Recent Trends in Human Resources Management in

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The main goal of the paper is to evaluate trends in human resources management in the international environment on a selected sample of HR managers and ...

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ScienceDirect Procedia Economics and Finance 26 (2015) 1014 – 1019

4th World Conference on Business, Economics and Management, WCBEM

Recent Trends in Human Resources Management in Selected Industry in Slovakia and the Czech Republic Mariana Dubravskaa*,Emilia Solankovab a

Faculty of Management, University of Presov in Presov, Konstantinova St.16, Presov, 080 01, Slovak Repulic b Henkel Slovensko, spol., s.r.o., Bratislava, 841 01, Slovak Republic

Abstract The main goal of the paper is to evaluate trends in human resources management in the international environment on a selected sample of HR managers and their employees. The paper is based on extensive theoretical research and on a study of previous similar research. In order to achieve a more detailed analysis, there has been a research conducted. The research investigates the relation between the trends and gained benefits and the origin of the respondents – from Slovakia and the Czech Republic. According to the results, there exists a statistically significant difference in a small group of trends/benefits. In the rest of the benefits the results show there is no statistically significant difference in trends and benefits between employees who come from Slovakia or the Czech Republic. © B.V. This is an open access article under the CC BY-NC-ND license ©2015 2015The TheAuthors. Authors.Published PublishedbybyElsevier Elsevier B.V. (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer-review under responsibility of Academic World Research and Education Center. Peer-review under responsibility of Academic World Research and Education Center Keywords: human resources management; trends; work-life balance; compensation; benefits

1. Introduction Human resources management (HRM) is a term, which is now widely used but very loosely defined. Based on theoretical work in the field of organizational behavior, HRM can be defined as a set of policies designed to maximize organizational integration, employee commitment, flexibility and quality of work (Guest, 2007). The current developments in the world economy stem mostly from globalization and integration processes. Under the strong competitive forces, so significant in the current business environment, businesses seek a stable position with a perspective of further development (Horska et al., 2008). As competitiveness of Czech and Slovak organizations is growing under the influence of the globalization of the world economy, it brings with itself the need for flexibility in

* Mariana Dubravska. Tel.:+421-905-144640; fax: +421-51-777-59-11. E-mail address: [email protected]

2212-5671 © 2015 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

Peer-review under responsibility of Academic World Research and Education Center doi:10.1016/S2212-5671(15)00924-7

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management; because of this. businesses have to adapt their human resources management also and learn to cope with new impulses and situations (Stacho et al., 2013). The effectiveness of the company depends on the quality of work of its employees (Slusarczyk and Glosik, 2014). Human resources have changed their role in the company from a supportive to a strategic one. In the current managerial and business philosophy, words such as capital and value are increasingly tied to the people, their knowledge, skills and their abilities. Personnel and their resources are becoming a major factor of competitiveness and organizational performance. The struggle to find experienced managers, quality professionals and young talents has become the sharpest and most ruthless form of competition, so strong and obvious, that even now can be regarded as one of the key determinants of the 21st century (Markovic and Markovic, 2011).

