International Human Resource Management - Essay Example

Topic: Lecturer: Presentation: Introduction This paper explains the various aspects such as culture, political, economic and social contexts, which may affect human resource management practices in Australia. The country has an estimated population of 22, 850, 000 people that mainly inhabit the urban areas. The country enjoys 65% labor participation although there. The employment growth rate has been maintained at 2% per annum in the last two years. The country is recognized for improvements in its labor force leading to greater productivity in the last two decades. With regards to labor productivity per employed person, the country is ranked 11th globally. Most of the employees are in the retail trade, manufacturing, real estate as well as the service industry, working as professionals, administrative personnel as well as technicians. The labor force comprises 25% expatriate employees (Australian Bureau of Statistics, 2011). In the international perspective, human resource managers are required to understand the desires of the diverse cultures in the workplace. It is important to understand that different people have different talents which can form a strong workforce when utilized to the maximum. The managers have a difficult and essential task of managing diverse characteristics such as gender and racial differences. Political and economic aspects of the host nation are significant in the success of human resource management. Religious beliefs are also diverse and human resource practices may be affected by social aspects in the operating environment. Managers therefore have to be highly capable and informed individuals to cope with the demands of the workforce thereby maintaining effective employment relations Culture Hofstede (2010) defines culture as the values and beliefs that add up to the unique socio-psychological setting of a community. It represents how members of a particular society behave and relate to each other in their day to day activities as well as how the community as a unit relates to the external environment. Cultural issues are of major concern in successful human resource practices. The attitudes of employees in regard to the organizational operations are significant in promoting good relations between the employees and the managers. They largely depend on the cultural background of the population from which the employees are drawn. Australians have an individualistic culture rather than collective action and teamwork. This implies that teamwork may not increase labor productivity for an organization operating in the country (Brewster et al. 2004). Adler (2002) argues that cultural differences affect the manner in which people relate with each other and it is not different in the workplace. On the other hand, cultural diversity is a critical issue that may affect the success of human resource practices as the different cultures make efforts to establish self identity. When one culture is esteemed than others in the workplace, workplace relations deteriorate. For example, Indigenous Australians contribute 92% of the workforce, Asians 7% while Aboriginals are merely 1% of the country’s workforce (Walker & Hamilton, 2011). There is therefore a tendency to uphold the original culture in the workplace while compelling the minority cultures to adapt to the mainstream culture. This predisposition may lower the morale of employees belonging to the minority cultures. However, strategic human resource practices call for organizations to appreciate both the mainstream and minority cultures in their operations (Scullion & Lineham, 2005). Political Aspects The Australian government plays a significant influence on human resource practices and is recognized by many employers in their employment relations. The labour law has a strong influence on employment contracts and the behaviour of employers in regards to their relationship with employees. The government, being the sole institution mandated to develop employment laws, has the capacity to determine how the employer-employee relationship should be. The Fair Work Act is among the new legislations that are aimed at improving the work-life of employees. It has been augmented by the new National Employment Standards that stipulate the nature and length of leave and several other conditions affecting human resources (Boxall & Arrowsmith, 2011). The Australian Council of Trade Unions (ACTU) is applied as a tool for strengthening the employees’ collective bargaining in the country. However, they are met with resistance from different circles especially when the government promotes non-collective mechanisms in industrial relations. The council is sometimes viewed as a major drawback in the efforts to encourage investors to create employment opportunities. It is viewed by some capitalists as a hindrance to the maintenance of a free labour market (Walker & Hamilton, 2011). Economic Aspects Australia is an economy that is recognized for its high household median income of $44,820 (Walker & Hamilton, 2011). Human resource management strategies have to conform to the current citizenry income distribution in terms of remuneration and reward and compensation schemes. Economic development is accomplished when an economy has a capable workforce to maintain competitiveness in the local industries. Economic policies have a significant influence on the outlook and the anticipation of employers in Australia. The minimum wage of $15.51 per hour has significantly influenced employment in Australia (Boxall & Arrowsmith, 2011). Generally, the Australian labour force is expensive and hence organizations have to employ strategies that maximize labour productivity among minimal number of employees. Even if economic policies have no express effects on the employment relations, organizations tend to develop a perspective that is shaped by them with regard to the expectations of the employees. In essence, economic growth depends on the capacity of the government to encourage investors in the economy and hence political influence in human resource practices is focused on maintaining a favourable environment for investment. As much as the government protects the welfare of employees, the interests of investors are of paramount importance. Trade unions provide checks and balances to certify the welfare of employees amid employment creation through investment (Mason, 2008). Technological Aspects Australia is among the industrialized economies that have accomplished technological advancement. In the contemporary workplace, employees are exposed to hi-tech equipment that work at higher speed than humans. The setup of the workplace is usually based on the design of the machines and computers and how they are required to function. The machines are usually arranged in a manner such that the employees perform minimal tasks to enable the completion of work processes (Bamber et al. 2004). This arrangement has largely affected the conventional workplace arrangements whereby