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International Political Economy
International Political Economy
Q. 1.
The trade and production structure is a set of relationships amongst international organizations, states, NGOs, and international businesses. Together, these entities influence and control international norms and rules relating to production, where production takes place, who produces, who is the market, and lastly at what price. Economics of trade and its politics are inseparable. International trade has enlarged in value as well as in volume partially, as a manifestation of production internationalization. Progress in communication technology has precipitated a disintegration of production, with organizations outsourcing segments of the production process to diverse parts of the world. As a result of the mobility of capital, foreign direct investment demonstrates growth although much of it is concentrated in the developed economies. Trade encourages political, economic, and social interdependence among trading partners (Salvatore, 2009).
Q. 2.
In regard to comparative advantage, while one country may be less efficient than another country in the production of two commodities, there would still a foundation for mutually advantageous trade. The first country should focus in the production and export of the commodities in which it has comparative advantage, and import the commodities in which it has a greater absolute disadvantage. Comparative advantage is established by contrasting relative prices or the opportunity costs across nations.
Nations would always specialize depending on their comparative advantage. Competitive forces direct nations towards specialization depending on comparative advantage. International resources are utilized more efficiently, as total global output rises with specialization depending on comparative advantage. With trade and specialization, the consumption value increases in each country. Comparative advantage is an easier way of illustrating the trade patterns. Prices of commodities in foreign as well as domestic markets as well as the exchange rate assume secondary significance when it is implicit that comparative advantage provides a more fundamental illustration of trade (Salvatore, 2009).
Q. 3
Economic Liberals
The liberal ideas in regard to trade are influenced by David Ricardo formalization of the theory of comparative advantage. According Ricardo, trade is not based on who can produce the most of any given good (absolute advantage) since limitations of scarce resources mean that no nation can produce as much as it wants of all goods and services. Opportunity cost should as a result be considered. The theory of comparative advantage holds that a nation should produce those the same goods produced in other countries. Finally, a nation should import goods if the price of the import (terms of trade) is less than the opportunity cost of home production (Salvatore, 2009).
Mercantilists
Although trade itself makes all nations better off, changes in the terms of trade can make one nation better off and another worse off. Also, mercantilists view the theory of comparative advantage as incomplete because it does not take into account other factors that affect trade and national welfare.
Structuralists
In the perspective of structuralists, trade helped mother countries dominate and subjugate undeveloped colonial territories. Contemporary structuralists emphasize the extent to which international trade reflects the exploitative relationship that exists amongst core, semi-peripheral, and peripheral nations. Several structuralists point out that while trade has generated economic growth; the benefits in developing countries have been distributed very unevenly, promoting greater inequality (Salvatore, 2009).
Q. 4.
The approach of the Mercantilists best accounts for the relationship of the Northern industrialized nations to the Southern developing nations when it comes to trade. The approach perceives that states can intentionally create and can also easily gain comparative advantage by adopting strategic trade policies and having new technology, skills and other resources like cheap labor. Another political reality is that, in democratic nations, it is the state’s duty to protect society and its businesses from the negative effects of trade. Trade protection is also associated with a fear of becoming too dependent on other nations for certain goods. Then some neo-mercantilists are concerned that the protectionist trade policies of a regional trade alliance like NAFTA, EU are designed to help local industries, might either intentionally or unintentionally disrupt another country. Often this disruption is followed by an assortment of defensive or retaliatory neo-mercantilist policies like tariffs, import & export quotas, export subsidies, currency devaluation, non-tariff barriers, dumping, etc. that counter the original measures with the other state (Salvatore, 2009).
Q. 5.
In the 1980s trade accounted for an increasingly higher percentage of GDP in the industrialized states, generating demand for new protectionist policies. This led to the Uruguay Round of GATT multilateral trade talks in 1986. Strategic trade policies grew in importance, especially in the 1980s and 1990s. The Uruguay GATT Round (1986-1993) attempted to deal with a number of newer trade issues including services and intellectual property rights (IPRs). Domestic support for agriculture and LDCs was also issues dealt with in the Uruguay Round, but that had not been dealt with effectively (or at all) in previous GATT Rounds. Agriculture remained an especially sticky issue throughout the negotiations and held up the talks several times. Agreement was finally reached on agriculture, opening the door to agreements on services, IPRs, and other issues. While the Uruguay Round did make progress on these and other issues, many of them remain for the WTO to either deal with or solve.
