Introduction
Human resource managers must strategize and execute ways of increasing workers’ efficacy and enhancing performance excellence. Traditionally, enterprises used an annual appraisal system, which had several drawbacks. Many organizations now adopt performance management (PM), which involves continuous identification, measurement, and development of individuals and workgroups to ensure that their duties are aligned with the strategic goals (Aguinis & Burgi-Tian, 2023).
In addition, it is relevant to establish an enabling organizational culture where people feel their work is acknowledged and appreciated. For Grandview Global Financial Services Corporation, the diversity of cultures across countries, differences in language, the human resource information system (HRIS), and the standardization of performance remain a challenge. Although each subsidiary of Grandview operates uniquely, establishing a similar PM, culture, and information system will help improve the workflow, expand employees’ skills, and ensure proper utilization and accountability of resources.
Role of PM in the Establishment and Maintenance of Corporate Culture
A sound PM system is culturally congruent with the region of business operation. Moreover, the kind of PM an organization chooses automatically affects the organization’s traditions, values, and relationships. For example, in Western countries where PM is primarily based on deliverables and results, the culture of many employees tends to be individualistic and focused on meeting goals and targets. Conversely, in countries such as China, where PM is based on behavior, the workers are more cautious of their attitude and morals than the outcome of their target (Aguinis & Burgi-Tian, 2023).
In addition, PM is used to create and develop training and shape the conduct of people in the organization. Once the employees’ understanding of the PM clarifies their organizational role (White, 2021), HR can measure employee performance based on various scales and show them where to improve. Providing feedback shapes and changes the professional conduct of an employee. Ultimately, it influences interactions with colleagues, their communication style, and other cultural elements of the organization
Role of Compensation and Benefits in Corporate Culture
Compensation and benefits are outstanding determinants of employee satisfaction with their workplace. One study established that 82.2% of organizational culture is based on compensation and career choice (Vizano et al., 2021). Mostly, employees who receive good benefits such as bonuses and are well compensated for their duties tend to show high commitment to their work.
Grandview Corporation calculates all compensation functionalities by looking at performance goals focusing on financial targets. Their strategy is likely to make the employees focus more on how they can achieve the set financial goals, failure to which they receive little incentive payments. Their compensation and benefits plan can cause high-stress levels and reduce focus on employee wellbeing. Compensation should not be limited to financial targets but other factors such as positive customer reviews, discipline at work, and caring for colleagues (see appendix).
Common Global Process for Managing Laws, Labor Markets, and Customs
Establishing a standard global process for customs, labor markets, and laws does not make sense because such an attempt will create significant inequalities. For instance, the labor market in some countries has employment protection while others have an unemployment protection policy, which significantly influences workers’ skills and innovation (Filippetti & Guy, 2020). Achieving a common global constraint with such differences is complex and may lead to PM and overall compensation inequalities.
Moreover, tax laws and regulations, such as minimum pay, must be considered. The other justification is that employees living in countries with a higher Gross domestic product may have experienced a high cost of living but have a chance of bringing wealthy clients to the company (Izvorski et al., 2023). Thus, their compensation should be higher for employees working in countries where they must spend more on basic needs such as housing and food. Customs laws account for import duties and taxes on imported materials. Grandview’s global presence implies that it is affected by different customs, so the returns on investment differ from one country to the other. It would be more sensible if the PM was customized to the specific country and remained congruent with the law instead of trying to achieve uniformity.
Rationale for Common HRIS
Companies that operate in different countries have a large workforce, which can impend cooperation more so when there is a project that covers different regions. Grandview Global has about 20,000 employees, but its current HRIS only accounts for 60% of that population. A global HRIS allows the HR department to administratively and strategically participate in the activities of all the subsidiaries that a multinational corporation has across different countries (Tiwari, 2022). For instance, when there is global HRIS, liaising with professionals across different nations and learning while honing skills and knowledge is possible. Moreover, with global HRIS, it is possible to manage the contact information of employees and their benefits from a shared secure pool, which minimizes chances of Fraud. Given that all employees from Grandview speak English, standardizing the HRIS is possible and will result in a streamlined workflow.
Conclusion
Running a global enterprise has many challenges due to different cultures, laws, and customs. The organization may not create and maintain uniform PM and compensation procedures, further creating differences in the global culture. Companies like Grandview need to adopt a good PM and ensure that compensation is not primarily based on financial targets. Efforts should be made to promote complementary workplaces for all regions to streamline global processes in customs and labor laws. The only possible achievement for streamlining workflow and better coordination is a common HRIS.
References
Aguinis, H., & Burgi-Tian, J. (2023). Performance management around the world: Solving the standardization vs adaptation dilemma. IIM Ranchi journal of management studies, 1(1), 1-12. Web.
Filippetti, A., & Guy, F. (2020). Labor market regulation, the diversity of knowledge and skill, and national innovation performance. Research Policy, 49(1), 1-14. Web.
Izvorski, I., Lokshin, M., Norfleet, J. R., Singer, D., & Torre, I. (2023). Europe and Central Asia economic update, spring 2023: Weak growth, high inflation, and a cost-of-living crisis. World Bank Publications.
Tiwari, M. D. (2022). Strategic human resource management at tertiary level (2nd ed.). River Publishers.
Vizano, N., Utumi, W., Johanes, S., & Herawati, A. (2021). The influence of compensation and career on organizational culture. International Journal of Current Science Research and Review, 26(1), 368-380. Web.
White, D. (2021). Importance of performance management in an organization. Techfunnel. Web.
Appendix
