The Global context for HRM: Beyond the boundaries

Global Human Resource Management is the procedure by which multinational corporations manage people across international borders. It entails global human resource management, not just expatriate management (Armstrong, 2009).

Global HRM is different from domestic HRM in that it functions on an international level or beyond national boundaries and is concerned with managing employees from multiple countries. Global HRM must contend with more external influences than domestic HRM, such as culture, training, and the political and legal systems.

International Human Resource Management's Difficulties

1. Cross-cultural concerns.

2. Training and development for a diverse group of people from various countries.

3. Salary and remuneration package

4. Providing standard performance appraisals to people from various cultures.

5. Managing international personnel.

These include the impact of globalization, the impact of environmental and cultural differences, the extent to which HRM practices and policies should differ across countries and the perspectives used to hire and manage expatriates (Armstrong, 2009).

How globalization involves in Human Resource Management?

• Recruiting process

When planning to open new branches in other countries, globalization in human resource management is required to bring their techniques up to international standards.

• Training

Every recently recruited candidate must be trained on the company's policies and procedures, as well as his or her job role. Globalization, on the other hand, necessitates a variety of training modules. For example, if you send a local candidate overseas, you must train him or her on offshore work expectations and culture.

• Communication

Communication becomes difficult when a company conducts business in multiple countries. The human resources department must devise communication strategies that allow for synchronized coordination without requiring remote employees to disrupt their time zone.

• Labor Regulations

Obviously, labor laws differ from one country to the next. Human resource managers must be well-versed in both international and domestic labor laws.

• Employment and Tax Regulations

Different tax and labor laws also have an impact on global expansion. Human resources divisions must be planned to deal with a variety of tax rates, benefit criteria, and labor and environmental restrictions.

Multinational companies in Sri Lanka

The Sri Lankan economy and people benefit from globalization and the development of global HRM; For example, foreign investment is a significant driver of economic development. The investments contribute to and improve workers' work ethics, discipline, skills, and knowledge. It is an important means of transferring technology and best practices in management, and it frequently helps bring with it international markets (Weerakkody, 2016).

Because Sri Lanka adopted a free-market economic system, for example, “Jhon keels Holdings, Hayleys, Dialog axiata, Uniliver, etc..” effectively spread their global business in Sri Lanka, it is critical for an organization to have business all over the world in order to develop at a low cost when dealing with its own offices.

Conclusion

Global HRM plays an important role in achieving the organization's goals as a result of the impact of globalization. Organizations are able to relocate their operations to another country as a result of globalization because of the open market concept.

References

Armstrong, M., (2009). Armstrong's Handbook of Human Resource Management Practice, London: Kogan Page.

Weerakkody, D., (2016, November 04). Daily Mirror, Retrieved October 05, 2019, from Daily Mirror: http://www.dailymirror.lk/article/The-need-for-BOI-to-become-more-competitive--118657.html (Accessed on 12/08/2021).

Organizational Culture and Innovation: A Chance to Change

Organization Culture and Innovation

Most organizations do not value innovation. Completing work on schedule and within budget is considered sufficient for success. All of these traditional principles create barriers to innovation, causing employees to be become stuck to some extent. As a result, organizational culture should encourage innovation in order to gain a competitive advantage and ensure long-term sustainability.

Organizational culture has a significant impact on the speed and frequency of innovation (Maher, 2014). Despite your organization's size or industry, a culture of innovation may be required to evolve and succeed in today's fast-changing world (Cancialosi, 2017). In an ever-changing environment, innovation is widely regarded as a critical source of competitive advantage (Dess and Picken, 2000).

Various Types of Innovation Culture

A culture of innovation promotes the conditions for successful innovation and digitization projects. A situation in which;

• to continuously learn from our employees' successes and failures
• new ideas emerge and are rapidly developed into prototypes
• new things are tried out, and entrepreneurial risks are taken.

Several factors influence an innovative culture, including strategy, value system, management structure and internal processes, team composition, and internal communication. There are various types of innovation culture. Each of these characteristics encourages various types of innovation.

Figure  1 Source: https://innolytics-innovation.com/what-is-innovation/

Picking the Right Innovation Culture for Organization

Companies take multiple innovation cultures at the same time in preparation for future markets

•  To ensure the stability of existing processes, they require an operational corporate culture in certain areas, in which existing processes are not touched but only selectively optimized.
• They require an innovation culture of constant optimization for the further development of existing products or process improvement.
• They require a strategically oriented innovation culture in order to develop new business fields and structures.
• They require a proactive innovation culture in order to implement more radical innovations.