The Doha Round
Both the EU and United States face tremendous domestic political pressure to leave agricultural protections in place to safeguard local farmers, in spite of the incentive these policies create for overproduction and dumping, which depress global prices for agricultural commodities. No subsequent proposal has been agreeable to all sides, and once again agriculture is poised to derail the Doha Round. One possibility is a “Doha lite” agreement that would not require nations to give up so much. There is great fear that failure to reach some agreement will damage the credibility of the WTO as an institution. In the meantime, many states are putting new energy into bilateral and regional trade agreements to advance the objective of trade promotion.
Q.6.
Three different international monetary and finance systems
The Bretton Woods System
The Float or Flexible Exchange-Rate System.
The Classic Gold Standard system.
The Bretton Woods System
The Bretton Woods System was created following World War II with the objective of promoting the cooperation required to rebuild Europe. It was seen as imperative to create a currency regime that would prevent the competitive currency devaluations that had precipitated tit-for-tat retaliation during the Great Depression. John Maynard Keynes proposed the “Keynesian compromise” which gave nations the ability to regulate their own domestic economies, but permit the IMF to collectively manage global financial policies to avoid another Great Depression. The IMF would provide temporary assistance to debtor nations in paying back wartime debts. This system restored confidence since all currencies were theoretically convertible into gold. The system subsisted on the basis of a bargain between the United States and Western Europe where the United States consciously accepted its hegemonic role of providing collective goods (like the dollar as a reserve currency, and security), in exchange for military and diplomatic support from Europe (Salvatore, 2009).
The Float or Flexible Exchange-Rate System.
Following the collapse of the Bretton Woods system, the major powers authorized the IMF to widen the trading bands so that changes in currency values could more easily reflect the supply and demand of currencies. The oil shocks of the 1970s helped preserve the dollar’s status as top currency, as OPEC demanded ever-greater quantities of dollars to purchase OPEC oil. OPEC nations placed many of these “petrodollars” in Western banks. Petrodollars were loaned out to developing countries, which substantially increased their debt. Stagflation (concurrent inflation and slow economic growth) during the 1980s prompted the U.S. to raise interest rates to combat domestic inflation, which contributed to global recession. Concerns about the growth of communism in Latin and South America, the IMF and World Bank under U.S. pressure provided opportunities for developing countries to reschedule their debts.
Q.7.
The new global security structure can be perceived as a three-tiered structural arrangement made up of a relatively small number of great or major powers at the top, a bigger number of minor powers in the middle of the framework, and a large number of weak powers or poor states on the bottom layer. On the top layer states are preoccupied primarily with realist concerns of national defense and war when it comes to security. IOs are important to the extent that they serve the interests of their creators, nation-states. And NGOs have relatively little influence at this level. Third-tier states represent the great majority of poorer countries that lack both hard and soft power capabilities. They wrestle not only with territorial issues but also with a wide diversity of security concerns such as immigrants, refugees, minorities, human rights abuses, epidemic diseases, and environmental issues. UN peacekeeping forces and NGOs are quite active and play major roles at this level. Actors such as the United States tend to be involved in security issues in all tiers given its interests, capabilities, and global influence. Actors at all levels are connected by formal treaties, conventions, and other arrangements (Salvatore, 2009).
The Top Layer: Power Politics and the State-System Order
The focus of defense officials in these states is on preparation to fight wars or the protection of national borders. Realism usually prevails as the outlook that shapes official views about security. The basic principles of realism are summarized. The major powers and hegemons have global interests, one of which has been the balance of power. Three schools of thought about polar configurations of power are identified and discussed (Salvatore, 2009).
The Second Layer: The Changing Role of IOS
Minor powers usually focus on protection of the homeland, but because of their limited hard power capabilities are more likely to seek assistance from IOs when it comes to security. NATO has been and is still looked to by many minor powers for protection. Many of these states are strong supporters of a new International Criminal Court (ICC) to, in part; hold accountable those who commit war crimes.
The Third Layer: The Coming Anarchy?
Third-layer states are relatively weak states, and not as capable as the other two layers of states in dealing with security issues. They exhibit a good deal of domestic violence and conflict related to lack of economic development and persistent poverty. These states are quite dependent on IOs such as UN peacekeeping forces and NGOs like the Red Cross and Red Crescent to help them solve many of their security issues.
Q.8.
