Preparing Human Resource Managers - Example

Student’s name Institution Course Professor Date Overview Currently, many organizations are moving into international markets due to different reasons including reducing company risks, getting new market opportunities and benefiting from opportunities of diversification. With this recent move by organizations to globalize their business environment, there is need for the development of a robust human resource management that can provide service at any place globally. Human resource has been stated to be a critical factor to any developing organization. Many of these organizations have failed due to their failure to prepare their managers for adaptability to a global environment. Despite the fact that human resource managers may have necessary knowledge for managing organizations, they may lack experience of managing in a global environment. As a matter of fact, business environment in one country vary to a great extent with that of another country in terms of legislations, culture and other environmental factors. Therefore, organizations moving towards globalizing their operations ought to prepare their human resource managers very well. An organization like Ribble Associates with managers who have never undertaken any international assignment in the human resource section need to take certain measures to prepare them. This report will outline various actions that need to be undertaken by Ribble Associates in preparing the three human resource managers for the provision of this service in a global environment. Additionally, this report will be inclusive of various recommendations to the senior management in terms of management development, career planning and expatriate failure. Introduction A number of research studies have focused on many human resource management issues including roles of human resource managers, innovative human resource practices, human resource management information systems and human resource best practices among others. Focus on human resource management has extended to international human resource management especially with the current move by various organizations to internationalize their operations. The functions of human resource managers have also been discussed in international contexts. Organizations’ management need to be knowledgeable about these functions if they are to prepare their human resource managers well. Perhaps, it is important to differentiate between human resource management and international human resource management. Background Human resource management has been defined by various scholars in the same way but using different wordings. Despite the fact that they are using different words to define the same thing, they all center on the same idea. It is worth noting that human resource management is a general concept; applies to both international and domestic aspects. Human resource management is a management function helping managers in the recruitment, selection, training and development of employees of an organization (Aswathappa, 2005:5). In the same way, Swanepoel defines human resource management as “that section of the management of organizations that is preoccupied with all facets related to, and interplay with, the work and people who do the work of and in organizations” (Swanepoel, 2008: 4). Swanepoel takes the same approach taken by Boxall et al. who define human resource management as the management of tasks and individuals towards the set goals (Boxall, Purcell & Wright, 2007: 1). It is therefore that activity concerned with all facets related to the management of tasks and individuals working. This management can either be on an international dimension or domestic dimension. These activities include; planning, staffing, performance management, training and development, compensation and benefits and industrial relations (Dowling et al., 2008: 2; Stolt, 2010: 2). International human resource management on the other hand is somehow a specific concept only applicable to international organizations. Dowling, Festing & Engle, (2008) define international human resource management as managing a global workforce to worldwide human resource management encompassing all human resource activities globally. In simple terms, it is the human resource management in a global perspective. In fact, Scagliotti & Mujtaba (2010: 57) have argued that international human resource management is simply human resource management except that it is not limited to a single location. It is quite important to note that managing from a global perspective is different from management in a domestic perspective. Morgan’s model of International Human Resource Management shown below has proved helpful in the understanding of what it entails. According to Morgan, International human resource management can be perceived as the interaction of the three broad dimensions; activities, employee type and place of operation (Dowling, Festing & Engle, 2008: 3). It comprises of all domestic human resource activities. The only difference is that domestic human resource management encompasses employees within a single state boundary. Complexities come along with moving to another country to deliver the service of management. Despite the fact that human resource activities remain the same, it will require a greater extent of involvement in terms of expatriate’s individual life. Complexities will also come into being in terms of cultural changes. Stress has been identified to be a major cause of expatriate failure in contemporary organizations (Koteswari & Bhattacharya, 2007: 90). Culture shock is the main causative factor of stress among the expatriates. Stahl et al. (2012) highlights the fact that cultural disparities have considerable impacts on human resource practices. However, Cuevas et al. (2011: 44) posit that culture shock is a regular experience among the assignees and it should be accepted. Global human resource management is being thwarted by the demand for adaptation to the foreign culture, policies and guidelines that differ for many countries where the organization is based. Apart from cultural complexities, other factors such as labor cost factors, economic factors and industrial relations factors have proved to be great stumbling blocks to international HRM. It is therefore crucial for globalizing organizations to take note of these factors. These factors have affected human resource management functions such as training and development, and management of employees. Cultural difference has been noted to be a common factor affecting expatriates. An undertaking by any organization to globalize its operations requires comprehensive planning in terms of marketing, finance and human resource management (Rao, 2008: 1). This is due to the fact international markets do possess different types of competitors and conditions of operation. Planning will enable such organizations cope with these conditions. Despite the fact that global