HRM Issue Confounding Global Organizations - Research Paper Example

A Critical Analysis on ‘Jaguar tells managers relocate to China or risk promotion’ Table of Contents Case Background 2 Three Important HR Issues 2 1.International Employees Resourcing 3 2.Resistance 5 3.Managing Cultural Diversity in Multinational Organisations 7 Recommendations to HR Professionals 9 Conclusion 10 Reference List 10 Case Background The article entitled ‘Jaguar tells managers relocate to China or risk promotion’, written by Peacock and published in The Telegraph on November 16, 2010 presents a contemporary human resources management (HRM) issue confounding global organizations. Peacock (2010) proffered concerns voiced by Des Thurlby, human resources director of Jaguar Land Rover, a “a world-renowned manufacturer of premium 4x4s based in the United Kingdom” (Tata Motors: Homepage, n.d., p. 1), regarding the eminent need to persuade potential talented managers to relocate in emerging markets, particularly China. As a decision strategy, Thurlby was reported to indicate that “those who refused had less chance of being shortlisted for a future top job at the company” (Peacock, 2010, par. 1). In this regard, the essay aims to address the following objectives, to wit: (1) to identify three important HR issues that are raised by this scenario (from the article); (2) to review and summarize the most pertinent research evidence and contemporary thinking relating to these issues; and (3) to set out clear and concise research-based advice to HR professionals who face similar situations. Specifically, the above mentioned objectives would be tackled using the topics on international employees resourcing, resistance and managing cultural diversity in multinational organizations. Three Important HR Issues The article written by Peacock (2010) proffered three contemporary and critical issues that face global organizations: international employees resourcing, resistance and managing cultural diversity in multinational organizations. These issues would be discussed in greater detail, as follows: 1. International Employees Resourcing The distinct characteristics of an international manager, known as an expatriate manager has been noted by Schneder and Barsoux (2003) as “a new type of cosmopolitan, multilingual, multifaceted executive who is operational across national borders (somewhat like James Bond)” (Schneider and Barsoux, 2003, p. 185). The plight and challenges experienced by expatriates are closely evaluated by Pires, Stanton & Ostenfeld (2006) in their discourse that aimed to provide guidelines to improve the adjustments and effectiveness of expatriates’ movement to ethnically diverse environments. Jordan & Cartwright (1998) depicted the most apt key traits and competencies that organizations should be aware of in selecting expatriate managers. Further, expatriation was seen as a promoter of change and an interrupter of status quo (Glanz & van der Sluis, 2001) that options need to be determined by organizations in terms of establishing a career plan to encourage the expatriate’s decision to move and determining options for the expatriates’ spouses. The Business Dictionary (2011) defines an expatriate as “a person who has citizenship in at least one country, but who is living in another country. Most expatriates only stay in the foreign country for a certain period of time, and plan to return to their home country eventually, although there are some who never return to their country of citizenship” (par. 1). In the case of Jaguar, the HR director specifically stated that the potential expatriate manager would be relocated to China on a three-year assignment. Concurrently, “those with partners, or children in schools, were often put off the upheaval of moving abroad” (Peacock, 2010, par. 2). The apprehension from the points of views of potential expatriate managers could be analyzed in terms of the potential problems identified as follows: (1) unprepared and ill-equipped to conform to the demands of a new environment; (2) failure to understand the language and culture; (3) inability to communicate; (4) deemed ineffective in applying professional and technical skills; and (5) fear of feeling disillusioned and burn out apparently from premature repatriation. Further, the decision, especially of managers with spouse and children, are more challenging given the options that should be discussed: the leave the family behind or to take them along. Taking them along would entail more decisions in terms of career plans for the spouse and education opportunities for the children. The findings of Glanz & van der Sluis opened alternatives for organizations to take into account the possibility of employing the spouse “with appropriate skills within its own domain” (Granz & van de Sluis, 2011, p. 174) with caution as the option would have repercussions in terms of other employees’ reaction and response to the strategy. As for the potential expatriate candidates, the key traits cited by Jordan & Cartwright (1998) from the study of Heller (1980) explicitly stated the following: “a flexible personality, with broad intellectual horizons, attitudinal values of cultural empathy, general friendliness, patience and prudence, impeccable educational and professional (or technical) credentials – all topped off with immaculate health, creative resourcefulness, and respect for peers. If the family is equally well endowed, all the better” (Heller, 1980; cited by Jordan & Cartwright, 1998, p. 89). The characteristics and qualifying traits indicated by Heller (1980) are all encompassing and comprehensive to define the competencies for the job. If the potential expatriate manager possesses the identified traits, organizations would be assured that the responsibilities expected from the job would be appropriately accomplished and attained, with limited risks and possibilities for failure. 