2. Methodology and data The main goal of the paper is to evaluate trends of human resources management in the international environment on a selected sample of HR managers and their employees. This paper contributes to the aims of the project KEGA No. 032PU-4/2013. The research is based on extensive theoretical research and on a study of previous similar research. The theoretical review utilises various primary and secondary sources. The primary sources include data gained by a questionnaire. The target group was the largest delivery companies in Slovakia and the Czech Republic according to their economic results for the year 2012. The questionnaire was formed from the viewpoint of the company strategy, profitability, action on the foreign countries and new trends in human resource management. A questionnaire was distributed to employees and another one to HR managers. In order to achieve a more detailed analysis, there has been a research conducted. The research investigates the relation between the trends and gained benefits and the origin of the respondents – Slovak and Czech one. Based on the research conducted, the following hypothesis was formulated and is investigated in the proposed paper: We assume that there is no statistically significant difference in trends and benefits for employees of selected companies in Slovakia and the Czech Republic. As the research compares two groups whose results are binominal, the Chi-square test was used. If the p-value calculated by chi-square test is lower than the set level of significance (usually 5 % = 0.05), this zero hypothesis is rejected. If the p-value is equal or higher than the set level of significance, the zero hypothesis cannot be rejected. 3. New trends in human resources management There are many studies which investigate new trends in human resources management. The most discussed topics are: globalization and its impacts (cultural diversity), knowledge management, work-life balance, flexible working hours, talent management, changes in compensation and benefits. Globalization has become a business strategy as organizations compete for consumers across borders. Thus, globalization forces HR practitioners to add value by transforming and integrating HR throughout the organization as a core business process (Chambers, 2013). Worldwide there is a gradual rise of the problem of unemployment, as there is a surplus of labour overexceeding the needs for the economy (Kotulic). To succeed in this new economy, it is essential to have knowledge of other cultures and their corporate cultures. At the beginning of 21st century, cultural values make an impact on the types of organizations that emerge, behaviour that takes place in them, ways and directions they change and the techniques to manage them (Francesco and Gold. 2005). Cultural differences across international borders create management problems for global HR managers and require the alignment of HR practices with the leadership support. These cultural differences also call on HR to step forward as a strategic partner. One method that global HR leaders can use to address and overcome potential management problems is attempting a deeper understanding of culture, individual cultural competency and cross-cultural competence. Only 13% to 19% of 33 million students all over the world in the developed countries are suitable candidates for work in multinational companies because of their poor language skills, low education and lack of cultural intelligence. Human resources have to play an important role in connecting different cultures and languages (Kapoor, 2011). Nowadays economic, political and social development is influenced by the process of globalization. In the knowledge-oriented society, the most important factor of competitive advantage is not the new applied technologies, the uniqueness of the product/service, the tangible assets, but the knowledge and the ability to manage it, since this resource is hard to repeat or copy. The survival of the business depends on the organization’s ability to gain a

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competitive advantage. Organizations can no longer expect that the products/services created in the past or which have been working for a long time will still be successful tomorrow and will keep on ensuring great organizational performance. Today, knowledge is the main source of innovation in a knowledge-based economy. Creation of innovations depends on the gained knowledge and its commercialization, transformation into the productive knowledge (Gimiene, 2013). Tureckiova (2004) identifies employees as a competitive advantage. The aim of knowledge management is to develop employees that will become the holders and creators of the new knowledge – knowledge workers. The business case for work-life balance practices relies on their ability to enhance recruitment and retention and to reduce work-life conflict for employees. It makes sense that offering work-life balance practices would attract individuals to an organization and that using these practices results in an improved employee attitudes and behaviour within the organization (Beauregard and Henry, 2009). In the light of the increasing de-centralization and globalization of work processes, many organizations have responded to their dynamic environments by introducing virtual teams, in which members are geographically dispersed and coordinate their work predominantly via electronic and communication technologies (e-mail, videoconferencing, etc. Virtual teams are a new and exciting work form with many fascinating opportunities. Due to these opportunities, virtual teamwork becomes increasingly popular in organizations. Although many practical questions how such teams should be managed still await empirical investigation, this review of systematic research already documents many concrete recommendations that might support those managers and employees for whom virtual teamwork is common practice today (Hertel et.al, 2005). Although part-time employment often appears as a substandard form of employment, evidence that part-time employees are less satisfied than full-time employees is ambiguous. To shed more light on this issue, we test an extended discrepancy theory framework using data from the German Socio-Economic Panel. The results help explain previously inconsistent findings: Part-time employment increases the chances of being underemployed while it reduces the likelihood of working more hours than preferred, and the negative effects of both types of working time mismatches on job satisfaction are similar in size. Furthermore, the importance attributed to family roles mitigates the negative effect of part-time employment on job satisfaction (Iseke, 2014). Talent management has become one of the most prevalent topics in the field of people management and development for workers and researchers alike (Collings, 2014). One critical challenge for organizations today is building and sustaining a strong talent pipeline through effective management of human assets. Talent management focuses on developing talent that is strategically important for an organization’s future. Research in talent management typically focuses on managerial or leadership talent, yet there are other important career tracks within an organization. Although preparing employees for promotion into management remains critically important, technical expertise such as engineering is often the key competitive advantage in the global knowledge economy (Kim et al., 2014). Developing and building global talent leadership bench strength of successors supports the strategy for global expansion and must be linked to the talent management function. In addition, building bench strength for critical global leadership positions in support of a growth strategy also creates opportunities for talent development and enhances the capabilities of high-potential individuals (Silzer and Dowell, 2010). According to Society for Human Resources Management (SHRM) talent management is one of the most important bodies of knowledge for human resources professionals. According to this survey, it is the second most important body of knowledge after the Strategic Business Management (see Table 1). Table 1 Rating of bodies of knowledge for HR professionals 10 years from now Body of Knowledge Average Rating (0-10) Strategic Business Management 8.8 Talent Management 8.6 Change Management 8.5 Workforce Planning and Environment 8.5 Compensation and Benefits 8.3 Human Resource Development 8.2 Employee and Labour Relations 8.1 HR Technology 8.0 Risk Management 7.7 Global and International Human Resources 6.9

