Resource Management Developing Sustainable Business Organizations

Question: Discuss about the Resource Management for Developing Sustainable Business Organizations. Answer: Introduction International Human Resource Management (HRM) refers to the set of human resource activities that manage the human resources at national and international level. The International HRM refers to the typical HRM functions such as recruitment, selection, training and development, performance appraisal and termination of employees conducted at an international level. Along with it, the international HRM also pertains to the activities such as global skill management, training and cross cultural issues (Harzing Pinnington, 2014). In multinational companies, there are three kind of employees, home country employees which refer to the employees belonging to the home country where the corporate headquarter of the firm is situated, host country employees which refers to the employees belonging to the nation where the subsidiary is situated and third country employees which refers to the employees who are not from the host or the home country but from any other country. The International Huma n Resource Manager integrates HR Policies and practices in different subsidiaries so that the organization can achieve its goals (Truss, Mankin Kelliher, 2012). Moreover, the International Human Resource Manager is responsible to increase the flexibility in the organizations policies so that it can accommodate the cultural differences in different countries (Nkomo, Fottler McAfee, 2010). In the present report, the employee relation issues in international HRM have been explored. Toyota is leading car Manufacturer Company. The HR Manager of the organization is transferred from its subsidiary in Australia to the USA. While moving from Australia to the USA, the manager will face several issues due to differences in economy and employment policies of both countries. In the present report, all the human resource issues faced by the organization have been discussed. Impact of Presidency Change on Economy and Business in the US Operations in international environment can be challenging for the business organizations. The companies have to adapt the policies and business operations according to the local laws and infrastructure. The presidential elections of the United States of America have been the most spectacular event of 2017 and the selection of Donald Trump as the new US President will have several long term impacts on the country. The new government has made several laws such as increasing the tariff on the goods, immigration ban and opting out of Trans-Pacific Partnership Trade Deal in the USA (Garcia, 2017). The investors and business organizations are happy with the presidential rule due to the low corporate taxes, less regulation, lower taxes on the interest and dividend of the organizations. However, the introduction of border taxes at a very high rate has created significant challenges for the human resource management of the organization. The border tax will hike the prices of the automobile s ignificantly (Lippert, 2017). Trump government has also warned Toyota for establishing car manufacturing facility in Mexico. The companies will no longer be able to manufacture the cars in Mexico at cheaper rates and sell them in the USA at higher prices. In the USA, the country has also banned immigration which will reduce the amount of available labor for the organization (Roberts Dason, 2017). One of the major responsibilities of the HR manager is to assure that the organization adheres by the employment laws and regulations (Condrey, 2010). It is a vital component of the HR managers responsibilities. Ensuring legal compliance with the labor and the tax laws is important for the continued existence of the organization. With the changes in the laws, the new HR manager will find it challenging to implement laws. The government constantly makes new regulations regarding the working hours of employees, tax allowances, break times, minimum wage and policies on discrimination (Cohen, 2010). The Trump government has made some radical changes in minimum wages, taxes and discrimination policies. The strategies of the government will require the HR manager to examine the changes required in the operations of the organization and implement them. In the recent development, Donald Trump has issued a threat against Toyota Motor Corp for building a new plant in Mexico. The president-elect warned the automobile manufacturer that it they will carry out the plans, they will face large border tax. Donald Trump made the threat as he was concerned that the new plant will take away the employment of the US citizens. If the company would have been able to outsource labor from Mexico, it would have been benefitted from the relative cheap labor of the country. Duties of International HR Manager The International HR Manager is liable to effectively manage the human resources in the companies which are working globally. They require having a deep understanding of different cultures and the ability to respond quickly. The basic functions of the human resource professionals are to handle activities such as recruitment, interviewing, hiring, training and development of the employees so that the business organization achieves its goals (Harzing Pinninton, 2014). The Human Resource Manager is also responsible to develop policies so that productive and safe workplace environment can be created. In global environment, it is essential to motivate and encourage employees to work collaboratively disregarding their