Globalization is the creation of international strategies by organizations for overseas expansion and operation on a worldwide level. The process of globalization has been precipitated by a number of factors, including rapid technology developments that make global communications possible, political developments such as the fall of communism, and transportation developments that make travelling faster and more frequent. These produce greater development opportunities for companies with the opening up of additional markets, allow greater customer harmonization as a result of the increase in shared cultural values, and provide a superior competitive position with lower operating costs in other countries and access to new raw materials, resources, and investment opportunities.
To achieve these goals companies have came up with new human resource management strategies, new and improved recruitment and selection techniques the addition of the current global crises and its interpretation by some companies for their own goal has also seen a great change in these strategies and how the employees are rewarded.
The increasing globalization of the marketplace combined with an ever increasing shortage of skilled staff and advances in technology have resulted in large scale changes to recruitment practices throughout the world. Organizations hiring staff continue to undergo massive change in striving to be competitive and profitable. Many organizations have moved to outsourcing all of their non-core activities strong emphasis on delivering a quality service and in ensuring the technical competence of consultants.
A good recruitment process is very important for a company. The process itself speaks volumes about the company. It is a direct reflection of the validity and professionalism of a business. Not only do prospective employees as well as current employees use this as a standard of measure for a company, its customers and even other businesses in the industry do it as well. In free market countries, the personnel profession has adopted a 'best practice' model which fits the prevailing business ideology. This model prescribes a quest for the 'right (best) person for the job'. To achieve this goal, criteria are used to rate prospective applicants by means of selection techniques, including biographical data, interviews, psychometric tests, group exercises, simulated work samples and even handwriting analysis. The most definitive form of selection is likely to take place within the context of assessment centres, which involve several assessors and a variety of selection techniques. The 'best-person' or psychometric model has achieved the status of orthodoxy in free market countries. Elsewhere different models of resourcing apply. For example, in Japan there is a greater concern with personality and background than presumed ability. Recruits are sought who will 'fit in' with the culture of the corporation; who will be content to build a career within the organization; who will absorb the goals of the organization.(Allan price 2007)
Research Purpose and problem statement:-
The main purpose of doing this research is to have a deeper look into the rapid changes in the recruitment and selection process in multinational and Global players as well what triggered those changes and the advantages disadvantage they have, we also will be looking into what changes or reductions (if any) current economic situation has brought upon the reward system and volume companies offer to their employees.
As it is now clearly understood that no big company can do business just locally and at one point or another has to go global to achieve competitive advantage or for many other strong reasons when doing this the companies have to underlay new human resource strategies that can assure its smooth sailing in the Global market. The main objective of this research is:-
- To look into the most visible changes that have occurred in recruitment and selection Process
- Understanding the need for multicultural and diverse workforce
- To find out the triggers that pushed the companies into changing their human resource polices
- Finding the advantages and disadvantages for divers work force
- Having a deeper look into how a company manages its skilled workforce
- Looking into reduction of rewards or bonuses given to employees
- To see the relation between what a future employee wants and what a company can offer
- How companies are gaining competitive edge over each other by having dedicated global workforce management departments
Research questions are ones which are derived from the actual statement of problem which the research is carried on. Question is just not formed from the air they are derived from the context and from the response of the situation ( Andrews, 2003).
- What are the changes that have been brought in organization because of globalization?
- What is the impact of a new Human resource policy of a company on its employees?
- How are employees coping with diverse workforce?
- How effective is diverse workforce?
- Can a company survive without changing is human resource polices when going to a global theatre
- What are the steps companies are taking to reduce their recruitment cost ?
- Should companies reduce the bonuses of their employees because of current economic situation?
- What are the problem facing Human resource managers when finding the right workforce?
- Are companies manipulating the current economic situation to reduce the rewards they are offering their employees?
- What is the best way to keep the reward system in balance to the current economic situation without harming the employee's motivational needs?
Human capital is 'generally understood to consist of the individual's capabilities, knowledge, skills and experience of the company's employees and managers, as they are relevant to the task at hand, as well as the capacity to add to this reservoir of knowledge, skills, and experience through individual learning' (Dess & Picken 2000:8).
