Cross-Cultural Training & Support Strategy - Essay Example

International Human Resource Management Table of Contents Introduction 3 Business Strategyand Needs 3 Company Analysis 4 Country Analysis 6 Job Analysis 6 Cross – Cultural Training & Support Strategy 8 Cost Effectiveness 8 Cost Benefit Analysis 9 Conclusion 10 Reference List 10 Introduction International Human resource Management (IHRM) is referred to the new and fast shifting area of generalist and specialist practice. It is a lively as well as growing intellectual subject having relations with various disciplines including international business, economics, communications, strategy, public policy and political science (Harzing and Pinnington, 2014). In the global context management of human resources respond towards a complex and dynamic set of elements. It comprises of policies, practices and activities of attracting, developing, engaging, as well as retaining the workers that a company requires to accomplish its goals. It includes all the management choices that influence the relationship among the organization and the employees. International management of human resources means performing all these actions across countries, traditions, as well as institutional contexts (Thomas and Lazarova, 2013). Cross – cultural training to employees is necessary because it helps them to make quicker adjustments towards foreign cultures and also helps in performing better on the global assignments (Williams, Champion and Hall, 2011). With an increase in the activities of international business, many companies expect their workers to have knowledge of global workplace. Being proficient to complete global business operations includes being sensitive towards customs, religions, business philosophies, history, political structures, language, communication practices and trade laws. International trade states that companies recruit those workers who are actually prepared to be occupied in professions that cross global boarders as well as need them to work and live in other nations (Rasmussen, Mylonas and Beck, 2012). The report aims to provide the company analysis of Barclays Plc along with its business strategy, goals and objectives; importance of its cross-cultural training; as well as its cost benefit analysis. Business Strategy and Needs Business strategy is defined as the spirit of managing with competition. Michael porter (1998) argued that the main purpose of the strategy or plan is to always position the company in such a manner so as to gain from the industry forces as well as take benefit of the limitations in competitors. Mintzberg (1994) defines business strategy as a “pattern” or a “plan”. Business strategy as a pattern put emphasis on the sample of choices that reveals what the company actually realizes or pursues (Langabeer and Napiewocki, 2000). Business strategy in terms of a plan means what the company or an organization aims to do. It may include a plan for acquisitions, financing, launch of new product, human resource management etc (Campbell, Stonehouse and Houston, 2003). Barclays Plc, is the British international financial services and banking company situated in London. It operated in wholesale, investment banking, and retail, and also in wealth management, credit cards and mortgage lending. It has its functions in more than 50 countries and also employs 140,000 people. It is the 7th largest bank around the globe. As a global business banking they have services and tools to assist other business so that they can trade internationally. It has its global presence in America, Europe, Asia, and Africa (Barclays, 2013). The code of conduct of the company outlines the behaviours and values which govern their way of functioning across their business internationally. It comprises a reference point which covers all phases of the working relationships of colleagues with other employees of Barclays, clients and customers, regulators and governments, suppliers, competitors, business partners, as well as the broader society. The goals and objective of Barclays is to describe the way they think, act and work at Barclays in order to ensure they deliver against their purpose of assisting people to accomplish their goal in an exact way (Barclays, 2013). The mission expresses the vital function of the company, in terms of the product & services it produces for its customers. It incorporates purpose, strategies, scope, values and standards, and behaviour of the company. Barclay’s mission is to set a fresh benchmark in the wealth management and to establish trust and confidence needed to assume what is correct for its employees and customers by developing an atmosphere that is actually inclusive. The mission will be attained through fair employee treatment and implementing diversity among the clients and employees (Idealessaywriters, 2014). A year before, they set out the result of their strategic review and their Transform Plan to make the company the “Go-To” bank. Their strategy includes taking steps in the direction of de-risk the company, increasing the effectiveness of their operations, strengthen the income statement and balance sheet, and making better progress against their plan (Barclays, 2013). So, their main approach outlines the corridor to deliver their Transform goal of a continuing return on equity over the cost of equity in an economic environment (Barclays, 2013). The competitor strategies of the company include developing the quality of the customer service through training staff and to offer innovative wealth-management products or services to pull the customers (Rodrigo, 2012). The values offered by the company are: respect, integrity, better service, stewardship, and excellence. In terms of respect, they seek out different perspectives of their employees and put their shared interest in front of any team or individual and seek to enhance the diversity of their organization. In terms of integrity, they act fairly, openly, and ethically in all they do and also accountable for success as well as failure, and not assign blame. In terms of service, they put