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Unit-2 Policies & Strategies of Human Resources | BBA

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Human Resources

Unit- 2

Human Resource Policies & Strategies

Introduction of Human Resource Policies & Strategies

  • Human resource policies and strategies. In organizations, these policies and strategies play a crucial role in managing employees and achieving organizational goals. HR policies cover various aspects, including recruitment, training, performance management, and employee benefits. They provide guidelines on how to handle different situations and ensure consistency.
  • On the other hand, HR strategies focus on long-term planning and aligning HR practices with the overall business strategy. This involves analyzing the organization’s needs, identifying talent gaps, and implementing strategies to attract, develop, and retain the right employees.
  • Human resource policies and strategies are not just about following rules and regulations. They take into account the well-being and development of employees, creating a positive work environment. By valuing individuals and promoting teamwork, organizations can enhance employee satisfaction, productivity, and overall success.
  • It’s worth noting that these policies and strategies are not set in stone. They need to be regularly reviewed and updated to adapt to changing business environments and employee needs.

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Roles of Human resources policies and strategies

  • The roles of human resource policies and strategies are pretty significant in organizations. They play a crucial role in managing employees and achieving organizational goals.
  • Firstly, human resource policies provide guidelines and standards for various aspects of employee management. They cover areas like recruitment, selection, and on boarding processes. These policies ensure fair and consistent practices, promoting equal opportunities for all employees.
  • Secondly, human resource policies help organizations maintain compliance with legal and regulatory requirements. They ensure that organizations adhere to employment laws, safety regulations, and ethical standards. By having clear policies in place, organizations can minimize legal risks and create a safe work environment.
  • Thirdly, human resource policies contribute to effective performance management. They outline expectations, goals, and performance evaluation processes. These policies help employees understand what is expected of them and provide a framework for feedback and development. They also support the identification of high-performing employees and create opportunities for recognition and rewards.
  • Fourthly, human resource policies address employee benefits and compensation. They define the benefits and perks employees are entitled to, such as health insurance, retirement plans, and paid time off. These policies ensure that employees are fairly compensated for their work and provide a competitive edge in attracting and retaining top talent.
  • Fifthly, Human resource policies promote a positive work environment and organizational culture. They outline guidelines for employee conduct, anti-discrimination practices, and diversity and inclusion initiatives. These policies foster a respectful and inclusive workplace, where employees feel valued and supported.
  • Human resource strategies are long-term plans that align human resource practices with the overall business strategy. They involve analyzing the organization’s needs, identifying talent gaps, and implementing strategies to attract, develop, and retain the right employees.
  • Human resource strategies focus on talent acquisition, ensuring that organizations have the right people in the right positions. They involve developing effective recruitment strategies, leveraging technology, and building strong employer branding to attract top talent.
  • Once employees are hired, human resource strategies focus on their development and growth. They include training and development programs, mentoring initiatives, and career progression opportunities. These strategies help employees enhance their skills, stay engaged, and contribute to the organization’s success.
  • Retention is another key aspect of human resource strategies. They involve creating a positive work culture, implementing employee engagement initiatives, and providing opportunities for work-life balance. By focusing on employee satisfaction and well-being, organizations can reduce turnover and retain their top performers.

Wikipedia- https://en.wikipedia.org/wiki/Human_resource_policies#:~:text=The%20establishment%20of%20an%20HR,in%20which%20people%20are%20treated.