cultural differences. One of the major functions of human resource professionals is to provide training to the human resources to ensure a productive environment is established in the organization (Collings, Wood Caligiuri, 2014). Training ensures that the employees have th e skills and the knowledge to accomplish the job tasks. The human resource manager makes arrangement for the training of the employees so that they are better skilled to perform their functions. Training also ensures that the companies abide by the government regulations as it increases the employee knowledge. In the international environment, the profile of human resource professionals is becoming more generalist (de Juana-Espinosa, 2011). In the present, the involvement of the human resource professionals with the internal operations of the organization is reducing and they are more concerned about collaboration and productivity of the organization as a whole. Today, the human resource professionals are concerned about increasing the competitive advantage, economic survival and the profitability of the organization. In this regard, the human resource professionals perform several actions such as hiring employees, managing benefits and handling disciplinary actions toward the emplo yees. They are also responsible to handle the health care cost, reducing the employee attrition and participating in the community (Chalofsky, 2014). They also work with managers in collaboration with the operations manager in the recruitment of new personnel. In international settings, the HR manager has to work in collaboration with the operations manager to recruit appropriate candidate and later in his performance evaluation. The international human resource manager has another challenging responsibility to build international teams and support their collaboration. They have to take appropriate measures to ensure that diverse teams work together. The human resource professionals adopt several strategies such as conducting team-building workshops, assisting in collaboration of the culturally-diverse people and employee engagement and motivation methods to achieve the strategic goals of the organization (Ehnert, Harry Zink, 2013). HR Implications of the Presidency Change in Automobile Industry The financial capital and wages are also significant in the outsourcing decision of the country. The outsourcing is used to save costs and increase the economic benefits to the organization. The countries like China and Mexico, whose economy is dependent upon the outsourcing activities have developed flexible policies to encourage the foreign companies to invest. The Human resource department of the organization gets benefitted by the highly productive workforce, cheap labor cost and flexible trade policies (Grisham, 2011). Outsourcing is also beneficial for the organization as it can enhance the core competence of the organization and result in new economic growth of the company (TingTing, 2014). With the introduction of the current policy, either the firm has to shift its manufacturing plant in the USA or face high border charges. With the development of plant in the USA, the employer-employee relations will get affected. The employment relationship can be defined as the legal link between employer and the employees. The employment relations are formed when a person works or provide services in the workplace in return of pre-determined remuneration. With the employment relationship; reciprocal rights and obligations are established between the employer and the employees. The employee relation is the main tool through which workers can gain access to the rights and benefits associated with the employment laws and social security of the country. It determines the nature and the extent of employers rights and obligations towards their workers. Moreover, as the employer and the employee work in close proximity, they develop professional relationships with each other. The management of the employment relationship is important for an organization as it is correlated with the happiness and the productivity of the emp loyees. The employer-employee relationship is mutually reliant as the employer is dependent upon the employee to perform his duties whereas employee is dependent upon the organization to support him financially. In Australia, there is national workplace relations system which defines the terms and conditions of employment and workplace right and responsibilities. Accordingly, in Australia, Toyota has implemented a number of programs which align with the workplace policies of the government. Toyota provides paid parental leaves of eighteen weeks for eligible working parents. It is at the rate of National Minimum Wage. According to the Australian laws, both the employers and the employees are responsible for maintaining health and safety at the workplace. In Australian employment laws, safety is given high priority. The law states that the employer is responsible to prevent workplace hazards and injury. As such, the employer must make adequate provisions so that the workplace hazards and injuries can be prevented. In addition to it, the Australian law also state that the employer must have insurance for the employees so that he can be provided facilities in case of serious workplace injuries ( Safe Work Australia, 2017). The Australian government has also made provisions for the unfair dismissal of the employees. However, the economy of the USA has always been capitalist and focused on profit maximization of the business organizations. There are certain employment laws related to minimum wage