Evaluation of HRM Practice Adopted - Essay Example

Question The first question says: Mike Ansell has asked Helen Reeves to head up the new Turkish operation and he has suggested to her that this subsidiary should have the same organisational and people management systems and practices as those successfully operated by VC in Canada and England. Evaluate Mike’s proposal and advise Helen as to how she should proceed. Introduction The present paper wishes to present some of the issues that are involved in setting up an offshore facility in Turkey that has the same organisational management systems and practices. It is necessary that the management of Vancouver Communications be strongly aware of these issues to be able to deploy the appropriate, qualified personnel for critical offshore assignments. Main Body One of the key issues that ought to be considered in setting up such a facility and in the recruitment and selection of expatriates is their capacity to adjust effectually to the role. This means that they should be willing and able to learn about the pecualirities of the culture to which they would be deployed, including the traits of power distance, masculinity, human orientation, achievement, and future orientation. Another issue is their willingness to undergo expatriation training. Their mother companies and satellite offices ought to provide the infrastructure for such training but the candidates for expatriation must have the unique task and people skills that will make them effective in their offshore assignments. Expatriate candidates must also adjust effectively to their new living conditions, and learn as much as they can about the new norms. They should be willing to undergo cultural training programs. The expatriate candidate should be highly trainable; through pre-departure training programs, they should be immediately be adept at the nuances of their new environment and culture. Finally, they should be able to blend well with a cross-cultural team, and depending on their role even spearhead the building of teams in a global context. Based on a past research by Kabasakal and Bodur (1997), some cultures are characterised by a strong slant towards collectivism and both societal and organisational levels. It may perhaps be useful for the multinational company to initially analyse the culture to which they would assign managers in terms of power distance, masculinity, human orientation, achievement, and future orientation (Hofstede 1983). It may also look into the business culture’s commitment and sense of duty to the organisation, respect for managerial hierarchy, type of leadership, and other ethical norms. Armed with such knowledge, expatriates can definitely influence the expectations of its expatriates and help in their adjustment to the new work environment (Hofstede 1983). The research of Mendenhall and Oddou (1985) indicate that adjustment to the cross-cultural facets of a global assignment requires three distinct personal abilities, as follows: 1) the capacity to sustain a valued sense of self; 2) the ability to associate to host nationals; 3) the ability to intellectually appreciate the belief systems that underpin behaviours in the host country. If expatriates will be oriented with these traits, it would have been easier for them to adjust because their expectations were more effectively managed (Black 1990b; Mendenhall & Oddou 1985). If they possessed such traits, it would have been more probable for them to adjust easily in their offshore assignment. In a related vein, the multinational company is obliged to help select those individuals with these ideal traits for expatriation assignments. However, while the organisation may try its best to send ideal candidates, they are frequently unavailable – thus, tradeoffs and compromises may be needed. Expatriates ought to try their best to find out what makes their foreign counterparts ‘tick’. They could start with learning the basics of the culture, norms, beliefs, and customs. They should also take every chance to interface with their colleagues to facilitate this socio-cultural adjustment process. While empirical evidence is not conclusive, it may be worthwhile to consider that an expatriate’s expectations regarding his return assignment is associated to his in-country adjustment. Naumann (1992) and Selmer (1995) suggest a serious consideration of career implications and repatriation concerns in expatriate training programs. Multinational companies should clarify to its expatriates the premium of the assignment to the individual’s career and explain his career alternatives afterwards. There ought to be a reconciliation of whether such an assignment is aligned to the person’s overall career goals. If managers perceive that their global assignment is the beginning of a critical part of their career they may be highly motivated and may throw themselves more wholeheartedly into their new role. These managers may seek out contact with local nationals as well as take initiative to enhance performance. There are several reasons for mergers or joint ventures’ failures. Following an analysis of the 700 most expensive global deals from 1996 to 1998 and interviewing 107 executives from these organisations, KPMG suggests the following golden rules for successful integration. Directors must let themselves out of the boardroom. Expatriates must have hands-on leadership and a strong results orientation. They ought to clear their calendars and allot time for everything such as meetings, visits to partner facilities, to simply having time to reflect through their interactions. In addition, they must clarify with local managers that the combination process is being prioritised and that this entails their own time and concentration. It is crucial for the expatriate to be actively engaged in the integration. They ought to lead from the front, project themselves as very approachable