The relationship of security to development in poor nations is a hotly debated topic. For economic liberal development experts, security issues prevent or help delay economic development by wasting resources. Security issues in these nations are linked to heavy debt to international banks and finance institutions, overpopulation, poor infrastructure, and environmentally threatening issues. Some poor states adopt measures to grow their economy that may violate a group’s human rights. Support for terrorists can often be in failed states, while urban violence is linked to slum areas around large cities. Many developed nations ship arms to the poorer states in consideration of major power security but also economic interests. Many poorer states must look to IOs and NGOs for assistance when it comes to security issues (Salvatore, 2009).
Q. 9
IPRs are lawful tools to control access to innovation. IPRs therefore are an issue in the interaction of markets and nations in the IPE. IPR are the rights to control use of intellectual property – an invention or a creative work such as a novel or poem. Patents are issued by government and bestow exclusive rights to create, utilize or trade in an invention for a time usually ranging from 15-20 years. The trademarks are symbols registered by manufacturers or merchants to identify services and goods. Protection is generally granted for a decade and is also renewable. The copyrights protection is granted for inventive works of authorship such as artistic, literary, and scientific works. It is also issued for software and databases. Protection last for the author’s lifetime, plus fifty years (Salvatore, 2009).
Three Perspectives of Intellectual Property Rights
Liberals perceive IPRs as necessary to generate a mutually advantageous market for intellectual property.
Mercantilists perceive IPRs as an approach to acquire an advantage for local firms over foreign competitors. It may also be a way to control the increase of military technology that may be significant to national defense.
Structuralists perceive IPRs as another approach of exploitation. They view enforced IPRs as producers of dependency and underdevelopment (Salvatore, 2009).
Q. 10.
Three significant trends are;
Power and wealth increasingly rely on technology and knowledge.
The rate of technological transformation has increased.
The level of technological transmission has increased.
Q. 11.
Mercantilists perceive IPRs as an approach to acquire an advantage for local firms over foreign competitors. It may also be a way to control the increase of military technology that may be significant to national defense.
Liberals perceive IPRs as necessary to generate a mutually advantageous market for intellectual property.
Structuralists perceive IPRs as another approach of exploitation. They view enforced IPRs as producers of dependency and underdevelopment.
Q.12.
The Product Life Cycle (PLC) phenomenon is the markets response to a product. It largely judges when one phase in the life cycle will diminish and the next phase set in. The product life cycle exemplify how innovations happen, multiply, and ultimately are transferred in foreign countries. The production structure is influenced strongly by the changing trade. High-tech (knowledge) industries are termed “Schumpeterian” to indicate that only firms with monopoly power have the incentive and ability to invest in risky, costly, and long-standing research and development projects (Salvatore, 2009).
References
Salvatore, B. (2009). Theory & Problems of Global Economics. N.Y: McGraw-Hill.
International Political Economy of East Asia
International Political Economy of East Asia
Claim:
Academics who analyze the economic success that Japan and Korea saw in the decades after World War II have a tendency to place an excessive amount of emphasis on the role that state-led industrialization played in these economies, specifically the influence that industrial policies had.
Indeed, industrial strategy can, in fact, account for their remarkable rate of economic growth. Some scholars put forward that factors, such as the sound general economic policies both governments implemented, the dynamic of each country’s respective private sector, and the favorable external context that both countries enjoyed, can be used to explain the rapid growth that both nations have experienced in recent years.
Position:
However, this section disagrees with this position, supporting evidence that Japan and Korea are where they are today largely due to government and state-led initiatives relating to industrialization, partnerships with the US, and other forms of strategies that support the growth of industries in the two nations.
Argument:
The political framework that is in place at the beginning of the development phase has a significant influence on the growth strategy that is ultimately selected. Because South Korea had just recently emerged from a long period of Japanese occupation (1910-1948), which culminated in a war that severed the country’s link with North Korea, the leadership and public of the country aspired to achieve economic self-sufficiency as well as increased political autonomy (Seth, 2013). As a consequence of this, South Korea started its economy after the Korean War with the intention of implementing import substitution, focusing on local markets that developed daily as North Korean refugees flooded into the nation (Haggard, Kim, & Moon, 1991). Following the defeat of their country in World War II, the Japanese people were given the opportunity to initiate an entirely new economic system from the ground up. The fact that the war destroyed all the Japanese had constructed over the course of the years made this possibility a reality. During the time that the United States was occupying Japan, a number of different reform efforts were carried out in order to repair and recover the destroyed country. These reforms paved the way for Japan to eventually have the chance to become an economic powerhouse. The American occupation forces in Japan were responsible for the implementation of three primary reform policies: the democratization of labor, the reform of land ownership, and the elimination of zaibatsu. These reform efforts had a significant influence on the democracy and modernisation of the nation, as well as its capacity to make economic growth. The execution of the Dodge Plan and the subsequent effects it had from the beginning of the Korean War made it possible for Japan’s economy to begin to recover. The end of the Korean War paved the way for this recovery to become a possibility. As a result of the so-called “Korean War boom,” the economy was able to observe a significant boost in output, which marked the beginning of the nation’s economic miracle.
