Wednesday, September 16, 2009

Tutorial – 2 (Unit -2)


1- (a) Ethics is important in companies today. Discuss the factors that have encouraged businesses to be more ethical and give examples of ethical managerial behavior?

(b) ‘Whistle blowing policies are necessary requirement in ethical business today.’ Discuss this statement.

(a) Ethics is important in companies today and there are factors that have encourage the companies to behave ethically. They are;

- Legislations: Due to various legislations exists, the companies are force to behave in an ethical manner, such as employment act, consumer protection act. These legislations prohibit the exploitation of its employees and consumers. In other words the companies are expected to behave ethically in order to make them satisfy.

- Financial Loss: In today’s competitive business environment, the companies must reduce or minimize their costs in order to avoid a financial loss. For an example, wages, fuel and also it is equally essential for the companies to reduce the social costs such as environmental pollution.

- Pressure Groups: Pressure groups, such as NGO’s, CBO’s and various other community based organizations are likely to put pressure on the companies if the companies are not behaving ethically towards the community or the general public as whole. For an instance, Green Piece led a campaign against Shell for trying to dispose an oil platform by sinking into the North Atlantic Ocean.

- Consumers may boycott: Consumers are likely to boycott the organizations products if they are not behaving ethically or if the organizations are irresponsible towards consumers. For an instance, Nike products were boycotted in the western countries for using child labor in third world countries like Cambodia and Pakistan to produce their products.

- Demand for certain practice to follow by some of the entities, encourage the organizations to be careful on production process of their products. For an instance, the Body Shop produce environmental friendly products recycle the containers and they do not test on animals. Another example is Corporate banks do not lend loans to those who violate the human rights. In return this will give them a competitive advantage over their competitors.

Employees and managers are expected to behave ethically. Ethical considerations focus on individual managers behaving an honorable way. These are many management activities that a manager to behave in either in ethical or unethical manner. For an instance, if the performance of a subordinate is unsatisfactory and the ethical behavior of the manager would be to tell the subordinate and help him to improve. The unethical approach would be to let the situation deteriorate and finally laying of the employee. Another example is if a staff does something really good and innovative, the ethical approach is to encourage the staff and reward him. The unethical approach would be to taking credit from the effort made him.

(b) ‘Whistle blowing policies are necessary requirement in ethical business today.’ Discuss this statement.

Whistle blowing is an employee or a former employee reports illegal or perceived to be illegal activities going on his/her organization to the general public or to the government. In some cases, an internal wrong doing or perceived to be wrong reports to the employer by an employee. For an instance, fraud, health and safety violation, corruptions etc.

One famous whistle blower is Jeffery Wigand, who exposed the big tobacco scandal, revealing that executives of the companies knew that cigarette were addictive and approved the addition of carcinogenic ingredients to the cigarette.

Whistle blowers are likely to face punishments, such as termination, suspension, demotion, variation of wage and harsh harassment from the employees. For this reason legal protection for whistle blowing is essential and it may defer from country to country. In the United Kingdom, the Public Interest Disclosure Act 1998 protects whistle blower from victimization.

However, there are cases for and against the whistle blowing. Those who agree or support case for the whistle blowing argue that, the employees has moral duty not just his/her work and immediate boss, but also to the company and public at large. It is also said that, if a person sees a wrong, there may be other things happening which are unacceptable and it might be the tip of the ice-berg. If the unacceptable behavior is allowed, others will think that they also can get away with same thing. Many whistle blowers act in belief that the wrong doer’s colleague will be pleased to hear the information and will act on it. While some consider that conscience is far more essential than the job security and they will blow the whistle irrespective of personnel consequences. Sometimes whistle blowing is statuary responsibility and a good example is policy on health and safety at work.

Those who disagree or the case against believes that, employees should concentrate on doing their jobs and that the actions of others are nothing to do with them because the situation may be misinterpreted and what may be seen as a breach of contract may turn out to be perfectly legitimate. Some are reluctant to blow the whistle due to a ‘snitching’ mentality and it is considered bad to talk tales on others. They also argue that the actions of others are none of the concern of the employee. If there is something wrong, let others find it out for themselves.

2- Corporate Social Responsibility (CSR) is increasingly important and the stakeholder approach is popular.

(a) Explain what is meant by stakeholder approach to CSR?