to new staff and actively involve themselves in the joint venture (Marks 1997). Establish a clear direction for the new business. Feelings of uncertainty regarding the joint venture to which the expatriate was assigned may be resolved by clarifying one’s goals. The expatriate ought to have a serious discussion with local executives on the future vision values, goals, and policies of the joint venture. There should also be a premium placed on improving shareholder value in crafting the new vision. Moreover, the executive team of the company being acquired and the expatriate should concur about the vision and the strategy for the new entity. Consequently, this may be cascaded clearly to the whole company (Marks 1997). Clarify the cultural, emotional and political issues. The expatriate must be able to exhibit a gut-level comprehension of what it is like to be an employee during the joint venture combination process. If he is successful in doing so, people may be more willing to let go of their existing attitudes and the ways they were accustomed to, and to accept novel ones consistent with his vision. He must then be constantly aware of the concerns of employees. This means trying to empathise with them, which may only be possible by spending a considerable amount of time with them, across levels and departments (Marks 1997). Optimise involvement. The most potent way to solicit support for change is by optimising employee involvement in the consultation process. While strong leadership is critical for effective integration, the necessity of cascading involvement into the process is as equally important. If the expatriate utilises a top-down approach coming from only a limited number of people, this is likely to result in weak buy-in and impact on change process. The engagement of a majority will allow synergy, generate momentum, and determine problem areas early on. The integration team of two companies should be composed of staff who have credibility and influence within the organisation (Appelbaum et al. 2000). Emphasise communication. The expatriate assigned to a merger or an acquisition ought to give clear, aligned and accurate data – this will enhance the coping of employees, and ultimately translate to increased productivity. He must also encourage transparency in all communication channels. Corporate culture, although extremely resistant to change, can indeed be changed with an optimal communication plan established. Such a plan ought to share the following to employees: The shared vision for the new company. The nature and development of the joint venture and the anticipated benefits. Results and rough timescales for future decisions (Rifkin 1997). Ensure clarity around roles and decision lines. A quick transition can vent energy and decrease the likelihood of stressful periods which can hamper productivity. To retain critical staff, management has to expedite decisions about the new structure, and the accompanying roles and skill gaps. The expatriate and the local executive team should exercise transparency throughout the whole process, clarity about the new roles, and prompt communication of decisions. It is critical that clear decision making process be formed, based on empirical information and analysis. This also assists in funneling all key decisions through clear lines of authority and evading unnecessary bottlenecks at the most senior level (The Manager Mentor 2002). Be customer centric. To maintain the confidence of customers, the expatriate and the local executive team ought to share future product strategy maps with the customer. This must be done as soon as possible to assure the customer and make him feel secure about his purchasing decisions (Simpson 2000). Be flexible. Integration is fine, but to become a market leader after such an integration or joint venture necessitates a synergy of strengths. In some instances, the cultures may be very distinct that a merger or joint venture may not be the most logical and sensible approach (Emerge International 2002). The acquiring company must also be keen at preserving the intangibles that made the company being acquired a good player within its niche. (Kaplan 2001). Conclusion In conclusion, setting up up a facility in Turkey needs insightful assessment from the top honchos of Vancouver Communications. What may be considered best practices in the England facility may not work well in the new offshore office, because of distinct cultural norms, which Vancouver Communications must seriously consider. Moreover, it should invest in the selection and training of managers who will be expatriated to set up the new facility, and accord them with the necessary training support for them to be effective in their roles. Question #2 The second question aims to assess the problems and issues facing VC in the management and support of its expatriates. This is meant to give advice to Tony Rossini as to what he should do to minimise the incidence and impact of these problems and issues. Introduction Some of the more pertinent issues that Tony has gathered from the survey is expatriates’ perceptions of inequity in terms of compensation packages. Tony may be able to help by examining the wage stucture of Vancouver Communications and ensuring that they are perceived as equitable. One other initiative that Tony may carry out is post-arrival expatriate training, which is quite similar to pre-departure expatriate training. The following literature shows the value of pre-departure training. The same training program may be ran for Vancouver expatriates, but from a slightly different perspective: that is, being re-oriented into their own country which is Canada. Main Body Multinational companies ought to ensure that training programs are given to candidates for expatriation to facilitate their adjustment to amenities, overall living conditions, and social norms. For example, cultural diversity