of the organization (Moore, 2014). Management of the organization is required to establish cost-efficient management practices from the first day of operation in order to ensure that management is able to provide product and services at reasonable prices even when the purchasing power of the customer is low.
Internal issues in business management also have a significant impact on organizational performance and HRM strategies. Management of the organization will be required to establish an effective and efficient organizational culture and structure in order to ensure that the negative impact of the internal environment is minimum. Hardy’s Organizational culture model can be used by the management of target Corporation in order to identify any kind of internal factor that is creating problems for the development of effective and efficient organizational culture. According to this model management of the organization is required to identify four classes of culture in a particular organization i.e. power, role task, and person (Shenkar, Luo and Chi, 2014). Operations of the target population should be focused on the development of role culture in which the primary focus of business operations is in accordance with providing specific roles and responsibilities to each employee in the company. This helps in the development of an effective and efficient corporate culture where is an employee is aware of their place in the business.
LO7- Demonstrate the management skills required in international business to successfully engage and win support from key stakeholders
Following are the management skill required in international business for effective and efficient stakeholder management-
Effective and efficient communication- It is very important that business managers have effective and efficient skills of communication in order to engage stakeholders in the decision-making process. It is very essential that managers are able to ensure stakeholders that their feedback is considered by management during the implementation of different business decisions taken in stakeholder meetings. This can be insured to take holders with the help of effective communication.
Negotiation and conflict resolution- Negotiation and conflict resolution is also an important management skill for the engagement of stakeholders. The interest of every stakeholder in business operations is different from other stakeholders and they will definitely prefer their own interest as compared to the interest of other stakeholders (Eskerod and Jepsen, 2016). With the help of negotiation and conflict resolution qualities, a business manager will be able to understand the perspective of different stakeholders and identify a common ground on which all the stakeholders can agree upon.
Flexibility- On global level flexibility is also very essential as the expectation of stakeholders from business operations changes with the changes in environmental factors. It is important that the management of the organization is able to change its stakeholder management strategies in accordance with changes in the business environment of the country in which they are operating.
Confidence- Level of confidence in our business managers is also an essential requirement for managing global business operations. Stakeholders will not be able to trust a particular business manager if such a manager is not showing the quality of confidence in communication (Bourne, 2016).
Knowledge of international rules and regulations- Knowledge and experience in the field of globalization of business is also an important requirement for stakeholder engagement. The business manager should have knowledge of rules and regulations applicable to the interest of stakeholders in different countries.
After a detailed evaluation of leadership in a global environment, it can be said that it is very essential for a particular organization to understand the external environment before starting a business in a new country. In addition to that effective and efficient management of human resources in the new business environment is also an essential requirement for achieving financial and operational goals. This report is focused on a fictional proposal of Target Corporation to start a business in Ireland in order to identify whether HRM management practices will have any impact on such a proposal. it can be concluded that the management of Target Corporation will be required to identify and implement different HRM practices and theories in order to ensure that effective efficient implementation of retail business in Ireland is established.
Following are some of the recommendations that will help management of Target Corporation for development of effective Global HR strategy-
- First of all it is suggested that universalistic theory and model should be adopted by target Corporation. This theory will help in identifying characteristic of new human resources and preparing motivational strategies accordingly.
- Attaining employee's commitment, flexibility, quality and strategic integration would be very important for development of effective HR strategies. HRM practices, specifically recruitment and selection policies, should be directed towards achievement of above mentioned factors. For example, quality of human resources can be identified during the process of initial screening.
- Organizational performance is a directive related to HRM practices and focus of organization should be to identify the HR practices and factors that are having negative impact on overall organizational performance.
- Motivational strategies and reward strategies are required to be developed in order to achieve full potential of human resources as utilization of other resources is also dependent on human resources.
- Management of organization is required to develop trust of employees so that effective communication channel can be established. With this trust management will be able to identify positive and negative characteristics of workforce.
- Cultural issues and organizational issues should be identified and mitigation strategies should be developed accordingly by Target Corporation.