Why is Creating an Innovation Culture so critical for the organization?

Many organizations recognize that innovation and digitalization are critical factors in business development.

• Companies invest a large amount of money in product development and service innovation.
• To meet the challenges of digitalization and develop innovative digital business models, innovation experiments are being established.
• Organizations establish innovation networks and hold innovation challenges.

Nonetheless, despite these efforts, innovation strategies frequently fail.

• In idea management and the continuous improvement process, the quantity and quality of ideas are insufficient.
• Companies lose competitiveness as a result of a lack of organizational innovation and process improvement.
• Innovation projects managed through an innovation process are not moving forward.

In Sri Lankan Contest 

Almost all banks in Sri Lanka is now adapting to new technology in order to be the market leader. Both the private and public banking sectors encourage new innovative ideas from employees and create an internal culture to support their innovative thoughts without breaking traditional rules.

Implementation of a smart banking system, for example, allowing customers to conduct banking transactions even after banking hours. The bank of Ceylon provides a total online banking solution at your fingertips. It enables you to manage your account from the comfort of home or the workplace.

Involvement of Human Resource Management for Innovation

Organizations with strong innovation cultures constantly looking for new ways to improve their products, strategies, and processes. But how do you begin to promote an innovation culture in your company? Here are five best practices suggestions that have been shown to be extremely effective

1. Challenge your daily routine on a regular basis! In your discussions, ask critical questions. Motivate your teams and employees to think about improvements and changes on a regular basis.
2. Hold workshops on innovation. Create concepts for new products and processes.
3. Bring together your employees and external parties (such as customers or suppliers) who have multiple viewpoints on business needs. This can be accomplished, for example, by instituting open innovation processes within a company.
4. Use innovation software to connect creative minds across your organization's divisions. Create an innovation network.
5. Hire people who are open to new ideas and want to make a difference. Create teams of creative thinkers from various backgrounds.

References

Cancialosi, C., (2017, Feb 7). Forbes, Retrieved Sep 24, 2019, from Forbes: https://www.forbes.com/sites/chriscancialosi/2017/02/07/why-culture-is-the-heart-of-organizational-innovation/#80d98653f4d7 (Accessed: 08/08/2021).

Dess, G.G. & Picken, J.C., (2000). Changing roles, leadership in the 21st century, Organizational Dynamics, Vol 28, No 3, 18–34.

Maher, L., (2014). Building a culture for innovation, A leadership challenge, World Hospitals and Health Services, Vol. 50, No. 1, pp. 4-6.

Figure  1 Source: https://innolytics-innovation.com/what-is-innovation/

Youtube link: https://m.youtube.com/watch?v=4-APGd20T3Y

Learning and development method: Game-based Learning is a game changer in organization training

Why Games and Why use Games?

Game-based learning ensures the learning of skills, as workers can put their skills into practice and learn from their own situations, decisions, and mistakes. Play-based learning and training not only ensures learning skills but also builds self-confidence. During the game, the staff understands how to use the skills and how to apply them in different simulated situations in a safe and risk-free environment due to its unique nature.

Video games can provide motivational categories such as competition, entertainment, fantasy, gaming preferences, social interaction and applications (Cianfrone, Zhang & Jae Ko, 2011). as well as stimulation, relaxation and anger management (Olson, 2010). In addition, games can provide types of relational, manipulative, immersion, escape, and achievement dynamics (Yee, 2006). which may not exist in traditional learning methods (Molins-Ruano et al., 2014).

Figure 01 Source:  https://www.game-learn.com/effective-corporate-training-positive-effects-video-games/

What game and how to match with the ambition of the organization?

When choosing the right type of game, organizations must concern about the characteristics of that genre of video games. It would be more effective for organizations to align this genre with their learning and development ambitions. The different genres will bring different benefits to employees and as well as to employers.