Rules human resources policies and strategies

  • Human resources policies play a crucial role in managing employees and ensuring fair and consistent practices within organizations. These policies provide guidelines and standards for various aspects of employee management. They cover areas such as recruitment, selection, on boarding, performance management, and employee benefits.
  • One of the main roles of human resource policies is to promote equal opportunities for all employees. By having clear policies in place, organizations can ensure that the recruitment and selection processes are fair and unbiased. These policies help prevent discrimination and create a level playing field for all candidates.
  • human resource policies also contribute to maintaining compliance with legal and regulatory requirements. They ensure that organizations adhere to employment laws, safety regulations, and ethical standards. By following these policies, organizations can minimize legal risks and create a safe work environment for their employees.
  • Another important role of human resource policies is to provide a framework for effective performance management. These policies outline expectations, goals, and performance evaluation processes. They help employees understand what is expected of them and provide a basis for feedback and development. By having clear performance management policies, organizations can enhance employee performance and productivity.
  • human resource policies also address employee benefits and compensation. They define the benefits and perks that employees are entitled to, such as health insurance, retirement plans, and paid time off. These policies ensure that employees are fairly compensated for their work and provide a competitive edge in attracting and retaining top talent.
  • In addition to human resource policies, organizations also develop human resource strategies to align their human resource practices with the overall business strategy. human resource strategies involve analyzing the organization’s needs, identifying talent gaps, and implementing strategies to attract, develop, and retain the right employees.
  • Talent acquisition is a key focus of human resource strategies. Organizations develop recruitment strategies, leverage technology, and build strong employer branding to attract top talent. By having effective talent acquisition strategies, organizations can ensure that they have the right people in the right positions.
  • Once employees are hired, human resource strategies focus on their development and growth. This includes training and development programs, mentoring initiatives, and career progression opportunities. These strategies help employees enhance their skills, stay engaged, and contribute to the organization’s success.
  • Retention is another important aspect of human resource strategies. Organizations develop initiatives to create a positive work culture, implement employee engagement programs, and provide opportunities for work-life balance. By focusing on employee satisfaction and well-being, organizations can reduce turnover and retain their top performers.

Consequences of human resources policies and strategies

  1. Enhanced Organizational Performance: Well-designed human resource policies and strategies can positively impact organizational performance. By aligning human resource practices with the overall business strategy, organizations can ensure that they have the right talent in the right positions. This leads to increased productivity, improved efficiency, and better overall performance.
  2. Employee Satisfaction and Engagement: human resource policies and strategies that prioritize employee well-being and satisfaction can have a direct impact on engagement levels. When employees feel supported, valued, and fairly treated, they are more likely to be motivated and engaged in their work. This, in turn, leads to higher levels of productivity, creativity, and innovation.
  3. Reduced Turnover: Effective human resource policies and strategies can help reduce employee turnover. When organizations prioritize employee development, provide competitive compensation and benefits, and create a positive work culture, employees are more likely to stay with the company. This reduces recruitment and training costs and helps retain valuable talent.
  4. Talent Attraction: Strong HR policies and strategies can also attract top talent to the organization. When organizations have a reputation for fair practices, employee development opportunities, and a positive work environment, they become more attractive to potential candidates. This allows organizations to select from a pool of high-quality applicants.
  5. Legal Compliance: human resource policies ensure that organizations comply with legal and regulatory requirements. By having policies in place that address issues such as equal employment opportunity, workplace safety, and non-discrimination, organizations minimize the risk of legal disputes and penalties. Compliance with laws and regulations also helps protect the organization’s reputation.
  6. Improved Communication and Collaboration: human resource policies and strategies can foster effective communication and collaboration within the organization. When there are clear guidelines and processes in place for communication, teamwork, and conflict resolution, employees can work together more harmoniously. This promotes a positive work environment and enhances productivity.
  7. Leadership Development: human resource strategies focused on leadership development can have long-term benefits for the organization. By identifying high-potential employees and providing them with opportunities for growth and advancement, organizations can build a strong pipeline of future leaders. This ensures continuity and sustainability in leadership roles.
  8. Adaptability to Change: human resource policies and strategies that emphasize flexibility and adaptability help organizations navigate changes in the business environment.