their customers and clients at the middle of what they do. They create and give solutions for customers and client as well as understand their needs. In terms of excellence Barclays plc use its skills, resources, and energy to bring the best and sustainable result. In terms of stewardship, they are passionate about leaving the things in good position than they actually found them. They pioneer better and innovative ways to carry out things (Barclays, 2013). Company Analysis The environment of the company is defined as the aggregate of events, conditions and influences that affect an organization in the way it is doing things. PESTEL analysis consists of political, social, economical, environmental, technological, and legal factors which affect the business environment of the company (Barth and Wolff, 2009). PESTEL study is done in order to present a broad structure on how the environment forces influence the company and influences the way an organization practices its strategy (Harris and Botten, 2008). It is applied to view the future impact of environmental issues, which may be different from the past impact. Political factor which may affect the company comprises of government attitude, government stability, licensing and quotas, and subsidies and protection. Economic factor consist of Gross Development Product (GDP), inflation and interest rates, economic cycles, currency stability, capital market and forex reserves, and Foreign Direct Investment & Foreign Institutional Investment inflows. Social factor comprises of diversity, population, religious sentiments, literacy levels and language barriers. Technological factors which may affect the company comprises of innovation, patents, obsolescence rate, research & development, and technological convergence. Environmental factors comprises of product design, environmentally preferable purchasing, extended product accountability, carbon credits, waste disposal & emission, and pollution management. Legal factor comprises of employment laws, direct and indirect taxes, product safety and health hazards, patent laws, land acquisition laws, and consumer protection rule. But it is not essential that all factors will have negative impact on the company. Some factors leads to positive impact while some leads to negative impact (Kotler et al, 2009). The PESTEL analysis of Barclays Plc includes: Political Analysis: The sustainability of the company reflects its growing focus on wider environment of business. There is currently a great attentiveness about the international challenges like climate changes, lack of resources, demographic shifting, and poverty. The answers came from different businesses and from government, as well as the not-for-profit organization assisted Barclays to attain its sustainability. Economic Analysis: The approach towards the sustainability program is helpful and also encourages Barclays to be transparent and open to the matter such as conversation with various organizations and the government, and the inventiveness in research & development. Social Analysis: The Company give importance and value to their clients and customers such as understanding and maintaining their needs and also measures the satisfaction of their employees. When the company send the employees for cross-cultural training to other country then they make arrangement for their allowances. They focus on the global performance of their employees which helps to improve the performance of employees. They attract the employees to gather the talent and then develop them accordingly to face the competent world and also retain them for future benefits. Technological Analysis: The Barclays utilizes the technology particularly in the region of broad banking. Their goal is to assist the people to fight against their poverty which would be possible by their financial structure. The technology made feasible to empower the organization as well as to establish an economical advantage. Initiating the new thoughts, adding the operational excellence and skills are the part of guiding standard of organization (Ivythesis, 2010). Country Analysis The Parent Country i.e. the United Kingdom (UK) was initially formed through Acts of merger between Wales and England; and later on by union of Wales, England and Scotland under a sole legislative council. Until the twentieth century, it was among the world’s most influential and wealthiest nations. British mining, transportation technology, manufacturing, legal, parliamentary and banking systems, and advances and scientific discoveries were exported globally. Finance, trade, and manufacturing form the support of the nation. It is the largest industrialized nation with a well-built manufacturing base. Main products include ships and aircraft, machine tools, electronics, motor vehicles, food processing, petroleum, coal and textiles. UK is having the chief trading supremacy across the globe. Chief exports involve food, manufactured goods, fuels and chemicals and chief imports include manufactured goods, food products and fuel. Major trading partners were the United States and the European Union. The notion of the social class is more influential than that of traditions. Each country in the United Kingdom is having its personal courts and judicial system. The National insurance provides unemployment, medical, retirement, and maternity assistances, among others. The standard of living is high in most parts of the United Kingdom. The involvement of women is also increasing in the occupation and employment sector (Everyculture, 2014). Barclays Plc is having its operation in America also. The United States of America is the world’s leading military and economic power, with international interests as well as an unmatched international reach. The gross domestic product of America accounts for nearly a quarter of world total, as well as the military budget is considered to be approximately the rest of defence spending of the world. The United States of America is the main basis of entertainment: Hollywood films, American TV, blues, rap music, and jazz are the main ingredients