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The fifth and the most important body of knowledge according to the survey mentioned above (see Table 1). is compensation and benefits. Areas of compensation that motivate and retain employees in various countries differ because of cultural differences and local conditions. In addition, strategically aligning compensation in global organizations is challenging because of variations in employee pay expectations and perceptions of pay fairness. A global compensation strategy combined with local responsiveness is strongly suggested because of the differences in countries and cultural aspects of the global environment (Chambers, 2013). 4. Results and discussion All firms aim at optimalization. We can confirm the trends move away from permanent employment to the personal leasing as they lay stress on work effectiveness. Firms focus on employee development to the specialist or manager. We can see a trend of employees having a greater interest in the firm’s development and that is why firms introduce benefits and motivation plans to support and develop employees’ involvement of the employees in the firm’s results. Moreover, employees participate in the processes involving changes in the company. The transformation of the economy from a centrally planned to a market one in all Central and Eastern Europe countries was accompanied by a decline in GDP and industrial production (Kotulic and Adamisin, 2012). The presented paper deals with delivery companies which struggle with high fluctuation on the position of drivers, while firms are trying to keep these employees. Work-life balance is an innovation of the last years that firms begin to implement in their operations. In most of the companies studied, they try to re-evaluate the benefits for their employees based on their needs. The companies studied apply the concept of the talent control and take care of the talent as they are interested in the employee development. Firms cooperate with secondary schools, they organize internships for students and work with universities organizing lectures. In hiring, they focus on candidates with a potential, that can be developed. Annually, a job evaluation in a form of interviews focused on further development is performed. An annual training calendar is planned. Also, there is a management review evaluating managerial potential and succession building. Companies change their system regularly, they train the employees within the company but also offer training courses outside of it. They try to keep up with the current market. Companies advance their strength by a system of professional tests that are set for the individual positions. Companies respond to the changes in human resources management and they are working on the improvement of the set processes. They try to compensate the speed of the current changed with flexibility. The delivery companies studied use HR outsourcing only in 40% of the time for the operator and specialized positions. During the period of May till August. outsourcing services are used to find drivers and storekeepers. HR workers were asked questions on cultural dimensions. According to the results, collectivism overcomes individualism in the companies studied. Hierarchy keeping is characteristic for companies studied, which means the role of each employee is strictly defined and the authority of the superior is on high level. There is a difference in the uncertainty avoidance between the Slovak and Czech companies. Slovak companies seem to be more conservative than the Czech ones. Companies are rather masculine in the Slovak Republic and more feminine in the Czech Republic. Analysis of the human resources management and benefits In order to achieve a more detailed analysis, there has been a research conducted. The research investigates the relation between the trends and gained benefits and the origin of the respondents – from Slovakia and the Czech Republic. The hypothesis: We assume that there is no statistically significant difference in trends and benefits for employees of selected companies in Slovakia and the Czech Republic was tested by a Chi-square test. We have found out that there is a difference in these benefits: Automobile – on the account of Slovakia (meaning more Slovak employees have this benefit), Short/long-term business trips – on the account of Slovakia, Performance evaluation – on the account of the Czech Republic and Foreign business trips on the account of Slovakia. For other benefits (see Table2), the H0 cannot be rejected and we adopt the hypothesis that there is no statistically significant difference in trends and benefits between employees in Slovakia and the Czech Republic.