and unfair dismissal of the employees. However, with the outsourcing and migration of the foreign workers, the US citizens are increasingly becoming concerned about their jobs and retirements. The success of Donald Trump was heavily dependent upon the appeal to the working class who has observed their incomes stagnate and jobs moved offshore. The labor and the employment relations can change radically due to the changes in trade, energy and government regulations. President Trump has reshaped the National Labor Relations board (NLRB) by introducing a number of changes in the employment. The new government has introduced a number of reforms to increase the number of jobs in the USA. He is also focusing on deporting immigrants to open the lay wages jobs that they are holding. The companies will also find it difficult to hire the foreign workers. The minimum wage policy has also been changed to reduce the number of immigrants in the country. The county is planning to hike the minimum wage by 20% so that the companies could not hire the foreign workers at low wages (Dishman, 2016). It could be critiqued that Toyota HR Manager needs to revise the minimum wage policy fin thee organization. If the company initiates the manufacturing facility in the USA, it has to revise the wage policy according to the new regulations. The new policy is focused on reducing the number of migrant workers in the USA. The new policy may create cultural issues and hostility between the different workers. The HR manager needs to implement policies so that cordial relations can be maintained between different workers and they can work collaboratively. Moreover, with the introduction of the new policy, the attrition rate of the organization will increase. The HR manager will need to implement new policies to control the voluntarily turnover. The HR manager will need to counsel the employees that the organization will support them and their employment with the organization as they are valuable resources of the organization (Chalofsky, 2014). The HR manager also needs to initiate training and development practices so that the new employees in the organization get familiar with the organizations practices. As the new policies will increase the attrition rate of the employees, the organization needs to develop induction program for the new employees. In order to create a positive environment in the organization, the company needs to develop new induction programs for the employees. The induction programs must focus on increasing the harmony among employees from different geographical locations (Condrey,2010). With the new policy changes, the organization needs to recruit a large number of candidates. These candidates will require training and development. In several positions, the company needs to recruit new candidates in spite the demand of experience in the similar position. In this regard, it can be evaluated that the organization needs to implement comprehensive and all-inclusive training activities. The HR manager will be responsible for all the activities of the organization (Chalofsky, 2014). With the changes in the wage policies and focus on local recruitment, the expenditure on the human resource activities will increase drastically. Moreover, the organization may face talent shortage wherein the HR Manager may need to transfer the USA citizens working in foreign subsidiaries of the company. It is the responsibility of the HR manager to report the expenses in the HR activities to the headquarters of the organization (Condrey, 2010). Conclusion It can be concluded that international HRM is a subdivision of the Human resources activities. The International HR manager has to oversee the human resources activities locally and internationally. With thee change in the government in the United States, there will be some radical changes in the employment policies and the employment relations in the USA. The Trump government has increased the border taxes and minimum wage policy which will increase the expenditure of the organization in the human resource activities. The Trump government has warned Toyota to start manufacturing plant in Mexico as it will increase the border tax on the border which will eventually increase the price of the motor vehicles. Moreover, it has also initiated number of policies to reduce the number of migrant workers in the USA. It includes creating a hike in the minimum wages which will reduce the attraction towards the foreign or migrant workers. In this regard, the HR manager of Toyota will face severa l issues. The HR manager has to implement policies so that the new laws and regulations can be implemented smoothly. Moreover, the organization also needs to introduce policies to control the attrition rate and provide training and development to new employees. References Chalofsky, N.F. (2014). Handbook of Human Resource Development. London: John Wiley Sons. Cohen, E. (2010). CSR for HR: A Necessary Partnership for Advancing Responsible Business Practices. Greenleaf Publishing. Collings, D., Wood, G.T., Caligiuri, P.M. (2014). The Routledge Companion to International Human Resource Management. Routledge. Condrey, S.E. (2010). Handbook of Human Resource Management in Government. John Wiley Sons. de Juana-Espinosa, S. (2011). Human Resource Management in the Digital Economy: Creating Synergy between Competency Models and Information: Creating Synergy between Competency Models and Information. IGI Global. Dishman, L. (2016). Heres How Labor And Employment Might Change Under Trump. Fast Company. 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