Management Challenges in the Global Marketplace

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23rd Sep 2020 Business Assignment Reference this

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There are many challenges which companies are facing in global marketplace to sustain their existence. Due to penetration of technology, the role of human resource department is very critical inside the organization. One of the key components of company effectiveness especially with the competitiveness of the global market is effectively organizing human resources. The poor management of human resources (HRM) can directly influence the efficiency of any firm which is deemed a complicated and dynamic discipline. Therefore, firms across the globe constantly try to improve human resources administration as well as to solve the many issues along with it. Employee retention and diversity are one of the most common issues among firms. Firstly, staff retention relates to strategies and methods for retaining precious staff of an organization, it includes measures to motivate staff to stay as long as possible. Nowadays, the biggest task for any firm is not only to manage their employees but also having them for a longer time to improve the overall efficiency of the firm (Vincent and Paul, 2018). Secondly, by hiring employees from various age groups, cultural background, religion and having physical capabilities or disabilities not only can lead to improve productivity but also can be a disaster for the firm if they are not managed effectively. This can happen because sometimes employees do not feel comfortable inside the organization. They may face barriers such as language problems, different attitude of employees and distinct perceptions towards various tasks. Ultimately, it can affect the overall productivity of the organization. The main aim of this paper is to analyze the challenges such as employee retention, diversity in workplace, competition, selection and staff turnover with evidences which companies are facing these days across the world.

Staff is essential for businesses as the ultimate achievement of businesses relies on the output of staff. Employees strength is a major asset of a business because it contributes considerably to profit market value and turnover. The long-term health and efficiency of a company thus relies on important retention of employees (Das and Barruah 2013). The most significant objective of the company is to retain their staff because it is crucial for the organization that skilled candidates be hired but their retention is more vital than recruiting as a substantial amount is spent on guiding and training of prospective staff. Research suggests that replacement costs for old workers with new ones are valued at doubles the annual income of the worker. Global organizations are facing 16% of the employee retention across the world (Kaur, 2014). While workers leave the job, the company loses its employees as well as customers devoted to their employees, manufacturing expertise, present projects, competitors and the organizations history (Goswami & Jha, 2012).

There are many possible reasons which can make a worker to quit his job. The first one is that employees leave work due to a lack of career progression. Workers are often looking to grow and boost the firm’s level of accountability. Most staff have individual objectives and desires they want to achieve with their business objective. Workers with appropriate experience are a precious resource in our rapidly changing industry. It is therefore no surprise for fast-growing enterprises to fill new employment with applicants who have appropriate experiences of other enterprises to expand or acquire a new position. The second reason might be money consideration. As expectations of employees grow day after day, many employees leave their business when higher wages are offered. Employees can easily find positions which use their experience and pay better (Sridhar et al., 2018). So, the management should be equipped with the highly educated and professionals so that they can tackle this problem of employee retention.

Furthermore, due to an ongoing wish for fresh possibilities the staff tends to leave a job. Many employees are currently not committed to firms and want to change jobs long term to modify their working routine and look for a more reliable position. For example, some workers may find their job boring after they mastered the process and are prompted to search for another chance.

The working environment inside an organization may result in quitting a job for any employee if he/she do not feel comfortable or worthy. Therefore, it can affect the overall productivity of the organization as the worker does not feel motivated by the type of work he is doing continuously. Moreover, the bonding between among the workers may get weaken if one worker quit a job which can ultimately ruin the inside environment of the organization.

Secondly, diversification could be another challenge for global marketplace. Diversity can be defined as the existence od disparity within the people of any culture, community or group (Jackson, May and Whitney, 1995). Diversification means if companies hire people with distinct age, race, belief, personality, nationality, culture, area. The management and the staff will have great trouble with this setting in handling and adapting. Diversified employee’s management is an important task for any company. The distinct customs, the educational history the age as well as the perspectives of each person differ. When distinct kinds of individuals come together to work together on the same location about understanding, awareness and culture not all these various kinds of individuals may agree (Mallikarjun, 2007).