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Table 2 Differences between the trends and benefits by employees of selected companies BENEFIT SR SR (%) CR CR (%) Chi-square test (p-value) Equity program 1 4.76 % 0 0.00% 0.290 Automobile 8 38.10 % 2 8.70 % 0.020 Extra day off 1 4.76 % 0 0.00 % 0.290 Flexible working time 13 61.90 % 10 43.48 % 0.222 Sick day 1 4.76 % 0 0.00 % 0.290 Short/longterm business 9 42.86 % 1 4.35 % 0.002 trip Mobile phone 16 76.19 % 17 73.91 % 0.862 Working on Business 2 9.52 % 0 0.00 % 0.130 License Bonus for profit 2 9.52 % 5 21.74 % 0.269 Bonus on food 12 57.14 % 16 69.57 % 0.392 Home Office 10 47.62 % 8 34.78 % 0.387 Performance evaluation 4 19.05 % 12 52.17 % 0.023 Training courses 5 23.81 % 1 4.35 % 0.060 Foreign business 6 28.57 % 1 4.35 % 0.028 Trips

Conclusion There is no difference. There is a difference. There is no diffrence. There is no difference. There is no difference. There is a difference. There is no difference. There is no difference. There is no difference. There is no difference. There is no difference. There is a difference. There is no difference. There is a difference.

Only 3-5% of the employees attend training courses. Only 4.55% of all employees asked have improved, their language skills. Respondents claimed that their companies did not organize any such language courses. Training courses seem to be very important for companies researched. Which asked which benefit would the employee like to get from the employer, the most frequent answer was the training courses, about 54.55 % would like to attend them.

Percentage of respondents

60,00% 50,00% 40,00% 30,00% 20,00% 10,00% 0,00%

Figure 1 The most desired benefits by employees of searched companies

Most respondents applying for training courses were from the Czech Republic, judging by the other questions it seems that Czech companies were less interested in organizing such courses. The less important benefits as rated by the employees asked were free plane tickets and English lessons. 5. Conclusion The global market is rapidly changing. As a part of an organization, human resource management professionals must be prepared to deal with impacts of the changing global market. For the human resources managers it means

