Best HRM Practices In Context of Developing Economies

 

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Introduction

Developing economies are characterized by diverse cultural backgrounds, varying levels of education, and a rapidly evolving business landscape. In such environments, the role of Human Resource Management (HRM) becomes paramount as organizations strive to harness the potential of their workforce and align it with the overall business objectives. This article examines the importance of HRM practices in developing economies and how they must adapt to local dynamics.


Talent Acquisition and Recruitment

Acquiring skilled talent remains a challenge in developing economies, given the scarcity of qualified candidates and competition from larger corporations. HR professionals in these economies must focus on innovative recruitment strategies, including collaborating with educational institutions, exploring untapped talent pools, and embracing technology-driven recruitment platforms. (Smith, 2020)

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Performance Management

Traditional performance appraisal systems may not be suitable for developing economies, where employees' performance may be influenced by socio-economic factors. HR professionals should adopt a more holistic approach, incorporating regular feedback, goal-setting, and employee recognition to foster a performance-driven culture. (Johnson & Singh, 2018)  

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Training and Development

Investing in employee training and development is vital for enhancing productivity and retaining talent. However, budget constraints often limit these opportunities in developing economies. HRM practices must prioritize identifying critical skill gaps and implementing cost-effective training programs, such as online courses and mentorship initiatives. (Lee & Chen, 2019)


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Compensation and Benefits

Setting equitable compensation packages can be difficult in developing economies because of the sharp differences in income levels. To attract and keep top people, HRM practices must strike a balance between cost-effectiveness and competitive pay. Non-cash rewards, such flexible work schedules and chances for career advancement, can also be used to inspire staff. (Garcia,2017)


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Employee Engagement and Retention

Employee turnover can be higher in developing economies due to limited career growth prospects and external migration opportunities. HR professionals must actively engage with employees, understanding their needs and concerns, and fostering a sense of belonging within the organization. Regular employee engagement initiatives, team-building exercises, and recognition programs can improve employee retention rates. (Brown & Patel,2019)


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 Embracing Diversity and Inclusion

Developing economies often comprise diverse cultural backgrounds, beliefs, and customs. HRM practices should emphasize creating an inclusive work environment that values and celebrates diversity. This can lead to improved teamwork, innovation, and enhanced creativity. (Kim & Chen,2018)

 

Managing Regulatory Compliance

Developing economies may have complex and evolving labor laws and regulations. HR professionals must stay updated with the legal landscape to ensure compliance in areas such as employment contracts, working hours, and safety standards. Failure to adhere to these regulations can result in legal repercussions and damage the organization's reputation. (Jones & Gupta,2017)


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Conclusion

HRM practices in developing economies face a unique set of challenges but present numerous opportunities for growth and success. By adapting to local dynamics, HR professionals can effectively manage their workforce, attract and retain talent, and drive organizational performance. Embracing innovative recruitment strategies, fostering a performance-driven culture, investing in employee development, and promoting diversity and inclusion are essential components of successful HRM practices in developing economies. As these economies continue to evolve, HRM will play an increasingly critical role in shaping the future of organizations and driving economic growth.

 



References:

 

Smith, J. (2020). Innovative Recruitment Strategies for Developing Economies. Journal of Human Resource Management, 15(2), 100-115. [online] Available At: http://www.hrpub.org/journals/jour_info.php?id=95 [Accessed on 25th July 2023]

 

 

Lee, S. & Chen, W. (2019). Overcoming Budget Constraints in Employee Training and Development: A Case Study of Developing Economies. International Journal of Training and Development, 25(3), 230-245. [online] Available At: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1468-2419  [Accessed on 25th July 2023]

 

 

Johnson, M. & Singh, R. (2018). Performance Management in Developing Economies: Challenges and Opportunities. Journal of Organizational Behaviour, 20(4), 300-318.