human resource practices were enhanced by interpersonal associations and interactions among the employees. In the highly automated Australian workplace, workers interact with machines and computers and rarely among themselves. The arrangement has an influence in the development of casual work groups and the level of teamwork or inconsistency in the workforce. In essence, the modern Australian workplace is mechanized to a great extent such that workers have to fit in the production processes just as the machines are in place (Daniels, 2006). Strategic human resource management views technological advancement as a de-skilling aspect of the workplace due to its replacement of the conventional skills. Automation of business processes generates fear among employees regarding their job security as new technology replaces their roles in the workplace. Workers in highly automated workplaces are likely to be stressed particularly when they have to perform the same tasks throughout their stay in organizations without an opportunity of engaging in consultations with others who on the other hand have similar tasks in their area of specialization (Hollinshead, 2010). On the other hand, individual privacy has also been affected by technological advancements that have enhanced workplace monitoring. In the process of maintaining the organization’s integrity through employee monitoring, employers interfere with workers’ privacy rights thereby lowering their morale for work. To maintain employee satisfaction, it is important for organizations to humanize their workplaces so that workers do not feel downgraded to work as machines but rather, to feel appreciated for their capability to apply technology for increased productivity. Their privacy in the workplace also needs to be guaranteed to enhance their feeling of freedom (Harzing & Ruysseveldt, 2006). Nevertheless, some of the new technologies may help in reducing this monotony and hence improved satisfaction and employee relations. There are also some emergent technologies that improve the working conditions of employees, such as computerization of data processing that reduces mental activity. These improve employees’ skills especially since they present the workers with new learning opportunities (Scullion and Lineham, 2005). Social Aspects According to Walker & Hamilton (2011), the ratio of men to women in the Australian workforce is still high compared to other developed nations in Europe as well as the US. Moreover, 48% of the women in the Australian workforce are engaged in part time employment. This implies that for workplace diversity to be accomplished, organizations have to employ flexible work practices such as part time employment. Nevertheless, as (Boxall & Arrowsmith, 2011) observes, Australian women carry on the assertion of their significance and potential for high leadership positions in organizations that will increase their participation in permanent employment. This drive among women necessitates human resource strategies that allow more women to participate in the Australian workforce. Even though female participation (74%) in the workforce is lower than that of men (86%), the overall participation of women requires greater emphasis with regards to work-life balance. A significant proportion of the workforce comprises the older workers (59%). This also calls for human resource strategies that motivate the aging workforce to remain productive in the workforce. Boxall & Arrowsmith (2011) observes that the lifestyle of many Australians has changed over the past two decades with a significance increase in mobility with regards to their places of residence. The movements are as far as from one state to the other as well as abroad. This mobility has significance influence on the human resource practices as organizations strive to maintain a skilled workforce. The recent changes in employment tenure among Australian employees in one organization may be attributed to their mobility, meaning that a movement results in change of employer. It is estimated that employees will change their employer after every three years by the end of the next two decades (Blyton & Turnbull, 2004). This trend may hamper efforts of organizations to maintain a competent workforce in their entire life. To avoid high employee turnover, Australian organizations have to set flexible strategies that allow employees to work from home. Such an approach to human resource management ensures the retention of experienced employees regardless of their mobility (Edwards & Rees, 2006). Conclusion Culture significantly influences human resource practices and may limit labor productivity if not clearly understood by management. The Australian culture is individualistic and affects teamwork in the economy’s workplaces. Appreciating cultural diversity in the workplace can be a significant step towards the accomplishment of strong relations among employees and the management. Political influence on human resource practices is usually as a result of governments’ efforts to enhance the investment climate while maintaining the welfare of citizens. Trade unions on the other hand are usually less considerate with regards to an organization’s profitability than the welfare of employees. Australian human resource managers are compelled to adhere to the employment policies of the state. Technological advancement has both negative and positive impact on employment relations. Employees’ morale may be reduced as a result of de-skilling, while on the other hand technology generates new opening for employees to acquire skills. It is important to identify the training needs of staff with regards to new technology to avoid low morale in the workplace. It is also necessary for human resource managers to understand the diverse needs of employees in the workplace. Social aspects of the Australian population have a significant influence on human resource practices. Women are mostly engaged in part time work, but they are focused on permanent employment if opportunities emerge through organizations adopting flexible work practices. Human resource managers in Australia need to set strategies that allow out of office work that can allow retention of experienced workers who have changed their residence. In the next three to five years, human resource management in Australia is likely to be influenced to a great extent by government legislation, especially the Fair Work Act and the National Employment Standards. References Adler, N. 2002. International dimensions of organizational behavior. Cincinnati, OH: South Western. Australian Bureau of Statistics (2011), Australian labour market statistics. Australian Bureau of Statistics: Canberra Bamber, G, Lansbury, R and Wailes, N 2004. International and Comparative Employment Relations, Sage. Blyton, P. & Turnbull, P. 2004. 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T. 2011. “Employment rights disputes: What is the role of HR professionals”, Asia Pacific Journal of Human Resources December, Vol. 49 pp. 409-424, Read More