Solvay Group: International Mobility and Managing Expatriates - Case Study Example

? International Mobility and Managing Expatriates International Mobility and Managing Expatriates Introduction Solvay Company is one of the renowned international firms that produce chemicals and plastics. Ernest Solvay formed the company in 1863 for the sole purposes of producing sodium carbonate following the techniques in Solvay process (Verbeke, 2013). Over the years, the company has decided to venture into another production as mentioned above – of chemicals and plastics. In fact, up to 2009 the company was dealing in pharmaceuticals and agreed to sell it to Abbott Labs to concentrate on the chemical and plastic products (Verbeke, 2013). The headquarters of the company is situated in Brussels, Belgium, but it also has several companies in many parts of the world including China, the USA, and others in South and North Americas. As such, the company has to maintain its international reputation and develop a competent workforce that is knowledgeable not just in one company, but in most of the companies. For this reason, the company has based their promotions on the experience that their employees have, for instance, they look into issues such as international experience, departmental experience, and other qualities related to working in different parts of the world. This is the problem that the company is having, the company in their HR policy has to ensure that the employees rotate in at least two of their international companies, but because of reasons that are given by the employees, the company is finding hard to balance their expatriates in terms of the international mobility. Most of the employees give excuses for not being able to go for the assignment when it is in the policy of the company that employees have to go for that program, it is becoming a big challenge for the company to face. Identification of Presenting and Underlying Problems The underlying problem in Solvay Company is the manner in which the issues relating to the four talented leaders of the company will be handled. Marcel Laurnet who is the head of the international mobility is faced with the dilemma of expelling the talented leaders because the company has to keep such people who can propel the business to greater heights. Solvay Company has a policy that provides for the international mobility, in this policy the employees of the company have to visit other international branches, so that they can take with them their expertise while at the same time gain the international experience for their professional growth. The four employees of Solvay have declined the offer to go for the international assignment citing reasons that are personal and that are not provided for by the company’s policy. If Laurnet will choose to expel the leaders, they will not only be paralyzed in their professional growth, but the company will also realize the pinch on their projection towards the effective management and growth of Solvay in the competitive world market (Kim and Mauborgne, 2005). Solvay Company is interested in the development of the leader’s talent through the international mobility, but this seems to be conflicting with the needs of the employees and their personal lives. The company in this case has to find a solution that will be of the best interest of the leaders and the company, the head of the international mobility, Laurnet is faced with the difficult task of making the decision. Description of the HR Issue Solvay Company though their HR resolution decided to bring in seasoned veterans from the business sector in order to achieve high international standards of management in their companies located in several parts of the world. They believed that with the hiring of the experienced professional, Solvay stood a chance of getting having the advantage of being driven by professionals endowed with various insights that could positively influence the functioning of Solvay HR. The company started the international mobility where their leaders would be rotating in their international companies what is dubbed as an ‘assignment’. The assignments take about 2 to 3 years, though the company also provided for the short assignments that took three to six weeks. According to Lorent, Solvay Company has an unspoken policy that is dubbed triple-two rule, this rule the company believes is fundamental in the career development in Solvay, and that every leader of the company has to be subjected to it for promotion and purposes of delivering to the company. The triple-two rule requires the employees, particular the leader to go for the international assignments in which they have to cross at least two Solvay divisions, these have to be in two functions and at least in two countries. According to the HR policy of the company, these are the minimum prerequisite for the company for one to ascend into a senior leadership position. Mignonat who is the general manager of Solvay Peroxide strategy business unit is in concurrence with the policy and reiterates that if he has to give promotion, he will be basing his assessment of the candidates in terms of the international experience. The company, through Lorent, ascertains that they will certainly block any promotion that is not blended with the international experience because that is the mentality of the board that governs Solvay. Implication of the HR Issue to Strategic Thinking The issue of the company’s HR policy of the international experience is not unique or outrageous. The company will be looked into the light of international perspectives; the company exists in different countries that are faced with different challenges. Without