Claim:
Scholars studying Japan’s and Korea’s economic success in the decades after WWII have a tendency to overemphasize the importance that state-led industrialisation had in both countries, notably the effect that industrial policies had.
Indeed, industrial strategy may explain for their extraordinary pace of economic expansion. Some scholars argue that factors such as the sound general economic policies implemented by both governments, the dynamic of each country’s respective private sector, and the favorable external context enjoyed by both countries can be used to explain the rapid growth experienced by both nations in recent years.
Position:
The section agrees with this position, supporting evidence that the high-speed growth of Japan and Korea can be explained b factors including the sound general economic policies both governments followed, the dynamism of their respective private sectors, and the favorable external context that both enjoyed.
Argument:
The massive increase in Japan’s per capita income between the years 1880 and 1970 was largely attributed to the industrialization process that Sugihara (2004) believes to have been initiated by the government. It is uncommon for a business to be able to boost sales simply increasing the volume of goods it produces. Western Europe, Canada, Australia, and the United States were all able to achieve high levels of per capita income by shifting away from agricultural production and toward industrial and technologically advanced service sector activities. Moving away from agriculture production helped achieve this. Due to the nation’s high agricultural productivity, Japan had a robust craft (or proto-industrial) sector that thrived in both rural and urban regions before the country made the shift to an industrial economy (Moriguchi & Saez, 2008). Both rural and urban regions may do this. The bulk of Japan’s output growth may be explained by an increase in domestic investments made in the country’s increasing industrial sector and infrastructure. Private businesses and governmental institutions worked together to build the country’s infrastructure. Japan’s labor and capital markets started to take on much more diverse forms throughout the 1910s (Van de Kaa, 2002). The capital-intensive industry paid higher salaries whereas the labor-intensive sector paid lower salaries. This was a result of the high capital-to-labor ratios in the capital-intensive industry. Dualistic economic systems made income gaps worse, which led to domestic social unrest. Following the Second World War, Japan adopted a series of legislative changes that reduced inequality and ended the majority of the communal hostility that had previously ruled the nation as a result of dualism. Japan was in a stronger position to meet the challenge offered by the West as a consequence of these wins at home led by the government (Honda, 1997). It originally gave a lot of weight to coal and other fossil fuels as steam sources in order to accomplish this. It had a highly educated populace and an early form of industrial distribution networks, which were both utilized to mimic Western management and energy production methods. The Japanese were well-equipped to master inorganic production when the Americans’ Black Ships forced Japan to give up its long-standing autarky because of their significant development of the organic economy, which depended on natural energy flows like wind, water, and fire. This happened as a result of Japan being forced to give up its long-standing autarky by American Black Ships. They were able to develop procedures for the production of inorganic materials as a direct consequence of this.
Personal Position and Opinion:
In summary, both Japan and South Korea had to carry out significant state-led initiatives in order to ensure that the two nations retained their accelerated growth towards industrialization and economic progress. While South Korea was slow to start, its partnership with the American government led to recovery in areas of education, finance, and economics. Entrepreneurship expanded in South Korea leading to a state-led economic transformation. To begin its reforms after the war, the Japanese nobility was stripped of its land, wealth, and rank in conformity with the standards outlined in the postwar constitution. The wealthy landowners were forced to sell their property to the tenants who worked on it for much less than market value. Japan instituted a new economic policy based on social capitalism and embracing a unique economic model that led to success.
References
Haggard, S., Kim, B. K., & Moon, C. I. (1991). The transition to export-led growth in South Korea: 1954–1966. The Journal of Asian Studies, 50(4), 850-873.
Hanashima, M., & Tomobe, K. I. (2012). Urbanization, industrialization, and mortality in modern Japan: A spatio-temporal perspective. Annals of GIS, 18(1), 57-70.
