International Human Resource Management
It is worth pointing out that effective management, as well as the development of human resources, is highly challenging for organizations (Collings & Mellahi, 2009). Some organizations have developed a greater international focus, making it even harder for the management of human resources. As such, there is the need for the training of the human resource professionals on how they can manage employees across borders. They need to be equipped with the knowledge and skills that they can employ to work within the wider context of international people management, as well as development. International human resource management focuses on global employment issues that include national cultures, legislation, as well as strategies (Collings, Scullion & Dowling, 2009). On the same note, international human resource management is mainly designed so as to develop a strategic people management focus in the context of international organizations. According to Macky & Johnson (2003), international human resource management encourages the human resource professionals to develop the strategies and skills with which they can support organizations to attain their goals through adding the value of effective HR management practices (Crossman & Clarke, 2010; Collings, Scullion & Dowling, 2009). Stone (2008) also points out that international human resource management plays a role in making sure that practices which apply to the given nations are used to deal with the employees.
The paper mainly provides ways through which Brexit will impact on the business, as well as on the economy and hence the human resource matters within the United Kingdom. Also, the paper provides how it is like to work in the United Kingdom. It mainly explores cultural issues when it comes to working in the United Kingdom. The paper provides a discussion of the human resource management, as well as the employment relations issues which will affect the working life of the manager within the United Kingdom. It mainly explores the employment laws, as well as the work practices and arrangements which are highly important within the United Kingdom.
Following Brexit, the pound fell to the lowest level which has never been experienced for the past 30 years. It is predicted that Brexit will cost the United Kingdom about £66 billion ($81.2 billion) every year regarding lost tax revenues. At the same time, it is generally expected that the GDP of the nation might fall as much as 9.5 percent due to the fact that it will have to depend on World Trade Organisation trading rules and as a result, the nation will miss out on more favourable trading tariffs which are brought about by being a member of the EU (Gurchiek, 2016).
According to Frith (2016), as a result of Brexit, immigration will be tightened and this will to a great extent damage competitiveness, majorly in London. With regards to regulation, it is worth pointing out that the United Kingdom is subjected to European Union regulation. Brexit might mean less red tape. It could also imply that the businesses in the United Kingdom will be forced to adapt to other sets of regulations that might be very costly (Frith, 2016).
With regards to talent and the labor market, the most direct human resource impact of Brexit might be its effects on talent and labor markets. It is worth pointing out that talent management, as well as labor force composition, shall be affected directly. The United Kingdom might be forced to change their migration policies. Presently, European Union citizens are capable of living and working in the United Kingdom without any restrictions. After Brexit, businesses will have to adjust. There are some people in the organizations who will be affected by the Brexit move because of the possible changes to immigration status (Gurchiek, 2016).
The UK’s recent vote to leave the EU could bring about some effects on the global organizations and their human resource teams. At the same time, it can have various effects on recruitment of employees, the hiring of employees, as well as employer branding for various organizations. The employers are used to European Union workers presently having the right to work and to live across the European Union without any restriction and applying European Union regulations on social security coverage. The employers should now be aware of the fact that the rules might not be in place after the United Kingdom leaves the European Union (Ifle, 2016).
The employers in the United Kingdom are likely to face various kinds of administrative hurdles when it comes to the recruitment of job candidates from outside the United Kingdom because the individuals will require work visas. This will be especially cumbersome when a firm needed to recruit a huge number of workers. Human Resources will be forced to be more creative in getting their sources of talent. It has also been suggested that the exit of the United Kingdom from the European Union is capable of affecting where firms decide to situate their global base. There will be a change in the employment law as a result of the Brexit, as a result, the human resource professional moving into the United Kingdom will have to familiarize themselves with the law (Gurchiek, 2016).