managers and domestic managers are endowed with the same tasks, Adler and Bartholomew have identified seven skills deemed to be necessary for managing in a global perspective (Werner& DeSimone, 2009: 437). They are; “global perspective, local responsiveness, synergistic learning, transition and adaptation, cross-cultural interaction, collaboration and foreign experience” (Werner& DeSimone, 2009: 437-438). These seven skills differentiate between global managers and domestic managers. Prior to sending employees for international assignments, the senior management ought to look into various human resource management issues which ensure their good preparation. Williams (2006) highlights the fact that preparation of employees for international assignments is one of the critical issues on international management. Expatriates have always failed in their international assignments due to the challenges of adapting to linguistic, cultural and social disparities. Proper preparation will guarantee smooth transition to global assignments. International assignments are a risky and costly venture but the returns are high. Use of management development programs has risen in the recent past as a supplement to international assignments. These programs can be implemented through various strategies such as classroom learning, group discussions, computer learning units and on-the-job learning (Werner& DeSimone, 2009: 437). They are aimed at producing global managers. Organizations transfer their employees to work in foreign countries due to many reasons. The common ones are; filling positions especially in developing nations where it is quite difficult to get trained personnel, management development and organization development. Management development in particular aims at developing a human resource manager for future international assignments. Organizational development is the result of management development (Reiche & Harzing, 2009: 16). Developing the management will increase the chances of an organization succeeding and competing in international market. Much has been done with regards to management development. It is for this reason that many scholars have contributed in defining it. It has therefore been defined by many scholars in their own words but they all centre around one idea of enhancing management skills of managers. Werner& DeSimone, (2009) have defined management development as “ organization’s conscious effort to offer its managers chances to learn, develop and change, in hopes of producing over the long term a unit of managers with skills necessary to function effectively in that organization” (Werner & DeSimone, 2009: 428). In the same way, Boella & Goss-Turner (2012) define management development as those activities meant to offer an organization with proficient management team capable of meeting both short term and long term organizational objectives. In essence, the idea of developing management team ensures that an organization has competent human resource managers who can work anywhere under different conditions and who posses deep understanding of global human resource issues. Considering the fact that Ribble Associates is going global and it plans to send expatriates to manage the newly established branches of this organization, it is very critical for the company to develop them. The three employees have little experience on international assignments. In addition to this, the process of relocating them to work in a foreign country will interrupt their personal lives and will involve a lot of self devotion. It is necessary for the company to develop them for future international assignments as it globalizes. The activities of management development should aim at preparing managers for the organization’s future. Expatriate failure is a major challenge to contemporary organizations (Shaffer & Harrison, 1998: 87). Expatriate failure in many cases has resulted to pre-mature termination of an international assignment from the assignee. The costs of expatriate failure are very high. According to Vögel & Van Vuuren (2008), expatriate failure can be evaded through effective preparation, support and training of the expatriate and, trailing the spouse and its family. These activities affect the level of management provided by an expatriate (Harvey, 1995: 233). This has been further supported by Tung (1982)’s argument that the success of an international assignment is dependent on its location. Age is also another crucial factor affecting the delivery and success of an assignee in an international assignment (Hodgetts & Luthans, 2003: 451). It is therefore crucial for the senior management to look into these factors when preparing its expatriates for their impending tasks. Recommendations Expatriate Training Training encompasses several processes such as cross-cultural training programs, pre-visits, language training and on-the-job assistance (Scagliotti & Mujtaba, 2010: 59). In the same way, Tung (1981) has identified five major expatriate training programs commonly used today and they comprise of; area studies programs, culture assimilation programs, language training programs, sensitivity training programs and field experiences programs. As earlier mentioned, culture is a serious impediment to the accomplishment of international assignment. Being a major causative factor of stress, cross-cultural training programs should be designed for the three expatriate employees in consideration that they are going to work under foreign cultures. It is the sole responsibility of the top management to educate its employees on the significance of culture. Cross-cultural programs are meant to equip the assignees with cultural awareness necessary for mitigating the encounters and issues that would likely face them in their impending tasks in a foreign business environment (Cuevas et al., 2011: 45). Wilkinson & Singh (2010) (cited in Scagliotti & Mujtaba, 2010: 58) have argued that previous research studies have indicated a direct correlation between spouse and assignee adaptation especially for married assignees shifting with the family. Stress due to culture shock has been identified to be the main reason for expatriate failure. Importantly, their families should be included in these training sessions. Cross-cultural training will provide the family with a chance to get acquainted with challenges and other factors that may influence relocation process (Ghafoor et al., 2011: 343). The concept of training both expatriates and their families will be applicable to Alan Jones who is married and he is likely to move together with his family. The magnitude of training that needs to be provided to the three will depend on their previous exposure to other cultures. Beamish et al., (2000) highlights the fact that cultural exposure influences the magnitude of training to be provided to the expatriates. Expatriates can have no exposure, minimal exposure and intense exposure. The magnitude of cultural exposure is