Tools  of human resources policies and strategies

  1. Job Analysis: Job analysis is a tool used to gather information about job roles and responsibilities within an organization. It involves identifying the tasks, skills, and qualifications required for each job. Job analysis helps human resource professionals develop accurate job descriptions, determine appropriate compensation levels, and make informed decisions about recruitment and selection.
  2. Recruitment and Selection Tools: human resource professionals use various tools to attract and select the right candidates for job openings. This includes job postings, resume screening, interviews, assessments, and reference checks. These tools help identify individuals who possess the necessary skills, qualifications, and cultural fit for the organization.
  3. Performance Management Systems: Performance management tools are used to set goals, monitor progress, provide feedback, and evaluate employee performance. These tools include performance appraisals, self-assessment forms, goal-setting frameworks, and performance improvement plans. Performance management tools help human resource professionals align individual performance with organizational goals and identify areas for development.
  4. Training and Development Programs: human resource utilizes training and development tools to enhance employee skills and knowledge. These tools include training needs assessments, learning management systems, e-learning platforms, and mentoring programs. Training and development tools help HR professionals identify skill gaps, design effective training programs, and support employee growth and development.
  5. Compensation and Benefits Tools: human resource professionals use tools to design and manage compensation and benefits programs. These tools include salary surveys, benchmarking data, compensation software, and benefits administration platforms. These tools help ensure that compensation packages are competitive, fair, and aligned with industry standards.
  6. Employee Engagement Surveys: Employee engagement surveys are tools used to assess employee satisfaction, motivation, and commitment. These surveys gather feedback on various aspects of the work environment, such as communication, recognition, work-life balance, and career development. human resource professionals use the insights from these surveys to identify areas of improvement and implement strategies to enhance employee engagement.
  7. HR Information Systems (HRIS): HRIS tools are software systems that assist in managing HR-related data and processes. These systems streamline HR functions such as employee records management, payroll processing, benefits administration, and reporting. HRIS tools improve efficiency, accuracy, and data security in HR operations.

Role of HR in strategic management

  1. Workforce Planning: HR professionals are responsible for analyzing the organization’s current and future workforce needs. They work closely with top management to identify the skills, competencies, and talent required to achieve the organization’s strategic objectives. By conducting workforce planning, HR ensures that the right people are in the right positions at the right time.
  2. Talent Acquisition and Retention: HR plays a vital role in attracting, selecting, and retaining top talent. They develop recruitment strategies, implement effective hiring processes, and create a positive employer brand. HR also focuses on employee retention by implementing strategies such as career development programs, competitive compensation packages, and employee engagement initiatives.
  3. Performance Management: HR is responsible for designing and implementing performance management systems that align individual and team goals with the organization’s strategic objectives. They establish performance metrics, provide feedback and coaching, and ensure that performance evaluations are fair and objective. HR also plays a role in identifying high-potential employees and developing succession plans.
  4. Learning and Development: HR facilitates the learning and development of employees to enhance their skills and capabilities. They identify training needs, design and deliver training programs, and provide resources for continuous learning. By investing in employee development, HR ensures that the workforce is equipped with the necessary skills to support the organization’s strategic initiatives.
  5. Organizational Culture and Change Management: HR plays a crucial role in shaping and maintaining the organization’s culture. They promote values, norms, and behaviors that align with the strategic direction of the organization. HR also leads change management efforts by effectively communicating changes, addressing employee concerns, and facilitating the adoption of new initiatives.
  6. Employee Engagement and Well-being: HR focuses on creating a positive work environment that fosters employee engagement and well-being. They implement initiatives to enhance employee satisfaction, motivation, and work-life balance. HR also promotes diversity and inclusion within the organization, recognizing the value of different perspectives and experiences.
  7. HR Metrics and Analytics: HR professionals utilize metrics and analytics to measure the impact of HR initiatives on the organization’s strategic goals. They track key HR metrics such as employee turnover, productivity, and engagement. HR analytics provide valuable insights to make data-driven decisions and optimize HR strategies.