training programs and learning sessions concentrating on values, habits, beliefs, religion and language of the locals must be part of the preparation of expatriates. These will help them undergo the indoctrination period more easily and quickly. In this context, expatriates should also be keenly aware of the particular facets of life in the local country. If expatriates that their families are made aware of these information and their expectations well managed, then unwelcome surprises may be avoided (Cavusgil et al. 1992; Marlin et al. 1995; Tung 1982). Expatriates may feel alienated in adjusting to the new conditions at the new company and perhaps in the new country, in general. They may wish to maintain their self identity and their cultural norms more than ever. While this seems ordinary, such emotions may also cause the adjustment process to be even more difficult. Thus, to counter such tendency for isolation and expedite adjustment to social life in the country, it may be necessary to accord them culturally enriching venues for the expatriates (Marlin et al 1995). The mother company may consider setting up recreational and entertainment activities such as sight seeing time, sports events, company picnics and the like. These are opportunities for the expatriates to interact socially with their local counterparts. These interactions outside of the work setting may allow more positive attitudes to emerge between the two nationalities and prepare the foundation for building mutual trust and cohesiveness at work. If the expatriates will minimise their social interface with the locals, and concentrate solely on work-related tasks, they risk being out of touch with local ways, the accepted manner of doing things, isolations, and perhaps even organisational insignificance. This is because in most countries, being an “in” team member necessitates team interaction beyond work – which is deemed effectual (Cavusgil et al. 1992; Marlin et al. 1995; Tung 1982). Apart from structured social activities, building national sponsorship programs may also be beneficial in easing the socio-cultural adjustment of expatriates. Sponsorship programs could particularly be useful if the sponsoring family’s characteristics match that of the expatriate family in terms of the age and gender of the children, for instance (Cavusgil et al. 1992; Marlin et al. 1995; Tung 1982). Multinational companies may also consider pre-departure training on the local business environment and its culture. This will certainly help them to better prepare about what to expect and expedite their adjustment period. On their part, the receiving companuy may consider establishing a mentorship program for these expatriates. The delegation of a senior executive from the offshore company to act as a mentor will not only assist the expatriate in gaining a profound understanding of local business culture but may also influence others in accepting them more readily since they are under the mentorship of a figurehead. The receiving office should also be keen about learning the practices of their counterparts from the head office. Companies which have proven themselves effective at assimilating non-natives into their fold accord training not only for their expatriate managers but also for their local supervisors (John & Roberts 1996). For international organisations like Vancouver Communications, there is an impending necessity to get groups of managers from various nationalities to collaborate either as long lasting management teams or to resource specific projects resolving critical business issues. Numerous organisations have found that bringing such groups of managers together can be difficult and performance is not always at the level necessary or expected. The expatriate must 1) consider the nature and influence of national cultural differences, and 2) value diversity; and 3) build cultural understanding and awareness. The nature and influence of national cultural differences. It is helpful to determine a clear framework for comprehending and analysing cultural differences. One such theoretical framework has been developed by Hofstede (1983). In his original work, he determined four key dimensions which influence national cultural differences. These are: Individualism/collectivism: This aspect reflects the degree to which individuals value self-determination instead of their behaviour being determined by the collective will of a group or organisation. Power-distance: At the core of this dimension lies the question of participation in decision making. In low power-distance cultures, employees seek involvement and have a desire for a participative management style. At the other end of this continuum, employees tend to work and behave in a specific way because they recognise that they will be directed to do so by management. Uncertainty avoidance: This facet is involved with employees’ tolerance of ambiguity or uncertainty in their working environment. In cultures which have a high uncertainty avoidance, employees will look for clearly defined, formal rules and conventions governing their behaviour. Masculinity/femininity: This is perhaps the most difficult dimension to use in an organisational context. In reality, the hardship is more to do with terminology and linguistics, in Hofstede’s work the dimension related to values. In highly “masculine cultures” dominant values relate to assertiveness and material acquisition. In highly “feminine cultures” values emphasise on relationships among people, concern for others and quality of life. The results of Hofstede’s research are frequently borne out and reinforced by the practical experience of multinationals seeking to deploy international HR policies. Higgs and Phelps (1990) undertook research into Japanese financial organisations operating in UK markets and their findings showed evidence of practical experience which was explicable