in international popular culture. The country contains a diverse population. Cultural as well as racial diversity is notable as a centre element of American ideology. The selection of the Barack Obama which is the foremost African-American president marked a crucial moment in the record of race relations. In spite of the relative prosperity, the gap among poor and rich remains a main challenge. Although America acquires leading position in the global stage, its overseas policy actions and aims are expected to stay the topic of debate, as well as praise (Bbc, 2014). The Barclays Plc of America sends their employees abroad for cross-cultural training to improve their performance and also make their arrangement of living for the period of training (Barclays, 2014). Job Analysis Job analysis is considered as a backbone of human resource function, thereby forming the base of all tasks in the well supervised human resource sector (Condrey, 2010). Among the oldest methods of job analysis, one is the utilization of individual or group discussion with executives in order to gather information about their tasks (Jones, Steffy and Bray, 1991). Job analysis could prevent the organization from getting into the legal problems. The company is less susceptible towards legal aspects as compared to functions of human resources such as recruitment and employee selection if analysis of job is used (Hernandez, 2009). Job analysis or job scrutiny is referred as the base of human resource management, because whatever information is collected during the procedure serves most of the HRM function as well as has an effect on every phase of human resource management (Kleynhans, 2006). The main motives behind conducting job scrutiny are as follows: Staffing & Selection: The information which is provided by way of job analysis or investigation plays an important role during the staffing function. It provides a base for pulling qualified applicants (Snell and Bohlander, 2012). Training and Growth: The differences between the ability and skills verified by the job seekers and the desires enclosed in the depictions of their job give indication of what training programme these job seekers need (Snell and Bohlander, 2012). Performance Appraisal method: Job analysis gives the criterion for assessing the employees who are doing their work. By recognizing the differences between good performance and poor performance, it helps the organization to take steps for developing the latter one (Snell and Bohlander, 2012). Management of Compensation: Performing a job investigation is essential because it assist the HR manager to find the relative value of the position; hence, providing reward to workforce is fair and unbiased (Snell and Bohlander, 2012). Legal Compliance: Performing job analysis certifies that the duties of job should match the job description (Snell and Bohlander, 2012). There are several positions needed in the host country i.e. in Barclays Bank of America. Some of them are investment and wealth manager, credit manager, financial planner and financial advisor (Barclays, 2014). The skills required for credit manager are fundamental computer skills, essential accounting fundamentals, good communication skills and customer credit investigation procedures. For investment and wealth manager, the required skills are knowledge of financial markets, analytical skills, trustworthiness and discretion, and excellent focus on the customer service. The skills needed for financial advisor are ability to describe complex information clearly and simply, analytical and research skills, ability to perform in a group, decision-making ability, listening and interpersonal skills, negotiation skills, flexible approach towards work, IT skills, customer service and time managing skills (Prospects, 2014). The skill set for the role of financial planner requires conducting proper research when doing developing strategy and analysis; should establish excellent relationship with clients; should have a potential to analyze information from various sources in order to reach the solution and use of reasoning and logic to judge the weaknesses and strengths of possible courses of action (Fpsb, 2014). Cross – Cultural Training & Support Strategy Cross cultural education/training referred to the process of providing education or training with the aim of increasing organizational and staff skills, knowledge, and behaviours towards cultural responsiveness and cultural competency both in relation to patient safety as well as robust culturally varied workforce (Qld, 2010). It improves understanding of how people vary throughout the globe and of cultural dissimilarities. Inter-cultural training and education actively supports professional growth by way of workshops, conferences, and different publications. It is very essential for today’s global organizations (Alkhafaji, 1994). It is considered to have a great significance for the emigrant process and almost all the organizations give training to all or some of their emigrants (Aycan, Kanungo and Mendonca, 2014). Cross-cultural education/training is important for the Barclays Inc of America because it helps to develop effective communication between the employees. By providing education to employees through intellectual training courses, for example cross cultural communications programmes and team building, the company will be regarded as more competitive and capable in the international market because the intellectual synergy in the place of work grows (Barclays, 2013). Cross cultural education/training is divided in two forms i.e. country/culture specific training and cross cultural or intellectual awareness training. By providing cross cultural/intellectual awareness training to the employees, Barclays Plc can introduce, examine and tackle the various signs of culture within the workplace. It particularly deals with the interpersonal communication. For example, the cross cultural training of team building aim to increase awareness of team members about each other ethnically to foster respect, understanding, and mutual trust, the outcome