A Study on Globalization and Its Impact on Hr Practices

Exploring the Impact of Globalization on HR Practices in the Pharma Industry

by Richa Garg*,

- Published in International Journal of Information Technology and Management, E-ISSN: 2249-4510

Volume 7, Issue No. 10, Nov 2014, Pages 0 - 0 (0)

Published by: Ignited Minds Journals


ABSTRACT

Globalization has made the world very small.We have to cast human beings a tune with newer requirements for which theyrequire knowledge. Knowledge is based in experience, faith, common sense &interest for particular point of view change in selection recruitmentprogramme, induction programme, Training and Development policies are needed tobe made. This paper discusses the impact of Globalization on HR practices inPharma industry. Most of the HRD programs are limited to classroom training inmany organizations. This is another drawback of HRD. On-the-job training, MBOintervention, developmental programs, career planning, counseling and suchother methods must also be used for developing the people. Actually speakingunless a proper learning atmosphere is created, no training programme would beable to produce expected results.

KEYWORD

globalization, HR practices, knowledge, experience, faith, common sense, interest, selection recruitment program, induction program, training and development policies, Pharma industry, HRD programs, classroom training, on-the-job training, MBO intervention, developmental programs, career planning, counseling, learning atmosphere, training program, expected results

INTRODUCTION

In many organizations, adequate information and data base may be must, therefore, be given first priority, which many managers neglect. Lacking, this is a serious threat to accuracy of information without which HRM practice is difficult. Collection, storing and retrieval of information in many organizations, even the personnel professionals misunderstand HRM as synonymous to HRD. Some class room training programmes are generally arranged, which are called HRD programmes. These programmes are understood as human resources management. Such cursory classroom programmes are not the actual HRD programmes, and even a well planned and executed HRD programme is not HRM. HRD is only a part of HRM which is an integrated approach to management. Undoubtedly, human resources management suffers from such limitations. But the impact it has made on the managerial effectiveness has been spectacular wherever it was introduced. Actually speaking a real need exists in every Indian Organization for an HRM approach. The human resources management approach which has been gaining the attention of management professionals during the last decade has become the need of the hour due to various reasons. Widespread industrial unrest, growing trade union influence on work force, strained worker management relationship, increasing gulf between management and their people, emergence of militancy in trade unionism, and the growing conflict in the industrial relations scene have resulted in the workers getting out of gear of the management in many organizations in India. This has made the managements to think in terms of carrying their workers with them. Convincing the workers of the management's concern for them may, perhaps, go a long way in getting along with them and ensuring their better performance. This has naturally resulted in the present human resources movement. Humanization of work environment in countries like Japan, quality of work life movement in countries like United States, and the quality circles approach in India itself have initiated action to attain better organizational commitment among the work force. The human resources approach is in consistency with these movements. Changes in business environment have substantially affected the approach to manpower. Technological changes are prominent among them, computer revo1ution and introduction of microprocessor CNC machines in manufacturing operations, mechanization and automation of office operations, quick communication systems like satellite communication and facsimile introduction or robots, electronic revolution, and such other new developments have revolutionized the vital areas of business. Operational efficiency or manpower must cope with such a revolutionary change in the technology which necessitated a new approach to manpower.

FUNCTIONAL SCOPE OF HR MANAGEMENT

PROFESSIONALS

In the context of the changing trends, a well thought out and formulated policy for human resources development and management would be necessary due to various reasons. A human resources planning, which takes care of the resourcefulness of the people to be recruited and employed, should be envisaged

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the full commitment and cooperation of the top management of every organization. It must be a cooperative effort of all managers to incorporate a human resources management practice in an organization. Human resources development and management must be based on a realistic plan. Selection, socialization and development programmes must cope with the actual need of the urbanization, actual contribution made by the human resources must be compared with the standards expected of them for the purpose of evaluation. This is the job of the human resources manager. A pragmatic appraisal system must therefore, be introduced by the human resources manager in consonance with the humane approach which is the crux of the “human resources management”. This is the task of the human resources manager. It is the responsibility of the human resources manager to introduce and push forward the human resources philosophy throughout the organization and to train educates other managers to foster and implement the human resources approach. HR managers must ensure that the human resources must be developed in accordance with the thrust of the challenges of technical, technological and leadership requirements of the contemporary world. It is an important task of the HR manager to match the people and their performance of his organization with the organizational and social objectives and goals. A human resources manager must be able to develop and establish an organizational culture of team work. Cohesiveness, organizational commitment, and mutual respect and regard so that coordination would become easier and effective. Some managers really consider their workers as human resources while some others just make lip service to hide their misdeeds against them. Some traditional managers still feel that workers are to be hired and fired. Certain others progressive traditional managers feel that the workers must be kept under some sort of fear though it would be better if they pleased. Human resources managers who work in such organizations may have difficult task to introduce and inculcate a humane approach. Unless he is able to create an awareness of human approach in all departments and at all levels throughout the organization his role may not be successful.

