Introduction
In our modern day world, the economic global environment is rapidly and intensively changing. The constant changes are reflected by increased global product competition, changes in consumer demands and introduction of modern technologies. In light of these changes, many organizations have gradually realized the fundamental contribution of their personnel who make up the human capital in an organization.
The workforce is the most fundament organizational asset. Unlike the traditional human capital approach that viewed the workforce as a cost, organizations are now maximizing the input of its personnel in order to achieve high production levels. People are the backbone of organizational character, performance and contribute to the knowledge –base of the organization (Bowin &Harvey, 2001). It is therefore important for organizations to strategically adopt transformational human resource practices that will enable the organization to sustain themselves amidst global human capital management challenges. The following is a research paper that aims at discussing the Human Capital Management practices and how organization X can subsequently address such challenges and improve its human resource.
Human Capital Management
It is commonly said that the people in an organization reflect the organization’s character and image. They are also considered the largest determinants of quality and quantity of the organization’s output. This is because the production process can be done fast and easily with the use of other resources; however, this allows room for duplicated of goods and services hence human capital is the last critical arsenal to gaining competitive advantage in the global market. Innovation, creativity, natural talent and knowledge are key asset in any organization. The establishment of a solid, functional and proper human capital management is very essential to every organization in increasing its performance. An effective human capital management ensures that every employees’ needs and goals are meet and this in turn boosts employees’ morale to work, increase work satisfaction, minimizes the rate of turnover and creates a hard working, loyal and disciplined workforce. In addition, HCM also is an avenue for the organization to create organizational targets and operating practices that is incorporated into the workforce vision therefore ensuring general high performance of the enterprise (Bowin &Harvey, 2001).
Global HCM challenge
Among the main challenges many organizations face in HCM is the inability to maximize their human resource and lack of adequate knowledge on how to capitalize on this essential organizational asset. Many organizations are not aware of the fact that there are global challenges that directly affect their performance and need to be addressed (Boxall & Purcell, 2003). This barrier of lack of adequate knowledge prevent s most organizations from improving its HCM. In general, this global challenge can be categorized and discussed as follows:
-Organizations do not have access to mature and proper analytic capabilities to constantly review employee data and performance levels in order to conclusively acquire the general contribution of its human capital.
-Use of short term strategies to improve the human capital rather than making long term investments that will ensure effective improvements on human capital.
-Poor methods of implementing HCM practices and initiatives due to inability to achieve timely agreements across all departmental heads.
-Inability to set up and design efficient and cost effective human capital strategies and solutions hence leading to poor HCM practices (Boxall & Purcell, 2003).
The above are main barriers to HCM in most global organizations. The ability to manage the human capital allows an organization to register tremendous growth and maximize on productivity. It is also important to note that the challenge facing organizations regarding the establishment of an effective HCM is addressed. This will provide room for many organizations to strength their human resource and re organize its goal toward future success of the organization. Developing long term solutions will increase the quality of human capital and later on bring a huge positive impact and returns to the organizations. Moreover the dilemma that many organizations face is the in the inability to understand the significant role of strategic HCM. However, gradually, these organizations are recognizing that the employees are the innovators and creators hence take into consideration the need to have a well strategized HCM.
Conclusion
Organization X can adopt different HCM practices and strategies that will be essential in boosting its general performance. For instance, long term investment in human capital is important since employees are the key assets in any business venture. The role played by the human capital overlaps the contribution of other resources and eventually drives them to work towards the organization’s goals. Employees can contribute a great percentage on the productivity levels if the effective HCM practices are put in place. Moreover, for a company to have market advantage, it requires a creative, talented, loyal and innovative workforce. This type of workforce that is self-driven will be more willing to work and more satisfied with their job descriptions. There are many global challenges that face HCM. Lack of adequate knowledge on the need to improve the HCM is one of the major challenges many organizations are facing. Inclusively, barriers such as short-term decisions, lack of adequate funds for reconstruction and slow establishments of strategies. However, with access to effective HCM strategies, the success of any organization is guaranteed. In conclusion, the establishment of strategic HCM should be in line with possible global challenges so as to find solutions that will help the organization sustain it own self and develop good management competencies.
References
Bowin, R. B., & Harvey, D. (2001). Human resource management. Upper Saddle River:
Prentice-Hall.
Boxall, P., & Purcell, J. (2003). Strategy and human resource management. Industrial & Labor
Relations Review, 57(1), 84.