Corporate Social Responsibility (CSR) is about how organizations carry out their business activities in an ethical way by ensuring that their actions do not harm the economy, society and environment. It is also essential not to violate human rights. The organizations are expected to be socially responsible or behave like a good citizen.

There are different views regarding whether the organizations should become socially responsible. One of the views is that stakeholder view, meaning that the organization have obligations to satisfy the need of all the stakeholders in its business processes. Stakeholders are individual or a group of people who are around affects due to the organizational activities. For an example, owners/shareholders, employees, customers, suppliers, competitors, Government and local community. Each of these groups has different objectives and the organization must make an attempt to satisfy each of these groups.

Organizations are expected to treat all its stakeholders ethically, such that customers should be given good value and safe products. Similarly, the employees will always demand for equal treatment and fairness and suppliers will also demand them to be paid on time in order to stay them with the business. It is obvious that the owners/shareholders will expect a good return on their investment. It is equally essential that the community should not be harmed.

However, Alternative view is one of the views on Corporate Social Responsibility and theorists such as Milton Friedman (1970) view that a business responsibility is to its shareholders. Under this view, activities that increase shareholders dividend should be encourage far more than anything else.

The subject of Corporate Social Responsibility (CSR) is much to criticism and it is divided into groups. People who support the case for CSR believe that an organization can benefit in multiple ways by operating the business short-term preference than a longer and broader perspective.

- Stakeholder theory: Businesses have a moral duties not only just obeying the law and serving the interest of its owners but rather they believe that the business have its moral responsibilities to its stakeholders.

- Enlighten self-interest: Customers, supplier, employees can be encouraged to be loyal to the organization by behaving ethically towards them. It also can help to retain them and ultimately it benefits the company.

- Government and charities do not have sufficient resources to meet all community needs. Therefore, if the firms do not help in these efforts, there is every possibility that these needs may not be fulfilled or delivered.

Friedman (1970) argued that the organization’s main purpose should be to maximize its profit and returns to its shareholders. If not it could be seen as unethical to consider the interests and rights of anyone else.

- Some firmly believe that the organization should obey the laws of the countries within which they operate and at the same time they do not believe that organization have no other obligation to society.

- Some argue that the tax paid by the businesses is used for the social purpose and thereby the businesses do not have any further role to play in it. And also the so called good work is taking care of government, NGO’s and charities. While others argue that CSR is just a cover in order to create a better company image.

Some examples of CSR program conducted by business are;

- Donations to charities

- Setting up educational facilities for children

- Promote healthy life styles along with its activities. (Example Dhiraagu broad band road race)

(b) If a company discovers a one – in – million possibility that a product might cause harm to a small proportion of its users, is it more ethical to withdraw the product and downsize the business with a loss of 200 jobs, including yours – or to set out replace the product within a year and keep employees in work?

Explain your answer.

Organizations, managers and employees face situation where difficult to come up with a decision. In such circumstances, most organizations make decision upon one of four basic beliefs. They are Denotology, which the organization has responsibility to act in ways that respect very fundamental rights of human being, Utilitarianism, businesses should serve the greater good of greater number. Teleology, which, the end justifies the means; irrespective of the damage that is caused to people on the way to utopia. Egoism, the moral behavior should be considered in terms of personnel self interest.

In this case even if there a minutest chance of harming a customer, I would advise the board of directors to withdraw the product and downsize the business laying off 200 employees including mine. Because, I firmly believe that the organizations should behave in an ethical manner towards its stakeholders. Suppose, if the company decides on opposite way and if I were that unlucky person who happened to suffer due to the unethical behavior of the company, what would be my feelings and reactions. Definitely, I would challenge legally and demand for compensations for the damages that have caused to me. Similarly, if it happens to someone else the reactions would be most probably same.

In such cases, the company has to spend a lot of money on legal issues, compensation if guilty proven and finally have to withdraw the product from the market. These will in return the company have to lay-off those 200 employees and redundancy payments should be made. Further, the company has to rebrand its product of have to hire a good public relations firm (PR firm) to reclaim their image.

Suppose if the company simply decided to withdraw the product and do all necessary things like paying redundancies to those employees that have laid-off. Then, the company is not likely to face such complications. In this case only the company has to think about is survival and they can convince the employees that there is no way other than laying-off them. By that time they could come up with a good PR policy and re-launch the product.

3- Your company has a strict code of ethics which follows the Institute of Business Ethics’ three principal guidelines:

(1) Transparency – DO I mind others knowing what I have decided?