the international experience as insisted by the company it will be very difficult for their employees at the senior managerial positions to cope with the demands and challenges that are likely to be presented by different countries. It will be noted that in the strategic planning for companies using PESTLE analysis, there are a number of factors that are unique to every country and without much experience on how the international market adjust and varies (Solimano, 2008). The leaders of the company will not be endowed with the much-needed knowledge to understand the dynamics fully that relates to the business Solvay Company is involved. The company’s strong opinion of the international experience then comes in handy due to the fact that such an experience will give the leaders an opportunity to critically manage the international branches of Solvay company by knowing the political challenges, say, for example, in North America, Africa, and China. It is also important for the leaders of the company to be knowledgeable about the economic implication of the nation to the company, the availability of human resources and so on. With the international experience, the leaders of the company will also have a chance for a comparative analysis and will bring in the expertise or learn new skills, if blended, Solvay Company will be in a position to experience a rapid growth and will favorably compete with the competitors in the market. The company has come to terms with the requirement of a competent employee system; they want those employees who are innovative, experienced, and effective in discharge of duties. This is only possible with the proposed system of acquiring an experience. Key Stakeholders and Their Relationship to the Issue The key stakeholders of this issue that sees employees moving from one country to the next are the head of the international mobility who is Marcel Laurnet, HR managers of the various international companies, and senior managers in the company. All the stakeholders of this issue are for it, and all are convinced that the international experience is of essence not only to the company effectiveness, but also for the professional experience of their employees. In fact, all the stakeholders hold the same opinion so dearly, that they cannot be convinced otherwise-they say the international experience is the mentality of the board before any promotion is given to anybody. For instance, the head of the international mobility, Laurnet and Lorent say that they will be considering first among the very many qualities, with the international experience first before they propose one for senior management position. It is, thus, a very important policy for the company, as they strongly believe that is the only way they can deliver some change in terms of their management. The company has developed the issues so strongly that it has become the culture of the organization, the organization has got acclimatized to the requisites of the policy that every employee knows best that for promotions to certain levels the company has set some irrevocable standards. For instance, the company had about 300 expats in 2008 with about 50 of them being non-Europeans; typically, the company has about 80 to 100 expats yearly following the policy that was established by the company (Luthans, Doh and Hodgetts, 2012). Like in every organization, there has to be some culture, this is the culture in Solvay Company, and no one amongst the stakeholders reneges on its assertion. It is the only way through which employees are believed to enhance their viability and productivity to the company. How to Address the Challenges The fact faced by the company is the reluctance of the candidates to show up for the expat program, and in most cases when they are scheduled for it, they have to turn and give excuses. The four candidates here are just a case study of what the company is going through in their endeavors to implement the program that they believe is beneficial both to the employees and to the company in an equal measure. For instance, Ponte who was scheduled for China from Italy is reluctant to take the offer citing that he cares for his mother who will have to remain alone in Italy. The second candidate, Marion has an extensive experience, and with his return to Brussels he will see not any important position that is equal to his vast experience, he is, therefore, expected to stay in North America where he is currently working for the company (Luthans, Doh and Hodgetts, 2012). The third candidate has a wife who cannot practice medics in Europe, so he has to return to Brazil, South America where the wife can be substantially engaged in employment. Finally, the fourth candidate has to be confirmed for his qualifications before he is considered for the international experience, as it is the policy of the company. Following the case studies, it will be found that the assignment program is faced with several challenges that have to be harmonized before it is considered for action. Firstly, the company should have clear policies that define the qualification for an employee to be considered for the exercise. This will ensure that the candidates to be considered for the assignment are determined through the set standards and will avoid presenting a candidate who is not qualified. This method will be time saving as it will ensure that only those candidates who have met the standards set are given the priority. Secondly, the company should let the receiving company to be the one that identifies the person to take from a pool of those who will be proposed for the assignment (Cullen and Parboteeah, 2011). This is important because they are the ones