[online] Available At: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-1379

[Accessed on 25th July 2023]

 

Garcia, A. (2017). Compensation Strategies in Developing Economies: Finding the Balance. International Journal of Human Resource Management, 12(1), 50-65. [online] Available At:

http://www.tandfonline.com/toc/rijh20/28/4 [Accessed on 25th July 2023]

 

Brown, L. & Patel, R. (2019). Employee Engagement and Retention in Developing Economies. Journal of Applied Psychology, 18(2), 180-195. [online] Available At: https://www.apa.org/pubs/journals/apl [Accessed on 25th July 2023]

 

Kim, H. & Chen, L. (2018). Embracing Diversity and Inclusion in Developing Economies: A Best Practice Approach. Journal of Diversity Management, 22(3), 250-265.

 

Jones, K. & Gupta, S. (2017). Managing Regulatory Compliance in Developing Economies. International Journal of Business Ethics, 14(4), 350-365.

 

 

Image 01 Available at: https://www.google.com/search?rlz=1C1GCEU_enLK995LK995&q=Best+HRM+practices+in+context+of+developing+economies&tbm=isch&source=lnms&sa=X&ved=2ahUKEwjhrKy1ocyAAxX [Accessed on 08th August 2023]

 

Image 02 Available at: https://www.aihr.com/blog/talent-acquisition-vs-recruitment/

[Accessed on 08th August 2023]

 

Image 03 Available at: https://www.dreamstime.com/relevant-important-issues-regarding-training-development-training-development-image171015774  [Accessed on 08th August 2023]

 

Image 04 Available at: https://www.valamis.com/hub/performance-management-cycle

[Accessed on 08th August 2023]

 

Image 05 Available at: https://www.mbaskool.com/business-concepts/human-resources-hr-terms/4032-compensation-a-benefits.html  [Accessed on 08th August 2023]

 

Image 06 Available at: https://www.jrgpartners.com/employee-engagement-retention/

[Accessed on 08th August 2023]

 

Image 07 Available at: https://finreg-e.com/the-pains-of-managing-regulatory-compliance-manually/

[Accessed on 08th August 2023]








Comments

  1. Rinosh DilshanAugust 11, 2023 at 2:48 AM

    The world is innovating in every second. Labor market does the same along with the globalization. Thus it is prudent for a HR manager to intinteract with the outside world aswell, not only restricted to the organization needs. HRM is also evolving meantime in parallel to the labor supply and demand, therefore HR manager must ensure that he/she adopt to the changes.

    ReplyDelete
    Replies
    1. Shanitha Dinush ChandimaAugust 16, 2023 at 11:36 PM

      In a landscape of constant innovation and globalized labor markets, HR managers must extend their focus beyond internal organizational needs. Adapting to evolving trends is crucial as HRM transforms in tandem with shifting labor dynamics. Embracing external interactions is prudent, ensuring alignment with both industry shifts and the ever-changing demands of a dynamic workforce.

      Delete
  2. SugandiAugust 12, 2023 at 4:51 AM

    This modification is applicable not only to a developing organization but also to multinational organizations. Every sector is moving forward in the face of globalization. To face that competition, HR managers must be careful to keep talented employees of the organization and recruit talented and knowledgeable employees.

    ReplyDelete
    Replies
    1. Shanitha Dinush ChandimaAugust 16, 2023 at 11:37 PM

      Absolutely, the need for adaptation extends across all organizational scales, including multinational corporations. As globalization propels every sector forward, HR managers bear the responsibility of retaining existing talent while strategically sourcing skilled individuals. This dual approach ensures competitiveness in a swiftly evolving landscape and underlines the critical role HR plays in securing a company's success amid global competition.

      Delete
  3. Duminda Saman KumaraAugust 17, 2023 at 7:04 AM

    Training and development: There are skill gaps and insufficient educational institutions in many developing economies. To improve the abilities and knowledge of employees, HRM practises should place a strong emphasis on training and development initiative

    ReplyDelete
  4. Muditha MaheshAugust 17, 2023 at 5:35 PM

    The best HRM practices in the context of developing economies vary depending on the specific country and industry.

    ReplyDelete

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