Environmental scanning

  1. What is Environmental Scanning?
  • Environmental scanning involves systematically collecting and analyzing information about the external environment. This includes monitoring trends, developments, and events in the economic, social, technological, political, and legal domains that can impact the organization. It helps organizations gain insights into market conditions, customer preferences, competitor activities, regulatory changes, and other external factors that can shape their strategic direction.
  1. Why is Environmental Scanning Important?
  • Environmental scanning is crucial for strategic management because it enables organizations to:
  • Anticipate and respond to changes: By continuously monitoring the external environment, organizations can identify emerging trends and shifts in customer needs, industry dynamics, and competitive landscape. This allows them to proactively adapt their strategies and stay ahead of the curve.
  • Identify opportunities: Environmental scanning helps organizations spot new market opportunities, potential partnerships, and areas for growth. It allows them to capitalize on emerging trends, technological advancements, and changing customer demands.
  • Mitigate risks and threats: By being aware of potential threats and challenges, organizations can develop contingency plans and take proactive measures to mitigate risks. Environmental scanning helps organizations identify competitive threats, regulatory changes, economic fluctuations, and other factors that can impact their operations.
  • Make informed decisions: Strategic decision-making relies on accurate and up-to-date information. Environmental scanning provides organizations with the necessary data and insights to make informed decisions about resource allocation, market entry, product development, and other strategic initiatives.
  1. How is Environmental Scanning Conducted?
  • Environmental scanning involves a systematic and ongoing process. Here are some key steps:
  • Identify relevant external factors: Organizations need to determine which external factors are most relevant to their industry, market, and strategic objectives. This can include factors such as economic conditions, technological advancements, social trends, political developments, and legal/regulatory changes.
  • Gather information: Organizations collect information through various sources such as market research, industry reports, news articles, government publications, competitor analysis, customer feedback, and social media monitoring. It’s important to gather information from diverse sources to get a comprehensive understanding of the external environment.

Strategy Formulation

  1. Mission and Vision:
  • Strategy formulation begins with defining the organization’s mission and vision. The mission statement outlines the purpose and reason for the organization’s existence, while the vision statement describes the desired future state and long-term goals. These statements provide a clear sense of direction and guide the strategic decision-making process.
  1. External Analysis:
  • To formulate an effective strategy, organizations need to understand the external environment in which they operate. This involves conducting an analysis of the industry, market trends, customer preferences, competitive landscape, and other external factors. By identifying opportunities and threats, organizations can align their strategy with the external environment and gain a competitive advantage.
  1. Internal Analysis:
  • In addition to the external analysis, organizations need to assess their internal capabilities and resources. This includes evaluating strengths, weaknesses, core competencies, and areas for improvement. By understanding their internal landscape, organizations can leverage their strengths and address any weaknesses that may hinder the implementation of the strategy.
  1. Setting Objectives:
  • Clear and measurable objectives are essential for effective strategy formulation. Objectives should be aligned with the organization’s mission and vision and provide a roadmap for success. They should be specific, measurable, attainable, relevant, and time-bound (SMART). Setting objectives helps organizations prioritize initiatives and allocate resources accordingly.
  1. Strategy Selection:
  • Based on the external and internal analysis, organizations can identify different strategic options. These options can include market penetration, product development, diversification, or market expansion. The chosen strategy should align with the organization’s objectives, resources, and capabilities. It should also consider the competitive landscape and potential risks.
  1. Action Plans:
  • Once the strategy is selected, action plans are developed to outline the specific steps and initiatives needed to implement the strategy. Action plans include timelines, responsibilities, resource allocation, and performance metrics. They provide a roadmap for executing the strategy and ensure alignment across different departments and teams within the organization.
  1. Monitoring and Evaluation:
  • Strategy formulation is an ongoing process that requires continuous monitoring and evaluation. Organizations need to track the progress of their strategy implementation, measure performance against objectives, and make adjustments as needed. Regular evaluation helps organizations stay agile and adapt to changes in the external environment.