twosome; level of integration and extent of an assignment (Beamish et al., 2000: 193). Short term assignments can have two effects on assignees; little exposure or strong exposure depending on the objective of the visit. On the other hand, long term assignments will give strong cultural exposure to assignees. With reference to the three assignees of Ribble associates, Bill Smith who has had a number of week-long international assignments in Paris in an anticipation of the new business venture in France has little cross-cultural exposure. Joyce Carruthers who has experience in setting up similar new business ventures in Spain and Portugal has strong cross-cultural experience. On the other hand, Alan Jones who has only worked for Ribble Associates only for two years has no cross-cultural exposure. The magnitude of training to be received by each of them will vary. Minimal cross-cultural exposure as a result of less than one month assignment will require “information-giving approach” (Beamish 2000: 193-194). For this case, “information-giving approach would be suitable for Bill Smith who has little cross-cultural exposure. Information-giving approach encompasses regional and cultural sessions, and basic language training (Vögel & Van Vuuren, 2008: 82). Joyce Carruthers who possesses vast experience acquired when she was working in Spain and Portugal may assist in training the other two managers. Spanish culture and French culture are difference but previous exposure to a foreign culture offers her more advantage. Alan Jones who lacks exposure to foreign culture ought to be given extensive training. Extensive training may include field experiences. Field experiences entail sending the assignee to the state of assignment or neighboring “micro-cultures” where they will experience various anticipated emotional stress (Tung, 1981: 71). In the process, he will gain some exposure to impending challenges and may gain some few mitigation measures. Similarly, it will be important to include Bill Smith in this type of training. The type of cross-cultural training will also depend on the extent of assignment. Vögel & Van Vuuren, (2008: 82) have highlighted that longer assignments extending for a period of about two to twelve months, with average integration level may require cross-cultural training activities such as language training, case studies, role-playing and training on how to reduce stress. However, for expatriates who will be relocating for a period ranging from about one to three years with intense cultural integration, much training will be required. For such expatriates, “cross-cultural training activities such as; extensive language training, sensitivity training, field experience and simulations would be suitable” (Vögel & Van Vuuren, 2008: 82). Putting the case of Ribble Associates that will be operating for the next three years into consideration, the latter would be appropriate. Foreign language training is also an important aspect of training for the expatriates. For this case, the assignees are going to relocate to host country for their assignments. Learning French is crucial for them because it will be the basis of communication while undertaking their tasks. Ko & Yang (2011: 162) have pointed out the fact that language holds a considerable expanse of culture. Learning foreign language will assist in reducing chances of misunderstanding and misapprehension. Language training should follow cross-cultural training (Ashamalla, 1998: 59). Other training programs that need to be incorporated into the entire training are sensitivity training, field experiences and culture assimilation programs. These training programs require strategic planning. Mentoring Providing the assignee with a mentor helps in information exchange. A mentor and the expatriate will exchange ideas pertaining career and other developmental issues. In addition to this, mentors will assist the assignees in knowing the reason for the assignment. Mentoring occurs throughout the expatriation process; pre-expatriation, expatriation and repatriation (Harvey et al., 1999; cited in Elingsbo & Thorell, 2003: 14). For this case, pre-expatriation mentoring is necessary. It is therefore crucial for the company to offer each of the three expatriates with mentors. Mentors need to be individuals who have worked in the same capacity on an international assignment before such as international human resource managers of neighboring companies or former successful expatriates. Bird & Dunbar (1991: 154) recommend that mentors ought to be persons who have had successful assignment in the host country. The company should maintain these mentors for the entire expatriation process. Elingsbo & Thorell (2003) highlights the fact that mentoring will help the assignees to develop effective coping skills thus preventing expatriate failure. Mentors in the entire expatriation process will assist in career development of the assignee. It is also crucial for the company to develop an overall mentoring program. Providing a mentor to the expatriate is the best way for planning for expatriate failure. It is for this reason that mentors need to be maintained throughout the expatriation process. However, the use of three mentors may be disadvantageous to the company in terms of costs. To avoid this, the company ought to find one mentor for the three prospect expatriates. The mentor will reside at the headquarters with the three prospect assignees during the pre-expatriation process. Conclusion In conclusion, the success of the expatriation process is dependent on pre-expatriation preparation. The company should focus mainly on all aspects of training to better equip the expatriate with necessary skills for international management. Training is important because it encompasses various issues deemed necessary for global management. Training requires strategic planning. In addition to training and mentoring, there are other support activities that can prove helpful in preparing the assignees. They include providing the assignees with a good repatriation plan, assuring and preparing a proper financial plan for assisting expatriates and the trailing family, providing health examination, arranging for the acquisition of work and habitation permit, and providing accommodation arrangements. Much focus should be given to cultural awareness as it determines the success of the entire organization. Culture plays a critical role in both business and friendship relationships (Scagliotti & Mujtaba, 2010: 68). References Ashamalla, M. 1998. International Human Resource Management Practice: The Challenge of Expatriation. Commercial Reviews, 8(2): 54-65. Aswathappa, K. 2005. Human Resource and Personnel Management (ed 4). New Delhi: Tata McGraw-Hill. Beamish, P. W., Morrison, A. J., Rosenzweig, P. M. & Inkpen, A. C. 2000. International Management: Text and Cases (ed 4). Boston: Irwin McGraw-Hill. Bird, A. & Dunbar, R. 1991. 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