Genre of games

• Memorization Games:

Retaining information is an important skill of employees that can be used in the workplace. The memorization games challenge users to describe their findings, write down answers, name items, list matches and identify similarities and differences.
Targets skills to be developed: increase the memory capacity/Self-Awareness/Information Seeking/Problem Solving

• Judgment games:

Judgment games challenge employees to explain options, interpret data, compare answers, predict outcomes, identify differences to find the right answer issues. Through this kind of game, organizations will measure where employee skills stand and where improvement is needed.
Targets skills to be developed: Innovation and Creativity/Problem Solving

• Strategy Games:

The Strategy Games test and improve skills through puzzles, challenges, and solution-oriented activities. Players are encouraged to make quick decisions and react to the decisions of others.
Targets skills to be developed: Organizing and Coordinating/Decision-Making/Analytical Thinking/ Planning, Organizing and Coordinating

• Simulation Game:

The Simulation game puts the player in an immersive environment for free-roaming and collaborating with others. The player adopts the identity of the characters in the game and is presented with the storyline throughout.
Target skills to be developed: Teamwork/Effective communication/Self-Control/Self-Confidence/Conflict Management/Negotiation

Conclusion

The game is a remarkable instrument to train, develop and monitor employees and behaviors. Clear studies show that Game-based Training improves the knowledge and maintenance of employees. However, the training game must be carefully designed on the learning content where companies want to participate in their employees. The right marriage of the design and teaching style can create all differences in achieving training goals.

Employees do not think that training is boring or useless. Instead, they will engage with learning and development methods, feel their business is great and are more likely to volunteer for training.

 

References

Cianfrone, B., Zhang, J., & Jae Ko, Y. (2011). Dimensions of motivation associated with playing sport video games, Sport, Business And Management, An International Journal, 1(2), 172-189. 

Molins-Ruano, P., Sevilla, C., Santini, S., Haya, P., Rodríguez, P., & Sacha, G. (2014). Designing videogames to improve students' motivation, Computers In Human Behavior, 31, 571-579. 

Olson, C.K,, 2010. Children's Motivations for Video Game Play in the Context of Normal Development. [online] https://journals.sagepub.com/doi/10.1037/a0018984. Available at: <https://journals.sagepub.com/doi/10.1037/a0018984> [Accessed 23 July 2021].

Yee, N., (2006). The demographics, motivations, and derived experience of massively multi-user online graphical environments, Presence, 15(3) 309-329.

Youtube links: https://m.youtube.com/watch?v=59dx5ftJ_84

Figure01: https://www.game-learn.com/effective-corporate-training-positive-effects-video-games/

 

Performance Management: Using Performance Management effectively in an organization

Performance management in an HRM technique is concerned with obtaining the most effective performance from individuals in an organization, from the team, and also for the organization as an entire (Dransfield, 2000).

According to Leonard & Cardy (2011) Performance management may be crucial and necessary element for each individual and organizational effectiveness. Therefore, a real achievement in performance is needed a careful and committed process of evaluation and feedback.

Performance management is a successful method of communication between employer & employee that backing accomplish targets of the organization which includes setting objectives, clear up issues, spot goals, giving suitable feedbacks & appreciated employees properly.

What will Performance Management do? 

According to Lloyd (2009) proper-designed and proper-executed performance appraisals have a powerful motivational impact on team members of an organization. the following are the advantages that are linked with motivated employees.

• Promotion: Performance Appraisal helps the supervisors to draw the promotion programs for capable staff. and also, during this regard PM will help to identify inefficient employees.

• Compensation: Performance appraisal helps to streamline employee compensation packages. Rating is feasible through performance appraisal. Compensation packages that consist of bonuses, high wage rates, allowances and pre-requisites are enthusiastic about the performance appraisal. the factors should be an advantage instead of seniority.

• Employees Development: The systematic process of performance management guidelines for evaluating the effectiveness of training policies and programs. It helps to analyze the strengths and weaknesses of the staff. Help to build future development plans.

• Selection Validation: Management of performance appraisal guidelines to determine the validity and significance of employment procedures. The supervisors will understand the validity and thereby the strengths and weaknesses of the recruitment procedure. Future changes in recruitment strategies can be built in this regard.

• Motivation: Performance appraisal is a motivation tool. Through evaluating the performance of staff, a person’s capability will be determined if the targets are achieved. This motivates a person for a much better job and helps him to boost his performance in the future.

• Communication: For an organization, effective communication between staff and employers is crucial. Through performance appraisal, guarantee effective communication.

Figure 1 Source: https://astronsolutions.net/performance-management-system/ 

Performance Management in Practically inside Sri Lanka

In the Sri Lankan context, performance management is not happening everywhere. When it comes to the banking sector, performance management is well executed. Most banks introduced an online appraisal system to their employees however banks are commonly using the following performance evaluations,

• Daily review meetings – Branch managers and their staff members follow up on daily product targets.
• Weekly review – Regional Management weekly review on each branch's performance and knowledge-sharing.
• Monthly review – Manager review meeting held province-wise to understand their current status.
• Yearly Review – Budget review and each employee should submit their appraisal via online

Even in the Sri Lankan education sector, they have conducted a monthly test, Term test, Year-end test to compare if the students learn the subjects well.