Strategy Implementation

  1. Clear Communication:
  • Effective strategy implementation starts with clear communication. It is crucial to communicate the strategy to all levels of the organization, ensuring that everyone understands the strategic goals, objectives, and their roles in achieving them. Clear communication fosters alignment, commitment, and a shared sense of purpose among employees.
  1. Resource Allocation:
  • Allocating resources appropriately is essential for successful strategy implementation. This includes allocating financial resources, human resources, technology, and other necessary assets to support the execution of the strategy. Adequate resource allocation ensures that the organization has the necessary tools and capabilities to implement the strategy effectively.
  1. Organizational Structure:
  • The organizational structure plays a vital role in strategy implementation. It defines how tasks, responsibilities, and decision-making authority are distributed within the organization. The structure should support the strategy by facilitating effective communication, coordination, and collaboration among different departments and teams.
  1. Action Plans and Initiatives:
  • Action plans and initiatives outline the specific steps and activities required to implement the strategy. These plans break down the strategy into actionable tasks, set timelines, assign responsibilities, and establish performance metrics. Well-defined action plans provide clarity and guidance to employees, ensuring that everyone is working towards the same goals.
  1. Leadership and Accountability:
  • Effective leadership is crucial for successful strategy implementation. Leaders play a key role in inspiring and motivating employees, providing guidance, and removing obstacles that may hinder progress. They should also foster a culture of accountability, where individuals and teams take ownership of their responsibilities and deliver results.
  1. Performance Measurement:
  • Monitoring and measuring performance is essential to track the progress of strategy implementation. Key performance indicators (KPIs) are used to assess the achievement of objectives and milestones. Regular performance reviews and feedback sessions help identify areas of improvement, celebrate successes, and make necessary adjustments to stay on track.
  1. Continuous Learning and Adaptation:
  • Strategy implementation is an iterative process that requires continuous learning and adaptation. It is important to gather feedback, analyze results, and learn from both successes and failures. This enables organizations to make informed decisions, adjust strategies if needed, and continuously improve their implementation efforts.
  1. Change Management:
  • Strategy implementation often involves organizational change. Managing change effectively is crucial to minimize resistance and ensure a smooth transition.

HR policies & Procedures

  1. Recruitment and Selection:
  • HR policies and procedures outline the processes and criteria for recruiting and selecting employees. This includes defining job requirements, conducting interviews, background checks, and reference checks. It ensures that the organization hires the most qualified candidates based on merit and fairness.
  1. Employee On boarding:
  • On boarding policies and procedures help new employees transition smoothly into the organization. They cover orientation programs, paperwork completion, introduction to company culture, and training to familiarize new hires with their roles, responsibilities, and the organization’s policies and procedures.
  1. Performance Management:
  • Performance management policies and procedures provide a framework for evaluating and managing employee performance. They include performance appraisal processes, goal setting, feedback mechanisms, and performance improvement plans. These policies ensure that employees are aware of performance expectations and have opportunities for growth and development.
  1. Compensation and Benefits:
  • HR policies and procedures establish guidelines for compensation and benefits programs. They cover aspects such as salary structures, bonuses, incentives, leave policies, healthcare benefits, retirement plans, and other employee perks. These policies ensure fairness, consistency, and compliance with legal requirements.
  1. Employee Relations:
  • Employee relations policies and procedures address how the organization handles employee grievances, conflicts, and disciplinary actions. They define the process for reporting complaints, conducting investigations, and resolving disputes. These policies promote a positive work environment and ensure fair treatment of employees.
  1. Training and Development:
  • HR policies and procedures outline the organization’s commitment to employee training and development. They cover training needs assessment, training programs, employee development plans, and opportunities for learning and growth. These policies support skill enhancement and career progression for employees.
  1. Health and Safety:
  • Health and safety policies and procedures establish guidelines for maintaining a safe and healthy work environment. They cover safety protocols, emergency procedures, accident reporting, and compliance with occupational health and safety regulations. These policies prioritize employee well-being and minimize workplace hazards.
  1. Equal Employment Opportunity:
  • HR policies and procedures promote equal employment opportunities and prohibit discrimination based on factors such as race, gender, age, religion, or disability. They ensure fairness, diversity, and inclusion in all aspects of employment, including recruitment, promotion, and termination.
  1. Confidentiality and Data Protection:
  • Confidentiality and data protection policies and procedures safeguard sensitive employee information. They outline the measures for handling and storing employee data, protecting privacy rights, and ensuring compliance with data protection laws.