The issue of what contributes to competitive advantage has seen, within the strategy literature, a shift in emphasis away from external positioning in the industry and the relative balance of competitive forces, towards an acknowledgement that internal resources be viewed as crucial to sustained effectiveness (Wright et al 2001). The work of Penrose (1959) represents the beginning of the resource-based view of the firm (RBV), later articulated by Rumelt (1984), Barney (1991, 1996) and Dierickx & Cool (1989). The RBV established the importance for an organisation of building a valuable set of resources and bundling them together in unique and dynamic ways to develop firm success. Competitive advantage is dependent not, as traditionally assumed, on such bases as natural resources, technology, or economies of scale, since these are increasingly easy to imitate. Rather, competitive advantage is, according to the RBV, dependent on the valuable, rare, and hard-to-imitate resources that reside within an organisation. Human capital in a real sense is an 'invisible asset' (Itami 1987). The importance to the strategic aims of the organisation of the human capital pool (the collection of employee capabilities), and how it is managed through HR processes, then becomes apparent. In terms of rarity:
'If the types and levels of skills are not equally distributed, such that some firms can acquire the talent they need and others cannot, then (ceteris paribus) that form of human capital can be a source of sustained competitive advantage' (Snell et al 1996:65).
And in terms of inimitability, there are at least two reasons why human resources may be difficult to imitate: causal ambiguity and path dependency (Becker & Gerhart 1996, Barney 1991). 'First, it is difficult to grasp the precise mechanism by which the interplay of human resource practice and policies generates value...second, these HR systems are path dependent. They consist of policies that are developed over time and cannot be simply purchased in the market by competitors' (Becker & Gerhart 1996:782).
The interdependency between HR practices combined with the idiosyncratic context of particular companies creates high barriers to imitation. Of course, the human resources must be valuable; they must, as Boxall says, be 'latent with productive possibilities' (1996:67) and so human capital advantage depends on securing exceptional talent, or, in the familiar phrase, 'the best and the brightest'.
This emphasis on human capital also chimes with the emphasis in strategy research on 'core competencies', where economic rents are attributed to 'people-embodied skills' (Hamel & Prahalad 1994:232). The increasing importance of the RBV has done much to promote human resource management in general and human capital management in particular, and to bring about a convergence between the fields of strategy and HRM (Wright et al 2001).
The resource-based view of the firm strengthened the often-repeated statement from the field of strategic human resource management that people are highly important assets to the success of the organisation. Although Michael Hammer suggested that 'people are our greatest asset' is 'the biggest lie in contemporary American business', the rise of human resource management, in terms of rhetoric at least, has been spectacular. This was sparked in the 1980s by the examination of the 'Japanese miracle', an analysis that showed success built on a distinctive form of people management, and by the eagerly received recommendations from the excellence movement (Peters & Waterman 1982, Collins & Porras 1994), which urged the development and nurture of employees within a supportive strong culture. A more recent, and equally important strand has emerged under the title 'the knowledge-based view of the firm' (Grant 1996), which emphasises the requirement of organisations to develop and increase the knowledge and learning capabilities of employees through knowledge acquisition and knowledge sharing and transfer, to achieve competitive advantage.
- Undesirable consequences of poor recruitment:-
Poor recruitment choices can have a range of undesirable consequences for the organisation and the worker including:
- Higher rates of turnover
- Reduced performance effectiveness
- Lowered job satisfaction
- Reduced work motivation.
Three steps to develop an effective recruitment process are:
Step 1: Ensure an up-to-date job description which contains information related to:
- Specific tasks and activities required for a job
- The knowledge, skills and abilities required for effective performance by the job incumbent.
Step 2: Develop an effective recruitment strategy which considers:
- Appropriate sources of recruitment (i.e., advertisements, personal referrals, employment Agencies, direct applications)
- Appropriate recruiters (e.g., supervisor or co-worker).
Step 3: Evaluate the recruitment strategy to determine its efficiency. For example:
- Conduct a cost-benefit t analysis in terms of the number of applicants referred, interviewed, Selected, and hired
- Compare the effectiveness of applicants hired from various sources. (Robert L. Compton, Alan R. Nankervis 1998)
Evidence-based best practice for three of the most commonly used selection techniques is outlined below.
- Curriculum vitas / rsums and written applications
- Conducting interviews
A curriculum vitae (CV) / rsum provide valuable information relating to a person's professional Qualifications and experience. All information in the CV should be verified where appropriate (e.g. Asking applicants to explain gaps in employment history). Requesting job applicants to address specific selection criteria (i.e., essential and desirable) can improve the efficiency of reviewing CVs.
Structured interviews are recommended. A structured interview involves asking each candidate the same set of questions and assessing their responses on the basis of pre-determined criteria. Questions and assessment criteria should be based on accurate, updated job descriptions. It is also helpful to develop criteria to categorise responses (e.g., as excellent, good, average and unsatisfactory). An interview panel consisting of a representative selection of people may also be helpful.