2. Resistance In interacting with the environment, organizations tend to achieve internal equilibrium over a period of time. This means that people and groups know what to do and they know what to expect. People have become accustomed to doing things they way they have done before. Organizational change threatens stability, continuity and predictability. Change constitutes a discontinuity that rattles the existing equilibrium. Wherever change threatens a group, the group responds to oppose it and to maintain the kind of equilibrium it has been used to. In Jaguar’s case, potential managers who could be expatriated to China, the employees have settled down and become habituated to certain conditions, particularly in Warwickshire. Any proposal to move to an emerging market, or in China, as the case detailed, is possible met with resistance because there is an eminent threat to destabilize status quo. The foreseen change and the need to adapt and adjust to a new environment threaten people’s needs for security, social relationships and status. It upsets existing patterns of relationships, both professional and personal. The situation forces potential expatriate managers to confront uncertainty and unpredictability. Rather than venture into the unknown and unpredictable, most people seek comfort in what is familiar and routine. As emphasized by Martires & Fule (2004), the resistance of people to change can have four different bases: rational, emotional, social and political. Rational objections result from a logical appraisal of the merits and demerits of change. These include time and cost considerations. Resistance can also be based on emotions. Feelings and attitudes toward the change, the change agent, and others involved in the change process condition the response. Likewise, objections can be based on social factors. Here, group forces and the desire to maintain relationships operate to sustain the status quo. Finally, change can be rejected due to political considerations. On this basis, there is a desire to preserve existing power relationships. Kotter & Schlesinger (1979) indicated that there are four forms of resistance: parochial self-interest; misunderstanding and lack of trust; different assessments; and low tolerance for change. More importantly, there are methods and approaches that were clearly identified to deal with resistance to change that range from education with communication, participation with involvement, facilitation and support, negotiation and agreement, manipulation, and coercion (Kotter & Schlesinger, 2008, p. 135). As seen in reference to Jaguar, resistance to change is foreseen to be met by potential expatriate managers from rational, emotional and social bases. Rational considerations would always employ costs associated to expatriation, especially if the option of taking along one’s family is being considered. Emotions could prevent opting to migrate to China when the spouse, particularly, would oppose the move. Social resistance comes in terms of peer groups or colleagues who could either support or present barriers to the perceived promotion. Kotter (2007) examined the reasons why organizations fail when instituting change, by enumerating eight errors, to wit: “(1) not establishing a sense of urgency; (2) failure to create a powerful guiding coalition; (3) lack of vision; (4) failure to communicate the vision; (5) failure to remove obstacles to the vision; (6) lack of strategies to systematically create short term wins; (7) declaring victory too soon; and (8) failure to anchor changes in the organization’s culture” (Kotter, 2007, pp. 97 – 103). In this regard, Jaguar could employ crucial steps in transformations to enjoin and encourage potential expatriation of managers through addressing these errors. As revealed by Peacock (2010), “some line managers of the brightest individuals were reluctant to let their best workers relocate abroad for three years” (par. 6). In this regard, Thurlby, the HR director of Jaguar, must determine the root cause for the apprehension and the need to revise the strategy from issuing a perceived warning or threat that those who would not participate could compromise their chances of gaining top managerial positions in the future, to a more positive statement that would motivate and encourage more talents to transfer to China. 3. Managing Cultural Diversity in Multinational Organisations Managers have to direct more time, money and effort to increase workers’ willingness to take even not so desirable jobs or to work in diverse and ambiguous conditions and environments. Organizations should not only be task and technology organized, goal focused but also people and culture oriented. At the most general level, managerial behavior is influenced and affected by the culture in which each manager operates. The growing importance of globalization creates the need to understand the cultural differences in diverse regions and countries. As manifested in Jaguar’s case, the apprehension of potential expatriate managers is highly based on the uncertainties and unfamiliarity with the Chinese culture. Potter (1989) has examined culture through different definitions gathered from secondary sources and aimed to determine its