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understanding these factors: globalization and its impacts (cultural diversity), knowledge management, work-life balance, flexible working hours, talent management, changes in compensation and benefits. The main goal of the paper was to evaluate trends in human resources in the international environment on a selected sample of HR managers and their employees. The paper is based on extensive theoretical research and on a study of previous similar research. In order to achieve a more detailed analysis. there has been a research conducted. The research investigates the relation between the trends and gained benefits and the origin of the respondents – from Slovakia and the Czech Republic. According to the results, there is a statistically significant difference in Having a car – on the account of Slovakia (meaning more Slovak employees have this benefit), Short/long-term business trip – on the account of Slovakia, Performance evaluation – on the account of the Czech Republic and Foreign business trips on the account of Slovakia. For other benefits, it can be said that there is no statistically significant difference in trends and benefits between the employees in Slovakia and the Czech Republic. The most desired benefit wanted by the employees asked are training courses, followed by financial benefits (having a car, free plane tickets, etc.). The above-mentioned factors are only a few challenges that human resources managers have to deal with nowadays. According to the Society for Human resources management (2012), the three biggest challenges facing human resources executives in the next ten years are retaining and rewarding the best employees, developing the next generation of corporate leaders and creating a corporate culture that attracts the best employees to organization. Acknowledgements Supported by the Scientific Grant Agency of the Ministry of Education (Project KEGA No. 032PU-4/2013 on the topic: E-learning application by training of the economic subjects of the study program Management and new accredited study programs at the Faculty of Management University of Presov in Presov). References Beauregard, T. A., Henry, L. C. (2009) Making the link between work-life balance practices and organizational performance. Human Resource Management Review, 19 . pp. 9-22. ISSN 1053-4822 Collings, D. G. (2014) Toward Mature Talent Management. Human Resource Development Quarterly. 25. pp.301-319 Francesco, A. M. , Gold, B. A. (2005): International Organizational Behavior: text, cases, and skills, Second Edition, New Jersey: Pearson Prentice Hall Gimiene, I. (2013). Knowledge management influence on innovation: Theoretical analysis of organizational factors. Proceedings of the European Conference on Knowledge Management, 2, pp. 877-885 Guest, D.E. (2007) Human resources management and industrial relations. Journal of Management Studies. 24, pp. 503-521 Hertel, G. et al. (2005) Managing virtual teams: A review of current empirical research. Human Resource Management Review, 15 . pp. 69-95. ISSN 1053-4822 Horska, E. et al. (2008) Internacionalizacia agropotravinarskych podnikov SR. Nitra: SPU. Chambers, M. S. (2013). An Exploration into the Challenges Facing Practitioners of International Human Resource Management: A Literature Review. International Journal of Business and Social Sciences. 4., pp.21-27 Iseke, A. (2014) The Part-Time Job Satisfaction Puzzle: Different Types of Job Discrepancies and the Moderating Effect of Family Importance. British Journal of Industrial Relations. 52, pp. 445-469 Kapoor, B. (2011) Impact of Globalization on Human Resource Management. Journal of International Management Studies, 6(1), pp.1-8. Kotulic, R. (2009) Migration of labour forces and their impact on the economy of the Slovak Republic. In. Sborník príspevku z vedecke konference – Hradecke ekonomicke dny 2009/I : Ekonomicky rozvoj a management regionu. Hradec Kralove : Gaudeamus, Univerzita Hradec Kralove, 2009, s. 325-330. ISBN 978-80-7041-455-2. Kotulic, R., Adamisin, P. (2012) Economic Effects of the Foreign Direct Investments Management on the Development of Slovak Regions. In: Klimova, V.; Zitek, V. (ed.): Conference proceedings Valtice, Jun 20-22, 2012: 15th International Colloquium on Regional Sciences. Brno: Masarykova univerzita, 2012, pp. 288-295. ISBN 978-80-210-5875-0. Kim, Y. et al (2014). A Strategic Model for Technical Talent Management: A Model Based on a Qualitative Case Study. Performance Improvement Quarterly.26, pp.93-121 Markovic, L. Markovic, A. (2011) New Trends in Human Resources Management. International Journal of Economics & Law, 1 / 2011, pp. 70-77 Silzer, R., Dowell, B. E. (Eds.). (2010). Strategy-driven talent management: A leadership imperative. San Francisco, CA: Jossey-Bass. Slusarczyk, B., Golnik, R. (2014) The Recruitment Process in Transnational Corporations. Polish Journal of Management Studies, vol. 10.1. Society for Human Resources Management. (2012). Challenges facing HR over the next 10 years. Stacho et al. (2013). Organisational arrangement of human resources management in organisations operating in Slovakia and Czech Republic. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, pp. 2787-2799.