Two common types of structured interview questions are:
- Situational questions which ask candidates about hypothetical scenarios that may be Encountered in the job and how they would respond in that situation
- Experienced-based questions which focus on specific examples of the candidate's prior work experiences and their responses to past situations that are relevant to the job in question.
Referees are useful for identifying past employment problems and clarifying the accuracy of information presented in an interview or CV. Only a small percentage of all reference checks are negative, therefore, it is often difficult to differentiate between candidates on the basis of reference checks alone. ( Sangeetha K 2008)
Without a carrot a rabbit is no faster than a Turtle!
A second perspective on human resources and performance linkage is the idea of 'best practices', or 'high performance work practices'. This view emphasises the need for strong consistency among HR practices (internal fit) in order to achieve effective performance. This view has a high degree of empirical support (Huselid 1995, Delaney & Huselid 1996, Arthur 1994, Ichniowski, Shaw & Prennushi 1997, MacDuffie 1995). This view has been championed prominently by Pfeffer , who listed 15 HR practices in 1994 which became seven in 1998: employment security; selective hiring, self-managed teams, high compensation contingent on performance, training, reduction of status differentials, and sharing information.
Arthur (1992, 1994) found that HR practices focused on enhancing employee commitment (e.g. decentralised decision-making, comprehensive training, salaried compensation, employee participation) were related to higher performance. Conversely, he found that HR practices that focused on control, efficiency and the reduction of employee skills and discretion were associated with increased turnover and poorer manufacturing performance. Similarly, in a study of high performance work practices, Huselid (1995) found that investments in HR activities such as incentive compensation, selective staffing techniques and employee participation resulted in lower turnover, greater productivity and increased organisational performance through their impact on employee skill development and motivation.
STATEMENT OF THE DESIGN AND METHODOLOGY
A research design is a framework or blueprint for conducting the marketing research project. A good research design will ensure that the marketing research project conducted effectively and efficiently (Malhotra, 2004 p-74).
Qualitative is associated with phenomena that cannot be, or is difficult to qualify (Lancaster, 2005). The qualitative process focuses more on quality rather than quantity as its name suggests. According to Collis and Hussey (2003) ''qualitative research is more on evaluation of less tangible aspects of a research study, such as perceptions, behaviours and attitudes.'' For this research Qualitative methods will be used.
The major objective of the descriptive research is to describe something-usually market characteristics or functions. Descriptive research, in contrast to exploratory research, is marked by a clear statement of the problem, specific hypotheses, and detailed information needs (Malhotra, 2004, p-78-79) According to Saunders (2003), research perspectives usually consist of three parts, the perspective of the positivist, interpretive and the realist approaches. In my research I will be using the Interpretive approach, (in between the continuum), as my research is exploratory, wherein, I will be exploring the degree of pertinence of employment agencies to service industry. I will be also exploring the practices of these employment agencies when recruiting and selecting people for organisations. Thereby, using an Inductive approach to form a theory as to how the organisations perceived the effectiveness of employment agencies to their operations.
My research will operate within the Cross-Sectional Design, as I will be collecting data on more than one case, using questionnaires, semi-structured interviews, structured observation, and document analysis. The benefit of this would be that would be able to focus on the breath of the research. Moreover, by exploring the breath of the topic, I am increasing my validity and the truthfulness of my research, and thereby minimize the confounding variables. There are two sources of data: primary and secondary. For my research I will be conducting semi-structured interviews, I would be selecting five companies randomly from a database of all companies which meet my inclusion criteria. My inclusion criteria will consists of organisation belonging to the service industry doing business to employment agencies for 5 years and above. Secondary data in the form of books, policy papers, journal articles, organisational reports and Internet websites will be utilised.
Data Collection Methods and Analysis:
As mentioned above in the research methodologies section, for secondary research the data's will be collected from academic books, journals, magazines, newspapers, articles, and many other collection of books relating to the topic which explains the need process and analyzes the process of recruitment selection and effect of globalization on them . For the primary research the methods such as interview will be conducted of about 10 different human resource managers. And the tools used for to get more data will be well planned questionnaires with both open and closed ended questions. The number of questions will range from 20-30 which will include yes and no type of questions and the questionnaires will be distributed to the managers, and at last the collected data will undergo for critical analysis in order to fulfill the aims and objectives of the research.Time table:- 25 jan to 15 feb
Introduction to the topic interviews of managers to be done.
16 feb to 06 march
Collection of primary data literature review
07 march 27 march
Collection of secondary data completion of data compiling, rechecking, binding final copy preparation
27 march to 15 may
Review of the dissertation submission .
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