(2) Effect – What is the impact of my decision on others?

(3) Fairness – Would those affected consider my decision to be fair?

You – as HR manager – here that your best friend, the Sales Manager, has agreed with a competitor to fix prices and stabilize market share so as to avoid otherwise inevitable redundancies.

(a) Bearing in mind these guidelines, outline what you would say to:

(i) Your best friend, the Sales Manager

As far as the company’s code of ethics is concerned, it is unethical to involve with other competitor to fix price and stabilize the market and it cannot be accepted. It is obvious that it is not his duty to bother, especially redundancy issues are something that the HR manager has to deal with. Further, it is very unhealthy to get involve fixing price with a competitor. Because the business expect fair completion from their rival competitors and it is unethical towards the stakeholders, such as consumers are left without a reasonable and competitive price. Ethical managerial behavior benefits the companies in many ways and he must face the consequences.

Therefore, I have no choice but to inform my superiors about the issue and the verdict would be theirs.

(ii) Your boss, the HR director

As HR manager, it is my duty and responsibility to deal with the company’s HR related issues. In this case, my best friend, the Sales Manager has committed a business sin by violating the company’s code of ethics. So I have no choice but to inform my boss about the wrongdoing and would recommend him not to compromise at all. Because he does that other staffs will feel that they also can get away with the similar attitudes and at the end there will be mercy for them. Also it can harm the business in many ways.

(iii) The employees you will dismiss if the matter is dealt with according to the company’s ethical code

Usually, laying-off employees are big and difficult decision to consider by HR professionals. But when a situation arises where you fear you cannot satisfy them by giving their salaries and allowances, and then there is no way other than laying-off them by giving them redundancy payments required by the legislation. Likewise, I as a HR manager, I will explain them the situation and will inform them by following all necessary procedures that there is no way but I have to take the difficult decision in order to survive the business.

4- Your Chief Executive is very interested in diversity and how it can promote organizational effectiveness. She wants the following information:

(a) Outline the main differences between equality at work and diversity.

Equal Employment Opportunity (EEO) is a concept that all individuals should be given equal treatment in all employment related activities, regardless of once faith, race, gender, and disability etc. In any society you will find certain groups of people are discriminated just for whom and which groups they are belongs to. These discriminatory actions are due to who they have to deal rather than a problem of a victim of the discrimination. In UK there is a legislation which prohibits the discrimination.

Diversity means feature of a mixed workforce that provides a wide range of abilities, experience, knowledge, and strengths due to its heterogeneity in age, background, ethnicity, physical abilities, political and religious beliefs, sex and other attributes. Often diversity can be a competent advantage for the organizations that provides equal opportunity and in facts this has led to more diversity movements.

(b) Describe the forms that diversity can take.

Diversity is differences among the people such as age, sex, race, different abilities, culture and work style etc. Often these differences are an advantage to the organization.

Most organizations today are trying to have some form of statement to integrate Equal Employment Opportunity and diversity. This is simply to make sure that equal and fair treatment is given to all the employees. Such policy includes, intention of not to discriminate anyone and effectively dealing with grievances arising from unfair treatment. In most organizations, these policies are given or make accessible to all employees.

Diversity management effort or program may include;

1- Diversity training: This is for managers and employees and the training may include awareness programs like legal implications of discriminations and cultural awareness to them understand difference in people and accept those differences.

2- Effort to break the glass: In an effort to find the best potential of the employees, the organizations may provide career rotation opportunities into sales, operations and marketing etc, and provide flexible-time and Tele-working.

3- Attract and retain the talents of older workers, organization may rehire retirees as part of time workers, independent consultants.

4- Make reasonable accommodation to hire disabled people: Organization may make reasonable accommodation in several areas. One is that they may eliminate architectural barriers that prohibit disabled people access to work areas or rest rooms. Another one is they may modify jobs, working area layout, work schedule or special equipment.

5- Managing religious diversity: Organization may have clear non-discriminatory policies on appearance of the person, while others have holiday swapping. For an example; Christian employees work during ramazan and muslim employees during Christian.

(c) Explain the benefits that promotion of diversity can bring to an organization.

Diversity management is full utilization of people with different backgrounds and experiences. Effective diversity management strategy has a positive effect on cost reduction, creativity, problem solving, and organizational flexibility.

The principles of diversity management is to establish a business strategy effectively managing a diverse workforce in order to create a positive working environment, promoting personnel and professional development, empowering all people to reach their full potential and removing the barriers that hinder their progress.