of which would be apparent communication. It results in more understanding and friendly work environment. The country/culture specific training is aimed at those teams or individuals who frequently visits foreign country and interact with international colleagues or clients. Such training covers various areas for example ethics, morals, values, etiquette, negotiation styles, protocol, and business practices. The main objective is to equip candidates with the essential skills which will help them in building better business relationships (Dhar, 2008). However, one dilemma makes the training and growth for global assignments more difficult than for national coursework. Emigrates has to amend to a fresh role, new culture and also towards a new job. (Harris, 2002). Cost Effectiveness Kirkpatrick’s model is defined as the most frequently used and familiar model for the evaluation of training (Board, 1997). It consists of various levels to resolve the value of training. The various stages are reaction, behaviour, learning and results. Reaction: Information collected at “reaction” level captures attitudes and opinions of participants about the program comprising process, content, facilities and instructors. Information is generally collected during the end of program. Reaction towards programs is frequently utilized as a means to make decisions regarding programs about the distribution of resources. Learning: It evaluates the level of participants learning from the training program. The evaluation of learning is done in two ways i.e. one is paper and pen test and the other is skills test. In the paper and pen test, they have to answer the questions regarding the skills or knowledge they possess and in the skill test they have to present an activity which shows their ability (Board, 1997). Behaviour: It assesses the level to which the behaviours of the employees have truly changed due to the training program. This level of Kirkpatrick’s model examines behaviour normally after 3-6 months of training program in order to decide if transfer does occur. If the transfer takes place the evaluation should also identify the factors that assist transfer. Results: It evaluates the impact of the training process on the company, its main operational metrics as well as results such as, whether the productivity or the satisfaction of the customer has increased (Board, 1997). The cost of training includes unit cost, direct cost, overhead cost and land & building cost. The cost effectiveness of the program can be evaluated on the basis of all these costs. Unit cost includes cost of generating one proficient employee and its effect on wage employment of graduates. Direct costs include materials, wages as well as services received. Overhead costs include maintenance, service and administration costs (Gasskov, 2000). To evaluate the usefulness in safety training program, the company should measure the efficiency of training by way of reduction of lost time and injuries and to evaluate the usefulness of argument resolution training, company should measure the efficiency of training by decreasing the number of grievances and therefore more productivity (Stamatis, 1997). The cost is justified because of the advantage received from training as educated employees add values and bring revenues to the company, through their continuous effort and are equally accountable for the growth and success of the company. Barclays Plc of America should adopt the Kirkpatrick’s model in order to evaluate the cost of training as well as to determine the worth of training. If by providing the cross-cultural training programmes, the performances of employees are improved then the cost of training will be justified. Cost Benefit Analysis Cost-benefit scrutiny is a process for organising the information in order to support assessment about the resource allocation. It provides direction on the proficient resource allocation (Finance, 2006). Barclays enjoys benefit from the low rates of interest. As the rate of interest is cut by the Federal Reserve at which it provides money, now the banks are capable to get access to the cheaper money. Low interest rates permit Barclays to borrow funds with low rate of interest and therefore increase its margins of profit. Moreover, as the short-term rate of interest fall quicker than long-term interest rates, Barclays bank gain from more positive yield curve; necessarily they pay rates of short-term on the deposits of customer and also charge interest rates of long-term on loans, thus making the mixture of low rates of short-term and comparatively higher rates of long-term very favourable for the net interest revenue. Conclusion Cross cultural education/training includes participants learning social and business communication deeds of the people from various cultures. It helps to grow awareness among people where the common cultural structure does not subsist, and also assist in the management of human resources globally. An effective business strategy is required for the growth and expansion of the firm or organization. The strategies of Barclays Plc include developing the quality of the customer service through training staff and to offer innovative wealth-management products or services to pull the customers. They focus on the global performance of their employees which helps to improve the performance of employees. Company analysis is essential to know the affect of economic, political, social, technological, legal and environmental factors influencing the company. Job analysis is equally important because it prevent the organization from getting into the legal problems. Kirkpatrick’s model evaluates the training process and gives result regarding the satisfaction of customers and productivity of the company. Altogether these elements signify the significance of training and the management of the human resources globally. Barclays gain from the low rates of interest. Reference List Alkhafaji, A.F., 1994. Competitive Global Management – Principles and Strategies. Florida: CRC Press. 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