HR Programming

  1. Talent Acquisition:
  • An HR program includes strategies for attracting and selecting top talent. This involves creating job descriptions, advertising vacancies, conducting interviews, and implementing effective recruitment processes. The program should also focus on employer branding to attract candidates who align with the organization’s values and culture.
  1. Employee On boarding and Orientation:
  • A well-designed HR program includes a structured onboarding process to help new employees assimilate into the organization. This includes providing them with the necessary information, resources, and support to understand their roles, responsibilities, and the organization’s policies and procedures. Orientation programs facilitate a smooth transition and help new hires feel welcomed and valued.
  1. Performance Management and Development:
  • HR programs incorporate performance management systems to evaluate and enhance employee performance. This involves setting clear goals, providing regular feedback, and conducting performance appraisals. The program should also include opportunities for employee development, such as training, coaching, and mentoring, to foster continuous growth and skill enhancement.
  1. Compensation and Benefits:
  • An Human Resource program establishes fair and competitive compensation and benefits structures. It includes policies for salary administration, bonuses, incentives, and recognition programs. The program should align with industry standards and consider factors such as job responsibilities, market trends, and employee performance to ensure equitable compensation.
  1. Employee Engagement and Retention:
  • HR programs focus on creating a positive work environment that promotes employee engagement and satisfaction. This includes initiatives such as employee recognition programs, team-building activities, and opportunities for career advancement. The program should also address work-life balance, employee wellness, and the overall employee experience to enhance retention rates.
  1. Training and Development:
  • An effective Human Resource program emphasizes employee training and development to enhance skills and competencies. It includes identifying training needs, designing relevant programs, and providing ongoing learning opportunities. The program should support both professional and personal growth, aligning with the organization’s goals and individual employee aspirations.
  1. Diversity and Inclusion:
  • Human Resource programs promote diversity and inclusion within the organization. This involves implementing policies and practices that ensure equal opportunities for all employees, regardless of their backgrounds. The program should foster a culture of inclusivity, respect, and appreciation for diverse perspectives to create a more innovative and collaborative work environment

Developing HR policies and strategies

  1. Assess Organizational Needs:
  • To begin, it’s important to assess the specific needs and goals of your organization. This involves understanding the current state of your workforce, identifying any gaps or areas for improvement, and aligning HR policies and strategies with the overall organizational objectives. Conducting a thorough analysis will help you determine the focus areas and priorities for your HR initiatives.
  1. Conduct Research:
  • Next, conduct research to gather information on best practices, industry standards, and legal requirements related to human resource policies and strategies. Stay updated on employment laws, regulations, and any changes that may impact your organization. This research will provide a foundation for developing policies that are compliant, effective, and aligned with industry trends.
  1. Define Policy Objectives:
  • Clearly define the objectives of your human resource policies and strategies. What goals do you want to achieve? Are you aiming to enhance employee engagement, improve performance management, or foster a diverse and inclusive workplace? Defining these objectives will guide the development process and ensure that your policies are purposeful and aligned with your organization’s values.
  1. Involve Stakeholders:
  • Engage key stakeholders throughout the policy development process. This includes human resource professionals, senior leadership, and representatives from different departments or teams. By involving stakeholders, you can gather diverse perspectives, ensure buy-in, and address any potential concerns or challenges. Collaborative input will result in policies that are comprehensive and well-supported.
  1. Draft Policies:
  • Based on your research and objectives, draft human resource policies that address the identified needs of your organization. Start with broad policies that cover areas such as recruitment, performance management, compensation, benefits, employee relations, and professional development. Ensure that your policies are clear, concise, and easy to understand. Use simple language that is accessible to all employees.
  1. Consider Legal and Ethical Considerations:
  • When developing human resource  policies, it’s crucial to consider legal and ethical considerations. Ensure that your policies comply with local, state, and national labor laws and regulations. This includes areas such as equal employment opportunity, anti-discrimination, harassment prevention, and privacy protection. Additionally, incorporate ethical principles that promote fairness, respect, and integrity.
  1. Seek Feedback and Refine:
  • Once you have drafted your human resource policies, seek feedback from relevant stakeholders, such as employees, managers, and legal advisors. This feedback will help you identify any gaps, clarify ambiguous language.