Diversified workers can stimulate innovative idea’s inside the organization and develops a world-class environment which ultimately enhances the productivity of these organizations. Also, the multicultural workforce can suggest innovative solutions to tackle any problem of the global marketplace. It results in better decision making. On the other hand, diverse workers can experience less cooperation inside the organization from some of the workers but for better efficiency and productivity it is essential that all the employees should work as a team and try to achieve the targets within a given time (Saxena, 2014).

Competition can also be a management challenge across the global marketplace. Global competition makes competitive environment among the firms and these firms tends to improve their quality by looking for innovative and latest technology. Every firm whether small or large tends to adapt or wants to be quick responsive to attain the competitive advantage (Gupta and Govindarajan, 2001). Competition can be beneficial for the local workers of any country as well as the workers who works overseas as they get compensation from the firms (Bradsher, Barboza, 2010).

These days it is hard to find employees who are competent enough to do a certain kind of job at the offered pay rate regardless of the location across the world (Huselid, Beatty & Beaker, 2009). So, the selection process is also a challenge for organizations to equip their company with employees having adequate skills. Moreover, there is a need for organizations to differentiate various pools for distinct selecting potential workers. In other words, there is a need to originate “Employee Value Propositions (EVP’s)”. According to Guthridge et al. (2008), companies develop distinct EVP’s for different workers. For example, Tesco the UK retailer recruit various workers like which come directly from school, part-time workers or college graduates who look for full-time work by developing separate recruiting and selection techniques.

Staff selection is also a challenge to consider for the organizations at a global scale. Staff selection is indeed an expensive process as human resources department have to spend on the recruitment process for finding the potential workers. The loss of one efficient worker can put detrimental impacts on the strategies of achieving a certain goal in a given period for the organization (Kemelgor and Meek, 2008). Also, the overall efficiency of any organization will be affected if any experienced or valuable staff member quits his job. Furthermore, the company has to invest in the training of the new employee to make him eligible for the required task. What is more, an experienced employee who quits a job can share the secret information of the organization with the other competitors (Frank et al. 2004). 

Conclusion

In conclusion, human resource management should pay attention to the issues which make a worker to quit his job. Also, management should provide an enjoyable environment for the employees inside the organizations so that they can feel comfortable. It can be done by satisfying the requirements of the employees and by providing compensation. Compensation, appreciation and reward system should be according to the efforts and hard work of the employees which can continuously motivate them to give their best for the organizations. HRM Professionals should take care of employee’s requirements as well as should be aware of company’s future plans to achieve targets within time period.

References

  • Bradsher, K., & Barboza, (2010). Strike in China highlights gap in workers’ pay. The New York Times.
  • Bidisha, L.D., & Baruah, M. (2013). Employee Retention: A Review of Literature. Journal of Business and Management, vol. 14 (2), p. 8-16.
  • Frank, F. D., Finnegan, R. P., & Taylor, C. R. (2004). The race for talent: retaining and engaging workers in the 21st century. Human Resource Planning, vol.27, p. 12–25.
  • Gupta, A., & Govindarajan, V. (2001), Converting global presence into global competitive advantage, Academy of Management Executive, vol. 15, p. 45-58.
  • Jackson, S. E., May, K. E., & Whitney, K. (1995) Under the dynamics of diversity in decision-making teams. In R. A. Guzzo & E. Salas (Eds.), Team effectiveness and decision making in organizations (pp. 204–261). San Francisco Jossey-Bass
  • Kaur, S. (2014, February). Key challenges and trends faced by human resource managers. International Journal of Management. vol. 5(2), p. 36-41.
  • K, Mallikarjunan, (2007), “Global Human Resource Management Maneuvering Cultural Currents” HRM review
  • Kemelgor, B., & Meek, W. (2008). Employee Retention in Growth-Oriented Entrepreneurial Firms: An Exploratory Study. Journal of Small Business Strategy, p.19.
  • Sridhar, G.V., Sarojini, V. & Vetrivel, S. (2018). Employee Attrition and Employee Retention-Challenges & Suggestions.
  • Vincent, N. & Paul, A. (2018). Employee motivation and retention: Issues and challenges in startup companies

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