influence on organizational change. Grugulis and Wilkinson (2001) proffered the experience of British Airways on the subject of culture change. Hofstede (1980) defined culture as “…the collective mental programming of the people in the environment” (cited by Potter, 1989, p. 18). In another discourse, Jocano (1990) explains culture as the people’s “commonly shared ways of thinking, believing and doing things” (p. IX). Cobb (2000) expounded on the problems faced by expatriate managers with regard to both cultural and ethical issues of countries outside their host organizations. Among the critical problems cited are ethnocentrism (the belief that ones culture is superior to all others); a three-way conflict of cultural and ethical values (managers who are neither from the host nor home country is assigned to work in the host country); and lack of training to adapt and adjust to the cultures of the host country. Cobb cited the study conducted by Hofstede (1980) that used four cultural dimensions to explain how and why people from various cultures behave as they do. As indicate, “Hofstede used survey results from people in 70 different countries and developed four dimensions: power distance, uncertainty avoidance, individualism, and masculinity. The first, power distance, means that less powerful members of a group accept that power is not distributed evenly. Uncertainty avoidance relates to the extent that people are threatened by ambiguous situations. Individualism is the tendency of people to take care of themselves and their immediate family, as opposed to collectivism where people form groups and the group takes care of its members. Masculinity has as its dominant features success, money and things, as opposed to femininity where caring for others and the quality of life dominate” (Cobb, 2000, p. 9). Pheng and Yuquan (2002) further explored the study of Hofstede’s cultural dimensions as it applied to construction projects. These dimensions would enhance awareness of potential expatriate managers in Jaguar, as well as the knowledge of the HR director, to take into consideration in training them for movement to China. The experience of United Way emphasized the need to incorporate managing cultural diversity in its organizational principles. The importance that the firm accords to diversity is manifested in this statement, to wit: “to value diversity is to respect and appreciate race, religion, skin color, gender, nationality, sexual orientation, gender identity, physical abilities, age, parental status, work and behavioral styles and the perspectives of each individual shaped by their nation and experiences” (United Way, 2006, par. 2). Johnnetta B. Cole, Chairwoman of United Way of America believes that “were going to have a much richer world when each of us is involved in a diversity of ways of being human” (AAA, 2006, p. 1). Application of the same principles and philosophies at Jaguar would greatly enhance the need to increase training in managing cultural diversity to encourage participation in the expatriation program. Recommendations to HR Professionals Based on the review of literature on the three relevant issues that face Jaguar, specifically that of addressing the apprehensions of potential expatriate managers to three-year stints at China, the most viable alternative courses of action is as follows: 1. To determine the root cause for the fears or anxieties of managers in Jaguar for potential expatriation to China, or to other countries, for that matter, and appropriately address them. 2. Design strategies to address resistance to change by instituting motivation rather than the imposition of threats or penalties. 3. Restructure the policies for expatriate managers to clearly indicate options for taking along the family, offering incentives in employment for the spouse, or giving added incentives in terms of higher salary or more frequent vacations (if employee opts to take the assignment alone). 4. Provide ample training for potential expatriate managers in terms of cultural diversity and ethical issues that need to be understood and applied in the countries targeted for future assignments. When managers are given appropriate training and chosen using the characteristics and qualifying traits as above mentioned, these managers would develop competencies and skills to oversee operations in other countries. When cultural diversity is likewise duly incorporated in the policies of the organization, all aspects of enhancing cultural awareness in target countries would be honed to ensure that managers would be confident and capable to undertake challenges in whatever future assignments that need to be accepted in countries other than their own. Conclusion Based on the article written by Peacock on the expatriation issues faced by Jaguar, the essay was successful in addressing the objectives proffered: identified three important HR issues that are raised by this scenario, such as international employees resourcing, resistance and managing cultural diversity in multinational organizations. By reviewing and summarizing pertinent secondary research on the related issues, the discourse eventually stipulated the courses of actions proposed for HR professionals who face similar situations. As global organizations increasingly face intricate challenges on issues concerning human resources, management must determine the root causes of the dilemma to aptly design strategies and approaches that would ensure that these concerns are immediately addressed. 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