Honda, G. (1997). Differential structure, differential health: industrialization in Japan, 1868-1940. In Health and welfare during industrialization (pp. 251-284). University of Chicago Press.
Moriguchi, C., & Saez, E. (2008). The evolution of income concentration in Japan, 1886–2005: evidence from income tax statistics. The Review of Economics and Statistics, 90(4), 713-734.
Seth, M. J. (2013). An Unpromising Recovery: South Korea’s Post-Korean War Economic Development: 1953-1961. Education About Asia, 18(3), 42.
Sugihara, K. (2004). The East Asian path of economic development: a long-term perspective. In The Resurgence of East Asia (pp. 92-137). Routledge.
Van de Kaa, D. J. (2002). The idea of a second demographic transition in industrialized countries. Birth, 35, 45.
International Human Resource Management Case Study
International Human Resource Management Case Study
Student’s Name
Course Number and Name
Instructor’s Name
Due Date
International Human Resource Management Case Study
Introduction
For decades, human resource management has been recognized as a vital area in the management process and one that is important for organizations. International companies such as No Name engage in a process of internationalization and globalization obliging them to demonstrate competitiveness in the global market. In order to maintain this competitiveness, No Name will be required to develop and innovate a great capacity to react to the recent happenings within the organization. In this sense, a suitable employee management will endow the organization with an indispensable capacity needed to ensure that the company survives (Bornay-Barrachina, 2019). Finding ways to deal and manage the people effectively with all the human resource areas as identified in the case study is vital to No Name’s success. Indeed the management of people and work towards the desired end is a vital activity in organizations where humans are employed (Pokharel, 2016). That means that its existence does not need to be decoratively justified. Furthermore, human resource management happens to be an unavoidable of not only starting but also growing an organization.
Although there exist a wide range of variations in the engaged managerial resources, styles, and ideologies, the management of people in an organization takes place in one form or another. One may question the comparative performance of a particular human resource management model in a particular context or its contribution to the performance of an organization relative other investments within an organization like advertising campaigns, new production technologies, and acquisition of properties (Bornay-Barrachina, 2019). This, without a doubt is an important line of analysis but what should not be questioned is the significance of the process of human resource management itself. It is impossible for an organization to grow or survive without an attempt to organize and manage people within the organization. This paper will address the strengths and weaknesses of the four key areas in human resource management presented in the case study in ensuring that a No Name thrives. The four key areas that will be discussed include Diversity Management and Culture and International Performance Management, Training and Development using key theories and insights and then relate them to the case study. These areas will be discussed in the order described above then recommendations will be provided in terms of the significant of the points discussed, the implications for the conclusion on the topic, and other factors of relevance.
Diversity Management
Diversity management is an essential approach which not only acknowledges but also respects the contributions that all groups in an organization make irrespective of their gender, race, sexual orientation, or culture. However, there are arguments that affirmative action as a diversity management tool leads to the paradox of diverse discrimination (Dobbin & Kalev, 2016). This is where discrimination is practiced against some groups to avoid discriminating against other groups. This is usually based on the premise that a statistical imbalance in the workplace is due to the discrimination against the groups that are underrepresented. Despite that, studies have proved that diversity management plays an important role in fighting against prejudice, stereotypes, and any form of discrimination because of an individual’s assumptions and perceptions towards another group (Rakowska, 2021). Diversity management maximizes the benefits and minimizes the barriers of different behaviors, opinions, and attitudes of humans within an organizations. As stated in the case study, although No Name has a policy that states all employees must be respected irrespective of their age, race, gender, ethnicity, etc., there is still an intolerance towards working with others from different generations. This behavior is attributed to the social cognitive theory which suggest that categorization is being used by individuals to simplify information. Such categories allow people to easily and quickly classify data and often, individuals are categorized by their physical and visible features like age, sex, and race. Therefore, when one sees another person of a different race, there is occurrence of automatic processing and they activate beliefs about that particular race. Even if the individual is not visible, they can be subjected to automatic categorization. For instance in the case study, No Name does not recruit people with disability in China although they are qualified for a job.
A proper diversity management in an organization empowers all groups as people’s mindset against other groups are changed and the organization’s underlying culture especially in the culture is what impends change (Rakowska, 2021). This is one of the things that make business multicultural. In today’s competitive environment where organizations are fighting battles against rates of attrition, the view of not embracing diversity can imply losing out on a lot of money and failure to attract and retain the most qualified and competent employees.