The main reason for staff turnover in some Srilankan organizations is due to the poor performance review process. Listed below are some of the common lapses.

-Targets are assigned to employees without providing acceptable resources.
-Training is done just to fulfill the HR department’s yearly training calendar.
-External factors are not considered in reviewing the process.
-Performance reviews are done at the yearend without clarifying the expectation.
-Feedback sessions are done only to justify management decisions and not to ask employee opinions.

Conclusion

The main purpose of Performance Management is to enhance the performance of the employee. As tool organizations use performance appraisal. Many employees assume, performance appraisal is a punishment, but it's not. Performance appraisal is employed to examine if the individuals work towards achieving the goals.

References

Dransfield, R., (2000). Studies in Economic and Business-Human Resource Management, Bristol: Heinemann Educational Publishers.

Leonard, B. & Cardy, R.L., (2011). Performance Management: Concepts, Skills and Exercise, 2nd ed., New York: M.E. Sharpe.

Lloyd, K., (2009). Performance appraisals & phrases for Dummies, Hoboken, NJ: Wiley Publishing Inc.

Picture Figure  01: https://astronsolutions.net/performance-management-system/

Youtube: https://m.youtube.com/watch?v=RhAJkhIFFno

Employee Engagement: Sports, A Mainstream Trend for Employee Engagement

Employee engagement is the affection and spirit that employees have to give their best to the organization to serve the customers (Cook, 2008).

In other words, it is about how employees feel passionate about their work and are committed to the success of the organization. Sports, such as teamwork and team-building push employees away from their comfort zone, without work-related stress, which comes with a field but has a fun aspect.

This blog discusses how organizations use sports to keep their employees engaged.

Sports are excellent for both socializing and competition. It can be used to motivate your employees to work engagement. Organizations invest heavily in employee benefits and are constantly looking for new ways.

Here are some reasons to introduce an office sports day,

1. It allows your team to get to know each other better

2. It promotes healthy competition among the employees

3. It enhances productivity and concentration levels

4. It is an opportunity to identify new skills 

5. It helps inject a boost of fun into your workplace 

6. It takes all authorities to one place

Employee Engagement through Sports in Sri Lanka

In Sri Lanka, most organizations work on how to engage their employees in effective ways. 

When it comes to the Banking sector, employees will get quite a good remuneration package, which has included high salary, overtime payments, and at least two bonus payments annually, and incentive payments. These all facilities give to satisfy their employees and as an employee engagement method.

Employee involvement does not mean employee satisfaction. A satisfied employee can work daily 9-to-5 without complaint. But that "satisfied" employee may not be working hard enough, and he'll probably take the headhunter's call luring her away with a 10% bump in pay. Satisfying isn't enough (Kevin, 2012).

Banking is a daily routine job and a more stressful job, each and every bank try to break this trend. so many banks have started ensuring sports as a part of their annual schedule event list. They pay more special attention to their outdoor and indoor sports activities to generate a sense of sportsmanship and team spirit, which further enhances engagement within the organization. as well as it gives real success for the organizations to build unity and employee engagement towards work and contributes to employee retention and loyalty towards the company.

“We always think outside the box when it comes to employee involvement. As a technology company, we have gone beyond the cricket tournament and included an additional social aspect utilizing our internal social network Yammer that really engaged our employees” (Dharmaratne, 2017).

Bottom line

Employee engagement is an organizational effort that requires a long-term perspective on the context of a business plan if it is to improve productivity and retention rates.

Organizations have to identify what their company needs and develop the right strategy. Only then should you focus on how to measure employee engagement and what tasks you should perform.

References 

Cook, S., (2008). The Essential Guide to Employee Engagement, Better Business Performance through Staff satisfaction,1st ed. London: Kogan Page Limited.

Dharmaratne, C., (2017, November 1). Daily news, home page, Retrieved September 21, 2019, from Daily news. http://www.dailynews.lk/2017/11/01/business/133080/driving-positive-employee-engagement-through-sports (Accessed on  28/07/2021).

Kevin,  K., (2012).  How to Motivate Your Team for High Performance.

Youtube: https://m.youtube.com/watch?v=rAO4o4mm5CU

 

The Ethical Context of HRM: Why Corporate social responsibility (CSR)?