who know possible qualifications that they want form the candidates, doing so the company will not have problems with the rejection of proposed candidates as it has been seen in the above case. The implication of this measure is that it will allow a smooth selection of the candidates without any complain from any quarter within the company’s branches. As for the personal family matters, the company should also develop a cover through which an employee going for the assignment is entitled to receive. For instance, the first candidate had issues with the well-being of the mother; the company in this case should extend support to the candidate to allow him/her to have the opportunity of attending the assignment without hindrances. This kind of consideration will act as a motivating factor for the candidates selected for the assignment, and they will endeavor to consider the assignment despite the family issues. This will increase the company’s expenses for their policy to train the staff, but because the return on investment is greater for the company, it will be a worthy course to consider. Establishing of Commitment The stakeholders of this program need to come up with a commitment that will make all the employees remain loyal to the policy, and that there will be no excuse from the employees to avoid the international experience initiative. As the company foots the bills during the employee’s period in the international assignment, through the management this company should develop a system that provides the commitment of the employees during the contract period. In addition, the employees should be made to confirm in the contract letter that a part of the company’s requirement is to develop one’s professional career; this is developed through an extensive and thorough research that is only possible through the international assignment (Solimano, 2008). Failure by the employees to show up for the assignment will result into the employees paying off the full package that will be required to enable another person who will be taken to fully take care of the international assignment. This level of commitment will make those without a genuine reason to be reluctant in turning down the international assignment. Most of the cases that are seen are not based on any concrete reason, if the company compels the employees to this extent, they will obviously see the seriousness of the matter and take responsibility. While doing the same, the company should ensure that following the international human resource practices it will ensure that the employees do not misconstrue the move as a punishment, but as means which is meant to advance their course. When designing a commitment of the employees it is important to look into the counter consequences from the employees, can the move bring them some disillusion? Is it sustainable and productive for the company ultimately? These fundamental questions must be considered by the company in order to ensure that they do not face rebellion from the employees following their decision on the international assignment. Conclusion Solvay is an international company that operates in many countries; it desires to have the employees rotate internationally for the purpose of gaining an actual experience. The company has a right to design policies that govern it and expect that everyone will adhere to the policy, as such; the employees are also expected to yield to the opportunity that is offered by the company for their good as well as that of the company. One important thing that the company Solvay now needs to work on is culture development. If the company can decide to develop a strong culture that makes the employees appreciate the policy, they are likely to face few rebellions from the employees over the issue. Employees are a product of what they find going on in the company, they will respect the policies of the company depending on how others, particularly their seniors take them seriously. In this regards, the company should endeavor to develop a strong culture in the company where everybody is expecting to pass the international assignment for the further experience. All the employees should at all-time be prepared to go for the assignment, and if the time is not yet rife, they should be aware that it is just the question of time when they will be going for the assignment. This strong culture will be the remedy for complacency that is being experienced by the employees today in the company. Apart from that, the company should also organize the employees’ motivation and rewards for those who complete their international assignment and return for further activities. Therefore, there will be no employees who want to be given a pat on the back, and this will motivate most of the employees to go for the international assignment, and as a result, most of them will be jostling for spaces over the assignment. References Cullen, J. B., & Parboteeah, P. (2011). Multinational management: A strategic approach (5th ed.). Mason, OH : South-Western Cengage Learning. Kim, W. C., & Mauborgne, R. (2005). Blue ocean strategy: How to create uncontested market space and make the competition irrelevant. Boston: Harvard Business School Press. Luthans, F., Doh, J. P., & Hodgetts, R. M. (2012). International management: Culture, strategy, and behavior (8th ed.). New York: McGraw-Hill. Solimano, A. (2008). The international mobility of talent: Types, causes, and development impact. Oxford: Oxford University Press. Verbeke, A. (2013). International business strategy: Rethinking the foundations of global corporate success. (2nd ed.). Cambridge: Cambridge University Press. 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