Introduction
Human Resource Management has been termed by scholars as a form of management whose paradigms are in continual transition. The environment in which Human Resources management operates is faced by new challenges as the world adopts new ways of doing business. Globalization has introduced new procedures such outsourcing and mixed demography in the workforce (Myloni, Harzing, & Mirza 12). Economic and technological changes have significantly altered the employment patterns and practice around the globe today. Technology has since replaced the practices in Human Resource management from transactional to strategic management. Hence, adapting to this new environment is vital and necessary for the survival and the continued profitability of a company. This paper analyzes the challenges presented to my prospective future career as a financial and investment professional. Analysis will delve matters such as globalization, changing HR management practices due to a shrinking global village and competitiveness brought about by technology.
Impacts of Globalization
In the field of finance and investment, companies have been characterized by a changing global situation in which big corporations are now investing at the global stage . Companies such as HSBC and JPMorgan Chase have presence in several markets spanning all the continents. Such global investments have created new opportunities to do business since there more potential customers. Today, the Middle East and Asia represent the emerging markets in which businesses are growing at a tremendous rate. It will be detrimental for any investment corporation to over look these new markets.
Such a global investment has led to intense competition in the market and at the same time, created greater economic interdependence . Nothing outlines this more clearly than the recent financial crisis in which the failure of one financial institution led to a total collapse of entire economies across the globe. To remain competitive companies have adopted new methods of running business and human resource management. Organizations have embraced the idea of outsourcing in which company operation are shifted to cheaper and more productive parts of the globe. Financial services and investment experts have since taken their businesses to countries such Singapore and Hong Kong . On the other hand, manufacturing businesses have taken advantage of cheaper labor and energy costs of China, India, Philippines and Malaysia to invest in these locations.
One of the main tactical changes adopted by several organizations is the shift in human resource management from the more transactional methods. A new HR management scheme referred to as strategic management has been adopted. This is the kind of management utilizes proactive management of employees. In this method, the needs and aspiration of the employees are considered to be fundamental for the future of the company. It assumes that meeting the goals of the employees leads directly to meeting company goals .
Strategic human resource management requires thorough planning of the HR structure of the company. Strategic hr management planning requires thorough forecast of the requirements and the needs of the employees of the company. In finance and investment sector, employees might require good compensations, bonus and benefits as incentives, benefits such as medical benefits extended to their dependants, extensive training on new technology and job security. On the hand, the management should also forecast on availability of resources and how to find a common ground between the requirements and the resources.
Globalization also presents other challenges for financial and investment companies. One of these challenges is the diversity presented in the workforce of a global company. Employees working for the same corporation are composed of different races, age, culture, religions and other diverse demographic factors .
Such diversity presents a good opportunity of attracting and retaining the best human talent in the field of investment. In the current business environment, getting the best trained and talented individuals to run the company means ensuring a global presence and providing the best packages that attract these persons. It also gives the company the opportunity of attracting customer of diverse races and backgrounds. For example, an Asian customer would prefer dealing with an Asian investment expert.
Taking advantage that comes along with cultural diversity in the organization requires an equal response in term adjusting the norms of the company to accommodate everyone. Such flexibility involves allowing flexible payment schedules, respecting cultural values towards works and treating employees as consultants and not workers. Some have gone further to allow its employees to work from home and providing them with telecommuting technology. This gives business less strained employees who are willing to work longer than the conventional working hours.
Challenges in managing a global financial and investment company are immense and diverse. Priority must be accorded to human resource and methods of improving employee relation in the company. Good managers should consider an appropriate strategic management paradigm for its employees. Hiring, promotions, incentives and dismissals must be undertaken in a more visionary manner. Most of all, the company should prioritize methods of improving the working conditions presented by the multiethnic employee demography.
Works Cited
Abrahamson, E. Change Without Pain. Boston: Harvard Business School Press,, 2004.
Myloni, B., A.W. Harzing and H.R. Mirza. "Japanese HRM: Inspirations from Abroad and Current The effect of organisational factors on the transfer of human resource management practices: European and US MNCs and their Greek subsidiaries,." The International Journal of Human Resource Management, vol. 18, no. 12, (2007): 2057–2074.
Tan, Joo-Seng . TRENDS IN ORGANIZATIONAL CHANGE . 2010. 29 Nov 2011