FUNCTIONS OF HR MANAGEMENT

PROFESSIONALS IN GLOBALISED ECONOMY

We have already noted that HRM is of very recent origin. Hence, its actual position in an organization is yet to be specifically defined. However, taking into account the crucial role played by HRM in an (i) Creating and promoting a human resources philosophy in the organization, and getting the approval and commitment of the top management; (ii) Determining the human resources needs of the organization; (iii) Educating the executives and managers of the organization regarding the various aspects of the human resources approach adopted in the organization; (iv) Assisting and educating the top management regarding the human resources policies, strategies and approaches; (v) Conducting research, collecting information, analyzing, interpreting and utilizing the research data for policy making and manpower planning; All activities relating to these functions are the tasks of the HRM department. These functions listed need not be considered as all inclusive. Functions of HRM can be determined in accordance with the needs of the respective organization. If the top-management provides adequate opportunities, HRM function will have a great future in countries like India in the years to come.

DYNAMICS OF CHALLENGES IN A GLOBAL ENVIRONMENT BEFORE HR MANAGEMENT

In the face of enormous and rapid change in the business environment in India backed by liberalization of economy, globalization of business, modernization of technology and large scale employment, a need exists for a fresh look at the human resources. Multinationals, foreign investors and NRIs entering the Indian business in a big way, communist countries adopting the path of capitalism and large scale technology transfer, all such factors necessitate a wider perspective of human resources in the days to come. Some of the factors, which pose greater challenges to the human resources management in future, are: (i) A larger, faster and greater growth of industrialization is expected in the next decade; (ii) There is possibility for more take over, acquisitions and mergers in future in India; (iii) With the presence and influence of more multinationals and transnationals, as well as higher standards and competitions, there is

Richa Garg

Globalization of business and business environment during the last Decade and concomitant liberalization process initiated in India in 1991 have Brought with them greater challenges to human resource management. While projecting the weakness and inadequacies of traditional personal policies, it has highlighted the strengths of HRM approach in global corporations, which entered into the realm of Indian business in a big way after the Jiberali.5ation Process. Globalization has opened up new avenues and opportunities for the organizations, which foster a human resources management approach, while posing threats to the traditionally managed organizations, which shy away from the HRM vision.

Emergence of huge industrial establishments, amalgamations, takeovers and acquisitions have resulted in large scale production, automation, modernization, economies, lies of scale and synergies in the market, which necessitate an accelerated change in the approach to human organization and humane element of enterprise throwing open greater challenges to managers in general and human resource professionals in particular. The emphasis is now shifted from “performance" to "people first and then performance" approach. Hence human resource planning and development must integrate with it a career planning and succession planning which must meet the need for dignity of employment and affiliation and self-actualization needs of the organization' s own people.

ETHICAL CONSIDERATIONS IN HRM

The need for ethical considerations in industry was felt as early as in 1957 in India, which was discussed at length in the Indian Labour Conference held in July 1957. In accordance with this, the code of discipline was evolved which came into force on 1st June 1958. The code affirmed faith in democratic principles in industry. It was considered ethical on the part of both management and unions to settle all differences, disputes and grievances by mutual negotiations. It aimed at promoting constructive co-operation between management and their workers. The code of discipline was set of self-imposed and mutually agreed voluntary principles of discipline and worker management relations. The code of discipline represented ethical principles which made it necessary for the management to give up unfair labour practices while it prevailed on trade unions not to indulge in any coercive and unethical methods. Mutual agreement was the basis for the code of discipline, and any action that stands in the way of cordial relations must be avoided by both the parties. Voluntary and mutual settlement of disputes the code. Employers and employees were expected to recognize each other's role, rights and obligations and to eliminate all forms of coercion and violence. It was expected to promote discipline in industry and to avoid work stoppages, so that peace and harmony could be established in industry. Managements had to determine whether their employees were satisfied with the conditions of work. The code of discipline provided for amicable settlement of any dispute or deviation between the employers and their employee" and promote constructive co-operation between the two.

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