January 10th, 2018
International Human Resource Issues Affecting United Parcel Services (UPS)
Businesses in modern-day environment have been forced to explore external markets to reap the benefits that arise from such markets. Expansion to global markets for instance enables entities to achieve higher economies of scale and mitigate effects of country specific macroeconomic shocks. Such markets however have presented many challenges for effective establishment and sustenance of good performance both. Some of the challenges that organizations face in global markets include differences between the traditional and target market in: political and legal framework; cultural orientation; technological know-how and competition. But such challenges have not only been limited to organizations only; new challenges presented by increasing competitive market with globalization have also arisen to individuals working in these organizations. With increasing competition for and mobility of labor following globalization only organizations that effectively manage their human resource are able to retain the best talent within the firm.
The changing business environment has necessitated changes in the way human resource management is approached in a firm. Mobility of labor has, for instance, resulted into the firms having a diverse workforce in terms of culture, race and language (Wilson 2008). Such a diverse culture creates challenges for effective management of the working environment but the success of which is a key driver of better performance and innovative approaches to conducting business (Seymen 2006). The need for effective management of human resources and creating a good working environment is also buttressed by the importance that ethical issues play in ensuring firm success in the modern day. Corporations that have failed to establish the right organizational culture could for instance suffer an irreversible negative perception when imprudent practices are unearthed (Heineman 2007). Further for firms that have expanded into global markets differences in labor laws in different countries affect the human resource strategy that the company has adopted to hire and retain its workforce. In service industry the importance of human capital is further reinforced since this provides one of the main resources that determine the entity’s performance and growth. The challenge in effective management of human resources nevertheless lies in the fact that though the entity pays for the resources, it bears ‘no direct access to the psychical performance of employees’ (Sumetzberger 2005).
To acquaint with international human resource issues that firms trading across boarder are faced with, this paper focuses on United Parcel Services (UPS), one of the leading global package delivery firms. The paper will evaluate the human resource strategy that the company uses and identify the issues that prove a challenge to the realization of the strategy and those that curtail better performance at the courier company. Alternative solutions to such issues will be considered to arrive at the best approach that the company can use to effectively manage its workforce in its global markets. To better inform proposed solutions to human resource challenges for UPS, the paper assesses: the human resource strategy and employee profile at UPS; the hiring process; programs to ensure employee efficiency and flexibility; talent management programs; and approaches to improve employee relations