Culture
Organizational culture is vital in influencing an organizational success in a global system. The management of organizational culture directly interacts with human resource management. According to Al Haderi & Ahmed, (2015), at the present and in the future, no one can question the sole and proper type of organization because an organization would be irrelevant without humans. An organizational culture core function is facilitating human potential development including its creative and innovative potential. Although culture is a representation of an organization’s clear vision about its nature, identity, and values, it is not always the case. According to Deloitte University Press, only 12% of employees are confident in the effectiveness of a company in driving the culture they desire. Another study by Chatterjee, Pereira, & Bates, (2018) found that about 65% of employees feel that they lack a strong culture of work with an organization. Whether employees are aware of their organizational culture or not, without positive influence and direction, negative factors tend to take hold which shapes culture in ways that are harmful to an organization (Chatterjee, Pereira, & Bates, 2018). In that regard, the case study demonstrates how No Name’s culture is a negative one where the mantra “near enough is good enough” has been adopted. This has led to the production of low quality products which in turn has led to complaints from customers. In addition, work relations has been affected thanks to this culture.
Deal and Kennedy model of organizational culture states that a significant influence on the culture of a company is the business environment it operates. Dean and Kennedy (1983) asserted that corporate culture embodies what is required to ensure success in the work environment (Deal & Kennedy, 1983). They look at two dimensions: the level of risks associated with the activities of the company and the promptness at which employees get feedback on the success of strategies or decisions. In the case of No Name there is a miscommunication among teams which is affecting the overall performance.
An organizational culture can reflect or betray the organization’s core value. How an organization conducts business, interact as a team, manage workflow, and treat the customers add up to experiences representing who they are as an organization (Chatterjee, Pereira, & Bates, 2018). In short, an organizational culture represents its beliefs in action. A robust corporate culture keeps the organization’s core values at the center and front in every aspect of its organizational structure and daily operations.
Performance Management
The systems of performance management which includes performance appraisal and development of employees are the HRM’s “Achilles’ heel. “Performance management suffer flaws within organizations with managers and employees frequently complaining about their ineffectiveness. A study by Tahiri, Kovaci, & Krasniqi, (2020) shows that only 30% of employees agree that the system of performance management tends to improve their performance. Less than 40% of them stated that the system established clear goals of performance. Although those results suggests that performance management systems are poorly designed, it is normally not poorly developed processes and tools causing problems with performance management (Qamar & Asif, 2016). Instead, these problems arise because performance management is personal and most of the time is a threatening process between employees and managers. This is demonstrated in the case study where there is a lack of performance reviews apart from the headquarters which takes an ad hoc approach and does not consider the economic factors affecting business targets.
The relevant theory which applies is the goal setting theory which suggests that the individual goals that employees establish play a vital role in their motivation for greater performance. This is due to the fact that an employee keeps following his goals and if they fail to achieve those goals, they either improve performance or modify those goals to be more realistic (Latham, Seijts, & Slocum, 2016). Furthermore, goal setting helps in the development of action plans tailored to guide the employees and the organization alike (Greco, & Kraimer, 2020). Several scholars have confirmed that the correlation between improved organizational results and goal setting is positive (Qamar & Asif, 2016). There is a lack of goal setting in No Name because there is no policy that underpins performance management in the organization. Also, there are no clear measures.
According to Cappelli & Tavis (2016), organizations that focus on constant performance management yield better results in terms of business. The organization that dedicates its time to regular performance assessment and reviews have higher chances of seeing an increased employee motivation since the latter are encouraged to frequently think about their individual and organizational goals. In addition, performance management improves consistency (Cappelli & Tavis, 2016). If the organization determines this process concisely and clearly, then managers, employees, and human resource professionals will know what and when to do. This way, tracking the growth of employees or their need to be supported if there is lack of performance is not only simplified but also identified promptly.
Training and Development
Many organizations perceive training and development as a fundamental part of HRM activities. Technically, training and development includes change in an individual’s skills, attitude, or knowledge with a resulting behavioral improvement. According to Jha (2016), emotional intelligence, attitude, and motivation are responsible in making training and development effective. This has developed negative perception because the employees may lack some or all of these factors which in the end, the training process would be ineffective (Jha, 2016). Therefore, employees should first be motivated to learn new skills and abilities and should also support the efforts of the employees in practicing such skills within the organization. In No Name, this function of human resource management has been neglected and disregarded. There is lack of training that would help employees to integrate into new surroundings In addition, there is lack of management development programs making the employees not to be aware of their career prospects because there is no utilization of career development plans.