in terms of Hofstede’s framework. In practice this has significant implications for the development of global management teams. Using this framework, it is possible for the expatriate to identify differences in responses to management styles, organisational preferences and motivation patterns. There are some distinct differences which can impact on the way in which managers from different cultures may behave and perform in a team. For instance, for uncertainty avoidance, it may be seen that a UK member (low uncertainty avoidance) and Japanese member (high uncertainty avoidance) of a management team would have significant differences in their initial perceptions and expectations of both team purposes and processes. From this brief illustration it is, hopefully, apparent that in order to build effective international management teams it is necessary to create an environment which both recognises and values cultural diversity and tries to acquire cultural awareness and sensitivity. Valuing diversity. Frequently, multinationals see the cultural diversity within their operations as an area of difficulty rather than as an opportunity to build competitive advantage. This point is well illustrated by an exercise in the early 1980s carried out by Laurent and Adler (n.d.). Global executives attending management seminars in France were asked to list the advantages and disadvantages of cultural diversity for their organisations. All of the participants were able to determine disadvantages less than 30 per cent could determine any advantage. Usually, comprehending the nature and value of cultural diversity is not well ingrained within an organisation’s thinking and practice. In several ways thinking in this area has not been cultivated aligned with the trend of globalisation (Houlder, n.d.). It may well be that effective performance of international management teams has as much to do with the values of multinationals as with the development processes. Adler (1983) lends evidence for this in her analysis of organisational strategies for the management of cultural diversity. However, it is critical not only to comprehend the distinctions between cultures. It is also important to determine the potential advantages and disadvantages that will probably be brought to a team by managers of different cultures. Building cultural understanding and awareness. Hofstede (1983) submitted a general framework for developing competencies for cross-cultural operations, as follows: building awareness of culture and cultural differences; developing knowledge of the impact of cultural differences and of the of the relative strengths and weaknesses of different cultures in a managerial setting; and building skills in identifying the impact of different cultural settings for managerial problems adapting behaviours to achieve effective results in different cultural settings. More specifically, the expatriate may concentrate on the following in aspiring to have an effective global, cross cultural team: Develop cohesion and consistency in teamworking; Establish a shared and compelling vision and understanding; Ensure quality dialogue among local members; Develop feedback mechanisms to review and enhance team processes (Kakabadse & Myers 1994). mm In conclusion, Vancouver Communications must be very sensitive and responsive to the needs of their expatriates and be able to address these concretely through programmes targeted at expatriate adjustment. There should also be HR programmes which will respond to the sense of inequity felt by some VC managers with regards to compensation. The latter is a very critical issue since compensation – or the equity with which it is perceived – is an important retention factor. References Adler, N.J., 1983. Organisational development in a multicultural environment. Journal of Applied Behavioural Science, pp. 19(3). 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Leadership, values and institutions: the case of Turkey. Global Leadership and Organisational Behaviour Effectiveness Project. Philadelphia: Wharton Business School Kakabadse, A. and Myers, A., 1994. Qualities of top management: Comparison of European manufacturers. Cranfield: Cranfield School of Management Paper. Laurent, A. and Adler, N.J., n.d. Cultural synergy survey. European Institute of Business Administration: Managerial Skills for International Business. (The) Manager Mentor, 2002. Post-merger integration. www.themanagermentor.com. Kaplan, N., 2001. Assimilate, integrate, or leave alone. Journal of Business Strategy, No. January/February. Marks, M.L., 1997. Consulting in mergers and acquisition. Journal of Organisational Change Management, 10 (3), pp. 267-79. Marlin, M.R. et al., 1995. The need for local agencies to provide expatriate support programs. The International Executive, 37(1), pp. 81-9. Mendenhall, M. and Oddou, G., 1985. The dimensions of expatriate acculturation: A review. Academy of Management Review, 10(1), pp. 39-47. Naumann, E., 1992. A conceptual model of expatriate turnover. Journal of International Business Studies, 23(3), 499-531. Nguyen, H. and Kleiner, B., 2003. The effective management of mergers. Leadership and Organisation Development Journal, 24 (8), 447-454. Rifkin, G., 1997. Growth by acquisition: the case of Cisco Systems. Strategy + Business, No. second quarter, 4-12. Selmer, J., 1995. Conclusions: new ideas for international management. In J. Selmer, ed. Expatriate management: New ideas for international business. Westport, CT: Quorum Books. Simpson, C., 2000. Integration framework: supporting successful mergers. Mergers and Acquisition in Canada, 12(10), p. 3. Trompenaars, F., 1993. Riding the Waves of Culture: Understanding Cultural Diversity in Business. London: Economist Books. Tung, R.L., 1982. Selection and training procedures of US, European, and Japanese multinationals. 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