Potential benefits of an effective diversity management program can improve the organizational performance and it helps to prevent unlawful discrimination or harassments. This will in return improve the working relationship among the employees and helps to build a more effective work teams. It also helps to improve organizational problem solving capabilities and create an environment where the employees can learn how to tolerate difference among them.

Most organizations gives their utmost importance on customer care or customer relations, and they always make sure that the best possible employees are put in place. Likewise, an effective diversity management strategy helps to improve customer services.

Effective diversity management strategy helps to enhance the recruitment efforts. It gives you wider pool of talent for recruitment. For an example, in UK it is difficult to find technical savvy employees and Asians and Indians immigrants can be hired as they have the technical know-how. Most importantly effective diversity management gives a good image and helps to retain its employees and attract potential employees towards the organizations.

Tutorial – 1 (Unit -1) - HRM

1- “Employment contracts are likely to effective working relationships. The so called psychological contract is meaningless.”

a- How far do you agree with the statement above? Give reasons and examples?

Employment contract is a written agreement between the employer and employee, which gives legal protection to both parties. Employment contract includes, the terms and conditions of the post with respect to organizational objectives.

Psychological contract is a set of unwritten expectations of both employer and employee, which continuously changing. The expectations can be about work, pay, loyalty, commitment, trust, flexibility, security and career development etc. These unwritten expectations are usually not formal and there it is not legally binding. They may be incidental due to past setbacks, action of either parties or a statement made by employer during a performance review or during recruitment process.

Traditional psychological contract is referred as loyalty and commitment in return of long term job security or job for life. However, in today’s competitive business environment traditional psychological contract is almost impossible as firms are trying to give least possible wages to the employees and demand for flexibility is evident in order to keep least number of employees. This does not mean that traditional psychological contract is not exist. But it is very rare and hardly seen in today’s competitive business environment.

It is obvious that if the psychological contracts are not rewarded, it creates conflicts, dissatisfaction, looses trust and feels his/her are not secured. This will affect the morale, motivation and performance. This is particularly case where the managers themselves are responsible for breaches, for an instance, the employee does not receive the promised training, wage increase or a performance review are badly handled.

The Psychological contract plays a vital role in shaping the attitude towards the organization and therefore it is more influential than the written contract between both parties. It tells employees what to expect and what they should do in order to meet their expectations. In order to make the best use of employees, the organizations must pay special attention to reinstate the employment trust and meet the commitments and continues monitoring of employees attitudes.

It is equally essential to manage the psychological contract by clarifying the employees’ expectations and at the same time communicating employer’s expectation from them. For this the organization can do the following.

- Offer realistic job preview for new recruits.

- Telling organizational vales and what they are expected to do.

- Getting agreement from the employees in order to make them more committed

- Continuous feedback on how well they are doing.

The psychological contract is not strictly legally enforceable but the courts may be considered certain elements when making a verdict.

b- To what extent are employees and employers equally protected by the employment contract? Give your reasons for your answers?

Employment contract is a legally enforceable agreement between employer and employee. Employment contract covers variety of procedures and policies that the employee must agree to as conditions of his or her employment. Employment contracts are required, because the employer seeking to protect its own interest.

Employment contract may require that the employee not work for a competitor or work in similar industry during a given period of time after they leave or terminated by the organization. The employment contracts aims at discouraging employers from dismissing or varying the terms the terms of the employment contract of their employees in order to evade their liabilities under the regulation.

An employee may claim compensation against an employer under the following situation.

Unreasonable Dismissal

If the employee has been employed continues contract for a period of not less than 24 months, and the employee is dismissed other than a valid reason as specified in the law may claim for reinstatement or an award for terminal payments.

Unreasonable Variation of the terms and conditions

The employee has been employed a continues contract and the employment contract is varied without the consent and if the employment contract does not contain such express terms which allows variation and the terms and condition of the employment contract are varied other than for a valid reason as specified in the law may claim reinstatement and the terminal payments.

At the same time, the employee can be dismissed or varied the terms and condition of the employment contract in the following situations;

- The conduct of the employee

- The capability or qualifications of the employee for performing his work.

- Redundancy or other operational requirements of the business.

- Statuary requirements, (i.e. it would be contrary to the law to allow an employee to continue to work in his original position or to continue with the original terms in his employment contract)

- Other considerable reason.