Corporate Social Responsibility (CSR) is succeeded by organizations to continue their business activities in an ethical tone. Organizations will show social responsibility in numerous ways like, donate funds for education, support poor kids, support for events, and commitment to environmental protection.

From a worldwide perspective, all the private and government organizations are ramping up the forces on social responsibility. this will be protecting the environment, championing children's and women's s rights, or forestall poverty on a domestic or world level. CSR activities are a lot of engaging to stakeholders and it'll have an effect on positively the lowest line of the organization (Strandberg, 2013).

According to Murphy (2019) organizations are progressively ramping up their target corporate Social Responsibility to get the following advantages.

Source: https://blog.reputationx.com/csr-and-reputation

•    Engaging Customers

Implement socially held policies necessary bring new customers in addition as retain existing customers and ultimately, it's essential for the durable success of the organization.

•   Retaining high Talent

Socially responsible organizations tend to fascinate staff who are wanting to build a change eager to the world. A pool of highly talented employees will increase workplace morale and boost productivity and direct organization accomplish substantial results.

• Brand name

The world’s largest organizations pay billions of promoting of marketing money to improve the approach customers have faith in them. There’s no quicker way to do this in a very memorable and lasting fashion than to be seen as an organization with a social conscience

• Helping organizations stand out from the Competition

Community-oriented the organization typically gain a competitive advantage over others by attracting customers toward their business with the assistance of CSR projects.

• Serve the lowest Line

Promotes good brand awareness increases fan loyalty and attracts high-quality employees. These factors are essential to achieving accumulated profits and long-term success.

Corporate Social Responsibility in The banking industry in Sri Lanka

figure 02: www.boc.lk

Banks are promoting the future of the people in all the communities in which they operate through CSR programs, which will help their business in the future. Bank of Ceylon is one of the leading banks in Sri Lanka and they have been awarded as Most Valuable Banking Brand in Sri Lanka 2019 - Brand Finance. Following CSR projects should increase their brand name among the people.

Environment’s responsibility

- BOC Celebrates 80 years with “BOC Haritha Arana” 100,000 Hectare Tree Planting Project in the Hurulu Conservation Forest

- 'Kumbuk Arana' Project: The 'Kumbuk Arana' project is a special project used as a the solution to reduce flooding in the highlands of Sabaragamuwa province
-Twin Tree Project: This project aims to promote tree planting among the general public through the concept, linking tree planting and childbirth.
- Green Net Planting trees in identified areas in a wetland.

Ethical responsibility

- BOC Takes Action to Help Children with Heart Problems by joining the “Little Heart” Project. In response to the urgent need to build a Cardiac and Critical Care The complex at Lady Ridgeway Children's Hospital, Bank Ceylon in partnership with Sri Lanka College of Pediatricians is expected to build a Cardiac and Critical Care building at Lady Ridgeway Hospital Center for Children in Need.

Philanthropic Responsibility

- BOC Ran Kekulu Awards successfully concludes the awarding of 2000 Scholarships to Grade five highflyers
- BOC’s Little Picasso Art Exhibition successfully concludes at BMICH Rewarding 780 young artists in the country
- Ran Kekulu None - Grade 5 Seminar Series 

 
Economic Responsibility

- Bank of Ceylon Becomes State First Organization to Provide 1 Mega Watt on National Grid
- Conduct training programs to SME and entrepreneurs

Bottom Line

Corporate social responsivity is not just a business trend and if the business needs to stay relevant to this rapidly changing economy, should have strong CSR activities. This will increase their profits and efficiency with a respectable company image (Murphy, 2019).

References

Murphy, B.C., (2019). Why Social Responsibility Is Important to Businesses, Available at: https://www.investopedia.com/ask/answers/041015/why-social-responsibility-important-business.asp [Accessed 01 August 2021].

Strandberg, C., (2013). 7 reasons why CSR programs are good for industry associations, Available at https://www.greenbiz.com/blog/2013/10/15/7-reasons-why-csr-programs-are-good-industry-associations [Accessed 01 August 2021].

Schooley, S., (2019). What Is Corporate Social Responsibility? [Online] Business News Daily Available at: https://www.businessnewsdaily.com/4679-corporate-social-responsibility.html [Accessed 01 August 2021].

Figure 01: https://blog.reputationx.com/csr-and-reputation

Figure 02: www.boc.lk

Youtube: https://m.youtube.com/watch?v=9ElNGpQEDH4