The applicable theory is expectancy theory which tells that employees learn when they believe that from the training they gain new knowledge. In the case of No Name, Alice Morgan believes that a training program would have helped her to integrate into the new surrounding and lack of training led to her taking long to get used to her new working environment. According to the theory, learning would only enhance when connected to the outcome (Lloyd & Mertens, 2018). Indeed, training and development is vital to improved performance of the employees. According to (Chaudhry et al 2017), in order for training to be effective, the activity must be planned and conducted after an intense need analysis. Most importantly, training and development must be conducted in a learning atmosphere. In the process of designing a training and development program, the individual and organizational goals must be on top of mind. Even though it might not be possible to make sure there is sync, the chosen competencies ensures that there is a win-win for both the organization and the employee. Since technology is rendering many employees unskilled and with knowledge workers replacing industrial workers, training and development is at the core of human resource management. Now, the responsibility is on the department of human development to proactively take a role in response to training and organizational needs.
Conclusion and Recommendations
No Name is one of the companies that should focus on the human resource management on an international basis considering it operates in Australia, China, Singapore, and Vietnam. The strategy of an organization on globalization has a strong effect on the established approaches to human resource management. This approaches in turn influence how human resource management functions are implemented within the organization. In diversity management although No Name’s management requires employees to respect each other despite their differences in age, race, sexual orientation etc., there is still an intolerance towards working with others from different generations. The theory that applies in this case is social cognitive theory where individuals categorize others based on their physical characteristics and then hey activate beliefs about that particular race, gender, sexual orientation, etc. As a result, they end up treating them indifferently based on their characteristics. Therefore, No Name should implement a proper diversity management in the company to change people’s mindset against other groups.
The second area of human resource management discussed is organizational culture. It was identified that an organizational culture’s core function is facilitating human potential development including its creative and innovative potential. No Name’s is recognized as negative where the employees give the impression that they would resist any changes. The Deal and Kennedy model of organizational culture was applied in this area in which a significant influence on the culture of a company is the business environment it operates. Since the business environment in No Name is negatively affecting its culture and consequently the employees’ attitudes towards their work, the organization should establish a strong corporate culture that encourages team work and proper communication across different departments to ensure a positive outcome, production of high quality products, and improved performance.
The third area discussed is performance management which is a function that helps managers to monitor and assess the work of the employees. The goal in this case is the creation of an environment in which employees can perform better and produce work that is of high quality. The goal setting theory was applied in this area which suggests that the individual goals that employees establish play a vital role in their motivation for greater performance. This is due to the fact that an employee keeps following his goals and if they fail to achieve those goals, they either improve performance or modify those goals to be more realistic. No Name’s performance management lack a clear set of goals and have high expectation of the employees. No Name should dedicate its time to regular performance assessment and reviews so that the company can have higher chances of seeing an increased employee motivation since the latter are encouraged to frequently think about their individual and organizational goals.
The final area discussed is Training and Development. And it was concluded that it is a vital area of human resources. Thanks to training and development, employees performance and productivity is boosted which in turn, improve the corporate culture and reduce employee turnover. In No Name, there is a lack of training and development and employees are expected to learn things on their own and adapt to new environments on their own. The theory that was applied in this area is Expectancy Theory which tells that employees learn when they believe that from the training they gain hew knowledge. No Name should implement a training and development program that would help employees gain more knowledge on their work related characterizes and help them adopt easily to new environment. The significance of these findings is that an organization is not about structures, strategies, and system, it is about people. In order for an organization such as No Name to survive and grow locally and abroad, they need to adopt practices of human resource management for successful strategy execution. The implications of this conclusion is that HRM functions should be tailored according the environment in which it operates both locally and internationally. This will ensure that employees’ performance is improved within the organization.
References
Al Haderi, S. M., & Ahmed, F. B. (2015). The Negative Effect of Organization Culture Could Slow the Usage or the Adoption for the Technology. International Journal of Business and Social Science, 6(9).
Bornay-Barrachina, M. (2019). International Human Resource Management: How Should Employees Be Managed in an International Context? In Managerial Competencies for Multinational Businesses (pp. 174-194). IGI Global.
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