However, under any given circumstances, the employee is not equally protected by employment contracts due to special clause that gives authority to ask employee to carry out extra activities which are not clearly specified in the employment contract.

2- Dave Ulrich’s model for human resource management is based on the argument that the human Resources professional needs to fulfill four roles: strategic partner, change agent, administrative Expert and employee champion.

Briefly indicate what each of these roles is about,

And why each should be considered so important within the human resources function.

Dave Ulrich Strategic Business partner model recommend that HR professionals need to fulfill four roles in order to become a business partner. They are;

Strategic Partner

Strategic partner refers to HR manager being an essential part of the management team running an organization and contributing to the achievement of the organizational or corporate objectives by translating business strategy into actions. According to Ulrich model, the HR professionals must be able to make best use of employees to achieve organizational goals and HR professional has to help other line managers when they are taking decisions on HR related issues. In short, HR professionals are required to assist in execution of the organization’s business strategy.

However the critics argued that the HR practitioners must play a more central role in formulating the business strategy rather than just assisting execution of the business strategy.

Administrative Expert

This refers to the efficiency of HR managers and the effective management of HR activities, such as selection of new recruits etc, so that they create value. According to Ulrich, HR professionals must be able carry out HR activities effectively and efficiently using technology. For an instance, training and development program with newly available technologies.

If HR professional become administrative experts, it is more likely that they would be carrying out more administrative tasks.

Change Agent

Ulrich recommends that the HR professionals have to act as a catalyst for change. This means that the HR managers must be able to manage the change smoothly within the organization. HR professionals must possess certain skills of effective communication, able to influence on others, solving disputes among the employees and manage the resistance carefully and successfully.

Ulrich says that HR professionals should act as an agent of continues transformation. But the reality is that the HR professional does not actually execute change or play any major role in the strategic decision making but rather they just “oil the wheels of change”, meaning that they just manage the change along with any resistance arises.

Employee Champion

Requires the HR manager to raise the employee’s voice in the management decisions and have to protect employee’s interests and must make sure that being fair and assuring the employee’s voices are being heard.

But when the HR professionals are involving and assisting while taking management decisions, it seems that the same person is going two different ways, especially HR professional are to become Employee champion.

And why each should be considered so important within the human resources function.

All the four HR functions proposed by Dave Ulrich are essential for the success of the whole HRM function. Many HRM managers forget to balance the approach and they decide to a real stat in one of the needed components and they forget about the danger not meeting the basic requests and expectations in the rest.

In the Ulrich model, HR professional should a strategic partner, Administrative expert, change agent and an employee champion. Meaning that as strategic partner, HR manager does have a role while undertaking organizational decision and policies. As an administrative expert, the HR professionals are expected to carry out the administrative activities more effective and efficiently through the available technological advancement. The change within the organization and change that involves further expansion of the business, the HR managers should be able to handle it smoothly and they should possesses good communication skills, problem solving and influential skills in order to manage the resistance. In Ulrich’s model, he proposes that the HR professional should be an employee champion by promoting employee interests and bringing employees voices in management decisions. Being fair and assuring that employees and their concerns are being raised.

Therefore, it is obvious that all four functions are essential within the HRM function as it helps to carry out the HRM activities more effectively and efficiently.

3- As HR Assistant you are to make a presentation to a meeting of line managers, to clarify the respective roles of HR and of line managers in managing people.

a- Outline three key purposes of HRM and indicate the respective responsibilities of HR professionals and of line managers in ensuring that these key purposes are properly fulfilled.

Overall objectives of the HRM are to ensure that the organization is able to achieve the organizational objective through its employees. In order to achieve the organizational objectives, the HR professionals must support all the other Line Managers within the organization. Or the HRM functions should be integrated horizontally and vertically. The specific objectives of the HRM are as follows;

- Staffing the organization

- Improving the organizational performance

- Organizational change management

- Employment Administration

1- Staffing the organization

This is to make sure that the organization has the sufficient number of employees of right quality in the right place at right time. As the HRM functions are vertically integrated, the line managers have to play an essential role in recruitment process by assisting in preparing the necessary documents etc.

2- Improving the organizational performance

For improving the organizational performance, the HRM must be integrated horizontally and vertically. Therefore, it is the line managers to engage and support the workforce to make the best use of their best contributions. HR professional should consult with other line managers in making them more confident about the HRM activities involve in the tasks they carry out day to day.