Role and Distinguishing Activities

  1. Leadership Roles:
  • Leadership roles involve guiding and directing the organization towards its goals. Leaders set the vision, establish strategic objectives, and make critical decisions. They provide guidance and inspire employees to achieve their best. Distinguishing activities include creating a vision, setting goals, making strategic decisions, and providing direction and inspiration to the team.
  1. Human Resources Roles:
  • Human Resources (HR) roles focus on managing the organization’s most valuable asset: its people. human resource professionals handle recruitment, employee relations, performance management, training and development, and compensation and benefits. Distinguishing activities include attracting and selecting top talent, fostering a positive work environment, promoting employee engagement, and ensuring compliance with labor laws.
  1. Operations Roles:
  • Operations roles are responsible for managing the day-to-day activities of the organization. They oversee production, logistics, supply chain management, and quality control. Distinguishing activities include optimizing processes, managing resources efficiently, ensuring smooth operations, and continuously improving productivity and efficiency.
  1. Sales and Marketing Roles:
  • Sales and marketing roles are focused on promoting and selling the organization’s products or services. Sales professionals build relationships with customers, identify opportunities, and close deals. Marketing professionals develop strategies to reach and engage target audiences. Distinguishing activities include market research, developing marketing campaigns, building customer relationships, and achieving sales targets.
  1. Finance Roles:
  • Finance roles involve managing the organization’s financial resources and ensuring its financial stability. Finance professionals handle budgeting, financial planning, accounting, and financial reporting. They analyze financial data to make informed decisions. Distinguishing activities include budgeting and forecasting, financial analysis, risk management, and ensuring compliance with financial regulations.
  1. Research and Development Roles:
  • Research and Development (R&D) roles focus on innovation and improvement. R&D professionals conduct research, develop new products or services, and improve existing ones. They explore emerging technologies and trends to stay ahead in the market. Distinguishing activities include conducting research, prototyping, testing, and developing new ideas and technologies.
  1. Customer Service Roles:
  • Customer service roles are responsible for ensuring customer satisfaction and resolving issues. Customer service representatives interact with customers, address their inquiries, and provide support. They play a crucial role in maintaining positive customer relationships. Distinguishing activities include handling customer inquiries, resolving complaints, providing personalized assistance, and maintaining customer loyalty.

Difference between global HRM Vs Domestic HRM

  1. Scope:
  • Domestic HRM focuses on managing human resources within a single country. It deals with the specific laws, regulations, and cultural norms of that country. On the other hand, global HRM operates on an international scale, managing human resources across different countries and dealing with the complexities of multiple legal systems, cultural differences, and global business practices.
  1. Cultural Diversity:
  • Global HRM places a significant emphasis on managing cultural diversity. It recognizes and values the diversity of employees from different countries, backgrounds, and cultures. It focuses on creating an inclusive work environment that respects and leverages these differences to drive innovation and collaboration. Domestic HRM, while also recognizing diversity, may have a narrower focus due to dealing with a single national culture.
  1. Legal and Regulatory Compliance
  • Domestic HRM primarily focuses on complying with the laws and regulations of a single country. It ensures that HR practices, policies, and procedures align with local labor laws, employment rights, and regulations. Global HRM, on the other hand, must navigate and comply with a broader range of legal frameworks across multiple countries. This includes understanding and adhering to labor laws, immigration policies, tax regulations, and employment practices in each country of operation.
  1. Talent Acquisition and Management:
  • In domestic HRM, talent acquisition and management are primarily focused on the local labor market. Recruitment strategies, selection processes, and talent development programs are tailored to the specific needs and characteristics of the domestic workforce. In contrast, global HRM requires a broader approach to talent acquisition and management. It involves sourcing and attracting talent from different countries, considering international mobility, managing expatriate assignments, and developing global leadership pipelines.
  1. Compensation and Benefits:
  • Domestic HRM designs compensation and benefits packages based on local market practices and benchmarks. It takes into account factors such as cost of living, local wage rates, and industry standards. In global HRM, compensation and benefits become more complex due to variations in currency exchange rates, tax systems, and cost of living across different countries. Global HRM must design compensation structures that are competitive, equitable, and compliant with local regulations while considering global consistency.

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