According to Gilmore & Williams (2009) and Thompson & McHugh (2009), human resource management entails effective management of individuals to attain the various organizational goals and objectives. Human resource management entails the management decisions as well as practices which have direct impacts on the human resources within the organizations (Dessler, 2008). Currently, various firms have strived to ensure that they manage their human resources effectively considering the benefits that the firms can gain as a result of effective management of the employees (Nishii, Lepak & Schneider, 2008).
There are some human resource management practices in the United Kingdom. First, for an individual to be eligible to work in the United Kingdom, just like in any other country, they require a work permit. Without this, it is very hard for a foreigner to work. With regards to the working environment, it is worth pointing out that there is a general lack of trust on the managers. The attitude of the British towards their senior managers are highly more negative in comparison to those of the other nations like the United States of America (Gabbai, 2011).
Every worker in the United Kingdom who are aged more than 16 years can work legally in the nation. There is a minimum wage rate below which the employees cannot be paid. On the same note, in the United Kingdom, there are diverse levels of national minimum wage based on the age of the employee. The workers in the United Kingdom are entitled to a minimum of 24 days of a paid holiday every year. The agricultural workers who work in England always work for five days every week. Workers are also not allowed to work for over 48 hours per week unless they have agreed in writing to work for over 48 hours. The workers in the nation are also protected against any unauthorized deduction of their wages. The employees working in the nation are also protected from any discrimination based on their age, marital status, or membership of trade union (Gabbai, 2011).
With regards to performance management, it is worth pointing out that about 80 percent of the companies in the United Kingdom now have performance appraisal systems in place.
About 55% of the firms carry out performance appraisal every year, while about 7 percent of the organizations carry it out quarterly and others semi-annually. Performance is always measured based on the competency and accomplishments against the goals and the objectives of the organizations. The results that are got from the performance management are always used in giving the employees bonuses, raising their salaries and also in promoting them (OECD, 2011).
Some of the laws in the United Kingdom which affect the human resource management include the Sex Discrimination Act, the Occupational safety and health act, race relation act, disability discrimination act, and employment equality regulations. Individualism appears to affect the relationship between the employers and the employees, and the relationship is strictly contractual. British employees, unlike their counterparts in countries like Japan, do not always expect their bosses to look after them or to help them when they are facing various kinds of difficulties. To them, this is invading their privacy. Simply put, the managers and the employees are having an impersonal as well as a task-oriented relationship with each other (OECD, 2008).
Cultural factors affect the operations of the manager. It is worth pointing out that culture refers to the patterned ways of reacting, feeling and thinking which is mainly acquired and transmitted through symbols,
constituting the distinctive achievements of various human groups, including their embodiments in artifacts.
In Hofstede’s (1980) research, Britain scored very low with regards to power distance in comparison to the other nations. Acceptance of power inequality can also be noticed in the United Kingdom. Managers together with the white collar employees are having greater advantages when compared to the manual workers in various kinds of aspects including status, pay physical working conditions, holidays and power. The shop floor workers, as well as the low-rank office clerks, are subjected tighter control at their places of work. These employees have to clock in and out at exact times. On the other hand, the managers can come in and go out when they fell like. The natural culture in the United Kingdom include individualism, conservatism, tenacity, and pragmatism. Other key qualities include dislike for open conflict, honesty, trustworthy and past orientation (OECD, 2011).
Some of the human resource values which are preferred by the employees include the preference to choose their approach, and the leadership style which they prefer most is persuasive leadership style. Expectations from the subordinates include initiative, honesty, commitment, ownership, as well as responsibility. They are always very comfortable with very few procedures and rules, and besides, they prefer formal communications as well as interpersonal relationships when they are at work. Compliance with regulations is also a key thing for the employees in the United Kingdom.
Many things have been explored by this paper. These include the human resource practices in the United Kingdom. The paper offer guides to a human resource manager moving from Australia to work in the United Kingdom. The prevailing human resource management system in the United Kingdom has been provided. At the same time, the United Kingdom was voting to move out of the European Union. This paper has to a great extent explored the manner in which exit from the European Union will affect the human resource management in the country. The paper notes that the key effect will be the change in the employment laws.
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