SUSTAINABILITY (JASPREET)
Introduction
Due to the dynamic and competitive market economy, business management now not only focuses on the economic and financial profits aspects but also on the ecological and social interests. The approach is termed as sustainability and is guided by the environmental corporate responsibility principles. Organizations have become more aware of the importance of sustainable development, especially the HRM aspect of sustainability.
Sustainability Trend
Sustainability is a business approach which entails creation of an organization’s long-term value by considering how it operates in the economic, social, and ecological environment. Sustainability is built on the idea that by having such an approach the organization stands a better chance of longevity (Lloret, 2016). By acting on sustainability, the aspect of transparency becomes more prevalent as the organization becomes more willing to report their economic, social and ecological sustainability performance (Ehnert et al., 2015).
Sustainability and HRM Process
Sustainable Human Resource refers to the maintainable and retainable human resources that are happy and willing to work for an organization. A sustainable HRM ensures that the organization is able to continuously attract, recruit, retain, and maintain a motivated workforce which translates to better performance and long-term success. According to Indiparambil (2019), sustainable HRM involves decision making processes which are accountable, equitable, and transparent. It promotes proactive planning to establish mutually beneficial and regenerative relationships between members of staff rather than focusing on short-term cost-driven HRM practices (Macke & Genari, 2019). Sustainable HRM (SHRM) is about nurturing employees and treating them as a core long-term asset through career development, open communication, employee engagement, and performance evaluation all intended to build employee performance and facilitate performance. SHRM promotes trust between managers and employees as well as working towards achieving positive social outcomes by implementing sustainable work systems which facilitate workers’ work-life balance without affecting performance negatively (Indiparambil, 2019).
Sustainability at Adidas
Adidas is a Germany-based sporting equipment manufacturer with operations around the globe. The company’s SHRM approach entails striking a balance between shareholder’s expectation and respecting its employees’ needs and rights. Adidas focuses on providing the best lifestyle to its workers by offering time off models through creative scheduling. It offers employees flexible time off as well as offering a lifetime working time account to bank time for use as early retirement, sabbaticals or paid vacations. The organization has a unique Parent Pool offer which allows parents to work on a part-time basis without losing their employment status (Adidas, 2021). According to Hronová and Špaček (2021), SHRM is about showing responsible behaviour towards employees by identifying them as key assets and having practices which value and motivate them, something which Adidas has achieved through ensuring its employees enjoy work-life balance.
Sustainable HRM at Adidas has seen the company go from strength to strength with its success based on the mindset of innovation achieved through employee engagement and motivation. It is clear that sustainable HRM aligns with Adidas’ strategic goal of top- and bottom-line growth by increasing its brand desirability which calls for all stakeholders to show desire to shape a better future together. The organisation has committed itself to nurture its employees as a longer term investment to be able to achieve better functional flexibility for innovation and better performance (Adidas, 2021).
Conclusión
Sustainability is the creation of an organization’s long-term value by putting into consideration its operations in the economic, social, and ecological environment. The trend has extended to the HRM where focus is on establishing a maintainable and retainable human resource that is happy and willing to work for an organization. A good example application of sustainable HRM is Adidas Company which has ensured trust, respect, and motivation of its employees through employee engagement, flexible working schedules, and work-life balance.
According to you which HRM tend is most important?
I believe that globalization is a crucial trend in HRM. The role of HR is primarily to drive a familiar and cooperative environment for workers. In any business processes or activities present, globalization defines how businesses or other organizations develop the international influences or starts the fear of the increase in globalization of the world’s economy. To ensure the company adopts the globalization process, this process has been divided into three major types: economic, political, and cultural globalization. In globalization, the more countries and regions of the world get inter owned politically, culturally, and even in economics, the more globalized the world gets to be. Also, in businesses, globalization is viewed as an economic context used in describing the integrated economy, which is marked by free trade, the free flows of the capital between the countries, and simple access to the abroad resources available such as the labor markets to increase the returns and the results for a common goal. However, this paper entails more on the roles and the importance of globalization in human resource management.
First and foremost, due to globalization being driven out by the emergence of culture and economic systems, the convergence enhances and, in some cases, the requirements by way of improving the interactions, integrations, and interdependence among the nations. Human resource management defines a process involving all the management decisions and actions that affect the relationships between the organizations and the employees employed in their organizations. This management in many businesses is usually designed to maximize the employee’s performance in the employer’s strategic goals.
In human resource management (HRM), globalization influences the organizations that compete for the customers, which results in matters of performance, quality, and the costs which the organization determines. Rather than those, globalization also has a role of accelerating pressure on human resource management in functioning to adopt changes in the organizational needs and the customers base, international employees transfer rates, and the issue of competition and a rise in the available opportunities. This highly needs the management to involve itself in considering the needs of the employees in other countries and offering compensations for the relocations. Also, globalization allows for a greater exchange of goods, technologies, data, and people across borders in economics and technology. The time a business enlarges the operations to different nations, the importance of globalization on human resources development and management becomes more of importance. Many organizations ought to consider a diverse gap of practical changes to hire, train and support the workforce, which is often spread via the different nations, which mostly hold varying specifications.
Through globalization, the human resource department must adhere in thinking and practice by including cultural differences, abroad rules and regulations, and the developments in technology that have currently evolved. Also, another importance of globalization in human resource management is the necessity of considering the cultural differences, both inside and outside the work areas. In this, the business tends to have its own corporate cultures or methods of doing the operations. Still, there are also societal and cultural differences among people as well as in the organizations. Additionally, human resource management (HRM) globalization gives organizations a chance to find lower-cost methods in producing their products. In this sector, organizations or companies can look for a technique that is usually cost-effective and also a manner that maximizes profits and minimizes the losses to better the organizational operations.
In addition, in human resource management, globalization indicates the free flow of technologies and the available human resource across the national borders, which present an ever-changing and competitive business environment. Moreover, through the emergence of globalization, human resource managers are not a must for them to rely on a small limited market area to get the right employee required to meet the global problem. Still, today managers can do recruitment of the employees from around all parts of the world. In addition, globalization has impacted employment patterns in that it has changed the ways of employment where it considers by forcing the business organizations era, the primary means to develop a competitive and a benefiting market place being nothing more than the human resources.
Furthermore, globalization is essential in human resource management in that it increases the expectations of the people belonging to a particular country in the form of international demonstrations. Besides, globalization also paves the way for rapid developments in technologies and assimilations. With the outcomes, any new technology is made available in different ways, necessitating the human resources’ unique skills. Lastly, globalization brings the contemporary management concepts to be adopted through the organizations to manage the human resources for the globalization process.
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