3- Employment administration

It is HR professional’s responsibility to keep the organization within the law on employment related activities. However, the line manages does have a role in assisting the HRM to carry out the HR activities successfully and effectively. Usually, the HR professional gives importance on getting staff paid and developing HR related policies and carrying out the administrative practices.

HR professionals are person who carry out administrative activities associated with human resources planning, recruitment, selection, orientation, training, appraisal, motivation, remuneration, etc. HRM aims at developing people through work.

HR professionals get involvement from the line managers in designing the HR policies and put into practice. They help the line managers by giving advice and assisting their people management activities and measure and monitor their performance as well. HR professionals also conduct the training for line managers to try to equip them to deliver their people management roles.

Line managers are person who heads departments (manufacturing and selling) and is responsible for achieving an the organization's main objectives by executing functions such as policy making, target setting, decision making. They have to report back to higher level of the management. Their main responsibilities include managing operational costs, providing technical expertise or technical know-how and task allocation and monitoring process etc.

Apart from this, the line managers have to carry out some people management tasks, which they have to manage the employees in their own departments. People management activities are usually shared between the line managers. For an instance, during the process of designing performance appraisal, HR managers seek advice from Board of Directors. And planning appraisal, the line managers seek advice from HR managers.

4- You are asked to write an article for HR professionals entitled, “HR Goes Global”.

a- Explain what globalization is.

b- Outline how and why globalization is increasingly important to the practice of HRM.

c- Show how the practice of HRM is adapting to the changes brought about by globalization.

a- Worldwide movement toward economic, financial, trade, and communications integration. Globalization implies opening out beyond local and nationalistic perspectives to a broader outlook of an interconnected and inter-dependent world with free transfer of capital, goods, and services across national frontiers.

b- Traditionally organizations are secured within the domestic business environment. Due to effects of globalization, the organizations not only faced domestic but also international competition from similar type of business. In order to compete, the organizations are under pressure to reduce the cost and make the employee more productive and carry out its business activities cost effectively.

In today’s global economy, the work will go where the staffs are competent and skilled, for an instance, the call centers moved to India where the costs are lowest. And also, many UK and US firms are moving to Asia where the labor cost is relatively low.

In a globalized market, the HR professionals are tend to manage people with different cultures, language etc. it means that when there is more globalization, there is more diversity and when there is more diversity, the organization can recruit people with different skills and experiences. However, in the globalised market, the role of HR professionals became more difficult.

In the globalize market it is very likely to relocate the businesses one place to another and merger with similar business in order to compete in the market. Each of these, the HR professionals plays a vital role in adapting and formulating new HR policies and execution of the management decisions time to time. Apart from this, the organization may purchase a similar business in order to strengthen the market share and compete with other similar organization.

c- In globalization, the organizations are likely to recruit the potential employees from global labor market. For an instance, most UK and US, IT related firms hire skilled labor from India. Because both UK and US there are no sufficient number of IT skilled labors. So there it becomes recruitment global.

Globalization increases the international travel and relocations due to various reasons. Usually organizations decide to move or relocate for cheap labor and cost effective functioning of their business. For an instance, one of the world famous aircraft manufacturing companies like Air Bus have moved to Asia. They built a manufacturing plant in china and first aircraft of china branch Airbus A380 was brought into market last and were sold to Singapore Airlines. This is for cheaper skilled labor cost. Because china is one of the most populous countries in the world and they are truly potential market.

When there is globalization, the roles of HR professional are immense. They have to carry out a lot of cultural training programs in order to make the employees learn and accept different cultures. HR professionals must make sure that their employees are not discriminated or racially abused or harassed.

When there is a globalization, the diversity is natural and HR professional should conduct awareness programs for its employees in order to avoid any possible conflicts or bullying within the organization. It is also an advantage for the organization as different people have different skills and experiences.

Language barrier is one of the common difficulties with globalization. HR professionals have to carry out language training programs for its employees. Because, people from country to country, it differs their way of speaking and language.

HR professionals are required to grip with a flexible HR policy and practice in order to motivate different people from different cultures and to reward them. It is important to note that the employment legislation is different from country to country. Therefore, HR professional must adapt with flexibility.

When an organization go for the global market, it is clear that the organizational structures must change. Because, there should be away to communicate with their global branches within the organizational structure. This means that everything becomes global when the organization enters into the global market.

In globalization, communication is far more important than anything. For this HR professionals should find new ways to interact with global market and encourage their employees to involve at global level.